Filters
Question type
Study Flashcards

-The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, what is true? A) The lowest wage for which someone is willing to work is $18 an hour. B) The quantity of jobs increases to 400. C) The lowest wage for which someone is willing to work is $20 an hour. D) 200 workers are employed. E) The quantity of jobs demanded is more than the quantity supplied. -The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, what is true?


A) The lowest wage for which someone is willing to work is $18 an hour.
B) The quantity of jobs increases to 400.
C) The lowest wage for which someone is willing to work is $20 an hour.
D) 200 workers are employed.
E) The quantity of jobs demanded is more than the quantity supplied.

F) B) and D)
G) A) and C)

Correct Answer

verifed

verified

The opportunity cost of an apartment in a rent controlled market is equal to


A) the rent charged for the apartment.
B) the opportunity cost of searching for the apartment.
C) the rent charged for the apartment plus the opportunity cost of searching for the apartment.
D) nothing because of the surplus of apartments when there are rent controls.
E) the rent charged for the apartment minus the opportunity cost of searching for the apartment.

F) D) and E)
G) B) and D)

Correct Answer

verifed

verified

The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax is imposed. The government imposes a $10 per unit tax on sellers of MP3 players. -In the figure above, at the market equilibrium with the tax, marginal benefit ________ marginal cost, and the quantity of MP3 players sold is ________. A) exceeds; inefficient B) is below; inefficient C) is below; efficient D) exceeds; efficient E) equals; efficient The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax is imposed. The government imposes a $10 per unit tax on sellers of MP3 players. -In the figure above, at the market equilibrium with the tax, marginal benefit ________ marginal cost, and the quantity of MP3 players sold is ________.


A) exceeds; inefficient
B) is below; inefficient
C) is below; efficient
D) exceeds; efficient
E) equals; efficient

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

Correct Answer

verifed

verified

The supply of sand is perfectly inelastic and the demand curve for sand is downward sloping. Hence, if a tax on sand is imposed,


A) sand buyers pay the entire tax.
B) sand sellers pay the entire tax.
C) the tax is split evenly between the buyers and sellers.
D) the government pays the entire tax.
E) the government collects no tax revenue because the supply is perfectly inelastic.

F) C) and D)
G) A) and B)

Correct Answer

verifed

verified

In the 1980s, one of the most common sights in the socialist countries, such as the former Soviet Union and North Korea, were long lines for bread, sugar, and other necessities. These countries had price ceilings on these necessities. Some of the socialist nations, such as the former Soviet Union, have moved to a market economy by lifting the price ceilings, while others, such as North Korea, have retained their price ceilings. What prediction do you make about the presence (or absence)of long lines today in the former Soviet Union and North Korea? Explain your answer.

Correct Answer

verifed

verified

The long lines have disappeared in the f...

View Answer

When a price ceiling is set below the equilibrium price, the quantity supplied ________ the quantity demanded and ________ exists.


A) is less than; a surplus
B) is less than; a shortage
C) is greater than; a surplus
D) is greater than; a shortage
E) equals; an equilibrium

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

Correct Answer

verifed

verified

A price support leads to inefficiency because


A) output is more than the efficient, equilibrium quantity.
B) the marginal benefit of the last unit produced is larger than the marginal cost.
C) the price charged is less than the equilibrium price.
D) producer surplus is less than consumer surplus.
E) producers must pay a subsidy to the government.

F) B) and E)
G) A) and E)

Correct Answer

verifed

verified

The loss to society resulting from a tax includes the


A) deadweight loss.
B) consumer surplus paid to the government in the form of tax revenue.
C) producer surplus paid to the government in the form of tax revenue.
D) deadweight loss plus the consumer surplus and producer surplus paid to the government as tax revenue.
E) deadweight loss minus the tax revenue collected by the government.

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

-The above figure shows the demand curves in four different markets. If each of the markets has an identical upward sloping supply curve and the same tax is levied on suppliers, which market would produce the largest amount of deadweight loss? A) A B) B C) C D) D E) C and D -The above figure shows the demand curves in four different markets. If each of the markets has an identical upward sloping supply curve and the same tax is levied on suppliers, which market would produce the largest amount of deadweight loss?


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

F) B) and D)
G) B) and E)

Correct Answer

verifed

verified

A regulation that sets the lowest price at which it is legal to trade a good is a


A) search ceiling.
B) price floor.
C) production ceiling.
D) price ceiling.
E) subsidy.

F) A) and D)
G) A) and C)

Correct Answer

verifed

verified

Explain why a price floor set below the equilibrium price is ineffective.

Correct Answer

verifed

verified

Price floors are legal minimums; it is l...

View Answer

Discuss the inefficiencies created by a price floor.

Correct Answer

verifed

verified

A price floor prevents the efficient all...

