Question 1

If a tax is levied on the sellers of flour, then

Accepted Answer

A)   buyers will bear the entire burden of the tax.
B)   sellers will bear the entire burden of the tax.
C)   buyers and sellers will share the burden of the tax.
D)   the government will bear the entire burden of the tax.E) A) and D)
F) C) and D)

Question 2

If the demand curve is more price elastic than the supply curve in a particular market, will the buyers or the sellers bear a larger burden of a per-unit tax imposed on the market?

Accepted Answer

The sellers will bea...

Question 3

Figure 6-15 
-Refer to Figure 6-15. Suppose a price ceiling of $2 is imposed on this market. As a result,

Accepted Answer

A)   the quantity of the good supplied decreases by 30 units.
B)   the demand curve shifts to the left so as to now pass through the point (quantity = 30, price = $2) .
C)   buyers' total expenditure on the good decreases by $75.
D)   buyers' total expenditure on the good falls by $15.E) B) and C)
F) A) and D)

Question 4

A tax burden falls more heavily on the side of the market that

Accepted Answer

A)   has a fewer number of participants.
B)   is more inelastic.
C)   is closer to unit elastic.
D)   is less inelastid.E) B) and C)
F) A) and C)

Question 5

Figure 6-11 
-Refer to Figure 6-11. If the government imposes a price ceiling at $6, it would be

Accepted Answer

A)   binding if market demand is Demand A or Demand B.
B)   non-binding if market demand is Demand A or Demand B.
C)   binding if market demand is Demand A and non-binding if market demand is Demand c.
D)   non-binding if market demand is Demand A and binding if market demand is Demand B.E) All of the above
F) B) and D)

Question 6

Figure 6-23
 
-Refer to Figure 6-23. For every unit of the good that is sold, sellers are required to send

Accepted Answer

A)   one dollar to the government, and buyers are required to send two dollars to the government.
B)   two dollars to the government, and buyers are required to send one dollar to the government.
C)   three dollars to the government, and buyers are required to send nothing to the government.
D)   nothing to the government, and buyers are required to send two dollars to the government.E) A) and B)
F) None of the above

Question 7

Figure 6-25 
-Refer to Figure 6-25. The effective price that sellers receive after the tax is imposed is

Accepted Answer

A)   $5.
B)   $6.
C)   $7.
D)   $8.E) B) and C)
F) All of the above

Question 8

Figure 6-33 
-Refer to Figure 6-33. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market?

Accepted Answer

The burden...

Question 9

When a binding price ceiling is imposed on a market for a good, some people who want to buy the good cannot do so.

Accepted Answer

A) True 
 B)False

Question 10

Figure 6-31 
-Refer to Figure 6-31. If the government set a price ceiling at $9, would there be a shortage or surplus, and how large would be the shortage/surplus?

Accepted Answer

There woul...

Question 11

Price ceilings are typically imposed to benefit sellers.

Accepted Answer

A) True 
 B)False

Question 12

Price controls

Accepted Answer

A)   always produce a fair outcome.
B)   always produce an efficient outcome.
C)   can generate inequities of their own.
D)   All of the above are correct.E) All of the above
F) B) and D)

Question 13

Table 6-3
The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this market.
 
-Refer to Table 6-3. Following the imposition of a price floor $2 above the equilibrium price, irate buyers convince Congress to repeal the price floor and to impose a price ceiling $1 below the former price floor. The resulting market price is

Accepted Answer

A)   $2.
B)   $3.
C)   $4.
D)   $5.E) None of the above
F) B) and C)

Question 14

The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax is levied on buyers or sellers.

Accepted Answer

A) True 
 B)False

Question 15

A price floor set below the equilibrium price causes quantity supplied to exceed quantity demanded.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)   and the price paid by buyers both increase.
B)   increases, but the price paid by buyers decreases.
C)   decreases, but the price paid by buyers increases.
D)   and the price paid by buyers both decrease.E) B) and C)
F) C) and D)

Question 17

Figure 6-25 
-Refer to Figure 6-25. The price that buyers pay after the tax is imposed is

Accepted Answer

A)   $5.
B)   $6.
C)   $7.
D)   $8.E) All of the above
F) A) and B)

Question 18

States in the U.S. may mandate minimum wages above the federal level.

Accepted Answer

A) True 
 B)False

Question 19

A minimum wage that is set below a market's equilibrium wage will

Accepted Answer

A)   result in an excess demand for labor, that is, unemployment.
B)   result in an excess demand for labor, that is, a shortage of workers.
C)   result in an excess supply of labor, that is, unemployment.
D)   have no impact on employment.E) C) and D)
F) All of the above

Question 20

Not all sellers benefit from a binding price floor.

