Question 1

Rent-control laws dictate a minimum rent that landlords may charge tenants.

Accepted Answer

A) True 
 B)False

Question 2

Figure 6-6 
-Refer to Figure 6-6. If the government imposes a price ceiling of $6 on this market, then there will be

Accepted Answer

A)   no shortage.
B)   a shortage of 10 units.
C)   a shortage of 20 units.
D)   a shortage of 30 units.

Question 3

Figure 6-20 
-Refer to Figure 6-20. Suppose a tax of $5 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?

Accepted Answer

A)   $5
B)   between $5 and $10
C)   between $10 and $14
D)   $14

Question 4

Which of the following is correct?

Accepted Answer

A)   Workers determine the supply of labor, and firms determine the demand for labor.
B)   Workers determine the demand for labor, and firms determine the supply of labor.
C)   The labor market is a single market for all different types of workers.
D)   The price of the product produced by labor adjusts to balance the supply of labor and the demand for labor.

Question 5

A surplus results when a

Accepted Answer

A)   nonbinding price floor is imposed on a market.
B)   nonbinding price floor is removed from a market.
C)   binding price floor is imposed on a market.
D)   binding price floor is removed from a market.

Question 6

Rent control

Accepted Answer

A)   is an example of a price ceiling.
B)   leads to a larger shortage of apartments in the long run than in the short run.
C)   leads to lower rents and, in the long run, to lower-quality housing.
D)   All of the above are correct.

Question 7

When a tax is placed on the buyers of a product, the

Accepted Answer

A)   size of the market decreases.
B)   effective price received by sellers decreases, and the price paid by buyers increases.
C)   demand for the product decreases.
D)   All of the above are correct.

Question 8

Figure 6-7 
-Refer to Figure 6-7. Suppose a price floor of $8 is imposed on this market. As a result,

Accepted Answer

A)   buyers' total expenditure on the good decreases by $20.
B)   the supply curve shifts to the left; quantity sold is now 30 units and the price is $8.
C)   the quantity of the good demanded decreases by 10 units.
D)   the price of the good continues to serve as the rationing mechanism.

Question 9

If a tax is imposed on the sellers of a product, then the tax burden will fall entirely on the sellers.

Accepted Answer

A) True 
 B)False

Question 10

Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift

Accepted Answer

A)   demand, raising both the equilibrium price and quantity in the market for artificially-sweetened beverages.
B)   demand, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially- sweetened beverages.
C)   supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially- sweetened beverages.
D)   supply, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially- sweetened beverages.

Question 11

Scenario 6-2
Suppose demand for a product is given by the equation  and supply for the product is given by the equation 
-Refer to Scenario 6-2. Suppose the government sets a price ceiling at $17 for this product. Is this price ceiling binding, and what will be the size of the shortage/surplus in this market?

Accepted Answer

The price ceiling will not be ...

Question 12

Figure 6-27
This figure shows the market demand and market supply curves for good Z. 
-Refer to Figure 6-27. Suppose a tax of $6 per unit is imposed on this market. Which of the following is correct?

Accepted Answer

A)   Buyers and sellers will share the burden of the tax equally.
B)   Buyers will bear more of the burden of the tax than sellers will.
C)   Sellers will bear more of the burden of the tax than buyers will.
D)   Any of the above is possible.

Question 13

The minimum wage, if it is binding, raises the incomes of

Accepted Answer

A)   no workers.
B)   only those workers who cannot find jobs.
C)   only those workers whose jobs would pay less than the minimum wage if it didn't exist.
D)   all workers.

Question 14

When a tax is placed on the sellers of cell phones, the size of the cell phone market

Accepted Answer

A)   and the effective price received by sellers both increase.
B)   increases, but the effective price received by sellers decreases.
C)   decreases, but the effective price received by sellers increases.
D)   and the effective price received by sellers both decrease.

Question 15

Figure 6-19 
-Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?

Accepted Answer

A)   $3
B)   between $3 and $5
C)   between $5 and $7
D)   $7

Question 16

Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage depresses teenage employment by about

Accepted Answer

A)   1 to 3 percent.
B)   5 to 7 percent.
C)   10 percent.
D)   None of the above is correct because studies show no decrease in teenage employment.

Question 17

Table 6-2
 
-Refer to Table 6-2. A price ceiling set at $20 will

Accepted Answer

A)   be binding and will result in a shortage of 75 units.
B)   be binding and will result in a shortage of 200 units.
C)   be binding and will result in a shortage of 125 units.
D)   not be binding.

Question 18

If the government passes a law requiring sellers of mopeds to send $200 to the government for every moped they sell, then

Accepted Answer

A)   the supply curve for mopeds shifts downward by $200.
B)   sellers of mopeds receive $200 less per moped than they were receiving before the tax.
C)   buyers of mopeds are unaffected by the tax.
D)   None of the above is correct.

