Question 1

The incidence of an excise tax

Accepted Answer

A) refers to who really pays it 
B) always falls on suppliers 
C) is equally divided between demanders and suppliers 
D) is determined by the number of demanders 
E) is decided by the government when the tax is imposed 
A) refers to who really pays it 
B) always falls on suppliers 
C) is equally divided between demanders and suppliers 
D) is determined by the number of demanders 
E) is decided by the government when the tax is imposed

Question 2

-In Figure 4-2,if the government imposes a price ceiling of $2,the result will be

Accepted Answer

A) equilibrium 
B) excess supply 
C) no different than before the price ceiling is imposed 
D) excess demand 
E) the demand shifts leftward and supply shifts rightward 
A) equilibrium 
B) excess supply 
C) no different than before the price ceiling is imposed 
D) excess demand 
E) the demand shifts leftward and supply shifts rightward

Question 3

Federal subsidies to higher education have the effect of

Accepted Answer

A) increasing the number of people seeking higher education and lowering tuition 
B) increasing the number of people seeking higher education and raising tuition 
C) decreasing the number of people seeking higher education and lowering tuition 
D) decreasing the number of people seeking higher education and raising tuition 
A) increasing the number of people seeking higher education and lowering tuition 
B) increasing the number of people seeking higher education and raising tuition 
C) decreasing the number of people seeking higher education and lowering tuition 
D) decreasing the number of people seeking higher education and raising tuition

Question 4

Which of the following might explain why the government would create a price floor for a certain good?

Accepted Answer

A) The equilibrium price that would result in the market would be considered too high 
B) The equilibrium price that would result in the market would be considered too low 
C) The equilibrium quantity that would result in the market would be considered too high 
D) The equilibrium quantity that would result in the market would be considered too low 
E) The market will never achieve equilibrium on its own 
A) The equilibrium price that would result in the market would be considered too high 
B) The equilibrium price that would result in the market would be considered too low 
C) The equilibrium quantity that would result in the market would be considered too high 
D) The equilibrium quantity that would result in the market would be considered too low 
E) The market will never achieve equilibrium on its own

Question 5

Nancy buys a $150,000 home using $30,000 of her own money and gets a mortgage for the remaining $120,000.If the price of the house increases 5%,what will Nancy's capital gain be?

Accepted Answer

A) $30,000 
B) $31,500 
C) $35,000 
D) $37,500 
E) $45,550 
A) $30,000 
B) $31,500 
C) $35,000 
D) $37,500 
E) $45,550

Question 6

When the minimum wage is set above the equilibrium market wage,

Accepted Answer

A) there will be a shortage of labor at the minimum wage 
B) it will have no effect on the quantity of labor employed 
C) the unemployment rate will rise 
D) the quality of the labor force will increase 
E) the unemployment rate will fall 
A) there will be a shortage of labor at the minimum wage 
B) it will have no effect on the quantity of labor employed 
C) the unemployment rate will rise 
D) the quality of the labor force will increase 
E) the unemployment rate will fall

Question 7

In what way is the result of a subsidy given to either demanders or suppliers similar to the result of a price ceiling?

Accepted Answer

A) The amount that consumers pay for the good will be less than they previously paid 
B) The amount of the good that will be traded in the market will be less than previously traded 
C) both price ceilings and subsidies create excess demand 
D) The amount that consumers pay for the good will be greater than they previously paid 
E) both price floors and excise taxes create excess supply 
A) The amount that consumers pay for the good will be less than they previously paid 
B) The amount of the good that will be traded in the market will be less than previously traded 
C) both price ceilings and subsidies create excess demand 
D) The amount that consumers pay for the good will be greater than they previously paid 
E) both price floors and excise taxes create excess supply

Question 8

A government-imposed price ceiling set below the market's equilibrium price for a good will produce an excess supply of the good.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not true about the housing market?

Accepted Answer

A) The price of housing will increase or decrease in order to achieve an equilibrium 
B) An increase in the demand for housing will cause an increase in the quantity supplied of housing 
C) When the demand for housing increases,the price of housing will increase but the quantity supplied will not increase in the short run 
D) The housing market is a unique market because most people had to borrow money to buy their homes 
E) The only way to increase the supply of housing is to build more houses 
A) The price of housing will increase or decrease in order to achieve an equilibrium 
B) An increase in the demand for housing will cause an increase in the quantity supplied of housing 
C) When the demand for housing increases,the price of housing will increase but the quantity supplied will not increase in the short run 
D) The housing market is a unique market because most people had to borrow money to buy their homes 
E) The only way to increase the supply of housing is to build more houses

Question 10

Price ceilings are primarily targeted to help __________,while price floors generally benefit __________.

