Exam 7: Government Actions in Markets

The figure above shows supply and demand in the market for labor. The government introduces a minimum wage of $7 per hour. -In the figure above,the number of workers employed is ________,and the wage paid is ________.

-The above figure shows a labor market with a minimum wage of $8 an hour.How many people are employed when the minimum wage is in place?

The methods that governments use to support farmers vary,but they almost always involve some or all the following methods EXCEPT

A black market for housing exists because of a rent ceiling.The rent for housing in the black market is

Following a major natural disaster that destroys housing,a rent ceiling ________ be an effective policy to increase the quantity of more affordable housing for displaced residents because it would ________.

-The above figure shows the market for 2 bedroom town homes in San Diego.If a rent ceiling is set at $1,000 per month,what is the maximum rent someone is willing to pay in the black market?

A price ceiling in the market for fuel oil that is below the equilibrium price will

-The graph shows the market for rental housing in Little Rock.The market for apartments is efficient when ________.

-In the figure above,with the rent ceiling ________ units of housing are available,and black market rents might be as high as ________ a month.

Assume a market is producing efficiently.Which type of government intervention in this market might create a deadweight loss? i.a price ceiling ii.a price floor iii.a price support

Rent ceilings are difficult to abolish because

A rent ceiling set below the equilibrium rent decreases the quantity of housing supplied because

An efficient allocation of labor occurs when the

If a rent ceiling is set below the equilibrium price,thus creating a ________,housing may be allocated by increasing search activity or creating a ________.

Black markets can occur when price ceilings are imposed in a market.Which of the following explains why sellers participate in a black market?

If the minimum wage is above the equilibrium wage rate,then an increase in the minimum wage ________ employment and ________ unemployment.

Suppose the marginal benefit the owner of a cherry orchard derives from hiring Lauren to pick cherries is $8 per hour.If the wage rate that Lauren earns is $7 per hour,then the orchard owner's surplus from Lauren's labor is ________ per hour.

Which of the following is an impact of a rent ceiling set below the equilibrium rent?

In a competitive labor market,a minimum wage law set above the equilibrium wage rate

The deadweight loss from a rent ceiling below the equilibrium rent is smallest when the supply of housing is