Econ Lesson 7

The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $4 per hour, how many hours of students' labor are unemployed? 12,000 hours 9,000 hours 6,000 hours 0 hours

0 hours

The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $6 per hour, how many hours of students' labor are unemployed? 12,000 hours 9,000 hours 6,000 hours 0 hours

0 hours

The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $8 per hour, how many hours do students work? 12,000 hours 9,000 hours 6,000 hours None of the above answers is correct.

6,000 hours

The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $8 per hour, how many hours of students' labor are unemployed? 12,000 hours 9,000 hours 6,000 hours None of the above answers is correct.

6,000 hours

The figure above shows the demand for and supply of labor of students in Smallville. If the minimum wage is set at $6 per hour, how many hours do students work? 12,000 hours 9,000 hours 6,000 hours None of the above answers is correct.

9,000 hours

A sales tax ___________. is always paid by the consumer creates a deadweight loss could be paid by either sellers, consumers, or both Both b and c are correct.

Both b and c are correct.

LESSON 7 COMPUTER GRADED ASSIGNMENT GRAPHS QUESTION 1, 3, 4, 9*, 17*, 18*, 19* *MORE DIFFICULT

LESSON 7 COMPUTER GRADED ASSIGNMENT GRAPHS QUESTION 1, 3, 4, 9*, 17*, 18*, 19* *MORE DIFFICULT

LESSON 7 PRE TEST QUESTION 7 GRAPH

LESSON 7 PRE TEST QUESTION 7 GRAPH

In the figure, what is the amount of the total tax revenue collected by the government? The revenue collected is the number of CDs sold in equilibrium times the amount of tax collected per CD. LESSON 7 PRE TEST QUESTION 8

LESSON 7 PRE TEST QUESTION 8

In the figure, the imposition of a $0.25 sales tax on hotdogs will ___________. What can you say about the elasticity of demand in this situation? cause the equilibrium price of a hotdog to rise by $0.125 cause the equilibrium price of a hotdog to fall by $0.25 cause the equilibrium price of a hotdog to increase by $0.25 None of the above is correct.

None of the above is correct.

The initial effect of a labor-saving invention, such as automatic teller machines in the banking industry, is ___________. a leftward shift of the supply curve of labor a rightward shift of the supply curve of labor a rightward shift of the demand curve for labor a leftward shift of the demand curve for labor

a leftward shift of the demand curve for labor

A price ceiling is __________. a price that creates a surplus of the good a price above which a seller cannot legally sell a price below which a seller cannot legally sell Both a and c are correct.

a price above which a seller cannot legally sell

Some consumers feel the government should impose a price ceiling on electricity prices to prevent them from becoming too high. A result of this policy might be ___________.* private companies decide not to build a new power plant a resident of San Diego decides not to install new solar panels which would cut her energy use electricity use is higher than it would be otherwise shortages of electricity are seen at peak times All of the above

all of the above

Price floors in agricultural markets ___________. A price floor is graphed similarly to a price ceiling, but a price floor is a minimum price that must be paid for a good. Graph this and see whether a shortage or surplus results. create shortages that must be covered by the government decrease the quantity that farmers are permitted to produce create surpluses that must be bought by the government create lower prices for consumers

create surpluses that must be bought by the government

The seller will pay the entire sales tax levied on a good when ___________. demand is perfectly elastic or supply is perfectly elastic demand is perfectly elastic or supply is perfectly inelastic demand is perfectly inelastic or supply is perfectly elastic demand is perfectly inelastic or supply is perfectly inelastic

demand is perfectly elastic or supply is perfectly inelastic

The buyer will pay the entire sales tax levied on a good when . demand is perfectly elastic or supply is perfectly inelastic demand is perfectly elastic or supply is perfectly elastic demand is perfectly inelastic or supply is perfectly elastic demand is perfectly inelastic or supply is perfectly inelastic

demand is perfectly inelastic or supply is perfectly elastic

A minimum wage is a government-imposed price ________ that is designed to be ________ the equilibrium wage rate. ceiling; above ceiling; below floor; above floor; below

floor; above

A rent ceiling set above the equilibrium rent restricts the quantity demanded but not the quantity supplied. restricts the quantity supplied but not the quantity demanded. restricts both the quantity demanded and the quantity supplied. has no effect.

has no effect.

You are in the business of retailing chewing gum, candy bars, sodas and newspapers. It has just come to your attention that the governor plans to impose a state excise tax on one of these commodities. As a profit-minded business person who seeks to avoid taxes whenever possible, and based on the price elasticity of demands in the table, which product would you prefer to have taxed? newspapers candy bars chewing gum sodas

newspapers (least elastic)

In agricultural markets, once the crop has been harvested, the supply is . elastic but not perfectly elastic perfectly inelastic perfectly elastic unit elastic

perfectly inelastic

A price ceiling such as a rent ceiling ___________. results in a surplus if the ceiling price is less than the equilibrium price always results in a shortage always results in a surplus results in a shortage if the ceiling price is less than the equilibrium price

results in a shortage if the ceiling price is less than the equilibrium price

In the short run, with no minimum wage, the introduction of labor-saving inventions in a market for low-skilled labor will cause ___________. the equilibrium wage rate to rise and the quantity of labor employed to decrease the equilibrium wage rate to fall and the quantity of labor employed to decrease the equilibrium wage rate to rise and the quantity of labor employed to increase the equilibrium wage rate to fall and the quantity of labor employed to increase

the equilibrium wage rate to fall and the quantity of labor employed to decrease

The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a rent ceiling of $600 was imposed in the housing market, then there would be a surplus of apartments. there would be a shortage of apartments. the market would reach equilibrium at the quantity of 60 housing units. the supply of housing would increase.

the market would reach equilibrium at the quantity of 60 housing units.

A supply shock has caused a sudden increase in gasoline prices and shortages of gasoline at the pump. One politician proposes to cut the gasoline tax to help consumers. This policy ___________. would exacerbate shortages but increase consumer surplus for those who did manage to buy, because the price they paid would be lower would equally benefit consumers and producers would primarily benefit producers, because supply in this case is inelastic, and quantity supplied could not adjust down would not have an effect on government revenue

would primarily benefit producers, because supply in this case is inelastic, and quantity supplied could not adjust down