Question 1

-The demand and supply schedules for pizza are in the table above.A price ceiling of $2 per slice results in

Accepted Answer

A)  a surplus of 20 slices of pizza. 
B)  a shortage of 20 slices of pizza. 
C)  a shortage of 40 slices of pizza. 
D)  a shortage of 60 slices of pizza. 
E)  neither a shortage nor a surplus. 
A)  a surplus of 20 slices of pizza. 
B)  a shortage of 20 slices of pizza. 
C)  a shortage of 40 slices of pizza. 
D)  a shortage of 60 slices of pizza. 
E)  neither a shortage nor a surplus. B

Question 2

Rent controls

Accepted Answer

A)  create a deadweight loss. 
B)  increase maintenance by landlords. 
C)  benefit people who live in rent controlled apartments. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct. 
A)  create a deadweight loss. 
B)  increase maintenance by landlords. 
C)  benefit people who live in rent controlled apartments. 
D)  Both answers A and C are correct. 
E)  Both answers B and C are correct. D

Question 3

Who loses and who gains from the minimum wage?

Accepted Answer

A)  Losers are all workers and gainers are all firms. 
B)  Losers are all firms and gainers are all workers. 
C)  Losers are all firms and some workers, while gainers are other workers. 
D)  Gainers are some firms and all workers, while losers are some firms. 
E)  Gainers are some firms and some workers, while losers are other firms and other workers. 
A)  Losers are all workers and gainers are all firms. 
B)  Losers are all firms and gainers are all workers. 
C)  Losers are all firms and some workers, while gainers are other workers. 
D)  Gainers are some firms and all workers, while losers are some firms. 
E)  Gainers are some firms and some workers, while losers are other firms and other workers. C

Question 4

-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 5

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

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 6

Suppose the city of Chicago imposes a rent control program that fixes rents at $400 below the equilibrium rent.With this plan

Accepted Answer

A)  the quantity of apartments demanded will increase. 
B)  the quantity of apartments supplied will increase. 
C)  young people and poor people will have an easier time finding apartments. 
D)  the deadweight loss in Chicago's apartment market will be eliminated. 
E)  there will be a surplus of apartments offered for rent. 
A)  the quantity of apartments demanded will increase. 
B)  the quantity of apartments supplied will increase. 
C)  young people and poor people will have an easier time finding apartments. 
D)  the deadweight loss in Chicago's apartment market will be eliminated. 
E)  there will be a surplus of apartments offered for rent.

Question 7

The methods that governments use to support farmers vary,but they almost always involve some or all the following methods EXCEPT

Accepted Answer

A)  pay farmers a subsidy. 
B)  introduce a price floor. 
C)  isolate the domestic market from global competition. 
D)  tax farmers. 
E)  use price supports. 
A)  pay farmers a subsidy. 
B)  introduce a price floor. 
C)  isolate the domestic market from global competition. 
D)  tax farmers. 
E)  use price supports.

Question 8

A black market for housing exists because of a rent ceiling.The rent for housing in the black market is

Accepted Answer

A)  the same as the equilibrium rent. 
B)  lower than the ceiling rent. 
C)  somewhere between the ceiling rent and the maximum rent a tenant is willing to pay. 
D)  somewhere between zero and the equilibrium rent. 
E)  not defined because the market is not legal. 
A)  the same as the equilibrium rent. 
B)  lower than the ceiling rent. 
C)  somewhere between the ceiling rent and the maximum rent a tenant is willing to pay. 
D)  somewhere between zero and the equilibrium rent. 
E)  not defined because the market is not legal.

Question 9

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 10

-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 11

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

Accepted Answer

A)  The lowest wage for which someone is willing to work is $18 an hour. 
B)  The quantity of jobs increases to 400. 
C)  The lowest wage for which someone is willing to work is $20 an hour. 
D)  200 workers are employed. 
E)  The quantity of jobs demanded is more than the quantity supplied. 
A)  The lowest wage for which someone is willing to work is $18 an hour. 
B)  The quantity of jobs increases to 400. 
C)  The lowest wage for which someone is willing to work is $20 an hour. 
D)  200 workers are employed. 
E)  The quantity of jobs demanded is more than the quantity supplied.

Question 12

Assuming that the rent ceiling is strictly enforced so that there is no black market,which of the following statements about a housing market with a rent ceiling set below the equilibrium rent is correct?

