84. A binding minimum wage may not help all workers, but it does not hurt any workers.
a.
True
b.
False
85. A binding minimum wage raises the incomes of some workers, but it lowers the incomes of workers who cannot find
jobs.
a.
True
b.
False
86. The impact of the minimum wage depends on the skill and experience of the worker.
a.
True
b.
False
87. Workers with high skills and much experience are not typically affected by the minimum wage.
a.
True
b.
False
88. The minimum wage has its greatest impact on the market for teenage labor.
a.
True
b.
False
89. The minimum wage is more often binding for teenagers than for other members of the labor force.
a.
True
b.
False
90. Studies by economists have found that a 10 percent increase in the minimum wage decreases teenage employment 10
percent.
a.
True
b.
False
91. A large majority of economists favor eliminating the minimum wage.
a.
True
b.
False
92. Advocates of the minimum wage admit that it has some adverse effects, but they believe that these effects are small
and that a higher minimum wage makes the poor better off.
a.
True
b.
False
93. If the equilibrium wage is $4 per hour and the minimum wage is $5.15 per hour, then a shortage of labor will exist.
a.
True
b.
False
94. Minimum-wage laws are precise policy instruments that can specifically target workers whose family incomes are
low.
a.
True
b.
False
95. Minimum-wage laws benefit society by creating a surplus of labor.
a.
True
b.
False
96. Most economists are in favor of price controls as a way of allocating resources in the economy.
a.
True
b.
False
97. When policymakers set prices by legal decree, they obscure the signals that normally guide the allocation of society’s
resources.
a.
True
b.
False
98. Price controls often hurt those they are trying to help.
a.
True
b.
False
99. Rent subsidies and wage subsidies are better than price controls at helping the poor because they have no costs
associated with them.
a.
True
b.
False
100. A price ceiling is always a binding price control, whereas a price floor may be either binding or not binding.
a.
True
b.
False
101. A tax on golf clubs will cause buyers of golf clubs to pay a higher price, sellers of golf clubs to receive a lower price,
and fewer golf clubs to be sold.
a.
True
b.
False
102. When a tax is imposed on a good, the result is always a shortage of the good.
a.
True
b.
False
103. When a tax of $1.00 per gallon is imposed on sellers of gasoline, the supply curve for gasoline shifts upward, but by
less than $1.00.
a.
True
b.
False
104. A tax on sellers shifts the supply curve but not the demand curve.
a.
True
b.
False
105. A tax on sellers shifts the supply curve to the left.
a.
True
b.
False
106. A tax on sellers increases supply.
a.
True
b.
False
107. A tax on sellers and an increase in input prices affect the supply curve in the same way.
a.
True
b.
False
108. A tax of $1 on sellers shifts the supply curve upward by exactly $1.
a.
True
b.
False
109. A tax of $1 on sellers always increases the equilibrium price by $1.
a.
True
b.
False
110. A tax on sellers reduces the size of a market.
a.
True
b.
False
111. A tax on sellers increases the quantity of the good sold in the market.
a.
True
b.
False
112. A tax on sellers usually causes buyers to pay more for the good and sellers to receive less for the good than they did
before the tax was levied.
a.
True
b.
False
113. A tax on buyers shifts the demand curve and the supply curve.
a.
True
b.
False
114. A tax on buyers shifts the demand curve to the right.
a.
True
b.
False
115. A tax on buyers decreases demand.
a.
True
b.
False
116. A tax of $1 on buyers shifts the demand curve downward by exactly $1.
a.
True
b.
False
117. A tax of $1 on buyers always decreases the equilibrium price by $1.
a.
True
b.
False
118. A tax on buyers increases the size of a market.
a.
True
b.
False
119. A tax on buyers decreases the quantity of the good sold in the market.
a.
True
b.
False
120. A tax on buyers usually causes buyers to pay more for the good and sellers to receive less for the good than they did
before the tax was levied.
a.
True
b.
False
121. Regardless of whether a tax is levied on sellers or buyers, taxes discourage market activity.
a.
True
b.
False
122. Regardless of whether a tax is levied on sellers or buyers, taxes encourage market activity.
a.
True
b.
False
123. Taxes levied on sellers and taxes levied on buyers are equivalent.
a.
True
b.
False
124. The wedge between the buyers’ price and the sellers’ price is the same, regardless of whether the tax is levied on
buyers or sellers.
a.
True
b.
False
125. The term tax incidence refers to how the burden of a tax is distributed among the various people who make up the
economy.
a.
True
b.
False
126. If a tax is imposed on the sellers of a product, then the tax burden will fall entirely on the sellers.
a.
True
b.
False
127. If a tax is imposed on the buyers of a product, then the tax burden will fall entirely on the buyers.
a.
True
b.
False
128. Whether a tax is levied on sellers or buyers, buyers and sellers usually share the burden of taxes.
a.
True
b.
False
129. The tax incidence depends on whether the tax is levied on buyers or sellers.
a.
True
b.
False
130. Lawmakers can decide whether the buyers or the sellers must send a tax to the government, but they cannot legislate
the true burden of a tax.
a.
True
b.
False