Refer to Figure 6-36. If the government places a $2 tax in the market, the buyer pays $4.

A government-imposed restriction on the quantity of a specific good that may be imported to and sold in the United States is called a

A) tariff system. B) quota system. C) reverse-trade system. D) union trade system.

Assume that Paris First National Bank is a thriving bank with deposits of $20 million. If the required reserve ratio is 20 percent and the bank is fully loaned out, the bank will keep what amount of required reserves?

a. $2 million. b. $4 million. c. $10 million. d. $16 million. e. $20 million.

Figure 18-3 In which panel of Figure 18-3 would an excise tax be borne entirely by the supplier?

A. 1 B. 2 C. 3 D. 4

How will a price ceiling affect producers?

a. Lower cost producers will be forced from the market. b. Higher cost producers will receive a higher price for each unit they sell. c. Lower cost producers will remain in the market, but will receive less for each unit. d. Higher cost producers will receive a transfer of surplus from consumers.