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Practice mode Prices, Wages & Taxes

Which of the following is an example of a price floor?

Correct answer B. The minimum wage

Explanation

A price floor is a legal minimum price; the minimum wage sets the lowest price for labour, whereas rent controls and capped fuel prices are price ceilings.

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Question 02 Prices, Wages & Taxes

In the supply and demand model, how does a tax collected from sellers shift the curves?

Correct answer C. The supply curve shifts upward by the size of the tax per unit

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Question 03 Prices, Wages & Taxes

What happens when a tax is collected from the buyers in a market?

Correct answer A. The tax burden on buyers and sellers is the same as with an equivalent tax collected from the sellers

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