Sample Test 2 Econ

Sample Test 2 Econ - Sample Test 2 Multiple Choice Identify...

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Sample Test 2 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 . A binding price ceiling is shown in a. panel (a) but not panel (b). b. panel (b) but not panel (a). c. both panel (a) and panel (b). d. neither panel (a) nor panel (b). ____ 2. A minimum wage that is set above a market's equilibrium wage will result in a. an excess demand for labor, that is, unemployment. b. an excess demand for labor, that is, a shortage of workers. c. an excess supply of labor, that is, unemployment. d. an excess supply of labor, that is, a shortage of workers. ____ 3. In general, a tax burden falls more heavily on the side of the market that a. has a fewer number of participants. b. is more elastic. c. is unit elastic. d. is less elastic. ____ 4. Suppose the demand for macaroni is inelastic and the supply of macaroni is elastic, and the demand for cigarettes is inelastic and the supply of cigarettes is elastic. If a tax were levied on the sellers of both of these commodities, we would expect that the a. burden of both taxes would fall more heavily on the buyers than on the sellers. b. burden of the macaroni tax would fall more heavily on the sellers than on the buyers, and the burden of the cigarette tax would fall more heavily on the buyers than on the sellers. c. burden of the macaroni tax would fall more heavily on the buyers than on the sellers, and the burden of the cigarette tax would fall more heavily on the sellers than on the buyers. d. burden of both taxes would fall more heavily on the sellers than on the buyers.
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____ 5. Suppose your own demand curve for tomatoes slopes downward. Suppose also that, for the last tomato you bought this week, you paid a price exactly equal to your willingness to pay. Then a. you should buy more tomatoes before the end of the week. b.
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Sample Test 2 Econ - Sample Test 2 Multiple Choice Identify...

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