Prices, Wages & Taxes

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.

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.

A. the tax burden falls most heavily on the buyers.
B. the buyers bear the burden of the tax
C. the sellers bear the burden of the tax
D. the tax burden on the buyers and sellers in the same as an equivalent tax collected from the sellers

A. demand curve downward by the size of the tax per unit.
B. supply curve downward by the size of the tax per unit
C. demand curve upward by the size of the tax per unit.
D. supply curve upward by the size of the tax per unit

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. 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

A. the buyers
B. Neither buyers nor sellers desire a price floor.
C. the sellers
D. Both buyers and sellers desire a price floor.

A. always determines the price at which a good must be sold
B. sets a legal maximum on the price at which a good can be sold
C. is not a binding constraint if it is set above the equilibrium price
D. sets a legal minimum on the price at which a good can be sold

A. a shortage or a surplus depending on whether the price ceiling is set above or below the equilibrium price
B. a surplus
C. a shortage
D. an equilibrium

A. Clothing
B. food
C. housing
D. entertainment