Question 1

The deadweight loss in a housing market with a rent ceiling set below the equilibrium rent is the

Accepted Answer

A) loss to those who cannot find apartments and the gain to landlords who charge black market rents. 
B) loss to those who cannot find apartments and the loss to landlords who cannot offer housing at the lower rent ceiling. 
C) loss to landlords and the gain to tenants who pay a fairer rent. 
D) loss to tenants and the gain to landlords who have the incentive to offer more apartments for rent. 
E) gain to landlords and to tenants because now a fairer rent is charged. 
A) loss to those who cannot find apartments and the gain to landlords who charge black market rents. 
B) loss to those who cannot find apartments and the loss to landlords who cannot offer housing at the lower rent ceiling. 
C) loss to landlords and the gain to tenants who pay a fairer rent. 
D) loss to tenants and the gain to landlords who have the incentive to offer more apartments for rent. 
E) gain to landlords and to tenants because now a fairer rent is charged.

Question 2

-The figure above shows the labor market in a region.If a minimum wage of $8 an hour is imposed,then the quantity of labor supplied is ________ and the quantity of labor demanded is ________.

Accepted Answer

A) 60,000;60,000 
B) 80,000;40,000 
C) 40,000;60,000 
D) 60,000;40,000 
E) 40,000;40,000 
A) 60,000;60,000 
B) 80,000;40,000 
C) 40,000;60,000 
D) 60,000;40,000 
E) 40,000;40,000

Question 3

-The above figure shows the market for finish carpenters in Bozeman.If there is a minimum wage set at $18,then there will be

Accepted Answer

A) unemployment of 200 workers. 
B) a surplus of 200 workers. 
C) unemployment of 400 workers. 
D) a surplus of 400 workers. 
E) no unemployment of workers and no surplus of workers. 
A) unemployment of 200 workers. 
B) a surplus of 200 workers. 
C) unemployment of 400 workers. 
D) a surplus of 400 workers. 
E) no unemployment of workers and no surplus of workers.

Question 4

What is a price support program in an agricultural market? Explain its impact on a market.

Accepted Answer

A price support program is essentially a

Question 5

-In the figure above,if the wage rate is $6 per hour,then the

Accepted Answer

A) firms' surplus is the area d + e + f. 
B) workers' surplus is the area a + b + c. 
C) deadweight loss equals zero. 
D) Only answers A and C are correct. 
E) Answers A,B,and C are correct. 
A) firms' surplus is the area d + e + f. 
B) workers' surplus is the area a + b + c. 
C) deadweight loss equals zero. 
D) Only answers A and C are correct. 
E) Answers A,B,and C are correct.

Question 6

The supply of sand is perfectly inelastic and the demand curve for sand is downward sloping.Hence,if a tax on sand is imposed,

Accepted Answer

A) sand buyers pay the entire tax. 
B) sand sellers pay the entire tax. 
C) the tax is split evenly between the buyers and sellers. 
D) the government pays the entire tax. 
E) the government collects no tax revenue because the supply is perfectly inelastic. 
A) sand buyers pay the entire tax. 
B) sand sellers pay the entire tax. 
C) the tax is split evenly between the buyers and sellers. 
D) the government pays the entire tax. 
E) the government collects no tax revenue because the supply is perfectly inelastic.

Question 7

Which of the following decrease the deadweight loss from a rent ceiling set below the equilibrium rent?
I.lowering the ceiling
Ii.dedicating more resources to enforcement of the ceiling
Iii.raising the ceiling

Accepted Answer

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

Question 8

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 9

-The demand and supply schedules for pizza are in the table above.If the government sets a maximum legal price of $2 per slice of pizza,then

Accepted Answer

A) there is a shortage of 20 slices of pizza. 
B) this maximum price is an example of a price floor. 
C) this maximum price is an example of a price ceiling. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct. 
A) there is a shortage of 20 slices of pizza. 
B) this maximum price is an example of a price floor. 
C) this maximum price is an example of a price ceiling. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct.

Question 10

Rent ceilings

Accepted Answer

A) eliminate the problem of scarcity. 
B) allocate resources efficiently. 
C) ensure that housing goes to the poorer people. 
D) benefit renters living in rent-controlled apartments. 
E) benefit all landlords because the landlords know what rent to charge their renters. 
A) eliminate the problem of scarcity. 
B) allocate resources efficiently. 
C) ensure that housing goes to the poorer people. 
D) benefit renters living in rent-controlled apartments. 
E) benefit all landlords because the landlords know what rent to charge their renters.

