M3

How did the farm population in the United States change between 1950 and today?

It dropped from 10 million to fewer than 3 million people.

Which of the following was not a reason OPEC failed to keep the price of oil high?

The agreement OPEC members signed allowed each country to produce as much oil as each wanted.

If the government levies a $500 tax per car on sellers of cars, then the price received by sellers of cars would

decrease by less than $500.

Because the demand for wheat tends to be inelastic, the development of a new, more productive hybrid wheat would tend to

decrease the total revenue of wheat farmers.

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

decrease, and the price received by sellers will increase.

When a tax is placed on the buyers of tennis racquets, the size of the tennis racquet market

decreases, but the price paid by buyers increases.

The discovery of a new hybrid wheat would increase the supply of wheat. As a result, wheat farmers would realize an increase in total revenue if the

demand for wheat is elastic.

A tax imposed on the buyers of a good will lower the

effective price received by sellers and lower the equilibrium quantity.

There are fewer farmers in the United States today than 200 years ago because of

improvements in farm technology.

If the government levies a $1,000 tax per boat on sellers of boats, then the price paid by buyers of boats would

increase by less than $1,000.

If the government levies a $5 tax per MP3 player on buyers of MP3 players, then the price paid by buyers of MP3 players would likely

increase by less than $5.

A $0.10 tax levied on the sellers of chocolate bars will cause the

supply curve for chocolate bars to shift up by $0.10.

Between 1950 and today there was a

70 percent drop in the number of farmers, but farm output increased by about five times.

Refer to Table 5-11. Which scenario describes the market for oil in the short run?

D (inelastic, inelastic)

Why was OPEC unable to maintain high oil prices in the long run?

Demand and supply are both elastic in the long run compared to the short run.

If the government passes a law requiring sellers of mopeds to send $200 to the government for every moped they sell, then

None of the above is correct.

A recent news report lamented the plight of corn farmers in Wisconsin due to a severe drought. Which of the following best describes the effect on corn farmers in Minnesota, where sufficient rainfall occurred?

Their revenue increases because price increases and demand is inelastic.

OPEC successfully raised the world price of oil in the 1970s and early 1980s, primarily due to

an inelastic demand for oil and a reduction in the amount of oil supplied.

In the market for oil in the short run, demand

and supply are both inelastic.

A decrease in supply will cause the largest increase in price when

both supply and demand are inelastic

When a tax is levied on buyers of tea,

buyers of tea and sellers of tea both are made worse off.

Suppose there is currently a tax of $50 per ticket on airline tickets. Sellers of airline tickets are required to pay the tax to the government. If the tax is reduced from $50 per ticket to $30 per ticket, then the

pray this is not on there a second time... but guess... supply curve will shift downward by $20, and the price paid by buyers will decrease by less than $20

A tax imposed on the buyers of a good will raise the

price paid by buyers and lower the equilibrium quantity.

A tax imposed on the sellers of a good will raise the

price paid by buyers and lower the equilibrium quantity.

A tax imposed on the buyers of a good will

raise the price buyers pay and lower the effective price sellers receive.