Accepted Answer

A) True 
 B)False

Exam 6: Supply, Demand, and Government Policies

Figure 6-25 -Refer to Figure 6-25. The price that buyers pay after the tax is imposed is

Correct Answer
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Not all sellers benefit from a binding price floor.

Correct Answer
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Figure 6-15 -Refer to Figure 6-15. Suppose a price ceiling of $2 is imposed on this market. As a result,

Correct Answer
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A minimum wage that is set below a market's equilibrium wage will

Correct Answer
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If a tax is levied on the sellers of flour, then

Correct Answer
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Figure 6-23 -Refer to Figure 6-23. For every unit of the good that is sold, sellers are required to send

Correct Answer
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Figure 6-25 -Refer to Figure 6-25. The effective price that sellers receive after the tax is imposed is

Correct Answer
verified

A price floor set below the equilibrium price causes quantity supplied to exceed quantity demanded.

Correct Answer
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Price controls

Correct Answer
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Price ceilings are typically imposed to benefit sellers.

Correct Answer
verified

Correct Answer
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When a binding price ceiling is imposed on a market for a good, some people who want to buy the good cannot do so.

Correct Answer
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States in the U.S. may mandate minimum wages above the federal level.

Correct Answer
verified

The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax is levied on buyers or sellers.

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 6-11 -Refer to Figure 6-11. If the government imposes a price ceiling at $6, it would be

Correct Answer
verified

Figure 6-33 -Refer to Figure 6-33. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market?

Correct Answer
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The burden...
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If the demand curve is more price elastic than the supply curve in a particular market, will the buyers or the sellers bear a larger burden of a per-unit tax imposed on the market?

Correct Answer
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The sellers will bea...
View Answer

Figure 6-31 -Refer to Figure 6-31. If the government set a price ceiling at $9, would there be a shortage or surplus, and how large would be the shortage/surplus?

Correct Answer
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There woul...
View Answer

A tax burden falls more heavily on the side of the market that

Correct Answer
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Exam 6: Supply, Demand, and Government Policies

Figure 6-25 -Refer to Figure 6-25. The price that buyers pay after the tax is imposed is

Correct AnswerverifiedShow Answer

Not all sellers benefit from a binding price floor.

Correct AnswerverifiedShow Answer

Figure 6-15 -Refer to Figure 6-15. Suppose a price ceiling of $2 is imposed on this market. As a result,

Correct AnswerverifiedShow Answer

A minimum wage that is set below a market's equilibrium wage will

Correct AnswerverifiedShow Answer

If a tax is levied on the sellers of flour, then

Correct AnswerverifiedShow Answer

Figure 6-23 -Refer to Figure 6-23. For every unit of the good that is sold, sellers are required to send

Correct AnswerverifiedShow Answer

Figure 6-25 -Refer to Figure 6-25. The effective price that sellers receive after the tax is imposed is

Correct AnswerverifiedShow Answer

A price floor set below the equilibrium price causes quantity supplied to exceed quantity demanded.

Correct AnswerverifiedShow Answer

Price controls

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Price ceilings are typically imposed to benefit sellers.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When a binding price ceiling is imposed on a market for a good, some people who want to buy the good cannot do so.

Correct AnswerverifiedShow Answer

States in the U.S. may mandate minimum wages above the federal level.

Correct AnswerverifiedShow Answer

The wedge between the buyers' price and the sellers' price is the same, regardless of whether the tax is levied on buyers or sellers.

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 6-11 -Refer to Figure 6-11. If the government imposes a price ceiling at $6, it would be

Correct AnswerverifiedShow Answer

Figure 6-33 -Refer to Figure 6-33. Suppose a $3 per-unit tax is imposed on the sellers of this good. How much is the burden of this tax on the buyers in this market?

Correct AnswerverifiedThe burden...View AnswerShow Answer

If the demand curve is more price elastic than the supply curve in a particular market, will the buyers or the sellers bear a larger burden of a per-unit tax imposed on the market?

Correct AnswerverifiedThe sellers will bea...View AnswerShow Answer

Figure 6-31 -Refer to Figure 6-31. If the government set a price ceiling at $9, would there be a shortage or surplus, and how large would be the shortage/surplus?

Correct AnswerverifiedThere woul...View AnswerShow Answer

A tax burden falls more heavily on the side of the market that

Correct AnswerverifiedShow Answer

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The burden...
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The sellers will bea...
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There woul...
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