Question 11

-The above figure shows the market for gourmet ice cream.In effort to reduce obesity,government places a $2 tax per gallon on suppliers in this market,shifting the supply curve from S0 to S1.The quantity of ice cream consumed before the tax is ________ gallons and the quantity consumed after the tax is ________ gallons.

Accepted Answer

A) 300,000;200,000 
B) 200,000;250,000 
C) 250,000;200,000 
D) 200,000;300,000 
E) 200,000;200,000 
A) 300,000;200,000 
B) 200,000;250,000 
C) 250,000;200,000 
D) 200,000;300,000 
E) 200,000;200,000

Question 12

In the housing market,if a rent ceiling of $600.00 is imposed when the equilibrium rent is $500.00,why will nothing change?

Accepted Answer

A rent ceiling is the maximum legal rent

Question 13

The shortage created by a rent ceiling below the equilibrium rent is smallest when the demand for housing is ________ and the supply of housing is ________.

Accepted Answer

A) elastic;elastic 
B) elastic;inelastic 
C) inelastic;elastic 
D) inelastic;inelastic 
E) unit elastic;unit elastic 
A) elastic;elastic 
B) elastic;inelastic 
C) inelastic;elastic 
D) inelastic;inelastic 
E) unit elastic;unit elastic

Question 14

To calculate the revenue government receives when a tax is imposed on a good,multiply the

Accepted Answer

A) pre-tax equilibrium price by the pre-tax quantity. 
B) after-tax equilibrium price by the after-tax quantity. 
C) tax by the pre-tax quantity. 
D) tax by the after-tax quantity. 
E) after-tax equilibrium price by the after-tax quantity and then subtract the pre-tax equilibrium price multiplied by the pre-tax quantity. 
A) pre-tax equilibrium price by the pre-tax quantity. 
B) after-tax equilibrium price by the after-tax quantity. 
C) tax by the pre-tax quantity. 
D) tax by the after-tax quantity. 
E) after-tax equilibrium price by the after-tax quantity and then subtract the pre-tax equilibrium price multiplied by the pre-tax quantity.

Question 15

-The above figure shows a housing market with a rent ceiling equal to $1,000.In this figure,what area is equal to the producer 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 16

The figure above shows the supply and demand curves in the market for rental housing.A rent ceiling is set at $400 per month.
-In the figure above,with the rent ceiling

Accepted Answer

A) there is a shortage of 3,000 units. 
B) there is a surplus of 3,000 units. 
C) there is a surplus of 2,000 units. 
D) there is a shortage of 1,000 units. 
E) the market is in equilibrium. 
A) there is a shortage of 3,000 units. 
B) there is a surplus of 3,000 units. 
C) there is a surplus of 2,000 units. 
D) there is a shortage of 1,000 units. 
E) the market is in equilibrium.

Question 17

A rent ceiling is

Accepted Answer

A) fair,because it helps all renters. 
B) fair,because it insures that low-income families can rent apartments. 
C) fair,because it helps all landlords. 
D) unfair. 
E) fair,because it helps more renters than it harms. 
A) fair,because it helps all renters. 
B) fair,because it insures that low-income families can rent apartments. 
C) fair,because it helps all landlords. 
D) unfair. 
E) fair,because it helps more renters than it harms.

Question 18

The figure above shows the supply and demand curves in the market for rental housing.A rent ceiling is set at $400 per month.
-In the figure above,with the rent ceiling ________ units of housing are available,and black market rents might be as high as ________ a month.

Accepted Answer

A) 3,000;$625 
B) 6,000;$400 
C) 3,000;$550 
D) 4,000;$550 
E) 4,000;$625 
A) 3,000;$625 
B) 6,000;$400 
C) 3,000;$550 
D) 4,000;$550 
E) 4,000;$625

Question 19

-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 20

-The above figure shows the market for a prescription drug.What is the equilibrium price of the drug? How many doses are purchased? Suppose the government imposes a price ceiling of $1.50 a dose.How many doses are purchased after the price ceiling is imposed?

Accepted Answer

The equilibrium price is $2.50 per dose.

