Deck 6: 0:sec 60 Mc Supply Demand and Government Policies

Question 1

Policymakers use taxes

A)to raise revenue for public purposes but not to influence market outcomes.
B)both to raise revenue for public purposes and to influence market outcomes.
C)when they realize that price controls alone are insufficient to correct market inequities.
D)only in those markets in which the burden of the tax falls clearly on the sellers.

Answer 1

C

Question 2

Which of the following is not correct?

A)Economists have two roles: scientist and policy adviser.
B)As scientists,economists develop and test theories to explain the world around them.
C)Economic policies rarely have effects that their architects did not intend or anticipate.
D)As policy advisers,economists use their theories to help change the world for the better.

Answer 2

C

Question 3

Price controls

A)always produce a fair outcome.
B)always produce an efficient outcome.
C)can generate inequities of their own.
D)All of the above are correct.

Answer 3

A

Question 4

Which of the following is not an example of a public policy?

A)rent-control laws
B)minimum-wage laws
C)taxes
D)equilibrium laws

Question 5

Rent-control laws dictate

A)the exact rent that landlords must charge tenants.
B)a maximum rent that landlords may charge tenants.
C)a minimum rent that landlords may charge tenants.
D)both a minimum rent and a maximum rent that landlords may charge tenants.