Exam 4: Asupply and Demand: Applications and Extensions

An increase in the number of students graduating with a major in engineering would result in

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

If Heather's tax liability increases from $10,000 to $15,000 when her income increases from $30,000 to $40,000,her marginal tax rate is

Figure 4-25 -Refer to Figure 4-25.The equilibrium price before the tax is imposed is

Which of the following statements is true?

A law establishing a maximum legal price for a good or service (rent controls for example)is known as

Figure 4-22 -Refer to Figure 4-22.The equilibrium price in the market before the tax is imposed is

Subsidy programs that provide benefits to well organized interest groups will

If the demand for a good is very price elastic,the imposition of a tax on that good

Exempting teenagers from the minimum wage would probably cause

Under rent control,landlords cease to be responsive to tenants' concerns about the quality of the housing because

If Susan's income increases from $40,000 to $50,000 and her tax liability increases from $6,000 to $9,000,which of the following is true?

The Laffer curve illustrates the concept that

A legally mandated minimum wage is an example of

Which of the following examples illustrates a proportional income tax?

Approximately 50,000 luxury boats (priced $100,000 or more)are currently produced each year.Using the economic way of thinking,how much revenue would the government actually generate with a $10,000 excise tax on luxury boats?

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

The deadweight loss of the tax illustrated in Figure 4-6 is given by the area

Figure 4-22 -Refer to Figure 4-22.The amount of the tax per unit is

A market that operates outside the legal system,either by selling illegal goods or by selling goods at illegal prices is referred to in economics as a