Accepted Answer

A) producers;no one 
B) increase tax revenue for governments;producers 
C) increase tax revenue for governments;consumers 
D) producers;consumers 
E) consumers;producers 
A) producers;no one 
B) increase tax revenue for governments;producers 
C) increase tax revenue for governments;consumers 
D) producers;consumers 
E) consumers;producers

Question 11

After an excise tax is imposed on a good or service,

Accepted Answer

A) the equilibrium price and quantity are unchanged 
B) firms must charge a higher price for any particular quantity 
C) firms must charge a lower price for any particular quantity 
D) the equilibrium price and quantity will both increase 
E) the equilibrium price and quantity will both decrease 
A) the equilibrium price and quantity are unchanged 
B) firms must charge a higher price for any particular quantity 
C) firms must charge a lower price for any particular quantity 
D) the equilibrium price and quantity will both increase 
E) the equilibrium price and quantity will both decrease

Question 12

A price floor on corn would have the effect of

Accepted Answer

A) creating a surplus regardless of the level at which the price floor is set 
B) creating a surplus supply when the floor is above the equilibrium price 
C) creating a shortage when the price floor is set below the equilibrium price 
D) creating a shortage regardless of where the price floor is set 
E) ensuring a more equitable distribution of the good among consumers 
A) creating a surplus regardless of the level at which the price floor is set 
B) creating a surplus supply when the floor is above the equilibrium price 
C) creating a shortage when the price floor is set below the equilibrium price 
D) creating a shortage regardless of where the price floor is set 
E) ensuring a more equitable distribution of the good among consumers

Question 13

Which of the following might explain why the government would create a price ceiling for a certain good?

Accepted Answer

A) The equilibrium price that would result in the market would be considered too high 
B) The equilibrium price that would result in the market would be considered too low 
C) The equilibrium quantity that would result in the market would be considered too high 
D) The equilibrium quantity that would result in the market would be considered too low 
E) The government never has a reason to create price floors or price ceilings 
A) The equilibrium price that would result in the market would be considered too high 
B) The equilibrium price that would result in the market would be considered too low 
C) The equilibrium quantity that would result in the market would be considered too high 
D) The equilibrium quantity that would result in the market would be considered too low 
E) The government never has a reason to create price floors or price ceilings

Question 14

Price floors and price ceilings

Accepted Answer

A) lead to the same prices and quantities that would be found in a competitive market 
B) lead to technical efficiency 
C) cause the demand curve to shift to the left 
D) usually result from government intervention 
E) cause the supply curve to shift to the right 
A) lead to the same prices and quantities that would be found in a competitive market 
B) lead to technical efficiency 
C) cause the demand curve to shift to the left 
D) usually result from government intervention 
E) cause the supply curve to shift to the right

Question 15

Which of the following is not an example of a flow variable?

Accepted Answer

A) The amount of income that a person earns each month 
B) The amount of interest that a savings account earns each week 
C) The amount of money in a savings account 
D) The amount of taxes that a person pays each year 
E) All of these are flow variables 
A) The amount of income that a person earns each month 
B) The amount of interest that a savings account earns each week 
C) The amount of money in a savings account 
D) The amount of taxes that a person pays each year 
E) All of these are flow variables

Question 16

A stock variable

Accepted Answer

A) measures a process that takes place over a period of time 
B) is used often used to measure the quantity demanded of a good at various prices 
C) is related to inventory controls 
D) measures a quantity in existence at a moment in time 
E) is a definition unique to economics 
A) measures a process that takes place over a period of time 
B) is used often used to measure the quantity demanded of a good at various prices 
C) is related to inventory controls 
D) measures a quantity in existence at a moment in time 
E) is a definition unique to economics

Question 17

Within the context of the housing market,what does MBS stand for?

