ECON 2302 Week 1 Quiz 3

ECON 2302 Week 1 Quiz 3 | Assignment Help | Central Texas College

Question 1

A binding minimum wage tends to

Answers: a. 

cause a labor surplus.

b. 

cause unemployment.

c. 

have the greatest impact in the market for teenage labor.

d. 

All of the above are correct.

Question 2

Figure 6-33

The diagram shows the effect of a tax as measured by the distance between J and K.

Refer to Figure 6-33 . Based upon the diagram,

Answers: a. 

the incidence of the tax is shared equally by both buyers and sellers.

b. 

the incidence of the tax cannot be determined based upon the information in the diagram.

c. 

the incidence of the tax falls more heavily on buyers.

d. 

the incidence of the tax falls more heavily on sellers.

• Question 3

2 out of 2 points

A binding price floor will reduce a firm's total revenue

Answers: a. 

when demand is elastic.

b. 

never.

c. 

when demand is inelastic.

d. 

always.

• Question 4

Rent controls can cause

Answers: a. 

a decline in the quality of housing available for rent.

b. 

the development of a black market to allocate apartments to renters.

c. 

longer search times for renters attempting to locate an apartment.

d. 

all of these are possible results of rent controls.

• Question 5

A tax imposed on the buyers of a good will lower the

Answers: a. 

price paid by buyers and lower the equilibrium quantity.

b. 

price paid by buyers and raise the equilibrium quantity.

c. 

effective price received by sellers and lower the equilibrium quantity.

d. 

effective price received by sellers and raise the equilibrium quantity.

• Question 6

A tax on the buyers of cereal will increase the price of cereal paid by buyers,

Answers: a. 

decrease the effective price of cereal received by sellers, and increase the equilibrium quantity of cereal.

b. 

increase the effective price of cereal received by sellers, and increase the equilibrium quantity of cereal.

c. 

decrease the effective price of cereal received by sellers, and decrease the equilibrium quantity of cereal.

d. 

increase the effective price of cereal received by sellers, and decrease the equilibrium quantity of cereal.

• Question 7

A key lesson from the payroll tax is that the

Answers: a. 

tax is a tax solely on firms that hire workers.

b. 

tax eliminates any wedge that might exist between the wage that firms pay and the wage that workers receive.

c. 

tax is a tax solely on workers.

d. 

true burden of a tax cannot be legislated.

• Question 8

A tax on the buyers of personal computer external hard drives encourages

Answers: a. 

sellers to supply a smaller quantity at every price.

b. 

buyers to demand a smaller quantity at every price.

c. 

buyers to demand a larger quantity at every price.

d. 

Both a) and b) are correct.

Refer to Figure 6-31 .  Suppose that a price ceiling is imposed in this market at a price of $30 and market demand for the good subsequently increases.  This would

Answers: a. 

decrease the size of the surplus.

b. 

decrease the size of the shortage.

c. 

increase the size of the shortage.

d. 

increase the size of the surplus.

Question 10

If a binding price floor is imposed on the market for eBooks, then

Answers: a. 

the demand for eBooks will decrease.

b. 

the supply of eBooks will increase.

c. 

a surplus of eBooks will develop.

d. 

All of the above are correct.