A legal maximum on the price at which a good can be sold...
What is a price ceiling?
100
A binding price ceiling causes a _____ of a good....
What is shortage?
100
Used by the government to raise revenue for public projects...
What is a tax?
100
A payroll tax causes ______ between a wage that workers receive and the wage that firms pay.
What is a tax wedge?
100
True or False: Market forces naturally move the economy to the equilibrium when a non-binding price ceiling is imposed...
What is true?
200
A legal minimum on the price at which a good can be sold...
What is a price floor?
200
A binding price floor causes a _____ of a good....
What is surplus?
200
A tax imposed to raise revenue from luxury products or services from those who could most easily afford to pay...
What is a luxury tax?
200
True or False: Buyers and sellers both share the burden of taxes...
What is true?
200
Taxes levied on sellers and buyers are ________...
What is equivalent?
300
The manor in which the burden of a tax is shared among participants in a market...
What is a tax incidence?
300
When a binding price floor is imposed, the _____ increases...
What is quantity supplied?
300
A government program that supplements the incomes of low-wage workers...
What is an earned income tax credit?
300
When a good is taxed, the quantity of the good sold is _______ in the new equilibrium...
What is smaller?
300
A price ceiling is imposed below the equilibrium price of $3.00. At this price, 125 units are demanded and only 75 units are supplied. The shortage is ______...
What is 50 units?
400
Whenever a price floor or price ceiling is imposed above equilibrium price...
What is a binding constraint?
400
When a price of a good increases in a perfectly competitive market, the supply curve does this...
What is a leftward shift?
400
A tax on the wages that firms pay their workers...
What is a payroll tax?
400
When taxes are imposed on buyers, the demand curve shifts ______...
What is down?
400
A tax on buyers shifts this downward...
What is the demand curve?
500
A measure of a good's price sensitivity to a change in either supply or demand...
What is elasticity?
500
Movie theaters persuade Congress to impose a price ceiling of $20.00 per movie ticket. As a result of this price flux, the rate of movie attendance will _______...
What is decrease?
500
A tax burden falls more heavily on the side of the market that is _____ elastic...
What is less?
500
When supply is more elastic than demand, the incidence of a tax falls more heavily on whom?
What are consumers?
500
When demand is more _______ than supply, a tax incidence falls more heavily on producers.