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.Management Sciences
Category: Prices, Wages & Taxes
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
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.
The surplus caused by a binding price floor will be greatest if ?
A. demand is inelastic and supply in elastic
B. supply is inelastic, and demand is elastic
C. both supply and demand are elastic
D. both supply and demand are inelastic
Within the supply and demand model, a tax collected from the buyers of a good shifts the ?
A. supply curve downward by the size of the tax per unit.
B. Supply curve upward by the size of the tax per unit
C. demand curve upward by the size of the tax per unit.
D. demand curve downward by the size of the tax per unit
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.
The burden of a tax falls more heavily on the sellers in a market when ?
A. both supply and demand are elastic
B. both supply and demand are inelastic
C. demand is inelastic and supply in elastic
D. demand is elastic, and supply is inelastic
Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?
A. A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.
B. A significant increase in the supply for petrol could cause the price ceiling to become a binding constraint.
C. There will be a shortage of petrol
D. There will be surplus of petrol
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 statements about the burden of a tax is correct ?
A. The tax burden generated from a tax placed on a good consumer perceive to be a necessity will fall most heavily on the sellers of the good
B. The burden of a tax falls on the side of the market (buyers or sellers) from which it is collected
C. The distribution of the burden of a tax is determined by the relative elasticities of determined by legislation.
D. The tax burden falls most heavily on the side of the market (buyers and sellers) that is most willing to leave the market when price movements are unfavorable to them.
Which of the following takes place when a tax is placed a good ?
A. a decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold
B. an increase in the price buyers pay a decrease in the price sellers receive, and an increase in the quantity sold
C. a decrease in the price buyers pay, an increase in the price sellers receive and an increase in the quantity sold
D. an increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold
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