Details of this Paper

Economics questions

Description

solution


Question

Question;Economics questionsFigure;6-4;136.Refer;to Figure 6-4. For a price ceiling;to be binding in this market, it would have to be set at;a.;any price;below $6.;b.;a price;between $3 and $6.;c.;a price;between $6 and $9.;d.;any price;above $6.;137.Refer;to Figure 6-4. For a price floor to;be binding in this market, it would have to be set at;a.;any price;below $6.;b.;a price;between $3 and $6.;c.;a price;between $6 and $9.;d.;any price;above $6.;138.Refer;to Figure 6-4. Which of the;following price controls would cause a shortage of 20 units of the good?;a.;a price;ceiling of $4;b.;a price;ceiling of $5;c.;a price floor;of $7;d.;a price floor;of $8;139.Refer;to Figure 6-4. Which of the;following price controls would cause a surplus of 20 units of the good?;a.;a price;ceiling of $4;b.;a price;ceiling of $5;c.;a price floor;of $7;d.;a price floor;of $8;140.Refer;to Figure 6-4. Suppose a price;ceiling of $5 is imposed on this market. As a result;a.;the quantity;of the good supplied decreases by 20 units.;b.;the demand;curve shifts to the left so as to now pass through the point (quantity = 40;price = $5).;c.;buyers? total;expenditure on the good decreases by $100.;d.;the price of;the good continues to serve as the rationing mechanism.;141.Refer;to Figure 6-4. Suppose a price floor;of $7 is imposed on this market. As a result;a.;buyers? total;expenditure on the good decreases by $20.;b.;the supply;curve shifts to the left so as to now pass through the point (quantity = 40;price = $7).;c.;the quantity;of the good demanded decreases by 20 units.;d.;the price of;the good continues to serve as the rationing mechanism.;Figure;6-5;142.Refer;to Figure 6-5. If the government;imposes a price ceiling of $2 on this market, then the result is a;a.;shortage of 0;units of the good.;b.;shortage of;40 units of the good.;c.;shortage of;60 units of the good.;d.;shortage of;85 units of the good.;143.Refer;to Figure 6-5. If the government;imposes a price floor of $5 on this market, then the result is a;a.;surplus of 0;units of the good.;b.;surplus of 20;units of the good.;c.;surplus of 30;units of the good.;d.;surplus of 55;units of the good.;144.Refer;to Figure 6-5. The price of the good;would continue to serve as the rationing mechanism if;a.;a price;ceiling of $4 is imposed.;b.;a price;ceiling of $5 is imposed.;c.;a price floor;of $3 is imposed.;d.;All of the;above are correct.;145.Refer;to Figure 6-5. When a certain price;control is imposed on this market, the resulting quantity of the good that is;actually bought and sold is such that buyers are willing and able to pay a;maximum of P1 dollars per unit for that quantity and sellers;are willing and able to accept a minimum of P2 dollars per;unit for that quantity. If P1;- P2 = $3, then the price control in question is;a.;a price;ceiling of $2.00.;b.;a price;ceiling of $5.00.;c.;a price floor;of $5.00.;d.;either a;price ceiling of $2.00 or a price floor of $5.00.;Figure;6-6;146.Refer;to Figure 6-6. Which of the;following statements is correct?;a.;A price;ceiling set at $4 will be binding and will result in a shortage of 3 units.;b.;A price;ceiling set at $4 will be binding and will result in a shortage of 6 units.;c.;A price;ceiling set at $7 will be binding and will result in a surplus of 6 units.;d.;A price;ceiling set at $7 will be binding and will result in a surplus of 12 units.;147.Refer;to Figure 6-6. Which of the;following statements is correct?;a.;A price floor;set at $4 will be binding and will result in a shortage of 3 units.;b.;A price floor;set at $4 will be binding and will result in a shortage of 6 units.;c.;A price floor;set at $7 will be binding and will result in a surplus of 6 units.;d.;A price floor;set at $7 will be binding and will result in a surplus of 12 units.;148.Refer;to Figure 6-7. Which of the;following statements is correct?;a.;A price;ceiling set at $6 will be binding and will result in a shortage of 8 units.;b.;A price;ceiling set at $6 will be binding and will result in a shortage of 4 units.;c.;A price;ceiling set at $16 will be binding and will result in a shortage of 12 units.;d.;A price;ceiling set at $16 will be binding and will result in a shortage of 6 units.;149.Refer;to Figure 6-7. Which of the;following statements is correct?;a.;A price floor;set at $6 will be binding and will result in a surplus of 8 units.;b.;A price floor;set at $6 will be binding and will result in a surplus of 4 units.;c.;A price floor;set at $16 will be binding and will result in a surplus of 12 units.;d.;A price floor;set at $16 will be binding and will result in a surplus of 6 units.;Figure;6-8;150.Refer;to Figure 6-8. When the price;ceiling applies in this market and the supply curve for gasoline shifts from S1;to S2;a.;the market;price will increase to P3.;b.;a surplus;will occur at the new market price of P2.;c.;the market;price will stay at P1.;d.;a shortage;will occur at the new market price of P2.;151.Refer;to Figure 6-8. When the price;ceiling applies in this market and the supply curve for gasoline shifts from S1;to S2, the resulting quantity of gasoline that is bought and sold is;a.;less than Q3.;b.;Q3.;c.;between Q1;and Q3.;d.;at least Q1.;152.Refer;to Figure 6-8. Which of the;following statements best relates the figure to the events that occurred in the;United States;in the 1970s?;a.;Buyers of;gasoline paid a price of P1 before 1973, they paid a price of P2;after OPEC increased the price of crude oil in 1973, and there was a shortage;of gasoline at that price.;b.;Buyers of;gasoline paid a price of P1 before 1973, they paid a price of P3;after OPEC increased the price of crude oil in 1973, and there was a shortage;of gasoline at that price.;c.;Buyers of;gasoline paid a price of P2 before 1973, they paid a price of P3;after OPEC increased the price of crude oil in 1973, with no shortage of;gasoline at that price.;d.;The price;ceiling was binding before 1973, the price ceiling was no longer binding;after OPEC increased the price of crude oil in 1973.;153.When;policymakers set prices by legal decree, they;a.;are usually;following the advice of mainstream economists.;b.;improve the;organization of economic activity.;c.;obscure the;signals that normally guide the allocation of society?s resources.;d.;are demonstrating;a willingness to sacrifice fairness for the sake of a gain in efficiency.;154.Which;of the following is not a function of prices in a market system?;a.;Prices have;the crucial job of balancing supply and demand.;b.;Prices send;signals to buyers and sellers to help them make rational economic decisions.;c.;Prices;coordinate economic activity.;d.;Prices ensure;an equal distribution of goods and services among consumers.;155.Which;of the following is correct?;a.;Price;controls always help those they are designed to help.;b.;Price;controls never help those they are designed to help.;c.;Price;controls often hurt those they are designed to help.;d.;Price;controls always hurt those they are designed to help.;156.An;alternative to rent-control laws that would not reduce the quantity of housing;supplied is;a.;the payment;by government of a fraction of a poor family?s rent.;b.;higher taxes;on rental income earned by landlords.;c.;a policy that;prevents landlords from evicting tenants.;d.;a policy that;allows government to confiscate residential property for the purpose of;commercial development.;157.Unlike;minimum wage laws, wage subsidies;a.;discourage;firms from hiring the working poor.;b.;cause;unemployment.;c.;help only wealthy;workers.;d.;raise the;living standards of the working poor without creating unemployment.;158.The;Earned Income Tax Credit is an example of;a.;a;minimum-wage law.;b.;a price;ceiling.;c.;a wage;subsidy.;d.;a rent;subsidy.;159.One;disadvantage of government subsidies over price controls is that subsidies;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.;Sec02 - Supply, Demand, and Government;Policies - Taxes;MULTIPLE CHOICE;1. The;term tax incidencerefers to;a.;whether;buyers or sellers of a good are required to send tax payments to the;government.;b.;whether the;demand curve or the supply curve shifts when the tax is imposed.;c.;the;distribution of the tax burden between buyers and sellers.;d.;widespread;view that taxes always will be a fact of life.;2. If;a tax is levied on the sellers of a product, then the demand curve;a.;will shift;down.;b.;will shift;up.;c.;will become;flatter.;d.;will not;shift.;3. If;a tax is levied on the sellers of a product, then the supply curve;a.;will shift;up.;b.;will shift;down.;c.;will become;flatter.;d.;will not;shift.;4. If;a tax is levied on the sellers of a product, then there will be a(n);a.;downward;shift of the demand curve.;b.;upward shift;of the demand curve.;c.;movement up;and to the left along the demand curve.;d.;movement down;and to the right along the demand curve.;5. If;a tax is levied on the sellers of a product, then there will be a(n);a.;downward;shift of the supply curve.;b.;upward shift;of the supply curve.;c.;movement up;and to the right along the supply curve.;d.;movement down;and to the left along the supply curve.;6. A;tax on the sellers of TVs;a.;leads sellers;to supply a smaller quantity at every price.;b.;leads buyers;to demand a smaller quantity at every price.;c.;leads sellers;to supply a larger quantity at every price.;d.;Both (a) and;(b) are correct.;7. A;tax levied on the sellers of blueberries;a.;increases;sellers? costs, reduces profits, and shifts the supply curve up.;b.;increases;sellers? costs, reduces profits, and shifts the supply curve down.;c.;decreases;sellers? costs, increases profits, and shifts the supply curve up.;d.;decreases;sellers? costs, increases profits, and shifts the supply curve down.;8. A;tax on sellers will;a.;shift the;demand curve upwards by the amount of the tax.;b.;shift the;demand curve downwards by the amount of the tax.;c.;shift the;supply curve upwards by the amount of the tax.;d.;shift the;supply curve downwards by the amount of the tax.;9. When;a tax is imposed on the sellers of a good, the supply curve shifts;a.;upward by the;amount of the tax.;b.;downward by;the amount of the tax.;c.;upward by;less than the amount of the tax.;d.;downward by;less than the amount of the tax.;10. A;$2.00 tax levied on the sellers of mailboxes will shift the supply curve;a.;upward by;exactly $2.00.;b.;upward by;less than $2.00.;c.;downward by;exactly $2.00.;d.;downward by;less than $2.00.;A;11. A;$0.10 tax levied on the sellers of chocolate bars will cause the;a.;supply curve;for chocolate bars to shift down by $0.10.;b.;supply curve;for chocolate bars to shift up by $0.10.;c.;demand curve;for chocolate bars to shift down by $0.10.;d.;demand curve;for chocolate bars to shift up by $0.10.;12. A;tax on the sellers of popcorn;a.;increases the;size of the popcorn market.;b.;decreases the;size of the popcorn market.;c.;has no effect;on the size of the popcorn market.;d.;may increase;decrease, or have no effect on the size of the popcorn market.;13. When;a tax is placed on the sellers of a product;a.;buyers pay;more and sellers receive more than they did before the tax.;b.;buyers pay;more and sellers receive less than they did before the tax.;c.;buyers pay;less and sellers receive more than they did before the tax.;d.;buyers pay;less and sellers receive less than they did before the tax.;14. A;tax on the sellers of coffee will;a.;increase the;price of coffee paid by buyers, increase the effective price of coffee;received by sellers, and increase the equilibrium quantity of coffee.;b.;increase the;price of coffee paid by buyers, increase the effective price of coffee;received by sellers, and decrease the equilibrium quantity of coffee.;c.;increase the;price of coffee paid by buyers, decrease the effective price of coffee;received by sellers, and increase the equilibrium quantity of coffee.;d.;increase the;price of coffee paid by buyers, decrease the effective price of coffee;received by sellers, and decrease the equilibrium quantity of coffee.;15. A;tax imposed on the sellers of a good will;a.;raise the;price paid by buyers and lower the equilibrium quantity.;b.;raise the;price paid by buyers and raise the equilibrium quantity.;c.;raise the;effective price received by sellers and lower the equilibrium quantity.;d.;raise the;effective price received by sellers and raise the equilibrium quantity.;16. A;tax imposed on the sellers of a good will;a.;lower the;price paid by buyers and lower the equilibrium quantity.;b.;lower the;price paid by buyers and raise the equilibrium quantity.;c.;lower the;effective price received by sellers and lower the equilibrium quantity.;d.;lower the;effective price received by sellers and raise the equilibrium quantity.;17. A;tax imposed on the sellers of a good will;a.;raise both;the price buyers pay and the effective price sellers receive.;b.;raise the;price buyers pay and lower the effective price sellers receive.;c.;lower the;price buyers pay and raise the effective price sellers receive.;d.;lower both;the price buyers pay and the effective price sellers receive.;18. When;a tax is placed on the sellers of a product, the;a.;size of the;market decreases.;b.;effective;price received by sellers decreases and the price paid by buyers increases.;c.;supply of the;product decreases.;d.;All of the;above are correct.;19. If;the government levies a $500 tax per car on sellers of cars, then the price;paid by buyers of cars would;a.;increase by;more than $500.;b.;increase by;exactly $500.;c.;increase by;less than $500.;d.;decrease by;an indeterminate amount.;20. If;the government levies a $500 tax per car on sellers of cars, then the price;received by sellers of cars would;a.;decrease by;less than $500.;b.;decrease by;exactly $500.;c.;decrease by;more than $500.;d.;increase by;an indeterminate amount.;21. When;a tax is placed on the sellers of cell phones;a.;the size of;the cell phone market and the effective price received by sellers both;increase.;b.;the size of;the cell phone market increases, but the effective price received by sellers;decreases.;c.;the size of;the cell phone market decreases, but the effective price received by sellers;increases.;d.;the size of;the cell phone market and the effective price received by sellers both;decrease.;22. When;a tax is placed on the sellers of cell phones;a.;the size of;the cell phone market and the price paid by buyers both increase.;b.;the size of;the cell phone market increases, but the price paid by buyers decreases.;c.;the size of;the cell phone market decreases, but the price paid by buyers increases.;d.;the size of;the cell phone market and the price paid by buyers both decrease.;23. When;a tax is placed on the sellers of lemonade;a.;the sellers;bear the entire burden of the tax.;b.;the buyers;bear the entire burden of the tax.;c.;the burden of;the tax will be always be equally divided between the buyers and the sellers.;d.;the burden of;the tax will be shared by the buyers and the sellers, but the division of the;burden is not always equal.;24. If;a tax is levied on the sellers of sugar, then;a.;buyers will;bear the entire burden of the tax.;b.;sellers will;bear the entire burden of the tax.;c.;buyers and;sellers will share the burden of the tax.;d.;the;government will bear the entire burden of the tax.;25. If;the government passes a law requiring sellers of motorcycles to send $500 to;the government for every motorcycle they sell, then;a.;the supply;curve for motorcycles shifts downward by $500.;b.;sellers of;motorcycles receive $500 less per motorcycle than they were receiving before;the tax.;c.;buyers of;motorcycles are unaffected by the tax.;d.;None of the;above is correct.;26. Suppose;sellers of liquor are required to send $1.00 to the government for every bottle;of liquor they sell. Further, suppose;this tax causes the price paid by buyers of liquor to rise by $0.80 per;bottle. Which of the following;statements is correct?;a.;This tax;causes the supply curve for liquor to shift upward by $1.00 at each quantity;of liquor.;b.;The effective;price received by sellers is $0.20 per bottle less than it was before the;tax.;c.;Eighty;percent of the burden of the tax falls on buyers.;d.;All of the;above are correct.;27. Suppose;sellers of liquor