Economics MCQs

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

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. 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. A decrease in the price buyers pay, an increase in the price sellers receive, and a decrease in the quantity sold
B. An increase in the price buyers pay a decrease in the price sellers receive, and an increase in the quantity sold
C. A decrease in the price buyers pay, an increase in the price sellers receive and an increase in the quantity sold
D. An increase in the price buyers pay a decrease in the price sellers receive and a decrease in the quantity sold

A. Both supply and demand are elastic
B. Both supply and demand are inelastic
C. Demand is inelastic and supply in elastic
D. Demand is elastic, and supply is inelastic

A. Both supply and demand are inelastic
B. Demand is elastic, and supply are inelastic
C. Both supply and demand are elastic
D. Demand is inelastic, and supply is elastic

A. Clothing
B. Food
C. Housing
D. Entertainment