Question 1

Economists argue that rent control is a highly efficient way to help the poor raise their standard of living.

Accepted Answer

A) True 
 B)False

Question 2

The proportion of minimum-wage earners who are in families with incomes below the poverty line is

Accepted Answer

A)   less than one-third.
B)   between one-third and one-half.
C)   between one-half and two-thirds.
D)   greater than two-thirds.E) B) and C)
F) A) and D)

Question 3

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,

Accepted Answer

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 equilibrium.E) B) and C)
F) All of the above

Question 4

Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage depresses teenage employment by about

Accepted Answer

A)   1 to 3 percent.
B)   5 to 7 percent.
C)   10 percent.
D)   None of the above is correct because studies show no decrease in teenage employment.E) None of the above
F) All of the above

Question 5

A binding price ceiling (i) causes a surplus.
(ii) causes a shortage.
(iii) is set at a price above the equilibrium price.
(iv) 
Is set at a price below the equilibrium price.

Accepted Answer

A)   (ii) only
B)   (iv) only
C)   (i) and (iii) only
D)   (ii) and (iv) onlyE) A) and B)
F) None of the above

Question 6

The price received by sellers in a market will increase if the government decreases a

Accepted Answer

A)   binding price floor in that market.
B)   binding price ceiling in that market.
C)   tax on the good sold in that market.
D)   None of the above is correct.E) B) and C)
F) None of the above

Question 7

A tax burden falls more heavily on the side of the market that is less elastic.

Accepted Answer

A) True 
 B)False

Question 8

Figure 6-24
Suppose the government imposes a $2 on this market. 
-Refer to Figure 6-24.The buyers and sellers will bear an eaqual share of the tax burden if the demand is

Accepted Answer

A)   D1,and the supply is S1.
B)   D2,and the supply is S1.
C)   D1,and the supply is S2.
D)   D2,and the supply is S2.E) B) and D)
F) None of the above

Question 9

Figure 6-4 
-Refer to Figure 6-4.A government-imposed price of $6 in this market could be an example of a (i) binding price ceiling.
(ii) non-binding price ceiling.
(iii) binding price floor.
(iv) 
Non-binding price floor.

Accepted Answer

A)   (i) only
B)   (ii) only
C)   (i) and (iv) only
D)   (ii) and (iii) onlyE) A) and B)
F) None of the above

Question 10

Figure 6-9 
-Refer to Figure 6-9.At which price would a price floor be binding?

Accepted Answer

A)   $6
B)   $5
C)   $4
D)   $3E) B) and D)
F) A) and B)

Question 11

Figure 6-6 
-Refer to Figure 6-6.Which of the following statements is not correct?

Accepted Answer

A)   A price ceiling set at $8 would be binding,but a price ceiling set at $12 would not be binding.
B)   A price floor set at $14 would be binding,but a price floor set at $8 would not be binding.
C)   A price ceiling set at $9 would result in a surplus.
D)   A price floor set at $11 would result in a surplus.E) A) and B)
F) A) and C)

Question 12

Which of the following would be the most likely result of a binding price ceiling imposed on the market for rental cars?

Accepted Answer

A)   frequent rental programs such as "Rent nine times and the tenth rental is free!"
B)   enhanced maintenance 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 onesE) A) and B)
F) A) and C)

Question 13

Figure 6-9 
-Refer to Figure 6-9.A price ceiling set at

Accepted Answer

A)   $4 will be binding and will result in a shortage of 3 units.
B)   $4 will be binding and will result in a shortage of 6 units.
C)   $7 will be binding and will result in a surplus of 6 units.
D)   $7 will be binding and will result in a surplus of 12 units.E) C) and D)
F) A) and C)

Exam 6: Supply,demand,and Government Policies

Economists argue that rent control is a highly efficient way to help the poor raise their standard of living.

Correct Answer
verified

Figure 6-9 -Refer to Figure 6-9.A price ceiling set at

Correct Answer
verified

Figure 6-9 -Refer to Figure 6-9.At which price would a price floor be binding?

Correct Answer
verified

Figure 6-4 -Refer to Figure 6-4.A government-imposed price of $6 in this market could be an example of a (i) binding price ceiling. (ii) non-binding price ceiling. (iii) binding price floor. (iv) Non-binding price floor.

Correct Answer
verified

Figure 6-24 Suppose the government imposes a $2 on this market. -Refer to Figure 6-24.The buyers and sellers will bear an eaqual share of the tax burden if the demand is

Correct Answer
verified

Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage depresses teenage employment by about

Correct Answer
verified

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,

Correct Answer
verified

The proportion of minimum-wage earners who are in families with incomes below the poverty line is

Correct Answer
verified

Which of the following would be the most likely result of a binding price ceiling imposed on the market for rental cars?

Correct Answer
verified

A tax burden falls more heavily on the side of the market that is less elastic.

Correct Answer
verified

Figure 6-6 -Refer to Figure 6-6.Which of the following statements is not correct?

Correct Answer
verified

The price received by sellers in a market will increase if the government decreases a

Correct Answer
verified

A binding price ceiling (i) causes a surplus. (ii) causes a shortage. (iii) is set at a price above the equilibrium price. (iv) Is set at a price below the equilibrium price.

Correct Answer
verified

Exam 6: Supply,demand,and Government Policies

Economists argue that rent control is a highly efficient way to help the poor raise their standard of living.

Correct AnswerverifiedShow Answer

Figure 6-9 -Refer to Figure 6-9.A price ceiling set at

Correct AnswerverifiedShow Answer

Figure 6-9 -Refer to Figure 6-9.At which price would a price floor be binding?

Correct AnswerverifiedShow Answer

Figure 6-4 -Refer to Figure 6-4.A government-imposed price of $6 in this market could be an example of a (i) binding price ceiling. (ii) non-binding price ceiling. (iii) binding price floor. (iv) Non-binding price floor.

Correct AnswerverifiedShow Answer

Figure 6-24 Suppose the government imposes a $2 on this market. -Refer to Figure 6-24.The buyers and sellers will bear an eaqual share of the tax burden if the demand is

Correct AnswerverifiedShow Answer

Studies of the effects of the minimum wage typically find that a 10 percent increase in the minimum wage depresses teenage employment by about

Correct AnswerverifiedShow Answer

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective,

Correct AnswerverifiedShow Answer

The proportion of minimum-wage earners who are in families with incomes below the poverty line is

Correct AnswerverifiedShow Answer

Which of the following would be the most likely result of a binding price ceiling imposed on the market for rental cars?

Correct AnswerverifiedShow Answer

A tax burden falls more heavily on the side of the market that is less elastic.

Correct AnswerverifiedShow Answer

Figure 6-6 -Refer to Figure 6-6.Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

The price received by sellers in a market will increase if the government decreases a

Correct AnswerverifiedShow Answer

A binding price ceiling (i) causes a surplus. (ii) causes a shortage. (iii) is set at a price above the equilibrium price. (iv) Is set at a price below the equilibrium price.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified