36) A tax on the seller of a product: A) causes the demand curve for the product

Question

36) A tax on the seller of a product: A) causes the demand curve for the product to shift to the right. B) always causes the equilibrium quantity traded in the market to increase. C) causes the seller's take-home price to rise above that paid by the buyer ) causes the supply curve for the product to shift to the left. 37) Allocating products with long lines, using a first-come, first -served system, is: A) the only way scarce goods can be allocated. B) inefficient, because waiting wastes time. C) efficient, since people who are willing to wait the longest get the products. D) necessary when waiting is a costless exercise. 38) Ideally, a market should maximize: A) producer surplus. B) social surplus. C) consumer surplus plus producer surplus. D) consumer surplus. 39) Which is NOT a result of rent control? A) bribery B) higher-quality housing C) fewer new apartments offered for rent D) less maintenance provided by landlords 40) Refer to the table. The deadweight loss in the market could be eliminated if the government: Quantity of Marginal Benefit Marginal Cost External Marginal Social Antibiotics Cost to Buvers $25 $20 S15 $10 S5 to Sellers S5 S10 S15 $20 $25 Cost $10 S10 $10 $10 S10 4 A) equated marginal benefit with external cost. B) outlawed the production of the good. G) added a $10 tax per unit.

Explanation / Answer

1) A tax on the seller of a product

Solution: causes the supply curve for the product to shift to the left

Explanation: The sellers receive less and buyers pay more than they did before the tax.

2) Allocating products with long lines, using a front-come, first-served system, is

Solution: inefficient, because waiting wastes time

Explanation: It results in inefficiency because of unnecessary wastage of time

3) Ideally, a market should maximize

Solution: social surplus

Explanation: Social surplus is inclusive of both consumer surplus and producer surplus.

4) Which is NOT a result of rent control?

Solution: high quality housing

Explanation: Rent control acts as a price ceiling, which does not include high quality housing

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.