Question 1

-The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, which of the following statements is true?

Accepted Answer

A) Firms' surplus increase with the minimum wage. 
B) Workers who retain their jobs have their wages rise. 
C) The market is efficient. 
D) The quantity supplied of workers is less that quantity demanded. 
E) Unemployment decreases because firms employ their workers more carefully. 
A) Firms' surplus increase with the minimum wage. 
B) Workers who retain their jobs have their wages rise. 
C) The market is efficient. 
D) The quantity supplied of workers is less that quantity demanded. 
E) Unemployment decreases because firms employ their workers more carefully.

Question 2

A minimum wage set above the equilibrium wage rate

Accepted Answer

A) increases the quantity of labor services supplied. 
B) decreases the quantity of labor services supplied. 
C) has no effect on the quantity of labor services supplied. 
D) shifts the labor supply curve rightward. 
E) shifts the labor supply curve leftward. 
A) increases the quantity of labor services supplied. 
B) decreases the quantity of labor services supplied. 
C) has no effect on the quantity of labor services supplied. 
D) shifts the labor supply curve rightward. 
E) shifts the labor supply curve leftward.

Question 3

The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton.
-The figure above shows that to make the price support work, the government buys ________ million tons of sugar beets.

Accepted Answer

A) 10 
B) 20 
C) 30 
D) 5 
E) 15 
A) 10 
B) 20 
C) 30 
D) 5 
E) 15

Question 4

The figure above shows the demand (D)and supply (S)curves for insulin before any tax is imposed. The government imposes a $0.20 a dose tax on sellers of insulin.
-After the tax is imposed, the price paid by the buyer is ________, and the price received (and kept)by the seller is ________.

Accepted Answer

A) $2.20; $2.00 
B) $2.00; $2.20 
C) $2.00; $2.00 
D) $2.20; $2.20 
E) $2.00; $1.80 
A) $2.20; $2.00 
B) $2.00; $2.20 
C) $2.00; $2.00 
D) $2.20; $2.20 
E) $2.00; $1.80

Question 5

Suppose that apartments rent for $1,300 a month in San Francisco, California and $850 a month in Los Angeles, California. If the state of California passes a state-wide rent ceiling for apartments of $1,100 a month, what occurs in the two cities?

Accepted Answer

The rent ceiling is below the equilibriu

Question 6

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

Accepted Answer

A) Renters find apartments to rent more rapidly because the rent ceiling is lower. 
B) Landlords' incentives to provide apartments decrease. 
C) The supply of apartments increases as soon as the rent ceiling is imposed. 
D) A surplus of housing occurs. 
E) Search for apartments decreases because renters need no longer search for the apartment with the lowest rent. 
A) Renters find apartments to rent more rapidly because the rent ceiling is lower. 
B) Landlords' incentives to provide apartments decrease. 
C) The supply of apartments increases as soon as the rent ceiling is imposed. 
D) A surplus of housing occurs. 
E) Search for apartments decreases because renters need no longer search for the apartment with the lowest rent.

Question 7

Which of the following is true?
I. A price ceiling set below the equilibrium price decreases search activity.
Ii. A minimum wage is an example of a price ceiling.
Iii. A price support decreases the quantity consumed.

Accepted Answer

A) Only i 
B) Only ii 
C) Only iii 
D) i and iii 
E) ii and iii 
A) Only i 
B) Only ii 
C) Only iii 
D) i and iii 
E) ii and iii

Question 8

-The above figure shows the market for winter jackets. In an effort to keep the nation warm, the president places a price ceiling of $100 in the market for winter jackets. What would be the maximum price someone would pay in the black market?

Accepted Answer

A) $100 per jacket 
B) $120 per jacket 
C) $130 per jacket 
D) $90 per jacket 
E) $140 per jacket 
A) $100 per jacket 
B) $120 per jacket 
C) $130 per jacket 
D) $90 per jacket 
E) $140 per jacket

Question 9

A minimum wage

Accepted Answer

A) increases all workers' surplus because the wage rate increases. 
B) increases consumer surplus because the price of the good decreases. 
C) decreases the firms' surplus because fewer workers are hired at the higher wage. 
D) increases the firms' surplus and the workers' surplus because it increases the efficiency of the labor market. 
E) None of the above answers is correct. 
A) increases all workers' surplus because the wage rate increases. 
B) increases consumer surplus because the price of the good decreases. 
C) decreases the firms' surplus because fewer workers are hired at the higher wage. 
D) increases the firms' surplus and the workers' surplus because it increases the efficiency of the labor market. 
E) None of the above answers is correct.

