ECN 101 EXAM 2- SYRACUSE UNIVERSITY (CH 5, 6, 7-
10) | QUESTIONS AND ANSWERS | 2025/2026 UPDATE
| ALREADY PASSED!!
Which of the following best describes a subsidy?
A. Farmers pay the government $100 per ton of wheat produced.
B. Banks make low-interest loans to farmers.
C. The government puts a tax of $100 per ton on wheat imports.
D. The government pays farmers $100 per ton of wheat produced. Answer - D.
The government pays farmers $100 per ton of wheat produced.
Tax incidence is the division of the burden of a tax between the _____ and the
_____. Answer - buyer; seller
Which of the following is an example of a price ceiling or price cap? Answer - A
regulation requires cable service to be provided for no more than $30 a month.
, Which of the following is an example of a production quota? Answer - The
government sets an upper limit on the quantity that each dairy farmer can
produce.
A minimum wage law is a government regulation that makes hiring labor
services for _____ than a specified wage _____. Answer - less; illegal
The difference between the lowest price a producer would be willing to accept
for a good or service and the price the producer actually receives is known as:
Answer - producer surplus
The demand for a highly addictive drug is likely Answer - inelastic
Which of the following statements illustrates income elasticity of demand?
A. A rise in Annie's income by 5 percent decreases supply of canned fruits by 6
percent.
B. Poor economic conditions are resulting in higher unemployment and lower
aggregate demand.
C. A salary cut and no other changes has resulted in Mary buying less fast food.
D. A 2 percent fall in the price of peanuts increases Ralph's demand for
almonds by 5 percent. Answer - C. A salary cut and no other changes has
resulted in Mary buying less fast food.
Which of the following statements is an example of price elasticity of supply?
10) | QUESTIONS AND ANSWERS | 2025/2026 UPDATE
| ALREADY PASSED!!
Which of the following best describes a subsidy?
A. Farmers pay the government $100 per ton of wheat produced.
B. Banks make low-interest loans to farmers.
C. The government puts a tax of $100 per ton on wheat imports.
D. The government pays farmers $100 per ton of wheat produced. Answer - D.
The government pays farmers $100 per ton of wheat produced.
Tax incidence is the division of the burden of a tax between the _____ and the
_____. Answer - buyer; seller
Which of the following is an example of a price ceiling or price cap? Answer - A
regulation requires cable service to be provided for no more than $30 a month.
, Which of the following is an example of a production quota? Answer - The
government sets an upper limit on the quantity that each dairy farmer can
produce.
A minimum wage law is a government regulation that makes hiring labor
services for _____ than a specified wage _____. Answer - less; illegal
The difference between the lowest price a producer would be willing to accept
for a good or service and the price the producer actually receives is known as:
Answer - producer surplus
The demand for a highly addictive drug is likely Answer - inelastic
Which of the following statements illustrates income elasticity of demand?
A. A rise in Annie's income by 5 percent decreases supply of canned fruits by 6
percent.
B. Poor economic conditions are resulting in higher unemployment and lower
aggregate demand.
C. A salary cut and no other changes has resulted in Mary buying less fast food.
D. A 2 percent fall in the price of peanuts increases Ralph's demand for
almonds by 5 percent. Answer - C. A salary cut and no other changes has
resulted in Mary buying less fast food.
Which of the following statements is an example of price elasticity of supply?
