Microeconomics Ch 6
Refer to Figure 6-26. The price paid by buyers after the tax is imposed is
$16
Refer to Figure 6-21. Acme, Inc. is a seller of the good. Acme sells a unit of the good to a buyer and then pays the tax on that unit to the government. Acme is left with how much money?
$8.00
A tax on buyers will shift the
demand curve downward by the amount of the tax
Refer to Figure 6.23. How much tax revenue does this tax produce for the government?
$18
Refer to Figure 6-18. The price that buyers pay after the tax is imposed is
$24
Refer to Figure 6-24. The price paid by buyers after the tax is imposed is
$24
Refer to Figure 6-9. A price ceiling set at
$4 will be binding and will result in a shortage of 16 units
Refer to Table 6-5. Which of the following price floors would be binding in this market?
$9
After OPEC raised the price of crude oil in the 1970's, which of the following was the most important reason that there were shortages of gasoline?
The effects of a price ceiling on gasoline prices imposed by the US government.
Which of the following is correct?
The minimum wage is more often binding for teenagers than for other members of the labor force.
Refer to Figure 6-24. Which of the following statements is correct?
The tax is levied on buyers of the good, rather than on the sellers.
Which of the following causes of surplus of a good?
a binding price floor
Rent control can cause
a decline in the quality of housing available for rent the development of a black market to allocate apartments to renters. longer search times for renters attempting to locate an apartment. All Of These Are Possible Results of Rent Controls
Refer to Figure 6-6. If the government imposes a price ceiling of $6 on this market, then there will be
a shortage of 30 units.
Refer to figure 6-4. A government-imposed price floor of $12 in this market results in
a surplus of 4 units
If a binding price floor is imposed on the market for eBooks, then
a surplus of eBooks would develop
When a tax is imposed in a market, it will
affect the behavior of both buyers and sellers.
Refer to Figure 6-15. For a price ceiling to be binding in this market, it would have to be set at
any price below $3.
A price ceiling will be binding only if it is set
below the equilibrium price.
Refer to Figure 6-17. A government-imposed price of $12 in this market is an example of a
binding price ceiling that creates a shortage.
If a price ceiling is binding constraint on a market, then
buyers cannot buy all they want to buy at the price ceiling.
If a tax is imposed on a market with inelastic demand and elastic supply, then
buyers will bear most of the burden of the tax
A $1.50 tax levied on the buyers of pomegranate juice will shift the demand curve
downward by exactly $1.50
Assume the demand for cigarettes is relatively inelastic, and the supply of cigarettes is relatively elastic. When cigarettes are taxed, we would expect
most of the burden of the tax to fall on buyers of cigarettes, regardless of whether buyers or sellers of cigarettes are required to pay the tax to the government.
If the government removes a $1 tax on sellers of gasoline and imposes the same $1 tax on buyers of gasoline, then the price paid by buyers will
not change, and the price received by sellers will not change.
The presence of a price control in a market for a good or service usually is an indication that
policymakers believed that the price that prevailed in that market in the absence of price control was unfair to buyers or sellers
Which of the following is not a rationing mechanism used by landlords in cities with rent control?
price
When a binding price floor is imposed on a market,
price no longer servers as a rationing device
If a nonbonding price ceiling is imposed on a market, then the
quantity sold in the market will stay the same.
When a tax is placed on buyers of a product, the
size of the market decreases. effective price received by sellers decreases, and the price paid by buyers increases. demand for the product decreases. All Of The Above
Refer to Figure 6-16. In this market, a minimum wage of $7.25 creates a labor
surplus of 4,500 workers
If a price ceiling is not binding, then
the equilibrium price is below the price ceiling.
An alternative to rent-control laws that would not reduce the quantity of housing supplied is
the payment by government of a fraction of a poor family's rent.
If the minimum wage exceeds the equilibrium wage, then
the quantity supplied of labor will exceed the quantity demanded.
Which fo the following would not interfere with market equilibria?
a non-binding price floor
Refer to Figure 6-16. In this market, a minimum wage of $7.25 is
binding and creates unemployment
Refer to figure 6-1. The price ceiling shown in panel (a)
is not binding
Refer to Figure 6-3. A binding price floor is shown in
panel (b) only.
If a price floor is not binding, then
the equilibrium price is above the price floor.
A price ceiling is
A legal maximum on the price at which a good can be sold