Exam 4: A : Supply and Demand: Applications and Extensions

Use the figure below to answer the following question(s). Figure 4-8 -Refer to Figure 4-8. How much revenue does the $40-per-ton tax generate for the government?

A price floor set above an equilibrium price tends to cause persistent imbalances in the market because

Taxes create deadweight losses because they

The term "deadweight loss" or "excess burden" is used to describe the

When policymakers impose price controls, they

When a price floor is above the equilibrium price,

During the Prohibition period (when the production and sale of alcohol was illegal),

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

Which of the following would tend to increase the wage of coal miners?

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

An income tax is proportional if

Suppose that the federal government grants a 50 cent per gallon subsidy to buyers of gasoline and that the demand for gasoline is highly inelastic while the supply is highly elastic. Under these circumstances, the benefit of the subsidy

When government imposes price controls in a market,

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

Whenever a shortage occurs (for example, in parking spaces), and the price does not rise or is not permitted to rise, some method of non-price rationing must occur (for example, driving around looking for a parking space). Which of the following is an advantage of price rationing relative to non-price rationing methods?

After the ban on the production and sale of alcohol ended in 1933,

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

Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling,

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

Which of the following statements about rent control is accurate?