Question 10

-If a minimum wage is introduced that is above the equilibrium wage rate,

Accepted Answer

A) the quantity of labor demanded increases. 
B) job search activity increases. 
C) the supply of labor increases and the supply of labor curve shifts rightward. 
D) unemployment decreases because more workers accept jobs at the higher minimum wage rate. 
E) the quantity of labor supplied decreases because of the increase in unemployment. 
A) the quantity of labor demanded increases. 
B) job search activity increases. 
C) the supply of labor increases and the supply of labor curve shifts rightward. 
D) unemployment decreases because more workers accept jobs at the higher minimum wage rate. 
E) the quantity of labor supplied decreases because of the increase in unemployment.

Question 11

-The above figure shows a labor market with minimum wage equal to $16. In this figure, after taking account of search costs, what area equals the workers' surplus?

Accepted Answer

A) area A 
B) area B 
C) area C 
D) area D 
E) area E 
A) area A 
B) area B 
C) area C 
D) area D 
E) area E

Question 12

A minimum wage law in a competitive labor market

Accepted Answer

A) creates a shortage of labor. 
B) causes equality between the quantity of labor supplied and the quantity demanded. 
C) creates a surplus of labor. 
D) lowers the wage rate paid to workers. 
E) has an impact only if it is set below the equilibrium wage rate. 
A) creates a shortage of labor. 
B) causes equality between the quantity of labor supplied and the quantity demanded. 
C) creates a surplus of labor. 
D) lowers the wage rate paid to workers. 
E) has an impact only if it is set below the equilibrium wage rate.

Question 13

In order to have an impact, a ________ must be set below the equilibrium price and when this occurs, ________.

Accepted Answer

A) price ceiling; consumer surplus increases 
B) price floor; consumer surplus decreases 
C) price ceiling; producer surplus decreases 
D) price support; total revenue increases 
E) price support; consumer surplus increases 
A) price ceiling; consumer surplus increases 
B) price floor; consumer surplus decreases 
C) price ceiling; producer surplus decreases 
D) price support; total revenue increases 
E) price support; consumer surplus increases

Question 14

-The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, after taking account of the resources lost in search, what area is equal to the consumer surplus?

Accepted Answer

A) area A 
B) area B 
C) area C 
D) area D 
E) area E 
A) area A 
B) area B 
C) area C 
D) area D 
E) area E

Question 15

Why would an increase in the minimum wage to $15 per hour lead to more unemployment for teenage and low-skilled workers?

Accepted Answer

Many teenage and low-skilled workers ear

Question 16

A minimum wage increases unemployment by

Accepted Answer

A) increasing the quantity of labor demanded. 
B) decreasing the quantity of labor demanded. 
C) shifting only the labor supply curve rightward. 
D) shifting only the labor demand curve leftward. 
E) shifting the labor supply curve rightward and shifting the labor demand curve leftward. 
A) increasing the quantity of labor demanded. 
B) decreasing the quantity of labor demanded. 
C) shifting only the labor supply curve rightward. 
D) shifting only the labor demand curve leftward. 
E) shifting the labor supply curve rightward and shifting the labor demand curve leftward.

Question 17

-The above figure shows the market for 2 bedroom townhomes in San Diego. If a rent ceiling is set at $1,000 per month then there is a

Accepted Answer

A) surplus equal to 150,000 townhomes. 
B) shortage equal to 100,000 townhomes. 
C) surplus equal to 100,000 townhomes. 
D) shortage equal to 150,000 townhomes. 
E) shortage equal to 250,000 townhomes. 
A) surplus equal to 150,000 townhomes. 
B) shortage equal to 100,000 townhomes. 
C) surplus equal to 100,000 townhomes. 
D) shortage equal to 150,000 townhomes. 
E) shortage equal to 250,000 townhomes.

Question 18

-The figure above shows the market for tires. According to the figure, the government collects ________ per month in total tax revenue

Accepted Answer

A) $600 million 
B) $1,200 million 
C) $2,000 million 
D)  $900 million 
E) None of the above answers is correct. 
A) $600 million 
B) $1,200 million 
C) $2,000 million 
D)  $900 million 
E) None of the above answers is correct.

Question 19

Suppose the demand for Georgia peaches is perfectly elastic. If the supply curve is upward sloping and a tax is imposed on Georgia peaches, then

Accepted Answer

A) peach sellers pay all of the tax. 
B) peach buyers pay all of the tax. 
C) peach buyers and sellers evenly split the tax. 
D) the government does not collect any revenue from the tax. 
E) the tax does not change the equilibrium quantity of peaches. 
A) peach sellers pay all of the tax. 
B) peach buyers pay all of the tax. 
C) peach buyers and sellers evenly split the tax. 
D) the government does not collect any revenue from the tax. 
E) the tax does not change the equilibrium quantity of peaches.

