Exam 4: Supply and Demand: Applications and Extensions

Figure 4-25 -Refer to Figure 4-25. The benefit to the government is

The statutory incidence (or burden) of a tax refers to

A regressive tax

In a market economy, which of the following will most likely cause a prolonged milk shortage?

Use the figure below to answer the following question(s). Figure 4-4 -Given the demand and supply conditions shown in Figure 4-4, what will happen as the result of imposing a price ceiling of a?

The burden of a tax will fall primarily on sellers when the

Figure 4-23 -Refer to Figure 4-23. In which market will the majority of the tax burden fall on the seller?

Figure 4-20 -Refer to Figure 4-20. As the figure is drawn, who sends the tax payments to the government?

A tax for which the average tax rate decreases with income is defined as a

Figure 4-22 -Refer to Figure 4-22. Sellers pay how much of the tax per unit?

If an increase in the government-imposed minimum wage pushes the price (wage) of unskilled labor above market equilibrium, which of the following will most likely occur in the unskilled labor market?

In the main chorus of the Keynes-Hayek rap lyrics, Keynes states "I want to steer markets" and Hayek replies, "I want them set free." These statements are referring to

Figure 4-17 -Refer to Figure 4-17. Suppose a price ceiling of $4.50 is imposed. As a result,

The benefit of a subsidy will go primarily to sellers when the

When a government subsidy is granted to the buyers of a product, sellers can end up capturing some of the benefit because

Which of the following examples illustrates a regressive income tax?

If a government-imposed price floor legally sets the price of milk above market equilibrium, which of the following will most likely happen?

Rent control applies to about two-thirds of the private rental housing in New York City. Economic theory suggests that the below-equilibrium prices established by rent controls would

If a $500 tax is placed legally (statutorily) on the buyers of new couches and as a result the price of couches at stores rises by $200, the actual burden of the tax

A $25 government subsidy paid directly to buyers of jeans will result in