Economics
The government sets a price floor for corn which is above the equilibrium price of corn. As a result,
A deadweight loss will be created
Suppose the government wants to encourage people to exercise more, so it imposes a binding price ceiling on the market for inhome treadmills. As a result,
A shortage of treadmills will develop.
Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effecti ve,
A smaller quantity of the good is bought and sold
A price ceiling can result in which of the following?
Inefficiency, black markets, and increased search activities
The value of a good is equal to the
Marginal benefit is the benefit received from maximum price you are willing to pay for it.
The demand and the supply for a good are each neither perfectly elastic nor perfectly inelastic. Which of the following is not correct?
Taxes levied on sellers and taxes levied on buyers are not equivalent.
The imposition of tariffs on Korean steel has led to ________ in imports of Korean steel to the United States and ________ the price of steel in the United States
a decrease; raised
A price ceiling is a price
above which a seller cannot legally sell
When a sales tax is imposed on sellers, the supply curve shifts so that the vertical distance between the old and the new supply curve equals the
amount of the sales tax.
A price floor is a price
below which a seller cannot legally sell. and above which a seller cannot legally sell. Both A AND C
The demand and the supply for a good are each neither perfectly elastic nor perfectly inelastic. If a sales tax on sellers of the good is imposed, the tax is paid by
both buyers and sellers.
A tax on the buyers of personal computer external hard drives encourages
buyers to demand a smaller quantity at every price.
A country will export a good if it
can sell the good to a foreigner at a higher price than the no- trade domestic price
The elasticity of demand for chocolate chip cookies is 0.6 and the elasticity of supply for these cookies is 1.9. If a tax is imposed on purchases of chocolate chip cookies, then the
consumers would pay more of the tax.
Marginal benefit is the benefit received from
consuming one more unit of a good or service
The demand and the supply for cereal are each neither perfectly elastic nor perfectly inelastic. A tax on the buyers of cereal will increase the price of cereal paid by buyers,
decrease the effective price of cereal received by sellers, and decrease the equilibrium quantity of cereal.
The demand and the supply for a sofa are each neither perfectly elastic nor perfectly inelastic. A tax on the buyers of sofas
decreases the size of the sofa market.
A $3 tax levied on the buyers of shoes will cause the
demand curve for shoes to shift down by $3.
If the United States imposes a tariff on a good, then
domestic consumption of the good decreases.
A minimum wage set above the equilibrium wage rate is a price
floor that results in a surplus of labor
If you buy a DVD player produced in Japan, a
good was exported by Japan and imported by the United States
A country opens up to trade and becomes an importer of a sugar. In the sugar market, consumer surplus will ________, producer surplus will ________, and total surplus will ________.
increase; decrease; increase
The amount of a tax paid by the buyers will be smaller the
more elastic the demand and the more inelastic the supply.
Producer surplus is the ________ summed over the quantity sold.
price received for a good minus its marginal cost
If a tax is imposed in a market in which demand is perfectly inelastic,
the buyers pay the entire tax.
Marginal cost is best defined as
the extra cost of producing one more unit of output.
On Green Island, the demand for pencils is perfectly elastic and the supply of pencils is perfectly inelastic. If a sales tax on pencils is introduced,
the sellers pay the entire tax.
A sales tax is imposed on the sellers of gasoline. This tax shifts
the supply of gasoline curve leftward.
If a price ceiling is not binding, then
there will be no effect on the market price or quantity sold.
Most T-shirts brought by Americans are made in Asia. U.S consumers of t-shirts buy these t-shirts because
they pay a lower price for t-shirts made in Asia than they would for similar shirt made in the United States.
Consumer surplus is the
value of a good minus the price paid for it summed over the quantity bought.
