Question 1

Economic policies often have effects that their architects did not intend or anticipate.

Accepted Answer

A) True 
 B)False

Question 2

A $2.00 tax levied on the sellers of birdhouses will shift the supply curve

Accepted Answer

A)   upward by exactly $2.00.
B)   upward by less than $2.00.
C)   downward by exactly $2.00.
D)   downward by less than $2.00.E) None of the above
F) B) and C)

Question 3

Which of the following is not an example of a public policy?

Accepted Answer

A)   rent-control laws
B)   minimum-wage laws
C)   taxes
D)   equilibrium lawsE) None of the above
F) B) and D)

Question 4

Table 6-1
 
-Refer to Table 6-1.Suppose the government imposes a price floor of $5 on this market.What will be the size of the surplus in this market?

Accepted Answer

A)   0 units
B)   2 units
C)   8 units
D)   10 unitsE) B) and C)
F) A) and D)

Question 5

Figure 6-19 
-Refer to Figure 6-19.The price paid by buyers after the tax is imposed is

Accepted Answer

A)   $3.
B)   $4.
C)   $5.
D)   $7.E) C) and D)
F) B) and C)

Question 6

Figure 6-27 
-Refer to Figure 6-27.If the government places a $2 tax in the market,the buyer pays $4.

Accepted Answer

A) True 
 B)False

Question 7

Figure 6-6 
-Refer to Figure 6-6.If the government imposes a price floor of $14 on this market,then there will be

Accepted Answer

A)   no surplus.
B)   a surplus of 20 units.
C)   a surplus of 30 units.
D)   a surplus of 40 units.E) A) and C)
F) B) and C)

Question 8

The price received by sellers in a market will increase if the government

Accepted Answer

A)   decreases a binding price floor in that market.
B)   increases a binding price ceiling in that market.
C)   increases a tax on the good sold in that market.
D)   imposes a binding price ceiling in that market.E) A) and C)
F) C) and D)

Question 9

A tax on sellers reduces the size of a market.

Accepted Answer

A) True 
 B)False

Question 10

If the government removes a $2 tax on buyers of cigars and imposes the same $2 tax on sellers of cigars,then the price paid by buyers will

Accepted Answer

A)   not change,and the price received by sellers will not change.
B)   not change,and the price received by sellers will decrease.
C)   decrease,and the price received by sellers will not change.
D)   decrease,and the price received by sellers will decrease.E) A) and C)
F) None of the above

Question 11

Rent-control laws dictate

Accepted Answer

A)   the exact rent that landlords must charge tenants.
B)   a maximum rent that landlords may charge tenants.
C)   a minimum rent that landlords may charge tenants.
D)   both a minimum rent and a maximum rent that landlords may charge tenants.E) B) and D)
F) A) and B)

Question 12

The demand for salt is inelastic,and the supply of salt is elastic.The demand for caviar is elastic,and the supply of caviar is inelastic.Suppose that a tax of $1 per pound is levied on the sellers of salt,and a tax of $1 per pound is levied on the buyers of caviar.We would expect that most of the burden of these taxes will fall on

Accepted Answer

A)   sellers of salt and the buyers of caviar.
B)   sellers of salt and the sellers of caviar.
C)   buyers of salt and the sellers of caviar.
D)   buyers of salt and the buyers of caviar.E) A) and B)
F) None of the above

Question 13

A price floor will be binding only if it is set

Accepted Answer

A)   equal to the equilibrium price.
B)   above the equilibrium price.
C)   below the equilibrium price.
D)   either above or below the equilibrium price.E) None of the above
F) B) and D)

Question 14

A tax on buyers decreases demand.

Accepted Answer

A) True 
 B)False

Question 15

If a good or service is sold in a competitive market free of government regulation,then the price of the good or service adjusts to balance supply and demand.

Accepted Answer

A) True 
 B)False

Question 16

Figure 6-18 
-Refer to Figure 6-18.The amount of the tax per unit is

Accepted Answer

A)   $1.
B)   $1.50.
C)   $2.50.
D)   $3.50.E) All of the above
F) A) and B)

Question 17

Figure 6-14
The vertical distance between points A and B represents the tax in the market. 
-Refer to Figure 6-14.The amount of the tax per unit is

Accepted Answer

A)   $6.
B)   $8.
C)   $14.
D)   $18.E) A) and B)
F) A) and C)

Question 18

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

Accepted Answer

A)   no workers.
B)   only those workers who become unemployed.
C)   only those workers who have jobs.
D)   all workers.E) A) and B)
F) A) and C)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Figure 6-21 
-Refer to Figure 6-22.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) None of the above

Exam 6: Supply,demand,and Government Policies

A tax on sellers reduces the size of a market.

