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King: Economics

Chapter 05

Instructions

Answer the following questions and then press 'Submit' to get your score.

Question 1

Which of the following is not an argument against government intervention in a market?

Question 2

Which of the following statements about a price ceiling is false?

Question 3

Assuming that everyone is law-abiding, which of the following would not reduce the quantity traded in a market?

Question 4

Suppose the government introduces a specific tax of £5 a unit on a product which has sloping supply and demand curves. Which of the following statements about the resulting curve S+tax is true?

Question 5

On a graph showing the effects of an ad valorem tax, where do we find the price received by producers?

Question 6

Which of the following statements about the incidence of a specific tax is false?

Question 7

Under which of the following circumstances would the incidence of a specific tax fall wholly on consumers?

Question 8

Suppose the CAP has imposed a tariff on the import of a certain foodstuff from outside the EU, and suppose that EU consumers always pay a price equal to the rest of the world price plus the tariff. Which of the following events would not lead to a higher price for EU consumers?

Question 9

Suppose the CAP reduces the tariff on imports of a certain foodstuff from outside the EU. Which of the following statements is false?

Question 10

Suppose the government introduces a prohibition on the supply or purchase of some substance. Assuming that some suppliers and some users ignore the law, which of the following could not occur?