Have an account?
Skip to Content
Build your own quiz
Suggestions for you
18 questions
Show Answers
See Preview
- 1. Multiple Choice
Which statement is false?
Indirect taxes are taxes on spending to buy goods and services.
Indirect taxes are paid to the government by consumers.
Indirect taxes are paid to the government by producers.
Indirect taxes give rise to government revenues.
tagsindirect taxes - 2. Multiple Choice
Ceteris paribus, indirect taxes lead to:
a surplus, or excess supply
a rightward (downward) shift of the supply curve
a leftward (upward) shift of the supply curve
a shortage, or excess demand
tagsindirect taxes - 3. Multiple Choice
Ceteris paribus, price ceilings lead to
a surplus, or excess supply
a rightward (downward) shift of the supply curve
a leftward (upward) shift of the supply curve
a shortage, or excess demand
tagsprice ceilingprice controls - 4. Multiple Choice
Ceteris paribus, subsidies lead to
a surplus, or excess supply
a rightward (downward) shift of the supply curve
a leftward (upward) shift of the supply curve
a shortage, or excess demand
tagssubsidies - 5. Multiple Choice
Ceteris paribus, price floors lead to
a surplus, or excess supply
a rightward (downward) shift of the supply curve
a leftward (upward) shift of the supply curve
a shortage, or excess demand
tagsprice floorprice controls - 6. Multiple Choice
Which statement is true?
The imposition of an indirect tax results in a disequilibrium price and quantity.
The imposition of an indirect tax results in a lower price for consumers and higher price for producers.
The imposition of an indirect tax results in a higher equilibrium price and lower equilibrium quantity.
The imposition of an indirect tax results in loss of government revenue.
tagsindirect taxes - 7. Multiple Choice
The objective to increase firms’ revenues, such as farmers, may be achieved by
subsidies and price ceilings
subsidies and price floors
indirect taxes and price floors
indirect taxes and price ceilings
tagsprice controlssubsidiesand 2 more... - 8. Multiple Choice
Indirect taxes may be imposed to
make housing more affordable for poor people
support the wages of low-skilled workers
decrease consumption of harmful goods
increase consumption of goods desirable for society
tagsindirect taxes - 9. Multiple Choice
Price ceilings may be imposed to
make housing more affordable for low-income people
support the wages of low-skilled workers
decrease consumption of harmful goods
increase consumption of goods desirable for society
tagsprice controlsprice ceiling - 10. Multiple Choice
Subsidies may be imposed to
make housing less affordable for poor people
support the wages of low-skilled workers
decrease consumption of harmful goods
increase consumption of goods desirable for society
tagssubsidies - 11. Multiple Choice
Price floors may be imposed to
make housing more affordable for poor people
support the wages of low-skilled workers
decrease consumption of harmful goods
increase consumption of goods desirable for society
tagsprice controlsprice floor - 12. Multiple Choice
Which statement is false?
Subsidies lead to lower prices for consumers and higher prices for producers.
Subsidies lead to a burden for the government budget and taxpayers.
Subsidies lead to larger quantities produced and consumed.
Subsidies lead to higher costs of production and lower revenues for firms.
tagssubsidies - 13. Multiple Choice
Price floors are a _____________________, and result in a _____________________ of the product that is produced.
minimum price / surplus
minimum price / shortage
maximum price / surplus
maximum price / shortage
tagsprice floorprice controls - 14. Multiple Choice
Price ceilings are a _____________________, and result in _____________________ of the product produced.
minimum price / surplus
minimum price / shortage
maximum price / surplus
maximum price / shortage
tagsprice ceilingprice controls - 15. Multiple Choice
The minimum wage is a type of _____________________, and may result in _____________________ of labour.
price floor / increased employment
price floor / unemployment
price ceiling / increased employment
price ceiling / unemployment
tagsprice floorprice controls - 16. Multiple Choice
Which of the following is true?
Ceteris paribus, a price ceiling leads to a shift of some producer surplus to consumers and some welfare loss only for consumers.
Ceteris paribus, a price ceiling leads to a shift of some consumer surplus to producers and some welfare loss for both producers and consumers.
Ceteris paribus, a price ceiling leads to a shift of some consumer surplus to producers and some welfare loss only for producers.
Ceteris paribus, a price ceiling leads to a shift of some producer surplus to consumers and some welfare loss for both producers and consumers.
tagsprice ceilingprice controls - 17. Multiple Choice
Assume a price floor on an agricultural product and the government buys the excess supply. Which of the following is true?
The price floor leads to a shift of some producer surplus to consumers and welfare loss only for producers and society.
The price floor leads to a shift of some consumer surplus to producers and some welfare loss for consumers, producers and society.
The price floor leads to a shift of some consumer surplus to producers and welfare loss only for consumers and society.
The price floor leads to a shift of some producer surplus to consumers and some welfare loss for consumers, producers and society.
tagsprice floorprice controls - 18. Multiple Choice
Ceteris paribus, a subsidy leads to
a gain in surplus only for producers
a gain in surplus only for consumers
a gain in surplus for both producers and consumers
a loss of surplus for both producers and consumers
tagssubsidies - Answer choicesTagsAnswer choicesTags