Question

QUESTION 22

1. Economists generally believe that rent control is

   	a.	inefficient but the best available means of solving a serious social problem.
   	b.	an efficient way to allocate housing, but not a good way to help the poor.
   	c.	a highly inefficient way to help the poor raise their standard of living.
   	d.	an efficient and fair way to help the poor.

3.33 points   

QUESTION 23

1. If a tax is levied on the sellers of a product, then the supply curve will

   	a.	shift up.
   	b.	not shift.
   	c.	shift down.
   	d.	become flatter.

3.33 points   

QUESTION 24

1. A tax imposed on the buyers of a good will lower the

   	a.	effective price received by sellers and raise the equilibrium quantity.
   	b.	effective price received by sellers and lower the equilibrium quantity.
   	c.	price paid by buyers and raise the equilibrium quantity.
   	d.	price paid by buyers and lower the equilibrium quantity.

Answer 1

22. Option C.

• Economists generally believe that rent control is a highly inefficient way to help the poor raise their standard of living.
• Rent controls are the limits set by the government Inorder to restrict the landlord's from setting Higher rents for their houses.
• Rent control cannot raise the standards of living of poor thought it can help them from paying higher rents.

23. Option A.

• If a tax is levied on the sellers of a product, then the supply curve will shift up.
• When the tax is imposed on sellers, the cost of production of their goods increases.
• To compensate these losses and to earn more profits, they increase the supply of goods.
• This will shift the supply curve upwards.

24. Option B.

• A tax imposed on the buyer's of a good will lower the effective price recieved by sellers and lower the equilibrium quantity.
• When the buyer's are imposed with taxes, the prices they pay for the consumption of goods rises.
• This will eventually decrease the demand and the price the sellers recieve will fall and the equilibrium quantity decreases.