Exam 6: Government Actions in Markets

-In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. The loss of producer surplus

-The above figure illustrates the labor market for fast food restaurants in a small city in Peru. What would be the effects of a minimum wage imposed at $5.50 per hour?

-The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. What is the amount of the tax?

To try to help farmers, governments I. set production quotas. II) set price ceilings.

-The market for unskilled labor is illustrated in the figure above. The market is in equilibrium and then a minimum wage of $5 per hour is imposed. Employment will fall by

A price ceiling can result in which of the following?

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?

-To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. The sport equipment producers' share of this tax would be greater than shown in the above figure if

-The above figure shows the apartment market in Big City. A rent ceiling of $1400 per month would

-In the above figure, a rent ceiling of $300 per month would

If penalties are imposed on both the buyers and the sellers of illegal goods or services, then an effect in the market for the illegal good or service would definitely be

Which of the following is an economic policy that promotes the efficient quantity of apartments?

What are the major economic effects of rent ceilings?

-The figure above shows the market for gasoline. The government has imposed a tax on gasoline. a) What is the amount of the tax per gallon of gasoline? b) How much of the tax is paid by consumers? How much is paid by producers? Which is more elastic, the supply or demand for gasoline?

-The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. What is the deadweight loss?

-In the above figure, if the minimum wage is set at $8 per hour, the level of unemployment is ________ hours per week is

Among the factors that create a deadweight loss and inefficiency are

An upper limit to the quantity of a good that may be produced in a specific period is called

When a tax is imposed on the suppliers of a good or service, then

-The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the quantity of milk sold is