Exam 4: Supply and Demand: Applications and Extensions

When a price floor is above the equilibrium price,

The Laffer curve indicates that

Other things constant, as the price of a resource increases,

Figure 4-22 Refer to Figure 4-22. From this tax the government will collect a total of

During the imposition of price controls in the 1970s, long gasoline lines were common. In the absence of price controls, markets would have eliminated such excess demand by

Which of the following will most likely occur when government price controls fix the price of a good above market equilibrium?

Rent controls tend to cause persistent imbalances in the market for housing because

In a market economy, which of the following would most likely cause a prolonged grain surplus?

A tax imposed on the sellers of a good will

Use the table below to choose the correct answer. For the income range illustrated, the tax shown here is

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

A substantial revision of the income tax code that made business and personal tax returns much easier to complete would tend to cause which of the following changes in the labor market for accountants?

Suppose the demand curve for a good is highly elastic and the supply curve is highly inelastic. If the government taxes this good,

Which of the following examples illustrates a proportional income tax?

In 2010 the federal government reduced the Social Security tax withholding rate from 12.4 percent (6.2 percent on both the employer and employee) to 8.4 percent (4.2 percent on both the employer and employee) on the wages of all workers. If the supply of labor is relatively inelastic when compared to the elasticity of the demand for labor, the burden of this tax will

Use the figure below to answer the following question(s). Figure 4-7 Refer to Figure 4-7. The supply curve S ₁ and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied. How much revenue does the $.60-per-gallon tax generate for the government?

If the Federal government enacts a new excise tax of $1.50 per six-pack of beer. Which of the following is most likely to occur?

Figure 4-20 Refer to Figure 4-20. The equilibrium price in the market before the tax is imposed is

Because of price controls in the former Soviet Union, people often waited in long lines for food and other necessities. Modern economic theory would indicate that, relative to price rationing, waiting in line is

Figure 4-25 Refer to Figure 4-25. The tax causes a reduction in consumer surplus that is represented by area