Question 1

Among the methods of nonprice rationing are

Accepted Answer

A)  coupons. 
B)  favored customers. 
C)  waiting in line. 
D)  all of the above 
A)  coupons. 
B)  favored customers. 
C)  waiting in line. 
D)  all of the above

Question 2

Consumer surplus is the difference between the most a person is willing to pay and market price.

Accepted Answer

A) True 
 B)False

Question 3

Related to the Economics in Practice on p. 83: The true cost of the Shakespeare in the Park tickets is

Accepted Answer

A)  zero. 
B)  $0 plus the opportunity cost of the time spent in line. 
C)  the cost to put on the performance. 
D)  the additional cost to the city of extra security. 
A)  zero. 
B)  $0 plus the opportunity cost of the time spent in line. 
C)  the cost to put on the performance. 
D)  the additional cost to the city of extra security.

Question 4

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.   Figure 4.3
-Refer to Figure 4.3. The government setting the price of pencils at $0.40 would be an example of an effective

Accepted Answer

A)  price floor. 
B)  price ceiling. 
C)  market equilibrium. 
D)  price surplus. 
A)  price floor. 
B)  price ceiling. 
C)  market equilibrium. 
D)  price surplus.

Question 5

Related to the Economics in Practice on p. 83: The initial price of $0 for the Shakespeare in the Park tickets is akin to the city of New York ________ the tickets.

Accepted Answer

A)  issuing a price floor on 
B)  issuing a price ceiling on 
C)  issuing ration coupons for 
D)  assigning favored customer status for 
A)  issuing a price floor on 
B)  issuing a price ceiling on 
C)  issuing ration coupons for 
D)  assigning favored customer status for

Question 6

Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.
Equilibrium in this market occurs at the intersection of curves S and D.   Figure 4.6
-Refer to Figure 4.6. At equilibrium, producer surplus is area

Accepted Answer

A)  A. 
B)  A + B + C. 
C)  G. 
D)  E + F + G. 
A)  A. 
B)  A + B + C. 
C)  G. 
D)  E + F + G.

Question 7

The harmful effect of a price ceiling to ________ is ________.

Accepted Answer

A)  producers; the selling price of the product is above the equilibrium price 
B)  producers; the ceiling creates a surplus of the product 
C)  consumers; the selling price of the product is above the equilibrium price 
D)  consumers; the ceiling creates a shortage of the product 
A)  producers; the selling price of the product is above the equilibrium price 
B)  producers; the ceiling creates a surplus of the product 
C)  consumers; the selling price of the product is above the equilibrium price 
D)  consumers; the ceiling creates a shortage of the product

Question 8

Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.
Equilibrium in this market occurs at the intersection of curves S and D.   Figure 4.6
-Refer to Figure 4.6. If price is P1, producer surplus is area

Accepted Answer

A)  A. 
B)  A + B + E. 
C)  G. 
D)  B + E + G. 
A)  A. 
B)  A + B + E. 
C)  G. 
D)  B + E + G.

Question 9

If the most someone is willing to pay for ticket to see their favorite team is $100 and the market price of the ticket is $35, then this buyer will get consumer surplus of

Accepted Answer

A)  1 ticket. 
B)  $35. 
C)  $65. 
D)  $100. 
A)  1 ticket. 
B)  $35. 
C)  $65. 
D)  $100.

Question 10

A maximum price, set by the government, that sellers may charge for a good is known as

Accepted Answer

A)  a price floor. 
B)  a price rationing mechanism. 
C)  a price ceiling. 
D)  a subsidy. 
A)  a price floor. 
B)  a price rationing mechanism. 
C)  a price ceiling. 
D)  a subsidy.

Question 11

The harmful effect of a price floor to ________ is ________.

