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How is rent control best characterized


A) as a common example of a social problem solved by government regulation
B) as a common example of a price ceiling
C) as the most effective way to provide affordable housing
D) as the most efficient way to allocate housing

E) B) and C)
F) C) and D)

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Using the equations shown below,answer the following questions. QD = a - bP QS = c + dP a.What is the equilibrium price and quantity in this market b.Assuming a tax of T is imposed on the seller side,what is the equilibrium price and quantity after the tax c.What is the effective price the sellers receive

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a. Equilibrium price is (a – c) / (b + d...

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What effect will a tax on sellers of hockey skates have on equilibrium price and quantity


A) It will reduce the equilibrium price of tires and increase the equilibrium quantity.
B) It will reduce the equilibrium price of tires and reduce the equilibrium quantity.
C) It will increase the equilibrium price of tires and increase the equilibrium quantity.
D) It will increase the equilibrium price of tires and reduce the equilibrium quantity.

E) A) and D)
F) A) and C)

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What effect will a tax on the buyers of organic tea have on the prices paid and received


A) The price the buyer pays and the price the seller receives will rise.
B) The price the buyer pays and the price the seller receives will fall.
C) The price the buyer pays will rise and the price the seller receives will fall.
D) The price the buyer pays will fall and the price the seller receives will rise.

E) C) and D)
F) A) and D)

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Figure 6-8 Figure 6-8 -Refer to Figure 6-8.What is the share of the tax burden that sellers would pay A) $1.00 per unit B) $1.50 per unit C) $2.00 per unit D) $3.00 per unit -Refer to Figure 6-8.What is the share of the tax burden that sellers would pay


A) $1.00 per unit
B) $1.50 per unit
C) $2.00 per unit
D) $3.00 per unit

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

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If a tax is imposed on a market with inelastic demand,how is the burden of the tax distributed


A) Buyers will bear most of the burden of the tax if the supply is elastic.
B) Sellers will bear most of the burden of the tax if the supply is elastic.
C) Buyers will bear most of the burden of the tax if the supply is inelastic.
D) Sellers will bear most of the burden of the tax if the supply is inelastic.

E) B) and D)
F) All of the above

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Figure 6-2 Figure 6-2 -Refer to Figure 6-2.At what price would there be a binding price floor A) a price of $8.00 B) a price of $10.00 C) any price below $7.00 D) any price above $10.00 -Refer to Figure 6-2.At what price would there be a binding price floor


A) a price of $8.00
B) a price of $10.00
C) any price below $7.00
D) any price above $10.00

E) C) and D)
F) None of the above

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Unlike minimum-wage laws,what do wage subsidies do


A) They discourage firms from hiring the working poor.
B) They cause unemployment.
C) They help only wealthy workers.
D) They raise living standards of the working poor without creating unemployment.

E) C) and D)
F) A) and C)

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Market demand is given as QD = 400 - 2P.Market supply is given as QS = 2P.Which legally imposed price would constitute a binding price ceiling


A) $80
B) $120
C) $160
D) $200

E) None of the above
F) All of the above

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What is EI an example of


A) a payroll tax
B) a sales tax
C) a farm subsidy
D) fire insurance

E) A) and B)
F) A) and C)

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In general,on which side of the market does a tax burden fall


A) It depends on the supply and demand of that product.
B) It depends on how lawmakers decide the burden should be placed.
C) It usually falls more heavily on the buyer.
D) It usually falls more heavily on the seller.

E) A) and D)
F) B) and C)

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What is the minimum wage an example of


A) a price ceiling
B) a price floor
C) a free-market process
D) an efficient labour allocation mechanism

E) A) and C)
F) None of the above

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What happens if a binding price ceiling is imposed in a market


A) There will be a surplus in the market.
B) The price will be legally forced toward equilibrium price.
C) There will be a shortage in the market.
D) Market forces will guarantee that the price will be at equilibrium.

E) A) and C)
F) A) and B)

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On which side of the market does a tax burden fall most heavily


A) A tax burden falls most heavily on the side of the market that is more elastic.
B) A tax burden falls most heavily on the side of the market that is more inelastic.
C) A tax burden falls most heavily on the side of the market that is closer to unit elastic.
D) A tax burden falls most heavily on the side of the market that is closer to perfect elastic.

E) B) and D)
F) All of the above

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In general,a tax burden falls more heavily on the side of the market that is more inelastic.

A) True
B) False

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What is a legal minimum price at which a good can be sold


A) a price cut
B) a price stabilization
C) a price ceiling
D) a price floor

E) None of the above
F) C) and D)

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Market demand is given as QD = 100 - P.Market supply is given as QS = 4P.Which legally imposed price would constitute a binding price ceiling


A) $10
B) $30
C) $60
D) $120

E) A) and D)
F) C) and D)

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Economic policies often have effects that their architects did not intend or anticipate.

A) True
B) False

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Which statement best describes a price ceiling


A) A price ceiling is a legal maximum on the price at which a good can be sold.
B) A price ceiling is a legal minimum on the price at which a good can be sold.
C) A price ceiling occurs when the price in the market is temporarily above equilibrium.
D) A price ceiling occurs when the price in the market is subsidized by the government.

E) A) and D)
F) None of the above

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What is a payroll tax


A) a tax on the wages firms pay their workers
B) a tax each firm must pay to the government to hire workers and operate a business
C) a fixed per-worker amount each firm pays to the government
D) a tax on all wages above minimum wage

E) C) and D)
F) None of the above

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