Question 1

Figure 6-1

-Refer to Figure 6-1.A binding price ceiling is shown in

Accepted Answer

A)   panel (a) only.
B)   panel (b) only.
C)   both panel (a) and panel (b) .
D)   neither panel (a) nor panel (b) .E) C) and D)
F) A) and C)

Question 2

A binding minimum wage tends to

Accepted Answer

A)   cause a labor surplus.
B)   cause unemployment.
C)   have the greatest impact in the market for teenage labor.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 3

A binding minimum wage

Accepted Answer

A)   alters both the quantity demanded and quantity supplied of labor.
B)   affects only the quantity of labor demanded;it does not affect the quantity of labor supplied.
C)   has no effect on the quantity of labor demanded or the quantity of labor supplied.
D)   causes only temporary unemployment because the market will adjust and eliminate any temporary surplus of workers.E) None of the above
F) A) and B)

Question 4

Table 6-1
 
-Refer to Table 6-1.Which of the following price ceilings would be binding in this market?

Accepted Answer

A)   $2
B)   $3
C)   $4
D)   $5E) A) and D)
F) A) and C)

Question 5

The minimum wage was instituted to ensure workers

Accepted Answer

A)   a middle-class standard of living.
B)   employment.
C)   a minimally adequate standard of living.
D)   unemployment compensation.E) None of the above
F) A) and D)

Question 6

Figure 6-18 
-Refer to Figure 6-18.Buyers pay how much of the tax per unit?

Accepted Answer

A)   $1.
B)   $1.50.
C)   $2.50.
D)   $3.50.E) All of the above
F) A) and B)

Question 7

A binding price floor may not help all sellers,but it does not hurt any sellers.

Accepted Answer

A) True 
 B)False

Question 8

Figure 6-1
This figure shows the market demand and market supply curves for good Y 
-Refer to Figure 6-1.A government-imposed price of $24 in this market is an example of a

Accepted Answer

A)   binding price ceiling that creates a shortage.
B)   non-binding price ceiling that creates a shortage.
C)   binding price floor that creates a surplus.
D)   non-binding price floor that creates a surplus.E) A) and B)
F) A) and C)

Question 9

A price ceiling set above the equilibrium price causes quantity demanded to exceed quantity supplied.

Accepted Answer

A) True 
 B)False

Question 10

One disadvantage of government subsidies over price controls is that subsidies

Accepted Answer

A)   prevent the attainment of equilibrium in the markets in which they are imposed.
B)   make higher taxes necessary.
C)   are always unfair to those with low incomes.
D)   cause unemployment.E) B) and C)
F) C) and D)

Question 11

The rationing mechanisms that develop under binding price ceilings are usually inefficient.

Accepted Answer

A) True 
 B)False

Question 12

A tax on sellers shifts the supply curve to the left.

Accepted Answer

A) True 
 B)False

Question 13

A price floor set below the equilibrium price causes a surplus in the market.

Accepted Answer

A) True 
 B)False

Exam 6: Supply,demand,and Government Policies

Figure 6-1 -Refer to Figure 6-1.A binding price ceiling is shown in

Correct Answer
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Table 6-1 -Refer to Table 6-1.Which of the following price ceilings would be binding in this market?

Correct Answer
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The rationing mechanisms that develop under binding price ceilings are usually inefficient.

Correct Answer
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The minimum wage was instituted to ensure workers

Correct Answer
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A binding price floor may not help all sellers,but it does not hurt any sellers.

Correct Answer
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A binding minimum wage

Correct Answer
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A price floor set below the equilibrium price causes a surplus in the market.

Correct Answer
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A tax on sellers shifts the supply curve to the left.

Correct Answer
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Figure 6-18 -Refer to Figure 6-18.Buyers pay how much of the tax per unit?

Correct Answer
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A price ceiling set above the equilibrium price causes quantity demanded to exceed quantity supplied.

Correct Answer
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One disadvantage of government subsidies over price controls is that subsidies

Correct Answer
verified

A binding minimum wage tends to

Correct Answer
verified

Figure 6-1 This figure shows the market demand and market supply curves for good Y -Refer to Figure 6-1.A government-imposed price of $24 in this market is an example of a

Correct Answer
verified

Exam 6: Supply,demand,and Government Policies

Figure 6-1 -Refer to Figure 6-1.A binding price ceiling is shown in

Correct AnswerverifiedShow Answer

Table 6-1 -Refer to Table 6-1.Which of the following price ceilings would be binding in this market?

Correct AnswerverifiedShow Answer

The rationing mechanisms that develop under binding price ceilings are usually inefficient.

Correct AnswerverifiedShow Answer

The minimum wage was instituted to ensure workers

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A binding price floor may not help all sellers,but it does not hurt any sellers.

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A binding minimum wage

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A price floor set below the equilibrium price causes a surplus in the market.

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A tax on sellers shifts the supply curve to the left.

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Figure 6-18 -Refer to Figure 6-18.Buyers pay how much of the tax per unit?

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A price ceiling set above the equilibrium price causes quantity demanded to exceed quantity supplied.

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One disadvantage of government subsidies over price controls is that subsidies

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A binding minimum wage tends to

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Figure 6-1 This figure shows the market demand and market supply curves for good Y -Refer to Figure 6-1.A government-imposed price of $24 in this market is an example of a

Correct AnswerverifiedShow Answer

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