Question 1

Once search and waiting costs are taken into account,price ceilings can cause consumers to spend more for a good than if prices were unregulated.

Accepted Answer

A) True 
 B)False

Question 2

A "quality waste" refers to:

Accepted Answer

A)  an increase in quality under a price ceiling. 
B)  an increase in quality under a price floor. 
C)  a decrease in quality under a price ceiling. 
D)  a decrease in quality under a price floor. 
A)  an increase in quality under a price ceiling. 
B)  an increase in quality under a price floor. 
C)  a decrease in quality under a price ceiling. 
D)  a decrease in quality under a price floor.

Question 3

In a market the equilibrium price is $20.A price ceiling of $15 creates a bigger shortage than a price ceiling of $10.

Accepted Answer

A) True 
 B)False

Question 4

Deadweight loss occurs when:

Accepted Answer

A)  consumer surplus transforms into producer surplus. 
B)  there is a shortage of a good or service. 
C)  consumer and/or producer surplus decrease without the surplus going to anyone. 
D)  the gains from trade are lowered due to shifts in the supply or demand curve. 
A)  consumer surplus transforms into producer surplus. 
B)  there is a shortage of a good or service. 
C)  consumer and/or producer surplus decrease without the surplus going to anyone. 
D)  the gains from trade are lowered due to shifts in the supply or demand curve.

Question 5

Use the following to answer questions 
Figure: Price Ceilings and Valuation of Uses  
-(Figure: Price Ceilings and Valuation of Uses)Refer to the figure.The single highest value a user is willing to pay is how many dollars for the product?

Accepted Answer

A)  $15 
B)  $25 
C)  $45 
D)  $35 
A)  $15 
B)  $25 
C)  $45 
D)  $35

Question 6

Figure: Labor Market   Refer to the figure.Which statement is correct?

Accepted Answer

A)  A price floor set at W1 would cause a labor surplus best labeled by A. 
B)  A price floor set at W1 would cause a labor surplus best labeled by B. 
C)  A price floor set at W2 would cause a labor surplus best labeled by A. 
D)  A price floor set at W2 would cause a labor surplus best labeled by B. 
A)  A price floor set at W1 would cause a labor surplus best labeled by A. 
B)  A price floor set at W1 would cause a labor surplus best labeled by B. 
C)  A price floor set at W2 would cause a labor surplus best labeled by A. 
D)  A price floor set at W2 would cause a labor surplus best labeled by B.

Question 7

Impeding price signals by imposing price ceilings can have serious consequences.Which of the following is such a consequence?

Accepted Answer

A)  improved product quality 
B)  gains from trade 
C)  surpluses 
D)  misallocation of resources 
A)  improved product quality 
B)  gains from trade 
C)  surpluses 
D)  misallocation of resources

Question 8

Rent controls are:

Accepted Answer

A)  price floors on rental housing. 
B)  price ceilings on rental housing. 
C)  quality freezes on rental housing. 
D)  quantity freezes on rental housing. 
A)  price floors on rental housing. 
B)  price ceilings on rental housing. 
C)  quality freezes on rental housing. 
D)  quantity freezes on rental housing.

Question 9

Price ceilings cause the quantity demanded to be less than the quantity supplied.

Accepted Answer

A) True 
 B)False

Once search and waiting costs are taken into account,price ceilings can cause consumers to spend more for a good than if prices were unregulated.

A "quality waste" refers to:

In a market the equilibrium price is $20.A price ceiling of $15 creates a bigger shortage than a price ceiling of $10.

Deadweight loss occurs when:

Use the following to answer questions Figure: Price Ceilings and Valuation of Uses -(Figure: Price Ceilings and Valuation of Uses)Refer to the figure.The single highest value a user is willing to pay is how many dollars for the product?

Figure: Labor Market Refer to the figure.Which statement is correct?

Impeding price signals by imposing price ceilings can have serious consequences.Which of the following is such a consequence?

Rent controls are:

Price ceilings cause the quantity demanded to be less than the quantity supplied.

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters

Exam 5: Price Ceilings and Floors

Once search and waiting costs are taken into account,price ceilings can cause consumers to spend more for a good than if prices were unregulated.

A "quality waste" refers to:

In a market the equilibrium price is $20.A price ceiling of $15 creates a bigger shortage than a price ceiling of $10.

Deadweight loss occurs when:

Use the following to answer questions Figure: Price Ceilings and Valuation of Uses -(Figure: Price Ceilings and Valuation of Uses)Refer to the figure.The single highest value a user is willing to pay is how many dollars for the product?

Figure: Labor Market Refer to the figure.Which statement is correct?

Impeding price signals by imposing price ceilings can have serious consequences.Which of the following is such a consequence?

Rent controls are:

Price ceilings cause the quantity demanded to be less than the quantity supplied.

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters