Use the table below to answer the following questions. Table 6.5.1 The Market for a Prohibited Good. \[\begin{array} { c c c } \hline \text { Price } & \text { Quantity Demanded } &\text { Quantity Supplied }\\ \text { (dollars) } & \text { (units) }& \text { (units) }\\ \hline 5 & 700 & 100 \\ 6 & 600 & 200 \\ 7 & 500 & 300 \\ 8 & 400 & 400 \\ 9 & 300 & 500 \\ 10 & 200 & 600 \\ 11 & 100 & 700 \\ \hline \end{array}\] -Refer to Table 6.5.1.If a $2-per-unit cost of breaking the law is imposed on sellers,the price received by sellers (net of the cost of breaking the law)would be

A) $8. B) $7. C) $9. D) $10. E) $6. A) $8. B) $7. C) $9. D) $10. E) $6.

A) results in a shortage of housing if the rent ceiling is below the equilibrium rent. B) results in a surplus of housing if the rent ceiling is above the equilibrium rent. C) always results in a shortage of housing. D) always results in a surplus of housing. E) Both A and B are correct. A) results in a shortage of housing if the rent ceiling is below the equilibrium rent. B) results in a surplus of housing if the rent ceiling is above the equilibrium rent. C) always results in a shortage of housing. D) always results in a surplus of housing. E) Both A and B are correct.

Use the table below to answer the following questions. Table 6.2.2 \[\begin{array} { c c c } \hline\begin{array} { c } \text { Wage Rate } \\ \text { (dollars per hour) } \end{array} & \begin{array} { c } \text { Quantity Supplied } \\ \text { (millions of hours) } \end{array} & \begin{array} { c } \text { Quantity Demanded } \\ \text { (millions of hours) } \end{array} \\ \hline 7 & 60 & 30 \\ 6 & 50 & 40 \\ 5 & 40 & 50 \\ 4 & 30 & 60 \\ 3 & 20 & 70 \\ \hline \end{array}\] -Refer to Table 6.2.2.What is the level of unemployment in millions of hours if the minimum wage is set at $3 per hour?

A) 70 B) 40 C) 30 D) 20 E) zero A) 70 B) 40 C) 30 D) 20 E) zero

Use the figure below to answer the following questions. Figure 6.1.1 -Refer to Figure 6.1.1.Suppose the demand for rental housing is shown by demand curve D1,and there is a rent ceiling of $150 per room.What is the highest amount that would be expended on search activity?

A) $200. B) $150. C) $100. D) $50. E) $0. A) $200. B) $150. C) $100. D) $50. E) $0.

Use the table below to answer the following questions. Table 6.2.2 \[\begin{array} { c c c } \hline\begin{array} { c } \text { Wage Rate } \\ \text { (dollars per hour) } \end{array} & \begin{array} { c } \text { Quantity Supplied } \\ \text { (millions of hours) } \end{array} & \begin{array} { c } \text { Quantity Demanded } \\ \text { (millions of hours) } \end{array} \\ \hline 7 & 60 & 30 \\ 6 & 50 & 40 \\ 5 & 40 & 50 \\ 4 & 30 & 60 \\ 3 & 20 & 70 \\ \hline \end{array}\] -Refer to Table 6.2.2.What is the level of unemployment in millions of hours if the minimum wage is set at $7 per hour?

A) 40 B) 30 C) 20 D) 10 E) zero A) 40 B) 30 C) 20 D) 10 E) zero

Use the table below to answer the following questions. Table 6.3.1 \[\begin{array} { c c c } \hline\text { Price } & \text { Quantity Demanded } &\text { Quantity Supplied }\\ \text { (dollars per unit) } & \text { (units) }& \text { (units) }\\ \hline 3 & 900 & 300 \\ 4 & 800 & 400 \\ 5 & 700 & 500 \\ 6 & 600 & 600 \\ 7 & 500 & 700 \\ 8 & 400 & 800 \\ 9 & 200 & 900 \\ \hline \end{array}\] -Refer to Table 6.3.1.Suppose a sales tax of $2 a unit is imposed on the good described in the table.The new price paid by consumers is $ ________ and ________ units are sold.

A) $6;400 B) $7;700 C) $7;500 D) $6.50;500 E) $6.50;700 A) $6;400 B) $7;700 C) $7;500 D) $6.50;500 E) $6.50;700

Use the table below to answer the following questions. Table 6.2.1 \[\begin{array} { c c c } \hline\begin{array} { c } \text { Wage Rate } \\ \text { (dollars per hour) } \end{array} & \begin{array} { c } \text { Quantity Supplied } \\ \text { (hours per week) } \end{array} & \begin{array} { c } \text { Quantity Demanded } \\ \text { (hours per week) } \end{array} \\ \hline 7 & 1,000 & 200 \\ 6 & 800 & 400 \\ 5 & 600 & 600 \\ 4 & 400 & 800 \\ \hline \end{array}\] -Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City.In an unregulated market,

A) there is no teenage unemployment and the wage rate is $6 per hour. B) there is no teenage unemployment and the wage rate is $5 per hour. C) teenage unemployment is 400 hours and the wage rate is $6 per hour. D) teenage unemployment is 400 hours and the wage rate is $5 per hour. E) the minimum wage is $7 per hour. A) there is no teenage unemployment and the wage rate is $6 per hour. B) there is no teenage unemployment and the wage rate is $5 per hour. C) teenage unemployment is 400 hours and the wage rate is $6 per hour. D) teenage unemployment is 400 hours and the wage rate is $5 per hour. E) the minimum wage is $7 per hour.

Exam 6: Government Actions in Markets

The demand for a good and the supply of a good are each neither perfectly elastic nor perfectly inelastic.If a sales tax on sellers of the good is imposed,the tax is paid by

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

B

The time spent looking for someone with whom to do business is called

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

C

Daisy and Donald live in a community with rent ceilings.Both are looking for an apartment to rent.Daisy has a job paying $10 per hour and Donald has a job paying $8 per hour.Both value an apartment equally.What is the most likely outcome?

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

B

Provincial governments across Canada recently started legalizing and then heavily taxing gambling at casinos.The new taxes are lower than the cost of breaking the law was to the sellers of the previously illegal casino services.The costs of breaking the law to the buyers of these services also fell to zero.This change will likely lead to

(Multiple Choice)

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Question 4

Governments tend to tax items with inelastic demand because

(Multiple Choice)

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Question 5

If the government imposes a maximum rent for housing that is above the equilibrium price,then you predict that

(Multiple Choice)

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Question 6

A production quota is set equal to the equilibrium quantity.At the quota quantity,marginal social benefit is marginal social cost and the level of production is .

(Multiple Choice)

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Question 7

In an unregulated housing market with no rent ceiling,the rent is determined by the

(Multiple Choice)

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Question 8

Use the table below to answer the following questions. Table 6.5.1 The Market for a Prohibited Good. Price Quantity Demanded Quantity Supplied (dollars) (units) (units) 5 700 100 6 600 200 7 500 300 8 400 400 9 300 500 10 200 600 11 100 700 -Refer to Table 6.5.1.If a $2-per-unit cost of breaking the law is imposed on sellers,the price received by sellers (net of the cost of breaking the law)would be

(Multiple Choice)

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Question 9

In a market with an effective production quota

(Multiple Choice)

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Question 10

A rent ceiling

(Multiple Choice)

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Question 11

Use the table below to answer the following questions. Table 6.2.2 Wage Rate (dollars per hour) Quantity Supplied (millions of hours) Quantity Demanded (millions of hours) 7 60 30 6 50 40 5 40 50 4 30 60 3 20 70 -Refer to Table 6.2.2.What is the level of unemployment in millions of hours if the minimum wage is set at $3 per hour?

(Multiple Choice)

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Question 12

Use the figure below to answer the following questions. Figure 6.1.1 -Refer to Figure 6.1.1.Suppose the demand for rental housing is shown by demand curve D₁,and there is a rent ceiling of $150 per room.What is the highest amount that would be expended on search activity?

(Multiple Choice)

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Question 13

Use the table below to answer the following questions. Table 6.2.2 Wage Rate (dollars per hour) Quantity Supplied (millions of hours) Quantity Demanded (millions of hours) 7 60 30 6 50 40 5 40 50 4 30 60 3 20 70 -Refer to Table 6.2.2.What is the level of unemployment in millions of hours if the minimum wage is set at $7 per hour?

(Multiple Choice)

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Question 14

Use the table below to answer the following questions. Table 6.3.1 Price Quantity Demanded Quantity Supplied (dollars per unit) (units) (units) 3 900 300 4 800 400 5 700 500 6 600 600 7 500 700 8 400 800 9 200 900 -Refer to Table 6.3.1.Suppose a sales tax of $2 a unit is imposed on the good described in the table.The new price paid by consumers is $ and units are sold.

(Multiple Choice)

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Question 15

When a price ceiling is set below the equilibrium price,

(Multiple Choice)

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Question 16

Complete the following sentence.A price floor set below the equilibrium price results in

(Multiple Choice)

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Question 17

Use the table below to answer the following questions. Table 6.2.1 Wage Rate (dollars per hour) Quantity Supplied (hours per week) Quantity Demanded (hours per week) 7 1,000 200 6 800 400 5 600 600 4 400 800 -Table 6.2.1 gives the supply and demand schedules for teenage labour in Genoa City.In an unregulated market,

(Multiple Choice)

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Question 18

A fact that argues in favour of prohibition and against taxes on illegal drugs is that

(Multiple Choice)

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Question 19

If a rent ceiling imposed by the government is greater than the equilibrium rent for housing,then

(Multiple Choice)

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Question 20

The demand for a good and the supply of a good are each neither perfectly elastic nor perfectly inelastic.If a sales tax on sellers of the good is imposed,the tax is paid by

The time spent looking for someone with whom to do business is called

Daisy and Donald live in a community with rent ceilings.Both are looking for an apartment to rent.Daisy has a job paying $10 per hour and Donald has a job paying $8 per hour.Both value an apartment equally.What is the most likely outcome?

Governments tend to tax items with inelastic demand because

If the government imposes a maximum rent for housing that is above the equilibrium price,then you predict that

A production quota is set equal to the equilibrium quantity.At the quota quantity,marginal social benefit is marginal social cost and the level of production is .

In an unregulated housing market with no rent ceiling,the rent is determined by the

In a market with an effective production quota

A rent ceiling

Use the figure below to answer the following questions. Figure 6.1.1 -Refer to Figure 6.1.1.Suppose the demand for rental housing is shown by demand curve D₁,and there is a rent ceiling of $150 per room.What is the highest amount that would be expended on search activity?

When a price ceiling is set below the equilibrium price,

Complete the following sentence.A price floor set below the equilibrium price results in

A fact that argues in favour of prohibition and against taxes on illegal drugs is that

If a rent ceiling imposed by the government is greater than the equilibrium rent for housing,then

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Global Markets in Action

Utility and Demand

Possibilities,preferences,and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

Exam 6: Government Actions in Markets

The demand for a good and the supply of a good are each neither perfectly elastic nor perfectly inelastic.If a sales tax on sellers of the good is imposed,the tax is paid by

The time spent looking for someone with whom to do business is called

Daisy and Donald live in a community with rent ceilings.Both are looking for an apartment to rent.Daisy has a job paying $10 per hour and Donald has a job paying $8 per hour.Both value an apartment equally.What is the most likely outcome?

Governments tend to tax items with inelastic demand because

If the government imposes a maximum rent for housing that is above the equilibrium price,then you predict that

A production quota is set equal to the equilibrium quantity.At the quota quantity,marginal social benefit is ________ marginal social cost and the level of production is ________.

In an unregulated housing market with no rent ceiling,the rent is determined by the

In a market with an effective production quota

A rent ceiling

Use the figure below to answer the following questions. Figure 6.1.1 -Refer to Figure 6.1.1.Suppose the demand for rental housing is shown by demand curve D1,and there is a rent ceiling of $150 per room.What is the highest amount that would be expended on search activity?

When a price ceiling is set below the equilibrium price,

Complete the following sentence.A price floor set below the equilibrium price results in

A fact that argues in favour of prohibition and against taxes on illegal drugs is that

If a rent ceiling imposed by the government is greater than the equilibrium rent for housing,then

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Global Markets in Action

Utility and Demand

Possibilities,preferences,and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Filters

A production quota is set equal to the equilibrium quantity.At the quota quantity,marginal social benefit is marginal social cost and the level of production is .

Use the figure below to answer the following questions. Figure 6.1.1 -Refer to Figure 6.1.1.Suppose the demand for rental housing is shown by demand curve D₁,and there is a rent ceiling of $150 per room.What is the highest amount that would be expended on search activity?