The deadweight loss in a housing market with a rent ceiling set below the equilibrium rent is the

-The figure above shows the labor market in a region.If a minimum wage of $8 an hour is imposed,then the quantity of labor supplied is and the quantity of labor demanded is .

-The above figure shows the market for finish carpenters in Bozeman.If there is a minimum wage set at $18,then there will be

What is a price support program in an agricultural market? Explain its impact on a market.

-In the figure above,if the wage rate is $6 per hour,then the

The supply of sand is perfectly inelastic and the demand curve for sand is downward sloping.Hence,if a tax on sand is imposed,

Which of the following decrease the deadweight loss from a rent ceiling set below the equilibrium rent? I.lowering the ceiling Ii.dedicating more resources to enforcement of the ceiling Iii.raising the ceiling

A minimum wage increases unemployment by

-The demand and supply schedules for pizza are in the table above.If the government sets a maximum legal price of $2 per slice of pizza,then

Rent ceilings

In the housing market,if a rent ceiling of $600.00 is imposed when the equilibrium rent is $500.00,why will nothing change?

The shortage created by a rent ceiling below the equilibrium rent is smallest when the demand for housing is and the supply of housing is .

To calculate the revenue government receives when a tax is imposed on a good,multiply the

-The above figure shows a housing market with a rent ceiling equal to $1,000.In this figure,what area is equal to the producer surplus?

The figure above shows the supply and demand curves in the market for rental housing.A rent ceiling is set at $400 per month. -In the figure above,with the rent ceiling

A rent ceiling is

The figure above shows the supply and demand curves in the market for rental housing.A rent ceiling is set at $400 per month. -In the figure above,with the rent ceiling units of housing are available,and black market rents might be as high as a month.

-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?

-The above figure shows the market for a prescription drug.What is the equilibrium price of the drug? How many doses are purchased? Suppose the government imposes a price ceiling of $1.50 a dose.How many doses are purchased after the price ceiling is imposed?

Getting Started

The Usand 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 deadweight loss in a housing market with a rent ceiling set below the equilibrium rent is the

-The figure above shows the labor market in a region.If a minimum wage of $8 an hour is imposed,then the quantity of labor supplied is ________ and the quantity of labor demanded is ________.

-The above figure shows the market for finish carpenters in Bozeman.If there is a minimum wage set at $18,then there will be

What is a price support program in an agricultural market? Explain its impact on a market.

-In the figure above,if the wage rate is $6 per hour,then the

The supply of sand is perfectly inelastic and the demand curve for sand is downward sloping.Hence,if a tax on sand is imposed,

Which of the following decrease the deadweight loss from a rent ceiling set below the equilibrium rent? I.lowering the ceiling Ii.dedicating more resources to enforcement of the ceiling Iii.raising the ceiling

A minimum wage increases unemployment by

-The demand and supply schedules for pizza are in the table above.If the government sets a maximum legal price of $2 per slice of pizza,then

Rent ceilings

In the housing market,if a rent ceiling of $600.00 is imposed when the equilibrium rent is $500.00,why will nothing change?

The shortage created by a rent ceiling below the equilibrium rent is smallest when the demand for housing is ________ and the supply of housing is ________.

To calculate the revenue government receives when a tax is imposed on a good,multiply the

-The above figure shows a housing market with a rent ceiling equal to $1,000.In this figure,what area is equal to the producer surplus?

The figure above shows the supply and demand curves in the market for rental housing.A rent ceiling is set at $400 per month. -In the figure above,with the rent ceiling

A rent ceiling is

The figure above shows the supply and demand curves in the market for rental housing.A rent ceiling is set at $400 per month. -In the figure above,with the rent ceiling ________ units of housing are available,and black market rents might be as high as ________ a month.

-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?

-The above figure shows the market for a prescription drug.What is the equilibrium price of the drug? How many doses are purchased? Suppose the government imposes a price ceiling of $1.50 a dose.How many doses are purchased after the price ceiling is imposed?

Getting Started

The Usand 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 labor market in a region.If a minimum wage of $8 an hour is imposed,then the quantity of labor supplied is and the quantity of labor demanded is .

The shortage created by a rent ceiling below the equilibrium rent is smallest when the demand for housing is and the supply of housing is .

The figure above shows the supply and demand curves in the market for rental housing.A rent ceiling is set at $400 per month. -In the figure above,with the rent ceiling units of housing are available,and black market rents might be as high as a month.