Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

If the government removes a tax on a good, then the price paid by buyers will

Accepted Answer

A)  increase, and the price received by sellers will increase.
B)  increase, and the price received by sellers will decrease.
C)  decrease, and the price received by sellers will increase.
D)  decrease, and the price received by sellers will decrease.E) A) and B)
F) A) and C)

Question 3

Figure 6-21
  ​
-Refer to Figure 6-21. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the buyers in this market?

Accepted Answer

With a $6 tax per unit, the pr...

Question 4

The United States is the only country in the world with minimum-wage laws.

Accepted Answer

A) True 
 B)False

Question 5

If a binding price floor is imposed on the video game market, then

Accepted Answer

A)  the demand for video games will decrease.
B)  the supply of video games will increase.
C)  a surplus of video games will develop.
D)  a shortage of video games will develop.E) A) and C)
F) All of the above

Question 6

Rent controls only affect the demand side of the rental market.
​

Accepted Answer

A) True 
 B)False

Question 7

Table 6-2
 $$\begin{array} { | l | l | l | } 
\hline \text { Price (\$) } & \begin{array} { l } 
\text { Quantity } \
\text { Demanded }
\end{array} & \begin{array} { l } 
\text { Quantity } \
\text { Supplied }
\end{array} \
\hline 0 & 21 & 0 \
\hline 1 & 18 & 4 \
\hline 2 & 15 & 8 \
\hline 3 & 12 & 12 \
\hline 4 & 9 & 16 \
\hline 5 & 6 & 20 \
\hline 6 & 3 & 24 \
\hline 7 & 0 & 28 \
\hline
\end{array}$$
-Refer to Table 6-2. If the government set a price ceiling at $4, would there be a shortage or surplus, and how large would be the shortage/surplus?

Accepted Answer

A price ceiling set at $4 woul...

Question 8

To be binding, a price ceiling must be set above the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 9

Price ceilings are typically imposed to benefit sellers.

Accepted Answer

A) True 
 B)False

Question 10

The Earned Income Tax Credit, a government program that supplements the incomes of low-wage workers, is an example of a

Accepted Answer

A)  minimum-wage law.
B)  price ceiling.
C)  wage subsidy.
D)  rent subsidy.E) C) and D)
F) A) and D)

Question 11

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 12

One common example of a price floor is the minimum wage.

Accepted Answer

A) True 
 B)False

Question 13

A tax on sellers reduces the size of a market.

Accepted Answer

A) True 
 B)False

Question 14

Does a binding price ceiling result in a shortage or a surplus in the market?

Accepted Answer

A binding price ceil...

Question 15

The goal of the minimum wage is to ensure workers a minimally adequate standard of living.

Accepted Answer

A) True 
 B)False

Question 16

Figure 6-7
 
-Refer to Figure 6-7. Which of the following statements is not correct?

Accepted Answer

A)  A government-imposed price of $12 would be a binding price floor if market demand is Demand A and a binding price ceiling if market demand is Demand B.
B)  A government-imposed price of $15 would be a binding price ceiling if market demand is either Demand A or Demand B.
C)  A government-imposed price of $6 would be a binding price ceiling if market demand is either Demand A or Demand B.
D)  A government-imposed price of $15 would be a binding price floor if market demand is Demand A and a nonbinding price ceiling if market demand is Demand B.E) All of the above
F) A) and D)

Question 17

Which of the following causes a shortage of a good?

Accepted Answer

A)  Binding price floor
B)  Binding price ceiling
C)  Tax on the good
D)  Nonbinding price controlE) A) and B)
F) All of the above

Question 18

A price ceiling set below the equilibrium price causes a shortage in the market.

