When a tax is imposed upon a commodity which the producers must pay to the government, this will cause the commodities?

Answer(s): D

Which ONE of the following statements best describes the impact of a government price floor (minimum price) set below free market price?

It will create a shortage of the product and incentives for producers and consumers to evade the policy
It will create a surplus of unsold produce that will need to be paid for from taxation
It will not affect market price or producer incomes at the present time
It will increase farm incomes but eventually force the government to introduce maximum quotas on production

Answer(s): C

Which ONE of the following statements best describes the impact of a government minimum price established above free market price?

It will create a shortage of the product and incentives for producers and consumers to evade the policy
It will create a surplus of unsold produce and reduce farm incomes
It will not affect market price or producer incomes at the present time
It will increase farm incomes but may eventually force the government to introduce maximum quotas on production

Answer(s): D

If the government imposed a legal minimum wage that was above the market equilibrium wage, the resulting unemployment would be the greatest when:

the demand for labor and the supply of labor are both price inelastic
the demand for labor and the supply of labor are both price elastic
the demand for labor is price inelastic and the supply of labor is price elastic
the demand for labor is price elastic and the supply of labor is price inelastic

Answer(s): B

Free CIMAPRA17-BA1-1 Exam Braindumps (page: 42)