quiz23 - Mock Exam 1 Multiple Choice Identify the letter of...

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Mock Exam 1 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. Figure 6-1 ____ 1. Refer to Figure 6-1 . In which panel(s) of the figure would there be a shortage of the good at the ceiling price? a. panel (a) but not panel (b) b. panel (b) but not panel (a) c. panel (a) and panel (b) d. neither panel (a) nor panel (b) Figure 6-2 ____ 2. Refer to Figure 6-2 . In which of the following cases would sellers have to develop a rationing mechanism? a. A price ceiling is set at $8. b. A price ceiling is set at $12. c. A price floor is set at $8. d. A price floor is set at $10. ____ 3. A price floor is not binding if
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a. the price floor is higher than the equilibrium price of the good. b. the quantity of the good demanded with the price floor is less than the quantity demanded of the good without the price floor. c. the quantity of the good supplied with the price floor is less than the quantity supplied of the good without the price floor. d. All of the above are correct. Figure 6-6 ____ 4. Refer to Figure 6-6 . When the price ceiling applies in this market and the supply curve for gasoline shifts from S 1 to S 2 , a. the price will increase to P 3 . b. a surplus will occur at the new market price of P 2 . c. the market price will stay at P 1 due to the price ceiling. d. a shortage will occur at the price ceiling of P 2 . ____ 5. The minimum wage a. alters the quantity of labor demanded, but not the quantity of labor supplied. b. is binding for all workers, regardless of their levels of experience and skills. c. has its greatest impact on the market for teenage labor. d. All of the above are correct. Figure 6-11. On the graph below, the shift of the supply curve from S 1 to S 2 represents the imposition of a tax on a good. On the axes, Q represents the quantity of the good and P represents the price.
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____ 6. Consider Figure 6-11 . As a result of the tax, a. the price paid by buyers rises from $5 to $7. b. the price received by sellers (after paying the tax) falls from $5 to $3. c. the government collects $30 in tax revenue. d. All of the above are correct. ____ 7. Consider Figure 6-11 . Which of the following statements correctly characterizes the burden of the tax? a. One-fourth of the burden falls on buyers and three-fourths of the burden falls on sellers. b. One-third of the burden falls on buyers and two-thirds of the burden falls on sellers. c. One-half of the burden falls on buyers and one-half of the burden falls on sellers. d. Two-thirds of the burden falls on buyers and one-third of the burden falls on sellers. ____ 8. A tax of $0.10 per Snickers bar on the sellers of Snickers will cause the a. supply curve for Snickers to shift down by $0.10. b. supply curve for Snickers to shift up by $0.10.
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This note was uploaded on 05/16/2010 for the course ECO BA 521 taught by Professor Dr.bridges during the Spring '10 term at Andrew Jackson.

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quiz23 - Mock Exam 1 Multiple Choice Identify the letter of...

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