View Answer

The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax is imposed. The government imposes a $10 per unit tax on sellers of MP3 players. -Based on the figure above, the burden of the tax A) is split equally between the buyer and the seller. B) falls mostly on buyers. C) falls mostly on sellers. D) falls entirely on buyers. E) falls entirely on sellers. The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax is imposed. The government imposes a $10 per unit tax on sellers of MP3 players. -Based on the figure above, the burden of the tax


A) is split equally between the buyer and the seller.
B) falls mostly on buyers.
C) falls mostly on sellers.
D) falls entirely on buyers.
E) falls entirely on sellers.

F) A) and E)
G) A) and D)

Correct Answer

verifed

verified

The figure above shows the supply and demand curves in the market for rental housing. A rent ceiling is set at $400 per month. -As shown in the figure above, the rent ceiling ________ consumer surplus and ________ producer surplus. A) decreases; decreases B) decreases; increases C) increases; increases D) increases; decreases E) decreases; does not change The figure above shows the supply and demand curves in the market for rental housing. A rent ceiling is set at $400 per month. -As shown in the figure above, the rent ceiling ________ consumer surplus and ________ producer surplus.


A) decreases; decreases
B) decreases; increases
C) increases; increases
D) increases; decreases
E) decreases; does not change

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

-The graph shows the market for textbooks. If the government introduces a tax of $20 a textbook, then the price paid by buyers ________. A) increases by $20 B) increases to $80 a textbook C) decreases to $60 a textbook D) is $70 a textbook E) does not change because the demand for textbooks is perfectly elastic -The graph shows the market for textbooks. If the government introduces a tax of $20 a textbook, then the price paid by buyers ________.


A) increases by $20
B) increases to $80 a textbook
C) decreases to $60 a textbook
D) is $70 a textbook
E) does not change because the demand for textbooks is perfectly elastic

F) A) and C)
G) A) and B)

Correct Answer

verifed

verified

-The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, then there will be A) unemployment of 200 workers. B) a surplus of 200 workers. C) unemployment of 400 workers. D) a surplus of 400 workers. E) no unemployment of workers and no surplus of workers. -The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, then there will be


A) unemployment of 200 workers.
B) a surplus of 200 workers.
C) unemployment of 400 workers.
D) a surplus of 400 workers.
E) no unemployment of workers and no surplus of workers.

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

Correct Answer

verifed

verified

-If the minimum wage is above the equilibrium wage rate, then an increase in the minimum wage ________ employment and ________ unemployment. A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases E) does not change; increases -If the minimum wage is above the equilibrium wage rate, then an increase in the minimum wage ________ employment and ________ unemployment.


A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) does not change; increases

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

Correct Answer

verifed

verified

The figure above shows supply and demand in the market for labor. The government introduces a minimum wage of $7 per hour. -In the figure above, the number of unemployed workers is A) 4,000. B) 3,000. C) 2,000. D) 5,000. E) zero. The figure above shows supply and demand in the market for labor. The government introduces a minimum wage of $7 per hour. -In the figure above, the number of unemployed workers is


A) 4,000.
B) 3,000.
C) 2,000.
D) 5,000.
E) zero.

F) B) and D)
G) A) and B)

Correct Answer

verifed

verified

Suppose the demand for specialty car license plates is perfectly inelastic and the supply curve for specialty license plates is upward sloping. A tax is imposed on specialty license plates. Which of the following is true?


A) Drivers pay the smallest share of the tax.
B) Drivers pay none of the tax.
C) Drivers pay all of the tax.
D) The government pays all of the tax.
E) The government collects nothing in tax revenues.

F) A) and C)
G) All of the above

Correct Answer

verifed

verified

-The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the deadweight loss equals ________. A) $400 B) $200 C) $800 D) $1600 E) $100 -The above figure shows the market for biologists. The government decides to set a minimum wage for biologists of $18 per hour. After this minimum wage is in effect, the deadweight loss equals ________.


A) $400
B) $200
C) $800
D) $1600
E) $100

F) C) and D)
G) A) and C)

Correct Answer

verifed

verified

Showing 181 - 200 of 349

Related Exams

Exam 1

Getting Started

337 Questions

Exam 2

The Us and Global Economies

201 Questions

Exam 3

The Economic Problem

273 Questions

Exam 4

Demand and Supply

322 Questions

Exam 5

Elasticities of Demand and Supply

335 Questions

Exam 6

Efficiency and Fairness of Markets

352 Questions

Exam 8

Global Markets in Action

276 Questions

Exam 9

Externalities: Pollution, Education, and Health Care

290 Questions

Exam 10

Production and Cost

266 Questions

Exam 11

Perfect Competition

275 Questions

Exam 12

Monopoly

377 Questions

Exam 13

Monopolistic Competition and Oligopoly

316 Questions

Exam 14

Gdp: a Measure of Total Production and Income

253 Questions

Exam 15

Jobs and Unemployment

283 Questions

Exam 16

The Cpi and the Cost of Living

263 Questions

Exam 17

Potential Gdp and Economic Growth

328 Questions

Exam 18

Money and the Monetary System

360 Questions

Exam 19

Aggregate Supply and Aggregate Demand

301 Questions

Exam 20

Fiscal Policy and Monetary Policy

223 Questions

Show Answer