Exam 8: Price Ceilings and Floors

The poor state of the economy was the dominant factor that caused the fall in the number of new apartments built in Ontario, Canada, during the first half of the 1970s.

The U.S. Congress first instituted the minimum wage in:

Because rent controls on apartments reduce profits:

A price ceiling:

A nonbinding price ceiling leads to a(n):

Use the following to answer questions: Figure: Minimum Wage -(Figure: Minimum Wage) Refer to the figure. How many workers are unemployed at a minimum wage of $8?

During the energy crisis of the 1970s, President Nixon ordered gas stations to close between 9:00 PM Saturday and 12:01 AM Monday, in an attempt to prevent wasteful and unnecessary Sunday driving. This policy:

Ben is willing to work for $4/hour and an employer is willing to hire Ben for $7/hour. Which statements is TRUE?

Use the following to answer questions: Figure: Effects of Price Ceilings -(Figure: Effects of Price Ceilings) Refer to the figure. At a price ceiling of $2 per unit, consumers are willing to pay a maximum of:

Use the following to answer questions: Figure: Price Controls -(Figure: Price Controls) Refer to the figure. If the government imposes a price ceiling in this market at a price of $6, the result would be a:

Minimum wage laws are an example of price ceilings.

If there are 100 tickets to a concert and 200 fans who would like to go to the concert, each placing a slightly different value on the tickets, is it more efficient to hold an auction for the tickets or to hold a random drawing for the tickets?

A price ceiling creates a ________ when it is set ________.

Rent control is an example of a:

A rent control is a price:

Because of government price controls, a business must now sell soft-serve ice cream at half its original price. This business might respond by:

Dramatic price increases, such as those seen in the markets for gas and oil in the 1970s, are typically the result of:

When the maximum legal price is set below the market price then: I. a price floor is in effect. II. a shortage will develop. III. there will be lost gains from trade. IV. there will be no impact on the quantity demanded or supplied.

If affordable housing is a concern, then a better policy than rent controls may be for the government to provide:

A price floor: