Filters
Question type
Study Flashcards

A tax burden falls more heavily on the side of the market that is less elastic.

A) True
B) False

Correct Answer

verifed

verified

If a price ceiling is not binding, then it will have no effect on the market.

A) True
B) False

Correct Answer

verifed

verified

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


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.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Figure 6-35 Figure 6-35 -Refer to Figure 6-35. A price ceiling set at $70 would create a shortage of 40 units. -Refer to Figure 6-35. A price ceiling set at $70 would create a shortage of 40 units.

A) True
B) False

Correct Answer

verifed

verified

Scenario 6-2 Suppose demand for a product is given by the equation 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? and supply for the product is given by the equation 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? -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?

Correct Answer

verifed

verified

The price ceiling will not be ...

View Answer

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

A) True
B) False

Correct Answer

verifed

verified

Figure 6-25 Figure 6-25 -Refer to Figure 6-25. The burden of the tax on buyers is A) $1 per unit. B) $1.50 per unit. C) $2 per unit. D) $3 per unit. -Refer to Figure 6-25. The burden of the tax on buyers is


A) $1 per unit.
B) $1.50 per unit.
C) $2 per unit.
D) $3 per unit.

E) A) and B)
F) All of the above

Correct Answer

verifed

verified

Figure 6-28 Figure 6-28 -Refer to Figure 6-28. Suppose a tax of $6 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed? A) $4 B) between $4 and $7 C) between $7 and $10 D) $10 -Refer to Figure 6-28. Suppose a tax of $6 per unit is imposed on this market. How much will sellers receive per unit after the tax is imposed?


A) $4
B) between $4 and $7
C) between $7 and $10
D) $10

E) B) and C)
F) B) and D)

Correct Answer

verifed

verified

Scenario 6-1 Suppose that demand in the market for good X is given by the equation Scenario 6-1 Suppose that demand in the market for good X is given by the equation and that supply in the market for good X is given by the equation -Refer to Scenario 6-1. If the government set a price ceiling at $8, would there be a shortage or surplus, and how large would be the shortage/surplus? and that supply in the market for good X is given by the equation Scenario 6-1 Suppose that demand in the market for good X is given by the equation and that supply in the market for good X is given by the equation -Refer to Scenario 6-1. If the government set a price ceiling at $8, would there be a shortage or surplus, and how large would be the shortage/surplus? -Refer to Scenario 6-1. If the government set a price ceiling at $8, would there be a shortage or surplus, and how large would be the shortage/surplus?

Correct Answer

verifed

verified

A price ceiling set ...

View Answer

Figure 6-23 Figure 6-23 -Refer to Figure 6-23. Which of the following is correct? A) The entire burden of the tax falls on sellers, and none of the burden of the tax falls on buyers. B) One-third of the burden of the tax falls on buyers, and two-thirds of the burden of the tax falls on sellers. C) One-half of the burden of the tax falls on buyers, and one-half of the burden of the tax falls on sellers. D) Two-thirds of the burden of the tax falls on buyers, and one-third of the burden of the tax falls on sellers. -Refer to Figure 6-23. Which of the following is correct?


A) The entire burden of the tax falls on sellers, and none of the burden of the tax falls on buyers.
B) One-third of the burden of the tax falls on buyers, and two-thirds of the burden of the tax falls on sellers.
C) One-half of the burden of the tax falls on buyers, and one-half of the burden of the tax falls on sellers.
D) Two-thirds of the burden of the tax falls on buyers, and one-third of the burden of the tax falls on sellers.

E) B) and D)
F) B) and C)

Correct Answer

verifed

verified

Minimum wage laws


A) may encourage some teenagers to drop out and take jobs.
B) create labor shortages.
C) have the greatest impact in the market for skilled labor.
D) All of the above are correct.

E) All of the above
F) B) and D)

Correct Answer

verifed

verified

Define a price floor.

Correct Answer

verifed

verified

A price floor is a l...

View Answer

Figure 6-19 Figure 6-19 -Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed? A) $3 B) between $3 and $5 C) between $5 and $7 D) $7 -Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?


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

E) None of the above
F) All of the above

Correct Answer

verifed

verified

A minimum wage that is set above a market's equilibrium wage will result in an excess


A) demand for labor, that is, unemployment.
B) demand for labor, that is, a shortage of workers.
C) supply of labor, that is, unemployment.
D) supply of labor, that is, a shortage of workers.

E) A) and B)
F) C) and D)

Correct Answer

verifed

verified

Figure 6-32 Figure 6-32 -Refer to Figure 6-32. If the government set a price ceiling at $40, would there be a shortage or surplus, and how large would be the shortage/surplus? -Refer to Figure 6-32. If the government set a price ceiling at $40, would there be a shortage or surplus, and how large would be the shortage/surplus?

Correct Answer

verifed

verified

There woul...

View Answer

​The incidence of a tax is


A) ​always determined by the demand side of the market.
B) ​always determined by the supply side of the market.
C) ​always determined by the interaction of the demand and supply side of the market..
D) ​always determined by which side of the market the government imposes the tax on.

E) C) and D)
F) A) and B)

Correct Answer

verifed

verified

Figure 6-4 Figure 6-4 -Refer to Figure 6-4. A government-imposed price of $6 in this market is an example of a A) binding price ceiling that creates a shortage. B) non-binding price ceiling that creates a shortage. C) binding price floor that creates a surplus. D) non-binding price floor that creates a surplus. -Refer to Figure 6-4. A government-imposed price of $6 in this market is an example of a


A) binding price ceiling that creates a shortage.
B) non-binding price ceiling that creates a shortage.
C) binding price floor that creates a surplus.
D) non-binding price floor that creates a surplus.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

To say that a price ceiling is binding is to say that the price ceiling


A) results in a shortage.
B) is set below the equilibrium price.
C) causes quantity demanded to exceed quantity supplied.
D) All of the above are correct.

E) A) and C)
F) B) and C)

Correct Answer

verifed

verified

A tax on sellers shifts the supply curve but not the demand curve.

A) True
B) False

Correct Answer

verifed

verified

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


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.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

Showing 101 - 120 of 671

Related Exams

Exam 1

Ten Principles of Economics

455 Questions

Exam 2

Thinking Like an Economist

645 Questions

Exam 3

Interdependence and the Gains From Trade

550 Questions

Exam 4

The Market Forces of Supply and Demand

693 Questions

Exam 5

Elasticity and Its Application

625 Questions

Exam 7

Consumers, Producers, and the Efficiency of Markets

547 Questions

Exam 8

Application: The Costs of Taxation

507 Questions

Exam 9

Application: International Trade

521 Questions

Exam 10

Externalities

543 Questions

Exam 11

Public Goods and Common Resources

453 Questions

Exam 12

The Design of the Tax System

563 Questions

Exam 13

The Costs of Production

649 Questions

Exam 14

Firms in Competitive Markets

608 Questions

Exam 15

Monopoly

662 Questions

Exam 16

Monopolistic Competition

649 Questions

Exam 17

Oligopoly

522 Questions

Exam 18

The Markets for the Factors of Production

592 Questions

Exam 19

Earnings and Discrimination

511 Questions

Exam 20

Income Inequality and Poverty

478 Questions

Exam 21

The Theory of Consumer Choice

568 Questions

Exam 22

Frontiers in Microeconomics

461 Questions

Show Answer