are required to send $1.00 to the government for every bottle;of liquor they sell. Further, suppose;this tax causes the price paid by buyers of liquor to rise by $0.60 per;bottle. Which of the following;statements is correct?;a.;The effective;price received by sellers is $0.40 per bottle less than it was before the;tax.;b.;Sixty percent;of the burden of the tax falls on sellers.;c.;This tax;causes the demand curve for liquor to shift downward by $1.00 at each;quantity of liquor.;d.;All of the;above are correct.;28. Suppose;there is currently a tax of $50 per ticket on airline tickets. Sellers of airline tickets are required to;pay the tax to the government. If the;tax is reduced from $50 per ticket to $30 per ticket, then;a.;the demand;curve will shift upward by $20, and the price paid by buyers will decrease by;less than $20.;b.;the demand;curve will shift upward by $20, and the price paid by buyers will decrease by;$20.;c.;the supply;curve will shift downward by $20, and the effective price received by sellers;will increase by less than $20.;d.;the supply;curve will shift downward by $20, and the effective price received by sellers;will increase by $20.;29. Suppose;there is currently a tax of $50 per ticket on airline tickets. Sellers of airline tickets are required to;pay the tax to the government. If the;tax is reduced from $50 per ticket to $30 per ticket, then;a.;the demand;curve will shift upward by $20, and the effective price received by sellers;will increase by $20.;b.;the demand;curve will shift upward by $20, and the effective price received by sellers;will increase by less than $20.;c.;the supply;curve will shift downward by $20, and the price paid by buyers will decrease;by $20.;d.;the supply;curve will shift downward by $20, and the price paid by buyers will decrease;by less than $20.;30. When;a tax is levied on sellers of tea;a.;the;well-being of both sellers and buyers of tea is unaffected.;b.;sellers of;tea are made worse off and the well-being of buyers is unaffected.;c.;sellers of;tea are made worse off and buyers of tea are made better off.;d.;sellers and;buyers of tea both are made worse off.;31. If;a tax is levied on the buyers of a product, then the supply curve;a.;will not;shift.;b.;will shift;up.;c.;will shift;down.;d.;will become;flatter.;32. If;a tax is levied on the buyers of a product, then the demand curve;a.;will not;shift.;b.;will shift;down.;c.;will shift;up.;d.;will become;flatter.;33. If;a tax is levied on the buyers of a product, then there will be a(n);a.;downward;shift of the supply curve.;b.;upward shift;of the supply curve.;c.;movement up;and to the right along the supply curve.;d.;movement down;and to the left along the supply curve.;34. If;a tax is levied on the buyers of a product, then there will be a(n);a.;upward shift;of the demand curve.;b.;downward;shift of the demand curve.;c.;movement up;and to the left along the demand curve.;d.;movement down;and to the right along the demand curve.;35. A;tax on the buyers of TVs;a.;leads sellers;to supply a smaller quantity at every price.;b.;leads buyers;to demand a smaller quantity at every price.;c.;leads buyers;to demand a larger quantity at every price.;d.;Both (a) and;(b) are correct.;36. A;tax on buyers will;a.;shift the;demand curve upwards by the amount of the tax.;b.;shift the;demand curve downwards by the amount of the tax.;c.;shift the;supply curve upwards by the amount of the tax.;d.;shift the;supply curve downwards by the amount of the tax.;37. When;a tax is imposed on the buyers of a good, the demand curve shifts;a.;upward by the;amount of the tax.;b.;downward by;the amount of the tax.;c.;upward by;less than the amount of the tax.;d.;downward by;less than the amount of the tax.;38. A;$2.00 tax levied on the buyers of lawnmowers will shift the demand curve;a.;upward by;exactly $2.00.;b.;upward by;less than $2.00.;c.;downward by;exactly $2.00.;d.;downward by;less than $2.00.;39. A;$0.10 tax levied on the buyers of socks will cause the;a.;supply curve;for socks to shift down by $0.10.;b.;supply curve;for socks to shift