Question 1

Economists argue that rent control is a highly efficient way to help the poor raise their standard of living.

Accepted Answer

A) True 
 B)False

Question 2

Minimum-wage laws dictate

Accepted Answer

A)   the exact wage that firms must pay workers.
B)   a maximum wage that firms may pay workers.
C)   a minimum wage that firms may pay workers.
D)   a minimum wage and a maximum wage that firms may pay workers.E) A) and D)
F) B) and C)

Question 3

An outcome that can result from either a price ceiling or a price floor is

Accepted Answer

A)   an enhancement of efficiency.
B)   undesirable rationing mechanisms.
C)   a surplus.
D)   a shortage.E) None of the above
F) A) and B)

Question 4

A tax imposed on the buyers of a good will

Accepted Answer

A)   raise the price paid by buyers and lower the equilibrium quantity.
B)   raise the price paid by buyers and raise the equilibrium quantity.
C)   raise the effective price received by sellers and lower the equilibrium quantity.
D)   raise the effective price received by sellers and raise the equilibrium quantity.E) A) and B)
F) All of the above

Question 5

A tax on buyers usually causes buyers to pay more the good and sellers to receive less for the good than they did before the tax was levied.

Accepted Answer

A) True 
 B)False

Question 6

Table 6-2
 
-Refer to Table 6-2.Which of the following statements is correct?

Accepted Answer

A)   A price floor set at $5 will be binding and will result in a surplus of 50 units.
B)   A price floor set at $5 will be binding and will result in a surplus of 75 units.
C)   A price floor set at $5 will be binding and will result in a surplus of 125 units.
D)   A price floor set at $5 will not be binding.E) A) and B)
F) All of the above

Question 7

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 8

The primary effect of rent control in the short run is to reduce rents.

Accepted Answer

A) True 
 B)False

Question 9

How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> The tax burden fall...

Question 10

Figure 6-3 
-Refer to Figure 6-3.If the government imposes a price ceiling of $12 on this market,then there will be a

Accepted Answer

A)   shortage of 0.
B)   shortage of 10.
C)   shortage of 20.
D)   shortage of 40.E) A) and C)
F) B) and C)

Question 11

When a binding price ceiling is imposed on a market to benefit buyers,

Accepted Answer

A)   no buyers actually do benefit.
B)   some buyers benefit,but no buyers are harmed.
C)   some buyers benefit and some buyers are harmed.
D)   all buyers benefit.E) A) and B)
F) All of the above

Question 12

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 inelastic.E) C) and D)
F) B) and D)

Question 13

Advocates of the minimum wage

Accepted Answer

A)   deny that the minimum wage produces any adverse effects.
B)   emphasize the benefits to teenagers of increases in the minimum wage.
C)   emphasize the low annual incomes of those who work for the minimum wage.
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 14

When free markets ration goods with prices,it is both efficient and impersonal.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a result of rent control?

Accepted Answer

A)   fewer new apartments offered for rent
B)   less maintenance provided by landlords
C)   bribery
D)   higher quality housingE) All of the above
F) A) and B)

Question 16

A binding price floor causes a shortage in the market.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not correct?

Accepted Answer

A)   The economy contains many labor markets for different types of workers.
B)   The impact of the minimum wage depends on the skill and experience of the worker.
C)   The minimum wage is binding for workers with high skills and much experience.
D)   The minimum wage is not binding when the equilibrium wage is above the minimum wage.E) A) and B)
F) B) and D)

Question 18

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.

Accepted Answer

A) True 
 B)False

Question 19

Figure 6-9 
-Refer to Figure 6-9.The price that buyers pay after the tax is imposed is

Accepted Answer

A)   $5.
B)   $6.
C)   $7.
D)   $8.E) A) and B)
F) None of the above

Question 20

When a binding price ceiling is imposed on a market to benefit buyers,

Accepted Answer

A)   every buyer in the market benefits.
B)   every seller in the market benefits,too.
C)   every buyer who wants to buy the good will be able to do so,but only if they wait in long lines.
D)   some buyers will not be able to buy any amount of the good.E) A) and B)
F) A) and C)

Exam 6: Supply, Demand, and Government Policies

When free markets ration goods with prices,it is both efficient and impersonal.

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

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When a binding price ceiling is imposed on a market to benefit buyers,

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An outcome that can result from either a price ceiling or a price floor is

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Which of the following is not a result of rent control?

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When a binding price ceiling is imposed on a market to benefit buyers,

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Advocates of the minimum wage

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The primary effect of rent control in the short run is to reduce rents.

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A tax imposed on the buyers of a good will

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Which of the following is not correct?

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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.

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Minimum-wage laws dictate

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How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.

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Table 6-2 -Refer to Table 6-2.Which of the following statements is correct?

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Figure 6-9 -Refer to Figure 6-9.The price that buyers pay after the tax is imposed is

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A binding price floor causes a shortage in the market.

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Economists argue that rent control is a highly efficient way to help the poor raise their standard of living.

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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.

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A tax on buyers usually causes buyers to pay more the good and sellers to receive less for the good than they did before the tax was levied.

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Figure 6-3 -Refer to Figure 6-3.If the government imposes a price ceiling of $12 on this market,then there will be a

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The tax burden fall...
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