Microeconomics [ch. 6]

34 Questions  I  By Emy_2 on April 11, 2011
Supply, Demand, and Government Policies

  

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1.  If the equlibrium price of gasoline is $1.00 per gallon and the government places a price ceiling on gasoline of $1.50 per gallon, the result will be a shortage of gasoline
A.
B.
2.  A price ceiling set below the equilibrium price causes a surplus
A.
B.
3.  A price floor set above the equilibrium price is a binding constraint
A.
B.
4.  The shortage of housing caused by a binding rent control is likely to be more severe in the long run when compared to the short run
A.
B.
5.  The minimum wage helps all teenagers because they receive higher wages than they would otherwise
A.
B.
6.  A 10 percent increase in the minimum wage causes a 10 percent reduction in teenage employment
A.
B.
7.  A price ceiling that is not a binding constraint today could cause a shortage in the future if demand were to increase and raise the eqilibrium price above the frixed price ceiling.
A.
B.
8.  A price floor in a market always creates a surplus in that market
A.
B.
9.  A $10 tax on baseball gloves will always raise the price that the buyers pay for baseball gloves by $10
A.
B.
10.  The ultimate burden of a tax lands more heavily on the side of the market that is less elastic
A.
B.
11.  When we use the model of supply and demand to analyze a tax collected form the buyers, we shift the demand curve upward by the size of the tax
A.
B.
12.  If medicine is a necessity, the burden of a tax on medicine will likely land more heavily on the buyers of medicine
A.
B.
13.  A tax creates a tax wedge between a buyer and a seller.  This causes the price paid by the buyer to rise, the price received by the seller to fall, and the quantity sold to fall
A.
B.
14.  The government can choose to place the burden of a tax on the buyers in a market by collecting the tax from the buyers rather than the sellers
A.
B.
15.  A tax collected from buyers has an equivilant impact to a same size tax collected from sellers
A.
B.
16.  For a price ceiling to be a binding constraint on the market, the government must set it
A.
B.
C.
D.
17.  A  binding price ceiling creates
A.
B.
C.
D.
18.  Suppose the equlibrium price for apartments is $500 per month and the government imposes ren controls of $250. Which of the following is unlikely to occur as a result of the rent controls?
A.
B.
C.
D.
E.
19.  A price floor
A.
B.
C.
D.
20.  Which of the following statements about a binding price ceiling is true?
A.
B.
C.
D.
21.  Which side of the market is more likely to lobby government for a price floor?
A.
B.
C.
D.
22.  Which of the following is an example of a price floor?
A.
B.
C.
D.
23.  Which of the following statements is true if the government places a price ceiling on gasoline at $1.50 per gallon and the equilibrium price is $1.00 per gallon?
A.
B.
C.
D.
24.  Studies show that a 10 percent increase in the minimum wage
A.
B.
C.
D.
25.  Within the supply-and-demand model, a tax collected from the buyers of a good shifts the
A.
B.
C.
D.
26.  Within the supply-and-demand model, a tax collected from the sellers of a good shifts the
A.
B.
C.
D.
27.  Which of the following takes place when a tax is placed on a good?
A.
B.
C.
D.
28.  When a tax is collected from the buyers in a market,
A.
B.
C.
D.
29.  A tax of $1.00 per gallon on gasoline
A.
B.
C.
D.
30.  The burden of a tax falls more heavily on the sellers in a market when
A.
B.
C.
D.
31.  A tax is placed on a good that is a necessity for consumers will likely generate a tax burden that
A.
B.
C.
D.
32.  The burden of a tax falls more heavily on the buyers in a market when
A.
B.
C.
D.
33.  Which of the following statements about the burden of a tax is correct?
A.
B.
C.
D.
34.  For which of the following products would the burden of a tax likely fall more heavily on the sellers?
A.
B.
C.
D.
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