up by $0.10.;c.;demand curve;for socks to shift down by $0.10.;d.;demand curve;for socks to shift up by $0.10.;40. A;tax on the buyers of popcorn;a.;increases the;size of the popcorn market.;b.;decreases the;size of the popcorn market.;c.;has no effect;on the size of the popcorn market.;d.;may increase;decrease, or have no effect on the size of the popcorn market.;41. When;a tax is placed on the buyers of a product;a.;buyers pay;more and sellers receive more than they did before the tax.;b.;buyers pay;more and sellers receive less than they did before the tax.;c.;buyers pay;less and sellers receive more than they did before the tax.;d.;buyers pay;less and sellers receive less than they did before the tax.;42. A;tax on the buyers of coffee will;a.;increase the;price of coffee paid by buyers, decrease the effective price of coffee;received by sellers, and decrease the equilibrium quantity of coffee.;b.;increase the;price of coffee paid by buyers, decrease the effective price of coffee;received by sellers, and increase the equilibrium quantity of coffee.;c.;increase the;price of coffee paid by buyers, increase the effective price of coffee;received by sellers, and decrease the equilibrium quantity of coffee.;d.;increase the;price of coffee paid by buyers, increase the effective price of coffee;received by sellers, and increase the equilibrium quantity of coffee.;43. A;tax imposed on the buyers of a good will;a.;raise the;price paid by buyers and lower the equilibrium quantity.;b.;raise the;price paid by buyers and raise the equilibrium quantity.;c.;raise the;effective price received by sellers and lower the equilibrium quantity.;d.;raise the;effective price received by sellers and raise the equilibrium quantity.;44. A;tax imposed on the buyers of a good will;a.;lower the;price paid by buyers and lower the equilibrium quantity.;b.;lower the;price paid by buyers and raise the equilibrium quantity.;c.;lower the;effective price received by sellers and lower the equilibrium quantity.;d.;lower the;effective price received by sellers and raise the equilibrium quantity.;45. A;tax imposed on the buyers of a good will;a.;raise both;the price buyers pay and the effective price sellers receive.;b.;raise the;price buyers pay and lower the effective price sellers receive.;c.;lower the;price buyers pay and raise the effective price sellers receive.;d.;lower both;the price buyers pay and the effective price sellers receive.;46. When;a tax is placed on the buyers of a product, the;a.;size of the;market decreases.;b.;effective;price received by sellers decreases and the price paid by buyers increases.;c.;demand for;the product decreases.;d.;All of the;above are correct.;47. If;the government levies a $500 tax per car on buyers of cars, then the price paid;by buyers of cars would;a.;increase by;less than $500.;b.;increase by;exactly $500.;c.;increase by;more than $500.;d.;decrease by;an indeterminate amount.;48. If;the government levies a $500 tax per car on buyers of cars, then the price;received by sellers of cars would;a.;decrease by;more than $500.;b.;decrease by;exactly $500.;c.;decrease by;less than $500.;d.;increase by;an indeterminate amount.;49. When;a tax is placed on the buyers of cell phones;a.;the size of;the cell phone market and the effective price received by sellers both;decrease.;b.;the size of;the cell phone market decreases, but the effective price received by sellers;increases.;c.;the size of;the cell phone market increases, but the effective price received by sellers;decreases.;d.;the size of;the cell phone market and the effective price received by sellers both;increase.;50. When;a tax is placed on the buyers of cell phones;a.;the size of;the cell phone market and the price paid by buyers both decrease.;b.;the size of;the cell phone market decreases, but the price paid by buyers increases.;c.;the size of;the cell phone market increases, but the price paid by buyers decreases.;d.;the size of;the cell phone market and the price paid by buyers both increase.

 

Paper#57998 | Written in 18-Jul-2015

Price : $22
SiteLock