G8 Units 4 and 5 review

What is a Price Ceiling?

• A tax imposed on a product or service
• A government-imposed limit on the price that can be charged for a product or service.
• An increase in the price of a product or service
• A government subsidy for a product or service

What is a Price Floor?

• A type of floor made of price tags
• The highest price that can be charged for a product
• A government- or group-imposed price control or limit on how low a price can be charged for a product.
• A type of dance move

What is a per-unit tax?

• A tax imposed on the number of employees in a company
• A tax imposed on each unit of a good or service
• A tax imposed on the weight of a good or service
• A tax imposed on the total income of an individual

What is a subsidy?

• A tax imposed on businesses
• A loan provided by the government
• A payment made by consumers to the government
• A sum of money granted by the government to assist an industry or business

A per-unit subsidy will shift ______ to the ____

• supply, left

• supply, right

• demand, right

• demand, left

A per-unit tax will shift ______ to the ____

• supply, left

• supply, right

• demand, right

• demand, left

What area represents Total Tax Revenue?

• RTS

• S

• TW

• SU

A price ceiling goes ​_____ the equilibrium, and creates a ​_______

• below, shortage

• above, shortage

• above, surplus

• below, surplus

A price floor goes ​_____ the equilibrium, and creates a ​_______

• below, shortage

• above, shortage

• above, surplus

• below, surplus

If the price of a good increases, then consumer surplus (CS) will:

• Increase

• Decrease

• No Change

• Become infinity