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Worksheetschap 6
Total questions: 10
Worksheet time: 5mins
A legal maximum on the price at which a good can be sold is called a price
floor.
subsidy.
support.
ceiling.
A legal minimum on the price at which a good can be sold is called a price
subsidy.
floor.
support.
ceiling.
A price ceiling is
often imposed on markets in which “cutthroat competition” would prevail without a price ceiling.
a legal maximum on the price at which a good can be sold.
often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
All of the above are correct.
A price floor is
a legal minimum on the price at which a good can be sold.
often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price floor.
a source of inefficiency in a market.
All of the above are correct.
A $2.00 tax levied on the sellers of birdhouses will shift the supply curve
upward by exactly $2.00.
upward by less than $2.00.
downward by exactly $2.00.
downward by less than $2.00.
A $0.10 tax levied on the sellers of chocolate bars will cause the
supply curve for chocolate bars to shift down by $0.10.
supply curve for chocolate bars to shift up by $0.10.
demand curve for chocolate bars to shift down by $0.10.
demand curve for chocolate bars to shift up by $0.10.
A tax on the buyers of sofas
increases the size of the sofa market.
decreases the size of the sofa market.
has no effect on the size of the sofa market.
may increase, decrease, or have no effect on the size of the sofa market.
When a tax is placed on the buyers of a product, buyers pay
more and sellers receive more than they did before the tax.
more and sellers receive less than they did before the tax.
less and sellers receive more than they did before the tax.
less and sellers receive less than they did before the tax.
The price received by sellers in a market will decrease if the government
imposes a binding price floor in that market.
decreases a binding price ceiling in that market.
decreases a tax on the good sold in that market.
increases a binding price floor in that market.
The quantity sold in a market will decrease if the government decreases a
binding price floor in that market.
binding price ceiling in that market.
tax on the good sold in that market.
All of the above are correct.
