ECO 231-02 mcqp8

If a per unit excise tax of $0.50 on sellers increases the equilibrium price from $3.00 to $3.30, the per-unit burden of the tax on buyers is ____ and the per-unit burden of tax on sellers is _______. a) $3.00; $3.50 b) $3.50; $3.00 c) $0.30; $0.20 d) $3.30; $3.00

c) $0.30; $0.20

If the government levies a $1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would ______ a) increase by more than $1,000 b) increase by exactly $1,000 c) increase by less than $1,000 d) All of the above are possible

c) increase by less than $1,000

When the tax is placed on the sellers of a product, the ______ a) size of the market decreases (Note: Size of the market refers to the number of transactions taking place) b) price received by sellers decreases, and the price paid by buyers increases c) Supply for product decreases d) All of the above are correct

d) All of the above are correct

Quota is a) the maximum price sellers are allowed to charge for a good or service b) the minimum price buyers are required to pay for a good or service c) is the lower limit on the quantity of some good that can be bought or sold. d) None of the above

d) None of the above

If a tax is levied on the sellers of a product, then the demand curve will _____ a) shift down b) shift up c) become flatter d) not shift

d) not shift