eco hw 6

d

a legal maximum on the price at which a good can be sold is called a price a. floor b. subsidy c. support d. ceiling

d

a price floor is a. a legal minimum on the price in which a good can be sold b. often imposed when sellers of a good are successful in their attempts to convince the goverment that the market outcome is unfair without a rice floor c. a source of inefficency in a market d. all of the above are correct

a

a tax imposed on the sellers of a good will raise the a. price paid by buyers and lower the equilibrium quantity b. price paid by buyers and riase the equilibrium quantity c. effective price recieved by sellers and lower the equilibrium quantity d. effective price recieved by sellers and raise the equlibrium quanttiy

b

if a nonbinding price floor is imposed on a market, then the a. quantity sold in the market will decrease b. quantity sold in the market will stay the same c. price in the market will increase d. price in the market will decrease

b

if a price ceiling is not binding then a. the equilibrium price is above the price ceiling b. the equilibrium price is below the price ceiling c. it has no legal enforement mechanism d. none of the above are correct

b

if a tax is levied on the buyers of a product, then there will be a. upward shift on the demand curve b. downward shift of the demand curve c. movement up and to the left along the demand curve d. movement down and to the right along the demand curve

c

if the government leies a 2 tax per DVD on buyers of dvds, then the price recieved by sellers of dvds would a. decrease by more than 2 b. decrease by exactly 2 c. decrease by less than 2 d. increase by an interminate amount

d

if the government passes a law requiring sellers of mopeds to send 200 to the government, for every moped they sell, then a. the supply surve for mopeds shifts downward 200 b. sellers of mopeds recieve 200 less per mopeds then they were recieving before the tax c. buyers of mopeds are unaffected by the tax d. none of the above are correct

a

if the government removes a binding price ceiling from a market, then the price paud by buyers will a. increase and the quantity sold in the market will increase b. increase and the quantity sold in the market will decrease c. decrease and the quantity sold in the market will increase d. decrease and the quantity sold in the market will decrease

c

if the government removes a tax on a good, then the price paid by buyers will a. increase and the price recieved by sellers will increase b. increase and the price recieved by sellers will decrease c. decrease and the price recieved by sellers will increase d. decrease and the price recieved by sellers will decrease

b

refer to 6,3-in panel a there will be a. a shortage of wheat b. equailibrium in the markey c. surplus of wheat d. lines of people waiting to buy wheat

c

refer to 6.3-in panel b there will be a. a shortage of wheat b. equilibrium in the market c. a surplus of wheat d. lines of people waiting to buy wheat

c

refer to figure 6-3. a binding price floor is shown in a. both panal a and a b. panal a only c. panal b only d. neither panal a nor panal b

a

suppose the government has imposed a prie floor on the market for soybeans. which of the following events could transform the price floor from one that is non binding into one that is binding a. farmers use improved, draught resistant seeds, which lowers the cost of growing soybeans b. the number of farmers selling soybeans decreases c. consumers income increases, and soybeans are a normal good d. the number of consumers buying soybeans increases

c

to say that a price floor is binding is to say that the price floor a. results in a shortage b. is set below the equalibrium price c. causes quantity supplied to exceed quantity demanded d. all of the above are correct

a

which of the following observations would be consistent with the imposition of a binding price ceiling on a market? after the price ceiling becomes effect, a. a smaller quantity of the good is bought and sold b. a smaller quantity of the good is demanded c. a larger quantity of the good is supplied d. the price rises above the previous equlibrium

d

which of the following would be the most likely result of a binding price ceiling imposed on the market for rental cars a. frequent rental programs such as rent nine times and the tenth rental is free b. enhanced maintence programs to promote the high quality of the cars c. free gasoline given to people as an incentive to a rent a car d. slow replacement of old rental cars with newer ones