Reference no: EM133121073

1) The benefits of a subsidy always (You may assume competitive market)

a) exceed the costs

b) fall short of costs

c) result in a fall prices paid by buyers

d) b and c of the above

2) Price fixing is

a) is generally agreed by economists to be simplest

b) is generally agreed by economists to produce the intended results simply

c) both of the above

d) all of the above

3) Which of the following groups are likely supporters of minimum wage laws.

a) trade unions

b) those opposed to the immigration of the unskilled labor

c) unskilled workers

d) all of the above

e) a and b above

4) Which of the following is regressive tax?

a) income tax

b) social subsidy tax

c) sales tax

d) all of the above

5) In which of the following does regulation cause exactly the opposite of stated

a) mandating additional airline safety checks

b) mandating additional airline security measures

c) imposing controls on the charging of rent

d) imposing a minimum wage above the market wage

e) c and d above

6) Which of the following are possible of consequences of rent control

a) abandoned houses

b) rent-controlled apartments that are in short supply and effectively very expensive

c) An abundance of cheap housing

d) all of the above

e) a. and b of the above