Accepted Answer

A)  producers; the selling price of the product is below the equilibrium price 
B)  producers; the floor creates a surplus of the product 
C)  consumers; the selling price of the product is below the equilibrium price 
D)  consumers; the floor creates a shortage of the product 
A)  producers; the selling price of the product is below the equilibrium price 
B)  producers; the floor creates a surplus of the product 
C)  consumers; the selling price of the product is below the equilibrium price 
D)  consumers; the floor creates a shortage of the product

Question 12

The adjustment of ________ is the rationing mechanism in market economies.

Accepted Answer

A)  quantity 
B)  price 
C)  supply 
D)  demand 
A)  quantity 
B)  price 
C)  supply 
D)  demand

Question 13

If the market price of green tea is $20.00 per pound and the government will not allow green tea growers to charge more than $25.00 per pound of green tea, which of the following will happen?

Accepted Answer

A)  Demand must eventually decrease so that the market will come into equilibrium at a price of $17.50. 
B)  There will be a shortage of green tea. 
C)  Supply must eventually increase so that the market will come into equilibrium at a price of $17.50. 
D)  The price ceiling will be ineffective and the market will remain in equilibrium. 
A)  Demand must eventually decrease so that the market will come into equilibrium at a price of $17.50. 
B)  There will be a shortage of green tea. 
C)  Supply must eventually increase so that the market will come into equilibrium at a price of $17.50. 
D)  The price ceiling will be ineffective and the market will remain in equilibrium.

Among the methods of nonprice rationing are

Consumer surplus is the difference between the most a person is willing to pay and market price.

Related to the Economics in Practice on p. 83: The true cost of the Shakespeare in the Park tickets is

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3 -Refer to Figure 4.3. The government setting the price of pencils at $0.40 would be an example of an effective

Related to the Economics in Practice on p. 83: The initial price of $0 for the Shakespeare in the Park tickets is akin to the city of New York ________ the tickets.

Refer to the information provided in Figure 4.6 below to answer the question(s) that follow. Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6 -Refer to Figure 4.6. At equilibrium, producer surplus is area

The harmful effect of a price ceiling to is .

Refer to the information provided in Figure 4.6 below to answer the question(s) that follow. Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6 -Refer to Figure 4.6. If price is P1, producer surplus is area

If the most someone is willing to pay for ticket to see their favorite team is $100 and the market price of the ticket is $35, then this buyer will get consumer surplus of

A maximum price, set by the government, that sellers may charge for a good is known as

The harmful effect of a price floor to is .

The adjustment of ________ is the rationing mechanism in market economies.

If the market price of green tea is $20.00 per pound and the government will not allow green tea growers to charge more than $25.00 per pound of green tea, which of the following will happen?

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 4: Demand and Supply Applications

Among the methods of nonprice rationing are

Consumer surplus is the difference between the most a person is willing to pay and market price.

Related to the Economics in Practice on p. 83: The true cost of the Shakespeare in the Park tickets is

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3 -Refer to Figure 4.3. The government setting the price of pencils at $0.40 would be an example of an effective

Related to the Economics in Practice on p. 83: The initial price of $0 for the Shakespeare in the Park tickets is akin to the city of New York ________ the tickets.

Refer to the information provided in Figure 4.6 below to answer the question(s) that follow. Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6 -Refer to Figure 4.6. At equilibrium, producer surplus is area

The harmful effect of a price ceiling to ________ is ________.

Refer to the information provided in Figure 4.6 below to answer the question(s) that follow. Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6 -Refer to Figure 4.6. If price is P1, producer surplus is area

If the most someone is willing to pay for ticket to see their favorite team is $100 and the market price of the ticket is $35, then this buyer will get consumer surplus of

A maximum price, set by the government, that sellers may charge for a good is known as

The harmful effect of a price floor to ________ is ________.

The adjustment of ________ is the rationing mechanism in market economies.

If the market price of green tea is $20.00 per pound and the government will not allow green tea growers to charge more than $25.00 per pound of green tea, which of the following will happen?

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Labor and Land Markets

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

The harmful effect of a price ceiling to is .

The harmful effect of a price floor to is .