Economics Exam 2; Quiz

5 January 2023
4.7 (186 reviews)
20 test answers

Unlock all answers in this set

Unlock answers (16)
question
A tax on the sellers of coffee will increase the price of coffee paid by buyers,
answer
decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee.
question
A tax imposed on the sellers of a good will rise the
answer
price paid by buys and lower the equilibrium.
question
If a tax is levied on the sellers of a product, then the demand curve will
answer
not shift.
question
A tax on sellers will shift the
answer
supply curve upward by the amount of the tax
question
When a tax is placed on the buyers of a product, buyers pay
answer
more and sellers receive less than they did before the tax.
question
A tax imposed on the buyers of a good will lower the
answer
effective price recieved by sellers and lower the equilibrium quantity.
question
A tax on the buyers of personal computer external hard drives encourages
answer
buyers to demand a smaller quantity at every price.
question
A $0.50 tax levied on the buyers of a pomegranate juice will shift the demand curve
answer
downward by exactly $0.50.
question
How is the burden of a tax divided?
answer
Regardless of whether the tax is levied on the buyers or the sellers, the buyers and sellers bear some proportion of the tax burden.
question
A legal maximum on the price at which a good can be sold is called a price_____
answer
ceiling
question
A price ceiling is
answer
A legal maximum on the price at which a good can be sold
question
If a price ceiling is not binding, then
answer
the equilibrium price is below the price ceiling
question
If a price ceiling is not binding, then
answer
there will be no effect on the market price or quantity sold.
question
A price ceiling will be binding only if it is set...
answer
below the equilibrium price
question
Which of the following observations would be consistent with the imposition of a binding price ceiling on a mark? After the price ceiling becomes effective,
answer
a smaller quantity of the good is bought and sold.
question
Suppose the government has imposed a price ceiling on laptop computers. Which of the following events could transform the price ceiling from one that is not binding into one that is binding?
answer
The number of firms selling laptop computers decrease.
question
When a binding price ceiling is imposed on a market,
answer
price no longer serves as a rationing device.
question
When a binding price ceiling is imposed on a market to benefit buyers,
answer
some buyers benefit, and some buyers are harmed.
question
To say that a price ceiling is binding is to say that the price ceiling
answer
causes quantity demanded to exceed quantity supplied
question
To say that a price ceiling is nonbinding is to say that the price ceiling
answer
is set above the equilibrium price.