ECON 201 Week 5
IN-Class Government Policy
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers
the question.
Use the figure for the question(s) below.
1) In the figure above, the imposition of a per-unit tax would
A) cause the supply curve to move from B to A.
B) cause the supply curve to move from A to B.
C) have no effect on quantity demanded.
D) have no effect on supply.
E) cause the demand curve to move to an unpredictable location.
1) _______
2) In the figure above, the amount of the per-unit tax imposed is
A) $5.
B) $15.
C) $10.
D) $20.
E) Cannot be determined from the graph.
2) _______
3) In the figure above, the tax caused equilibrium market price to
A) drop by $10.
B) increase by $5.
C) drop by $5.
D) become zero.
E) increase by $10.
3) _______
4) In the figure above, the incidence of the tax on consumers is
A) $10.
B) $15.
C) $20.
D) $0.
4) _______
5) In the figure above, the incidence of the tax on producers is
A) $20.
B) $0.
C) $10.
D) $15.
1
E) $5.
5) _______
E) $5.
6) In the figure above, the amount of tax revenue collected is
A) $15, or 1.5 gallons times $10.
B) $60, or 2 gallons times $30.
C) $20, or 2 gallons times $10.
D) $10, or 2 gallons times $5.
E) $5, or 1 gallon times $5.
6) _______
7) In the figure above, the deadweight loss is
A) $5, or 0.5 gallons times $10.
B) $5, or 1 gallon times $5.
C) $10, or 1 gallon times $10.
D) $7.50, or 1.5 gallons times $5.
E) $2.50, or 0.5 gallons times $5.
7) _______
Use the figure for the question(s) below.
8) In the figure above, an effective price floor is represented by
A) the line at $1.
B) the line at $6.
C) any price between $1 and $3.
D) $3.
E) any price between $3 and $6.
Use the figure for the question(s) below.
2
8) _______
9) In the figure, a price floor of $5 would result in a loss of consumer
surplus of
A) A.
B) B.
C) C.
D) D.
E) E +
F.
9) _______
Use the figure for the question(s) below.
10) In the figure above, a quota placed on this market would
A) reduce consumer surplus by area A + B and reduce producer
surplus by area C + D.
B) reduce consumer surplus by area B + D and reduce producer
surplus by area A + C.
C) reduce consumer surplus by area...C and reduce producer surplus
by area D.
D) increase consumer surplus by area C + D and reduce producer
surplus by area A + B.
E) increase consumer surplus by area A + C and reduce producer
surplus by area B + D.
3
10) ______
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
A
C
B
E
E
A
A
B
B
C
4