Correct Answer
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Figure 6-21 -Refer to Figure 6-22.The effective price that sellers receive after the tax is imposed is

Correct Answer
verified

If a good or service is sold in a competitive market free of government regulation,then the price of the good or service adjusts to balance supply and demand.

Correct Answer
verified

Figure 6-6 -Refer to Figure 6-6.If the government imposes a price floor of $14 on this market,then there will be

Correct Answer
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A tax on buyers decreases demand.

Correct Answer
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Rent-control laws dictate

Correct Answer
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Table 6-1 -Refer to Table 6-1.Suppose the government imposes a price floor of $5 on this market.What will be the size of the surplus in this market?

Correct Answer
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Figure 6-14 The vertical distance between points A and B represents the tax in the market. -Refer to Figure 6-14.The amount of the tax per unit is

Correct Answer
verified

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

Correct Answer
verified

Economic policies often have effects that their architects did not intend or anticipate.

Correct Answer
verified

Figure 6-19 -Refer to Figure 6-19.The price paid by buyers after the tax is imposed is

Correct Answer
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Which of the following is not an example of a public policy?

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

Correct Answer
verified

Figure 6-27 -Refer to Figure 6-27.If the government places a $2 tax in the market,the buyer pays $4.

Correct Answer
verified

A $2.00 tax levied on the sellers of birdhouses will shift the supply curve

Correct Answer
verified

Figure 6-18 -Refer to Figure 6-18.The amount of the tax per unit is

Correct Answer
verified

If the government removes a $2 tax on buyers of cigars and imposes the same $2 tax on sellers of cigars,then the price paid by buyers will

Correct Answer
verified

A price floor will be binding only if it is set

Correct Answer
verified

The price received by sellers in a market will increase if the government

Correct Answer
verified

Exam 6: Supply,demand,and Government Policies

A tax on sellers reduces the size of a market.

Correct AnswerverifiedShow Answer

Figure 6-21 -Refer to Figure 6-22.The effective price that sellers receive after the tax is imposed is

Correct AnswerverifiedShow Answer

If a good or service is sold in a competitive market free of government regulation,then the price of the good or service adjusts to balance supply and demand.

Correct AnswerverifiedShow Answer

Figure 6-6 -Refer to Figure 6-6.If the government imposes a price floor of $14 on this market,then there will be

Correct AnswerverifiedShow Answer

A tax on buyers decreases demand.

Correct AnswerverifiedShow Answer

Rent-control laws dictate

Correct AnswerverifiedShow Answer

Table 6-1 -Refer to Table 6-1.Suppose the government imposes a price floor of $5 on this market.What will be the size of the surplus in this market?

Correct AnswerverifiedShow Answer

Figure 6-14 The vertical distance between points A and B represents the tax in the market. -Refer to Figure 6-14.The amount of the tax per unit is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Economic policies often have effects that their architects did not intend or anticipate.

Correct AnswerverifiedShow Answer

Figure 6-19 -Refer to Figure 6-19.The price paid by buyers after the tax is imposed is

Correct AnswerverifiedShow Answer

Which of the following is not an example of a public policy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Figure 6-27 -Refer to Figure 6-27.If the government places a $2 tax in the market,the buyer pays $4.

Correct AnswerverifiedShow Answer

A $2.00 tax levied on the sellers of birdhouses will shift the supply curve

Correct AnswerverifiedShow Answer

Figure 6-18 -Refer to Figure 6-18.The amount of the tax per unit is

Correct AnswerverifiedShow Answer

If the government removes a $2 tax on buyers of cigars and imposes the same $2 tax on sellers of cigars,then the price paid by buyers will

Correct AnswerverifiedShow Answer

A price floor will be binding only if it is set

Correct AnswerverifiedShow Answer

The price received by sellers in a market will increase if the government

Correct AnswerverifiedShow Answer

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