Exam 7: Government Actions in Markets

-The above figure shows the market for DVDs.The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs.After this price ceiling is in effect and taking account of the resources lost in search,consumer surplus equals ________.

When a price ceiling below the equilibrium price is imposed on a good,production of the good

When a price support is set above the equilibrium price,producers ________ the quantity supplied and consumers ________ the quantity demanded.

A rent ceiling creates a deadweight loss

Is the minimum wage fair?

A minimum wage that is above the equilibrium wage rate

-The table above gives the demand and supply schedules for the housing market in a small town.If a rent ceiling of $600 a month is imposed,what is the quantity demanded,the quantity supplied,and the shortage of housing?

-The graph shows the labor market for fast-food workers in Sioux City.If the government sets a minimum wage of $7 an hour,then the labor market is ________ and marginal benefit ________ marginal cost.

A minimum wage set above the equilibrium wage will ________ the quantity of labor demanded and ________ the quantity of labor supplied.

If the minimum wage is set above the equilibrium wage,after taking into account the resources lost in job search,the firms' surplus ________ and the workers' surplus ________.

When a price support is set below the equilibrium price,producers ________ the quantity supplied and consumers ________ the quantity demanded.

When a price ceiling is set below the equilibrium price,the quantity supplied ________ the quantity demanded and ________ exists.

In a housing market with a rent ceiling below the equilibrium rent,apartment seekers spend more time searching for an apartment than they would in a housing market without a rent ceiling.Why does this difference exist?

Which of the following is true? i.A price ceiling set above the equilibrium price has no effects. ii.A price ceiling set below the equilibrium price creates a surplus. iii.A price floor set above the equilibrium price has no effects.

What are the effects of a rent ceiling set below the equilibrium rent?

-The above figure shows the market for finish carpenters in Bozeman.There is a minimum wage set at $18.Compared to the initial equilibrium without the minimum wage,once the minimum wage is in place and after taking account of job search,the total workers' surplus ________ and the total firms' surplus ________.

-The above figure shows a labor market with minimum wage equal to $16.In this figure,what area equals the firms' surplus?

The figure above shows supply and demand in the market for labor. The government introduces a minimum wage of $7 per hour. -The figure above shows that the lowest wage rate for which someone is willing to work is

Which of the following is true regarding a price support set above the equilibrium price? i.The price support increases the price consumers pay. ii.The price support creates a deadweight loss. iii.The price support decreases output.

In a market with a rent ceiling set below the equilibrium rent,the producer and consumer surplus