MCQs of Economics – Prices, Wages & Taxes

For a price ceiling to be binding constraint on the market the government must set it

A binding price ceiling creates

Suppose the equilibrium price for apartments is Rs500 per month and the government imposes rent controls of Rs250 Which of the following is unlikely to to occur as a result of the rent controls?

A price floor.

Which of the following statements about a binding price ceiling is true?

Which side of the market is more likely to lobby government for a price floor?

The surplus caused by a binding price floor will be greatest if

Which of the following is an example of price floor?

Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre?

Which of the following workers would be most likely to find it more difficult to get a job after a rise in the minimum wage rate?

Within the supply and demand model, a tax collected from the buyers of a good shifts the

Within the supply and demand model, a tax collected from the sellers of a good shift the

Which of the following takes place when a tax is placed a good?

When a tax is collected from the buyers in a market,

A tax of Rs1.00 per litre on petrol:

The burden of a tax falls more heavily on the sellers in a market when

A tax placed on a good that is a necessity for consumers will likely generate a tax burden that

The burden of a tax falls more heavily on the buyers in a market when

Which of the following statements about the burden of a tax is correct?

For which of the following products would the burden of a tax likely fall more heavily on the sellers?