Chapter 6 Microeconomics

the burden of tax is distributed among the various people who make up the economy

what hurts those they are trying to help

lowest price for labor

lawmakers can decide whether the buyers or the sellers must send a tax top the government, but they can't legislate the true burden of a tax

binding minimum wage creates what

When OPEC raised the price of crude oil in the 1970's it caused the

You have responsibility for economic policy in the country of Freedonia. Recently, the neighboring country of Sylvania has cut off all exports of oranges to Freedonia. Harpo, who is one of your advisors, suggests that you should impose a binding price ceiling in order to avoid a shortage of oranges. Chico, another one of your advisors, argues that without a binding price floor, a shortage will certainly develop. Zeppo, a third advisor, says that the best way to avoid a shortage of oranges is to take no action at all. Which of your three advisors is most likely to have studied economics?

When a binding price ceiling is imposed on a market

Price controls are usually enacted

If nonbonding price floor is imposed on a market then

Refer to Figure 6-3. If the government imposes a price floor of $14 on this market, then there will be a

Refer to Figure 6-12. For every unit of the good that is sold,

suppose the equilibrium price of a physical examination by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling,

Refer to Figure 6-3. In which of the following cases would sellers have to develop a rationing mechanism?

if a tax is levied on the sellers of a product, then the supply curve

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

not all sellers benefit from a binding price floor

if the demand curve is very elastic and the supply curve is very inelastic in a market, then the sellers will:

A tax of $1 on sellers always increases the equilibrium price by $1

price controls are usually enacted when a policymakers believe that the market price of a good or service is unfair to buyers

in a free competitive market what is the rationing mechanism

Suppose the government imposes a price floor of $5 on this market. What will be the size of the surplus in this market?

if the government removes a binding price floor from a market, then the price received by sellers will

if a price floor is a binding constraint on a market, then

if the government removes a binding price ceiling from a market, then the price paid by buyers will

if buyers pay the majority of the tax, then we know that

Suppose the government has imposed a price floor on cellular phones. Which of the following events could transform the price floor from one that is binding to one that is not binding?

A tax on the buyers of TV's

if the government levies a $500 tax on buyers, then the price received by sellers would

A tax imposed on the buyers of a good will