HW 2 Ch 6,7 &amp; 8 Q and Review Ch 4 &amp; 5

# HW 2 Ch 6,7 &amp; 8 Q and Review Ch 4 &amp; 5 - HW...

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HW 2 Ch 6-8 and Review of Ch 4 and 5 Multiple Choice: Choose any 20 questions you want from this section to be graded. Please make sure you specify which those are. If you want to do more, please do, they are great practice for the midterm and cumulative final J I will give you solutions for ALL questions in this section so you can use them when studying for the tests. Identify the letter of the choice that best completes the statement or answers the question. ____ 1. A binding price floor causes a. excess demand. b. a shortage. c. a surplus. d. quantity demanded to exceed quantity supplied. ____ 2. Minimum wage laws dictate the a. average price employers must pay for labor. b. highest price employers may pay for labor. c. lowest price employers may pay for labor. d. quality of labor which must be supplied. ____ 3. When a tax is imposed on the buyers of a good, the demand curve shifts a. downward by the amount of the tax. b. upward by the amount of the tax. c. downward by less than the amount of the tax. d. upward by more than the amount of the tax. Figure 6-8 ____ 4. Refer to Figure 6-8 . As the figure is drawn, who sends the tax payments to the government? a. the buyers b. the sellers c. A portion of the tax payments is sent by the buyers and the remaining portion is sent by the sellers. d. The question of who sends the tax payments cannot be determined from the figure. Figure 6-10

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____ 5. Refer to Figure 6-10 . From this tax the government will collect a total of a. \$125.00. b. \$175.00. c. \$200.00. d. \$250.00. 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. ____ 6. 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. Figure 6-14.
____ 7. Refer to Figure 6-14 . Before the tax is imposed, the equilibrium price is a. \$24. b. \$16. c. \$10. d. \$8. ____ 8. Denise values a stainless steel dishwasher for her new house at \$500. The actual price of the dishwasher is \$650. Denise a. buys the dishwasher and on her purchase she experiences a consumer surplus of \$150. b. buys the dishwasher and on her purchase she experiences a consumer surplus of \$- 150. c. does not buy the dishwasher and on her purchase she experiences a consumer sur- plus of \$150 on her non-purchase. d.

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HW 2 Ch 6,7 &amp; 8 Q and Review Ch 4 &amp; 5 - HW...

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