Question 1

Figure 6-13
This figure shows the market demand and market supply curves for good X. 
-Refer to Figure 6-13. Which of the following price floors would be binding in this market?

Accepted Answer

A)   $3
B)   $4
C)   $5
D)   $6E) B) and C)
F) A) and B)

Question 2

You receive a paycheck from your employer, and your pay stub indicates that $300 was deducted to pay the FICA Social Security/Medicare)  tax. Which of the following statements is correct?

Accepted Answer

A)   The $300 that you paid is not necessarily the true burden of the tax that falls on you, the employee.
B)   Your employer is required by law to pay $300 to match the $300 deducted from your check.
C)   This type of tax is an example of a payroll tax.
D)   All of the above are correct.E) B) and C)
F) None of the above

Question 3

Figure 6-18
The vertical distance between points A and B represents the tax in the market. 
-Refer to Figure 6-18. The effective price that sellers receive after the tax is imposed is

Accepted Answer

A)   $6.
B)   $10.
C)   $16.
D)   $24.E) A) and B)
F) A) and C)

Question 4

A price ceiling is always a binding price control, whereas a price floor may be either binding or not binding.

Accepted Answer

A) True 
 B)False

Question 5

Minimum-wage laws dictate the lowest wage that firms may pay workers.

Accepted Answer

A) True 
 B)False

Question 6

An outcome that can result from either a price ceiling or a price floor is

Accepted Answer

A)   an enhancement of efficiency.
B)   undesirable rationing mechanisms.
C)   a surplus.
D)   a shortage.E) None of the above
F) A) and B)

Question 7

A price ceiling set below the equilibrium price is nonbinding.

Accepted Answer

A) True 
 B)False

Question 8

Suppose the government has imposed a price floor on the market for soybeans. Which of the following events could transform the price floor from one that is not binding into one that is binding?

Accepted Answer

A)   Farmers use improved, draught-resistant seeds, which lowers the cost of growing soybeans.
B)   The number of farmers selling soybeans decreases.
C)   Consumers' income increases, and soybeans are a normal good.
D)   The number of consumers buying soybeans increases.E) C) and D)
F) A) and B)

Exam 6: Supply, Demand, and Government Policies

Suppose the government has imposed a price floor on the market for soybeans. Which of the following events could transform the price floor from one that is not binding into one that is binding?

Correct Answer
verified

Figure 6-13 This figure shows the market demand and market supply curves for good X. -Refer to Figure 6-13. Which of the following price floors would be binding in this market?

Correct Answer
verified

You receive a paycheck from your employer, and your pay stub indicates that $300 was deducted to pay the FICA Social Security/Medicare) tax. Which of the following statements is correct?

Correct Answer
verified

Figure 6-18 The vertical distance between points A and B represents the tax in the market. -Refer to Figure 6-18. The effective price that sellers receive after the tax is imposed is

Correct Answer
verified

A price ceiling set below the equilibrium price is nonbinding.

Correct Answer
verified

Minimum-wage laws dictate the lowest wage that firms may pay workers.

Correct Answer
verified

An outcome that can result from either a price ceiling or a price floor is

Correct Answer
verified

A price ceiling is always a binding price control, whereas a price floor may be either binding or not binding.

Correct Answer
verified

Exam 6: Supply, Demand, and Government Policies

Suppose the government has imposed a price floor on the market for soybeans. Which of the following events could transform the price floor from one that is not binding into one that is binding?

Correct AnswerverifiedShow Answer

Figure 6-13 This figure shows the market demand and market supply curves for good X. -Refer to Figure 6-13. Which of the following price floors would be binding in this market?

Correct AnswerverifiedShow Answer

You receive a paycheck from your employer, and your pay stub indicates that $300 was deducted to pay the FICA Social Security/Medicare) tax. Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Figure 6-18 The vertical distance between points A and B represents the tax in the market. -Refer to Figure 6-18. The effective price that sellers receive after the tax is imposed is

Correct AnswerverifiedShow Answer

A price ceiling set below the equilibrium price is nonbinding.

Correct AnswerverifiedShow Answer

Minimum-wage laws dictate the lowest wage that firms may pay workers.

Correct AnswerverifiedShow Answer

An outcome that can result from either a price ceiling or a price floor is

Correct AnswerverifiedShow Answer

A price ceiling is always a binding price control, whereas a price floor may be either binding or not binding.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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