Question 19

Figure 6-7 
-Refer to Figure 6-7. For a price ceiling to be binding in this market, it would have to be set at

Accepted Answer

A)   any price below $7.
B)   any price above $3.
C)   any price below $9.
D)   any price above $7.

Question 20

If a price ceiling of $1.50 per gallon is imposed on gasoline, and the market equilibrium price is $2, then the price ceiling is a binding constraint on the market.

Accepted Answer

A) True 
 B)False

Exam 6: Supply, Demand, and Government Policies

When a tax is placed on the buyers of a product, the

Correct Answer
verified

If a tax is imposed on the sellers of a product, then the tax burden will fall entirely on the sellers.

Correct Answer
verified

If the government passes a law requiring sellers of mopeds to send $200 to the government for every moped they sell, then

Correct Answer
verified

Correct Answer
verified
The price ceiling will not be ...
View Answer

Figure 6-7 -Refer to Figure 6-7. For a price ceiling to be binding in this market, it would have to be set at

Correct Answer
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Rent-control laws dictate a minimum rent that landlords may charge tenants.

Correct Answer
verified

Which of the following is correct?

Correct Answer
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Figure 6-19 -Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?

Correct Answer
verified

Table 6-2 -Refer to Table 6-2. A price ceiling set at $20 will

Correct Answer
verified

Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift

Correct Answer
verified

Figure 6-6 -Refer to Figure 6-6. If the government imposes a price ceiling of $6 on this market, then there will be

Correct Answer
verified

If a price ceiling of $1.50 per gallon is imposed on gasoline, and the market equilibrium price is $2, then the price ceiling is a binding constraint on the market.

Correct Answer
verified

Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage depresses teenage employment by about

Correct Answer
verified

Rent control

Correct Answer
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The minimum wage, if it is binding, raises the incomes of

Correct Answer
verified

When a tax is placed on the sellers of cell phones, the size of the cell phone market

Correct Answer
verified

Figure 6-7 -Refer to Figure 6-7. Suppose a price floor of $8 is imposed on this market. As a result,

Correct Answer
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Figure 6-20 -Refer to Figure 6-20. Suppose a tax of $5 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?

Correct Answer
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Figure 6-27 This figure shows the market demand and market supply curves for good Z. -Refer to Figure 6-27. Suppose a tax of $6 per unit is imposed on this market. Which of the following is correct?

Correct Answer
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A surplus results when a

Correct Answer
verified

Exam 6: Supply, Demand, and Government Policies

When a tax is placed on the buyers of a product, the

Correct AnswerverifiedShow Answer

If a tax is imposed on the sellers of a product, then the tax burden will fall entirely on the sellers.

Correct AnswerverifiedShow Answer

If the government passes a law requiring sellers of mopeds to send $200 to the government for every moped they sell, then

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe price ceiling will not be ...View AnswerShow Answer

Figure 6-7 -Refer to Figure 6-7. For a price ceiling to be binding in this market, it would have to be set at

Correct AnswerverifiedShow Answer

Rent-control laws dictate a minimum rent that landlords may charge tenants.

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Figure 6-19 -Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?

Correct AnswerverifiedShow Answer

Table 6-2 -Refer to Table 6-2. A price ceiling set at $20 will

Correct AnswerverifiedShow Answer

Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift

Correct AnswerverifiedShow Answer

Figure 6-6 -Refer to Figure 6-6. If the government imposes a price ceiling of $6 on this market, then there will be

Correct AnswerverifiedShow Answer

If a price ceiling of $1.50 per gallon is imposed on gasoline, and the market equilibrium price is $2, then the price ceiling is a binding constraint on the market.

Correct AnswerverifiedShow Answer

Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage depresses teenage employment by about

Correct AnswerverifiedShow Answer

Rent control

Correct AnswerverifiedShow Answer

The minimum wage, if it is binding, raises the incomes of

Correct AnswerverifiedShow Answer

When a tax is placed on the sellers of cell phones, the size of the cell phone market

Correct AnswerverifiedShow Answer

Figure 6-7 -Refer to Figure 6-7. Suppose a price floor of $8 is imposed on this market. As a result,

Correct AnswerverifiedShow Answer

Figure 6-20 -Refer to Figure 6-20. Suppose a tax of $5 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?

Correct AnswerverifiedShow Answer

Figure 6-27 This figure shows the market demand and market supply curves for good Z. -Refer to Figure 6-27. Suppose a tax of $6 per unit is imposed on this market. Which of the following is correct?

Correct AnswerverifiedShow Answer

A surplus results when a

Correct AnswerverifiedShow Answer

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The price ceiling will not be ...
View Answer

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