Question 20

-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, deadweight loss equals ________.

Accepted Answer

A) $1,600,000 
B) $200,000 
C) $800,000 
D) $1,800,000 
E) $400,000 
A) $1,600,000 
B) $200,000 
C) $800,000 
D) $1,800,000 
E) $400,000

-The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, which of the following statements is true?

A minimum wage set above the equilibrium wage rate

The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton. -The figure above shows that to make the price support work, the government buys ________ million tons of sugar beets.

The figure above shows the demand (D)and supply (S)curves for insulin before any tax is imposed. The government imposes a $0.20 a dose tax on sellers of insulin. -After the tax is imposed, the price paid by the buyer is , and the price received (and kept)by the seller is .

Suppose that apartments rent for $1,300 a month in San Francisco, California and $850 a month in Los Angeles, California. If the state of California passes a state-wide rent ceiling for apartments of $1,100 a month, what occurs in the two cities?

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

Which of the following is true? I. A price ceiling set below the equilibrium price decreases search activity. Ii. A minimum wage is an example of a price ceiling. Iii. A price support decreases the quantity consumed.

-The above figure shows the market for winter jackets. In an effort to keep the nation warm, the president places a price ceiling of $100 in the market for winter jackets. What would be the maximum price someone would pay in the black market?

A minimum wage

-If a minimum wage is introduced that is above the equilibrium wage rate,

-The above figure shows a labor market with minimum wage equal to $16. In this figure, after taking account of search costs, what area equals the workers' surplus?

A minimum wage law in a competitive labor market

In order to have an impact, a must be set below the equilibrium price and when this occurs, .

-The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, after taking account of the resources lost in search, what area is equal to the consumer surplus?

Why would an increase in the minimum wage to $15 per hour lead to more unemployment for teenage and low-skilled workers?

A minimum wage increases unemployment by

-The above figure shows the market for 2 bedroom townhomes in San Diego. If a rent ceiling is set at $1,000 per month then there is a

-The figure above shows the market for tires. According to the figure, the government collects ________ per month in total tax revenue

Suppose the demand for Georgia peaches is perfectly elastic. If the supply curve is upward sloping and a tax is imposed on Georgia peaches, then

-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, deadweight loss equals ________.

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 7: Government Actions in Markets

-The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, which of the following statements is true?

A minimum wage set above the equilibrium wage rate

The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton. -The figure above shows that to make the price support work, the government buys ________ million tons of sugar beets.

The figure above shows the demand (D)and supply (S)curves for insulin before any tax is imposed. The government imposes a $0.20 a dose tax on sellers of insulin. -After the tax is imposed, the price paid by the buyer is ________, and the price received (and kept)by the seller is ________.

Suppose that apartments rent for $1,300 a month in San Francisco, California and $850 a month in Los Angeles, California. If the state of California passes a state-wide rent ceiling for apartments of $1,100 a month, what occurs in the two cities?

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

Which of the following is true? I. A price ceiling set below the equilibrium price decreases search activity. Ii. A minimum wage is an example of a price ceiling. Iii. A price support decreases the quantity consumed.

-The above figure shows the market for winter jackets. In an effort to keep the nation warm, the president places a price ceiling of $100 in the market for winter jackets. What would be the maximum price someone would pay in the black market?

A minimum wage

-If a minimum wage is introduced that is above the equilibrium wage rate,

-The above figure shows a labor market with minimum wage equal to $16. In this figure, after taking account of search costs, what area equals the workers' surplus?

A minimum wage law in a competitive labor market

In order to have an impact, a ________ must be set below the equilibrium price and when this occurs, ________.

-The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, after taking account of the resources lost in search, what area is equal to the consumer surplus?

Why would an increase in the minimum wage to $15 per hour lead to more unemployment for teenage and low-skilled workers?

A minimum wage increases unemployment by

-The above figure shows the market for 2 bedroom townhomes in San Diego. If a rent ceiling is set at $1,000 per month then there is a

-The figure above shows the market for tires. According to the figure, the government collects ________ per month in total tax revenue

Suppose the demand for Georgia peaches is perfectly elastic. If the supply curve is upward sloping and a tax is imposed on Georgia peaches, then

-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, deadweight loss equals ________.

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Global Markets in Action

Externalities: Pollution, Education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

The figure above shows the demand (D)and supply (S)curves for insulin before any tax is imposed. The government imposes a $0.20 a dose tax on sellers of insulin. -After the tax is imposed, the price paid by the buyer is , and the price received (and kept)by the seller is .

In order to have an impact, a must be set below the equilibrium price and when this occurs, .