ECON 2301 Week 1 Quiz 3

ECON 2301 Week 1 Quiz 3 | Assignment Help | Central Texas College

Review Test Submission: Quiz 3

•             Question 1

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

Answers:             a.

always.

                 b.

when demand is elastic.

                c.

never.

                d.

when demand is inelastic.

•             Question 2

                A binding minimum wage                                            

Answers:             a.

has no effect on the quantity of labor demanded or the quantity of labor supplied.

                b.

causes only temporary unemployment because the market will adjust and eliminate any temporary surplus of workers.

                c.

affects only the quantity of labor demanded; it does not affect the quantity of labor supplied.

                 d.

alters both the quantity demanded and quantity supplied of labor.

•             Question 3

                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.

•             Question 4

                In a market with a binding price control,

Answers:             a.

there is an imbalance between the quantity supplied by sellers and the quantity demanded by buyers.

                b.

the costs of production are fully reflected in the price paid.

                c.

the price observe reflects the scarcity of the good.

                d.

all of the above are true.

•             Question 5

                A tax on the buyers of sofas                                      

Answers:             a.

has no effect on the size of the sofa market.

                b.

may increase, decrease, or have no effect on the size of the sofa market.

                c.

increases the size of the sofa market.

                 d.

decreases the size of the sofa market.

•             Question 6

                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.

•             Question 7

                Congress intended that                                               

Answers:             a.

the entire FICA tax be paid by workers.

                b.

the entire FICA tax be paid by firms.

                c.

one-quarter of the FICA tax be paid by workers, and three-quarters be paid by firms.

                 d.

half the FICA tax be paid by workers, and half be paid by firms.

Question 8

                Figure 6-18

The vertical distance between points A and B represents the tax in the market.                                

Refer to Figure 6-18. The effective price that sellers receive after the tax is imposed is

Answers:             a.

$24.

                b.

$6.

                c.

$16.

                 d.

$10.

•             Question 9

                Suppose that a binding rent control law is repealed in San Francisco.  As a result, we would expect the total  number of units rented in the city to                                     

Answers:             a.

increase.

                b.

decrease.

                c.

decrease, then increase.

                d.

remain unchanged.

•             Question 10

                Buyers of a good bear the larger share of the tax burden when the

(i)            supply is more elastic than the demand for the product.

(ii)           demand in more elastic than the supply for the product.

(iii)          tax is placed on the sellers of the product.

(iv)         tax is placed on the buyers of the product.

Answers:             a.

(i) and (iii) only

                b.

(i) and (iv) only

                 c.

(i) only

                d.

(ii) only