eco exam part 2/2 35-50
Tax incidence You Answered depends on the legislated burden. is entirely random. Correct Answer depends on the elasticities of supply and demand. falls entirely on buyers or entirely on sellers.
b
The benefit to sellers of participating in a market is measured by the amount of taxes collected on sales of the good. Correct Answer producer surplus. amount sellers receive for their product. You Answered sellers' willingness to sell.
b
Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good. The income elasticity of demand for the good is Correct Answer negative, and the good is an inferior good. You Answered negative, and the good is a normal good. positive, and the good is an inferior good. positive, and the good is a normal good.
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Billie Jo values a stainless steel dishwasher for her new house at $500, but she succeeds in buying one for $425. Billie Jo's willingness to pay for the dishwasher is $150. $425. Correct! $500. $850.
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Figure 8-6 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-6. Without a tax, total surplus in this market is $3,000. $4,800. Correct! $6,000. $7,200.
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If a tax is levied on the buyers of a product, then the demand curve will not shift. Correct! shift down. shift up. become flatter
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If a tax is levied on the sellers of a product, then there will be a(n) downward shift of the supply curve. Correct Answer upward shift of the supply curve. You Answered decrease in quantity supplied. increase in quantity supplied
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Panel (a) Panel (b) Refer to Figure 6-1. In which panel(s) of the figure would there be a shortage of the good at the price ceiling? panel (a) only Correct Answer panel (b) only both panel (a) and panel (b) You Answered neither panel (a) nor panel (b)
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Refer to Figure 6-16. In this market, a minimum wage of $7.25 is binding and creates a labor shortage. Correct Answer binding and creates unemployment. nonbinding and creates a labor shortage. You Answered nonbinding and creates neither a labor shortage nor unemployment.
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Refer to Figure 6-20. Suppose a tax of $5 per unit is imposed on this market. What will be the new equilibrium quantity in this market? less than 25 units 25 units Correct! between 25 units and 50 units greater than 50 units
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Refer to Figure 6-25. The price that buyers pay after the tax is imposed is You Answered $5. $6. $7. Correct Answer $8.
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Refer to Figure 7-24. If 4 units of the good are produced and sold, then producer surplus is greater than consumer surplus. consumer surplus is $16. You Answered total surplus is minimized. Correct Answer total surplus is not maximized.
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The minimum wage, if it is binding, raises the incomes of no workers. only those workers who cannot find jobs. Correct! only those workers whose jobs would pay less than the minimum wage if it didn't exist. all workers.
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The vertical distance between points A and C represents a tax in the market. Refer to Figure 8-3. The price that buyers effectively pay after the tax is imposed is P1. You Answered P2. Correct Answer P3. P4.
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When a tax is placed on the sellers of energy drinks, the sellers bear the entire burden of the tax. buyers bear the entire burden of the tax. burden of the tax will be always be equally divided between the buyers and the sellers. Correct! burden of the tax will be shared by the buyers and the sellers, but the division of the burden is not always equal.
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Which of the following is correct? Correct Answer Workers determine the supply of labor, and firms determine the demand for labor. Workers determine the demand for labor, and firms determine the supply of labor. The labor market is a single market for all different types of workers. You Answered The price of the product produced by labor adjusts to balance the supply of labor and the demand for labor.
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