6.1 - 6.3
Refer to Figure 6-22. Sellers pay how much of the tax per unit? $0.50. $1.50. $3.00. $5.00.
$0.50.
Refer to Figure 6-18. The amount of the tax per unit is $6. $8. $14. $18.
$14.
Refer to Figure 6-22. The price paid by buyers after the tax is imposed is $3.00. $3.50. $5.00. $6.00.
$5.00.
The price paid by buyers in a market will increase if the government (i) increases a binding price floor in that market. (ii) increases a binding price ceiling in that market. (iii) decreases a tax on the good sold in that market. (ii) only (iii) only (i) and (ii) only (i), (ii), and (iii)
(i) and (ii) only
Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor, quantity demanded decreases. quantity supplied increases. there is a surplus. All of the above are correct.
All of the above are correct.
You receive a paycheck from your employer, and your pay stub indicates that $300 was deducted to pay the FICA (Social Security/Medicare) tax. Which of the following statements is correct? The $300 that you paid is not necessarily the true burden of the tax that falls on you, the employee. Your employer is required by law to pay $300 to match the $300 deducted from your check. This type of tax is an example of a payroll tax. All of the above are correct.
All of the above are correct.
The federal government uses the revenue from the FICA (Federal Insurance Contribution Act) tax to pay for unemployment compensation. the salaries of members of Congress. Social Security and Medicare. housing subsidies for low-income people.
Social Security and Medicare.
Which of the following was not a result of the luxury tax imposed by Congress in 1990? The larger part of the tax burden fell on sellers. A larger part of the tax burden fell on the middle class than on the rich. Even the wealthy demanded fewer luxury goods. The tax was never repealed or even modified.
The tax was never repealed or even modified.
Refer to Figure 6-32. Which of following statements is true based upon the conditions in the market? a shortage will develop when a price ceiling is imposed at a price of $10. a surplus will develop when a price floor is imposed at a price of $8. a surplus will develop when a price floor is imposed at a price of $12. a shortage will develop when a price ceiling is imposed at a price of $14.
a surplus will develop when a price floor is imposed at a price of $12.
Refer to Figure 6-2. The price ceiling causes quantity upplied to exceed quantity demanded by 45 units. supplied to exceed quantity demanded by 85 units. demanded to exceed quantity supplied by 45 units. demanded to exceed quantity supplied by 85 units.
demanded to exceed quantity supplied by 85 units.
When a tax is imposed on the buyers of a good, the demand curve shifts upward by the amount of the tax. downward by the amount of the tax. upward by less than the amount of the tax. downward by less than the amount of the tax.
downward by the amount of the tax.
Refer to Table 6-2. A price ceiling set at $20 will be binding and will result in a shortage of 75 units. be binding and will result in a shortage of 200 units. be binding and will result in a shortage of 125 units. not be binding.
not be binding.
Which of the following is correct? Price controls always help those they are designed to help. never help those they are designed to help. often hurt those they are designed to help. always hurt those they are designed to help.
often hurt those they are designed to help.
Refer to Figure 6-3. A nonbinding price floor is shown in both panel (a) and panel (b). panel (a) only. panel (b) only. neither panel (a) nor panel (b).
panel (a) only.
When a binding price ceiling is imposed on a market to benefit buyers, every buyer in the market benefits. every buyer and seller in the market benefits. every buyer who wants to buy the good will be able to do so, but only if he waits in long lines. some buyers will not be able to buy any amount of the good.
some buyers will not be able to buy any amount of the good.