Accepted Answer

A) True 
 B)False

Question 19

If a tax is levied on the sellers of shrimp, then

Accepted Answer

A)  buyers will bear the entire burden of the tax.
B)  sellers will bear the entire burden of the tax.
C)  buyers and sellers will share the burden of the tax.
D)  the government will bear the entire burden of the tax.E) None of the above
F) All of the above

Question 20

If a price ceiling is binding, then

Accepted Answer

A)  there will be no effect on the market price or quantity sold.
B)  there will be a surplus in the market.
C)  the market will be more efficient than it would be without the price ceiling.
D)  there will be a shortage in the market.E) A) and C)
F) A) and B)

Exam 6: Supply, Demand, and Government Policies

Correct Answer
verified
A price ceiling set at $4 woul...
View Answer

If a binding price floor is imposed on the video game market, then

Correct Answer
verified

One common example of a price floor is the minimum wage.

Correct Answer
verified

If a tax is levied on the sellers of shrimp, then

Correct Answer
verified

Does a binding price ceiling result in a shortage or a surplus in the market?

Correct Answer
verified
A binding price ceil...
View Answer

If a price ceiling is binding, then

Correct Answer
verified

A tax on sellers reduces the size of a market.

Correct Answer
verified

Price ceilings are typically imposed to benefit sellers.

Correct Answer
verified

The goal of the minimum wage is to ensure workers a minimally adequate standard of living.

Correct Answer
verified

A price ceiling set below the equilibrium price causes a shortage in the market.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The Earned Income Tax Credit, a government program that supplements the incomes of low-wage workers, is an example of a

Correct Answer
verified

Figure 6-7 -Refer to Figure 6-7. Which of the following statements is not correct?

Correct Answer
verified

If the government removes a tax on a good, then the price paid by buyers will

Correct Answer
verified

Rent controls only affect the demand side of the rental market.

Correct Answer
verified

The United States is the only country in the world with minimum-wage laws.

Correct Answer
verified

Which of the following causes a shortage of a good?

Correct Answer
verified

Figure 6-21 -Refer to Figure 6-21. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the buyers in this market?

Correct Answer
verified
With a $6 tax per unit, the pr...
View Answer

To be binding, a price ceiling must be set above the equilibrium price.

Correct Answer
verified

Exam 6: Supply, Demand, and Government Policies

Correct AnswerverifiedA price ceiling set at $4 woul...View AnswerShow Answer

If a binding price floor is imposed on the video game market, then

Correct AnswerverifiedShow Answer

One common example of a price floor is the minimum wage.

Correct AnswerverifiedShow Answer

If a tax is levied on the sellers of shrimp, then

Correct AnswerverifiedShow Answer

Does a binding price ceiling result in a shortage or a surplus in the market?

Correct AnswerverifiedA binding price ceil...View AnswerShow Answer

If a price ceiling is binding, then

Correct AnswerverifiedShow Answer

A tax on sellers reduces the size of a market.

Correct AnswerverifiedShow Answer

Price ceilings are typically imposed to benefit sellers.

Correct AnswerverifiedShow Answer

The goal of the minimum wage is to ensure workers a minimally adequate standard of living.

Correct AnswerverifiedShow Answer

A price ceiling set below the equilibrium price causes a shortage in the market.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Earned Income Tax Credit, a government program that supplements the incomes of low-wage workers, is an example of a

Correct AnswerverifiedShow Answer

Figure 6-7 -Refer to Figure 6-7. Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

If the government removes a tax on a good, then the price paid by buyers will

Correct AnswerverifiedShow Answer

Rent controls only affect the demand side of the rental market. ​

Correct AnswerverifiedShow Answer

The United States is the only country in the world with minimum-wage laws.

Correct AnswerverifiedShow Answer

Which of the following causes a shortage of a good?

Correct AnswerverifiedShow Answer

Figure 6-21 ​ -Refer to Figure 6-21. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the buyers in this market?

Correct AnswerverifiedWith a $6 tax per unit, the pr...View AnswerShow Answer

To be binding, a price ceiling must be set above the equilibrium price.

Correct AnswerverifiedShow Answer

Correct Answer
verified
A price ceiling set at $4 woul...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A binding price ceil...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Rent controls only affect the demand side of the rental market.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Figure 6-21 -Refer to Figure 6-21. If the government imposes a tax of $6 per unit in this market, how much is the burden of the tax on the buyers in this market?

Correct Answer
verified
With a $6 tax per unit, the pr...
View Answer

Correct Answer
verified