question
A price ceiling is
a..often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
b. often imposed on markets in which "cutthroat competition" would prevail without a price ceiling.
c.a legal maximum on the price at which a good can be sold.
d.All of the above are correct.
a..often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
b. often imposed on markets in which "cutthroat competition" would prevail without a price ceiling.
c.a legal maximum on the price at which a good can be sold.
d.All of the above are correct.
answer
c.a legal maximum on the price at which a good can be sold.
question
A price ceiling will be binding when it is set
a.below the equilibrium price, causing a surplus
b.above the equilibrium price, causing a shortage
c.above the equilibrium price, causing a surplus
d.below the equilibrium price, causing a shortage
a.below the equilibrium price, causing a surplus
b.above the equilibrium price, causing a shortage
c.above the equilibrium price, causing a surplus
d.below the equilibrium price, causing a shortage
answer
d.below the equilibrium price, causing a shortage
question
If a binding price ceiling is imposed on the baby formula market, the
a. the quantity of baby formula demanded will decrease
b. the quantity of baby formula supplied will increase
c. a shortage of baby formula will develop.
d. all of the above
a. the quantity of baby formula demanded will decrease
b. the quantity of baby formula supplied will increase
c. a shortage of baby formula will develop.
d. all of the above
answer
d. all of the above
question
Refer to Figure 6-1. In which panel(s) of the figure would there be a shortage of the good at the price ceiling?
a. panel (b) only
b. both (b) only panel (a) and panel (b)
c. neither panel (a) nor panel (b)
d. panel (a) only
a. panel (b) only
b. both (b) only panel (a) and panel (b)
c. neither panel (a) nor panel (b)
d. panel (a) only
answer
a. panel (b) only
question
Refer to figure 6-2. The price ceiling
a. causes a shortage of 85 units
b. causes a shortage of 45 units
c. is not binding, bc it is set above the equilibrium price
d. causes a shortage of 40 units
a. causes a shortage of 85 units
b. causes a shortage of 45 units
c. is not binding, bc it is set above the equilibrium price
d. causes a shortage of 40 units
answer
a. causes a shortage of 85 units
question
A legal min on the price at which a good can be sold is called a
a. price floor
b. tax
c. price subsidy
d. price ceiling
a. price floor
b. tax
c. price subsidy
d. price ceiling
answer
a. price floor
question
When a binding price floor is imposed on a market to benefit sellers,
a. all sellers benefit
b. no sellers actually benefit
c. some sellers benefit, and some sellers are harmed
d. some sellers benefit, but no sellers are harmed
a. all sellers benefit
b. no sellers actually benefit
c. some sellers benefit, and some sellers are harmed
d. some sellers benefit, but no sellers are harmed
answer
c. some sellers benefit, and some sellers are harmed
question
A surplus results when
a. binding price floor is imposed on a market
b.nonbinding price floor is removed from a market
c.nonbinding price floor is imposed on a market.
d. binding price floor is removed from a market.
a. binding price floor is imposed on a market
b.nonbinding price floor is removed from a market
c.nonbinding price floor is imposed on a market.
d. binding price floor is removed from a market.
answer
a. binding price floor is imposed on a market
question
Refer to figure 6-4. A government- imposed price ceiling of $6 in the market results in
a. a shortage of 4 units
b. a shortage of 8 units
c. 14 units sold
d. 10 units sold
a. a shortage of 4 units
b. a shortage of 8 units
c. 14 units sold
d. 10 units sold
answer
b. a shortage of 8 units
question
Refer to figure 6-4. A government- imposed price floor of $12 in this market results in
a. a surplus of 4 units
b. 10 units sold
c. a surplus of 2 units
d. 12 units sold
a. a surplus of 4 units
b. 10 units sold
c. a surplus of 2 units
d. 12 units sold
answer
a. a surplus of 4 units
question
Refer to figure 6-9. A price ceiling set at
a. $7 will be binding and will result in a surplus of 8 units
b. $7 will be binding and will result in a surplus of 4 units
c. $4 will be binding and will result in a shortage of 16 units
d. $4 will be binding and will result in a shortage of 8 units
a. $7 will be binding and will result in a surplus of 8 units
b. $7 will be binding and will result in a surplus of 4 units
c. $4 will be binding and will result in a shortage of 16 units
d. $4 will be binding and will result in a shortage of 8 units
answer
c. $4 will be binding and will result in a shortage of 16 units
question
Refer to figure 6-2. A price floor set at $20 will
a. not be binding
b. be binding and will result in a surplus of 125 units
c. be binding and will result in a surplus of 200 units
d. be binding and will result in a surplus of 75 units
a. not be binding
b. be binding and will result in a surplus of 125 units
c. be binding and will result in a surplus of 200 units
d. be binding and will result in a surplus of 75 units
answer
b. be binding and will result in a surplus of 125 units
question
If the government removes a tax on a good, then the price paid by buyers will
a. increase, and the price received by seller will decrease
b. decrease, and the price received by sellers will decrease
c. increase, and the price received by sellers will increase
d. decrease, and the price received by sellers will increase
a. increase, and the price received by seller will decrease
b. decrease, and the price received by sellers will decrease
c. increase, and the price received by sellers will increase
d. decrease, and the price received by sellers will increase
answer
d. decrease, and the price received by sellers will increase
question
If the government levies a $500 tax per car on sellers of cars, then the price received by sellers of cars would
a. decrease by less than $500
b. decrease by more that $500
c. increase by an indeterminate amount
d. decrease by exactly $500
a. decrease by less than $500
b. decrease by more that $500
c. increase by an indeterminate amount
d. decrease by exactly $500
answer
a. decrease by less than $500
question
If the government levies a $5 tax per ticket on buyers of NFL game tickets, then the price paid by buyers of NFL game tickets would
a. increase by exactly $5
b. increase by less than $5
c. increase by more than $5
d. decrease by an indeterminate amount
a. increase by exactly $5
b. increase by less than $5
c. increase by more than $5
d. decrease by an indeterminate amount
answer
b. increase by less than $5
question
A $5 tax levied on the buyers of pants will cause
answer
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question
The term tax incidence refers to
answer
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question
refer to figure 6-22. the price paid by buyers after the tax is imposed is
answer
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question
refer to figure 6-22. the effective price sellers receive after th etax is imposed is
answer
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question
refer to figure 6-22. the amount of tax per unit is
answer
...
question
refer to figure 6-22. buyers pay how much of the tax per unit?
answer
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question
refer to figure 6-22. sellers pay how much of the tax per unit?
answer
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question
refer to figure 6-22. how much tax revenue does this tax generate for the government?
answer
...
question
refer to figure 6-24. What is the amount of the tax per unit?
answer
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question
refer to figure 6-24. The price paid by buyers after the tax is imposed is
answer
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question
refer to figure 6-24. Andrew is a buyer of th egood. taking the tax into account, how much does Andrew effectively pay to acquire one unit of the good?
answer
...
question
refer to figure 6-24. Suppose sellers, rather than buyers, were required to pay this tax (in the same amount per unit as shown in the graph). Relative to the buyers, the tax on sellers would result in
answer
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question
refer to figure 6-24. In hte after- tax equilibrium, government collects
answer
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question
refer to figure 6-26. The per- unit burden of the tax is
answer
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question
refer to figure 6-26.. How much tax revenue does this tax produce for the government?
answer
...
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