Econ Final Midterm |60 Questions| With Correct Answers.

Suppose the cost of breaking the law is imposed on the buyers of an illegal good. This action will have its biggest impact on quantity if the demand for the good is A) inelastic or the supply is inelastic. B) elastic or the supply is elastic. C) elastic or the supply is inelastic. D) inelastic or the supply is elastic. E) perfectly inelastic. {Ans: B) elastic or the supply is elastic.}Figure 9A 2.1. Table 9A.2.1 gives the supply and demand schedules for teenage labour in Genoa City. Suppose the Genoa City Council sets a minimum wage of $4 per hour. Teenage unemployment is A) 800 hours. B) 600 hours. C) 400 hours. D) 200 hours. E) zero hours. {Ans: E) zero hours.}Which one of the following statements is generally false? A) Minimum wage laws cause wages to be set above the equilibrium wage. B) Rent ceilings cause rents to be set below equilibrium levels. C) Rent ceilings usually result in housing shortages. D) Minimum wage laws increase employment. E) Minimum wage laws usually create surpluses. {Ans: D) Minimum wage laws increase employment.}Provincial governments across Canada recently started legalizing and then heavily taxing gambling at casinos. The new