A. both supply and demand are inelastic
B. demand is elastic, and supply are inelastic
C. both supply and demand are elastic
D. demand is inelastic, and supply is elastic
Economics Mcqs
For which of the following products would the burden of a tax likely fall more heavily on the sellers ?
A. Clothing
B. food
C. housing
D. entertainment
A binding price ceiling creates?
A. a shortage or a surplus depending on whether the price ceiling is set above or below the equilibrium price
B. a surplus
C. a shortage
D. an equilibrium
A price floor ?
A. always determines the price at which a good must be sold
B. sets a legal maximum on the price at which a good can be sold
C. is not a binding constraint if it is set above the equilibrium price
D. sets a legal minimum on the price at which a good can be sold
Which side of the market is more likely to lobby government for a price floor ?
A. the buyers
B. Neither buyers nor sellers desire a price floor.
C. the sellers
D. Both buyers and sellers desire a price floor.
Which of the following is an example of price floor ?
A. the minimum wage
B. rent controls
C. restricting petrol prices to Rs100 per litre when the equilibrium price is Rs150 per litre
D. All of these answers are price floors
Which of the following workers would be most likely to find it more difficult to get a job after a rise in the minimum wage rate?
A. a teenage worker with few qualifications.
B. A manual worker with fifteen years of work experience
C. A professional worker with university degree.
D. All there are equally likely to find it difficult to get a job
Within the supply and demand model, a tax collected from the sellers of a good shift the ?
A. demand curve downward by the size of the tax per unit.
B. supply curve downward by the size of the tax per unit
C. demand curve upward by the size of the tax per unit.
D. supply curve upward by the size of the tax per unit
When a tax is collected from the buyers in a market, ?
A. the tax burden falls most heavily on the buyers.
B. the buyers bear the burden of the tax
C. the sellers bear the burden of the tax
D. the tax burden on the buyers and sellers in the same as an equivalent tax collected from the sellers
A tax placed on a good that is a necessity for consumers will likely generate a tax burden that ?
A. falls more heavily on sellers
B. falls entirely on sellers
C. falls more heavily on buyers.
D. is evenly distributed between buyers and sellers.