ECON 400 MODULE 1 QUIZ QUESTIONS & ANSWERS
When a government declares a state of emergency, widespread price ceilings generally
go into effect and shortages of goods in high demand develop. Economic analysis
indicates - Answers - these shortages would disappear if market prices were allowed to
work.
What is most likely to occur when a tax is imposed on the sellers of a good? - Answers -
price paid by buyers and lower the equilibrium quantity.
Graphically, the area that represents the difference between the market price and the
minimum price required to induce suppliers to produce a good is called - Answers -
producer surplus.
If Makena's income increases from $40,000 to $50,000 and her tax liability increases
from $6,000 to $9,000, which of the following is true? - Answers - Her marginal tax rate
is 30% in this range.
When there is excess supply of a product in a market, - Answers - price must be above
the equilibrium price.
he following table is a schedule of the supply and demand for coffee (both given in
thousands of pounds per month.)
Price per Pound
Quantity Demanded
Quantity Supplied
$6.00
25
9
$8.00
20
12
$10.00
15
15
$12.00
10
18 - Answers - $10 per pound
The difference between the amount consumers would be willing to pay and the amount
they actually pay for a good is called - Answers - consumer surplus.
Rent controls tend to cause persistent imbalances in the market for housing because
quantity - Answers - demanded exceeds quantity supplied but price cannot rise to
remove the shortage
When a government declares a state of emergency, widespread price ceilings generally
go into effect and shortages of goods in high demand develop. Economic analysis
indicates - Answers - these shortages would disappear if market prices were allowed to
work.
What is most likely to occur when a tax is imposed on the sellers of a good? - Answers -
price paid by buyers and lower the equilibrium quantity.
Graphically, the area that represents the difference between the market price and the
minimum price required to induce suppliers to produce a good is called - Answers -
producer surplus.
If Makena's income increases from $40,000 to $50,000 and her tax liability increases
from $6,000 to $9,000, which of the following is true? - Answers - Her marginal tax rate
is 30% in this range.
When there is excess supply of a product in a market, - Answers - price must be above
the equilibrium price.
he following table is a schedule of the supply and demand for coffee (both given in
thousands of pounds per month.)
Price per Pound
Quantity Demanded
Quantity Supplied
$6.00
25
9
$8.00
20
12
$10.00
15
15
$12.00
10
18 - Answers - $10 per pound
The difference between the amount consumers would be willing to pay and the amount
they actually pay for a good is called - Answers - consumer surplus.
Rent controls tend to cause persistent imbalances in the market for housing because
quantity - Answers - demanded exceeds quantity supplied but price cannot rise to
remove the shortage
