Macroeconomics Chap 5 and 6 Quiz

Refer to Figure 6-14. The effective price that sellers receive after the tax is imposed is

$10

Refer to Figure 6-14. The price that buyers pay after the tax is imposed is

$24

Refer to Figure 6-17. What is the amount of the tax per unit?

$4

Refer to Figure 5-3. Which demand curve is perfect inelastic?

A

Refer to figure 6-17. ACME Inc. is a seller of the good. acme sells a unit of the good to a buyer and then pays the tax on that unit to the government. Acme is left with how much money?

a. $8.00

Minimum wage is a price floor for labor that produces , ___ which is also called _____

a. A surplus, unemployment

According to lecture, a rubric for remembering the relationship of floors and ceilings, is:

b. The ceiling is below the floor

For a good that is a necessity

b. demand tends to be inelastic

Refer to Figure 6-2. The price ceiling

b. makes it necessary for sellers to ration the good

When a tax is placed on the sellers of a product, buyers pay

b. more, and sellers receive less than they did before the tax.

Refer to Figure 6-17. How much total revenue does the government collect from the tax on this good?

c. $420

A tax on sellers will shift the

c. supply curve upward by the amount of the tax

Refer to Figure 6-17. The price that buyers pay after the tax is imposed is

d. $12.00

If a price ceiling is imposed on the baby formula market, then

d. All of the above are correct

Refer to Figure 5-3. Which demand curve is perfectly elastic?

d. D

A legal maximum on the price at which a good can be sold is called a price

d. ceiling

In general, elasticity is a measure of

d. how much buyers and sellers respond to changes in market conditions.

In a free, competitive market, what is the rationing mechanism?

d. price

Refer to Figure 6-2. The price ceiling causes a

d. shortage of 85 units

Refer to Figure 6-13. In this market ,a minimum wage of $7.25 creates a labor

d. surplus of 4,500 workers