Accepted Answer

A) Multi-Banking System 
B) Mortgage Backed Security 
C) Mortgage Bubble System 
D) Mixed Bracket Securities 
A) Multi-Banking System 
B) Mortgage Backed Security 
C) Mortgage Bubble System 
D) Mixed Bracket Securities

Question 18

If an excise tax is imposed on restaurant meals,

Accepted Answer

A) fewer meals will be produced and sold 
B) more meals will be produced and sold 
C) the government's tax revenue will fall 
D) the market price of meals will decrease 
E) restaurants will sell more meals,but at a lower price per meal 
A) fewer meals will be produced and sold 
B) more meals will be produced and sold 
C) the government's tax revenue will fall 
D) the market price of meals will decrease 
E) restaurants will sell more meals,but at a lower price per meal

Question 19

If an excise tax is imposed on shirts,

Accepted Answer

A) the number of shirts produced will exceed the number demanded 
B) the number of shirts demanded will exceed the number supplied 
C) the equilibrium market price will decrease 
D) the amount consumers pay for each shirt will decrease 
E) the net revenue producers receive from each shirt will decrease 
A) the number of shirts produced will exceed the number demanded 
B) the number of shirts demanded will exceed the number supplied 
C) the equilibrium market price will decrease 
D) the amount consumers pay for each shirt will decrease 
E) the net revenue producers receive from each shirt will decrease

Question 20

If the government thinks the price that a consumer has to pay for a good is too high,then which of the following would solve this problem?

Accepted Answer

A) a price ceiling or an excise tax 
B) a price floor or an excise tax 
C) a price ceiling or a subsidy 
D) a price floor or a subsidy 
E) none of the above will lower the price a consumer has to pay for a good 
A) a price ceiling or an excise tax 
B) a price floor or an excise tax 
C) a price ceiling or a subsidy 
D) a price floor or a subsidy 
E) none of the above will lower the price a consumer has to pay for a good

The incidence of an excise tax

-In Figure 4-2,if the government imposes a price ceiling of $2,the result will be

Federal subsidies to higher education have the effect of

Which of the following might explain why the government would create a price floor for a certain good?

Nancy buys a $150,000 home using $30,000 of her own money and gets a mortgage for the remaining $120,000.If the price of the house increases 5%,what will Nancy's capital gain be?

When the minimum wage is set above the equilibrium market wage,

In what way is the result of a subsidy given to either demanders or suppliers similar to the result of a price ceiling?

A government-imposed price ceiling set below the market's equilibrium price for a good will produce an excess supply of the good.

Which of the following is not true about the housing market?

Price ceilings are primarily targeted to help ,while price floors generally benefit .

After an excise tax is imposed on a good or service,

A price floor on corn would have the effect of

Which of the following might explain why the government would create a price ceiling for a certain good?

Price floors and price ceilings

Which of the following is not an example of a flow variable?

A stock variable

Within the context of the housing market,what does MBS stand for?

If an excise tax is imposed on restaurant meals,

If an excise tax is imposed on shirts,

If the government thinks the price that a consumer has to pay for a good is too high,then which of the following would solve this problem?

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 4: Working With Supply and Demand

The incidence of an excise tax

-In Figure 4-2,if the government imposes a price ceiling of $2,the result will be

Federal subsidies to higher education have the effect of

Which of the following might explain why the government would create a price floor for a certain good?

Nancy buys a $150,000 home using $30,000 of her own money and gets a mortgage for the remaining $120,000.If the price of the house increases 5%,what will Nancy's capital gain be?

When the minimum wage is set above the equilibrium market wage,

In what way is the result of a subsidy given to either demanders or suppliers similar to the result of a price ceiling?

A government-imposed price ceiling set below the market's equilibrium price for a good will produce an excess supply of the good.

Which of the following is not true about the housing market?

Price ceilings are primarily targeted to help __________,while price floors generally benefit __________.

After an excise tax is imposed on a good or service,

A price floor on corn would have the effect of

Which of the following might explain why the government would create a price ceiling for a certain good?

Price floors and price ceilings

Which of the following is not an example of a flow variable?

A stock variable

Within the context of the housing market,what does MBS stand for?

If an excise tax is imposed on restaurant meals,

If an excise tax is imposed on shirts,

If the government thinks the price that a consumer has to pay for a good is too high,then which of the following would solve this problem?

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Price ceilings are primarily targeted to help ,while price floors generally benefit .