Accepted Answer

A)  The rent for housing equals the ceiling rent or higher. 
B)  There is excess supply of housing. 
C)  The rent ceiling increases the amount of producers' surplus. 
D)  The rent ceiling creates a deadweight loss. 
E)  The rent ceiling enforces efficiency upon the housing market. 
A)  The rent for housing equals the ceiling rent or higher. 
B)  There is excess supply of housing. 
C)  The rent ceiling increases the amount of producers' surplus. 
D)  The rent ceiling creates a deadweight loss. 
E)  The rent ceiling enforces efficiency upon the housing market.

Question 13

In a housing market with a rent ceiling set below the equilibrium rent,as time passes the supply of apartments

Accepted Answer

A)  decreases. 
B)  increases. 
C)  does not change. 
D)  becomes fixed by the government. 
E)  increases while the demand for apartments decreases. 
A)  decreases. 
B)  increases. 
C)  does not change. 
D)  becomes fixed by the government. 
E)  increases while the demand for apartments decreases.

Question 14

-The above figure shows the domestic market for tomatoes.Suppose this market is isolated from global competition and there is a support price set at $16.In this figure,what area equals the producer surplus?

Accepted Answer

A)  area A + area B + area C 
B)  area A + area F 
C)  area B + area C + area D + area F 
D)  area C + area D + area E + area G 
E)  area F 
A)  area A + area B + area C 
B)  area A + area F 
C)  area B + area C + area D + area F 
D)  area C + area D + area E + area G 
E)  area F

Question 15

Suppose the equilibrium wage rate for apricot pickers is $7.00 per hour and at that wage rate the equilibrium quantity of apricot pickers employed is 14,000.If the minimum wage is set at $7.50 per hour,then the

Accepted Answer

A)  quantity of apricot pickers employed increases. 
B)  quantity of apricot pickers employed decreases. 
C)  quantity of apricot pickers employed does not change. 
D)  wage rate for apricot pickers decreases. 
E)  quantity of apricot pickers demanded does not change, and the quantity of apricot pickers supplied does not change. 
A)  quantity of apricot pickers employed increases. 
B)  quantity of apricot pickers employed decreases. 
C)  quantity of apricot pickers employed does not change. 
D)  wage rate for apricot pickers decreases. 
E)  quantity of apricot pickers demanded does not change, and the quantity of apricot pickers supplied does not change.

Question 16

A regulation that sets the lowest price at which it is legal to trade a good is a

Accepted Answer

A)  search ceiling. 
B)  price floor. 
C)  production ceiling. 
D)  price ceiling. 
E)  subsidy. 
A)  search ceiling. 
B)  price floor. 
C)  production ceiling. 
D)  price ceiling. 
E)  subsidy.

Question 17

-The above figure shows a labor market with a minimum wage of $8 an hour.How many people are employed when the minimum wage is in place?

Accepted Answer

A)  40,000 
B)  60,000 
C)  80,000 
D)  fewer than 40,000 
E)  more than 80,000 
A)  40,000 
B)  60,000 
C)  80,000 
D)  fewer than 40,000 
E)  more than 80,000

Question 18

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 19

-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 20

-The figure above shows the labor market in a region.For a minimum wage to change the wage rate and amount of employment,it must be

Accepted Answer

A)  left to the forces of supply and demand. 
B)  set above $6 an hour. 
C)  set equal to $6 an hour. 
D)  set below $6 an hour. 
E)  set at $12 per hour. 
A)  left to the forces of supply and demand. 
B)  set above $6 an hour. 
C)  set equal to $6 an hour. 
D)  set below $6 an hour. 
E)  set at $12 per hour.

-The demand and supply schedules for pizza are in the table above.A price ceiling of $2 per slice results in

Rent controls

Who loses and who gains from the minimum wage?

-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 a housing market with a rent ceiling equal to $1,000.In this figure,what area is equal to the resources lost due to search?

Suppose the city of Chicago imposes a rent control program that fixes rents at $400 below the equilibrium rent.With this plan

The methods that governments use to support farmers vary,but they almost always involve some or all the following methods EXCEPT

A black market for housing exists because of a rent ceiling.The rent for housing in the black market 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

-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

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

Assuming that the rent ceiling is strictly enforced so that there is no black market,which of the following statements about a housing market with a rent ceiling set below the equilibrium rent is correct?

In a housing market with a rent ceiling set below the equilibrium rent,as time passes the supply of apartments

-The above figure shows the domestic market for tomatoes.Suppose this market is isolated from global competition and there is a support price set at $16.In this figure,what area equals the producer surplus?

Suppose the equilibrium wage rate for apricot pickers is $7.00 per hour and at that wage rate the equilibrium quantity of apricot pickers employed is 14,000.If the minimum wage is set at $7.50 per hour,then the

A regulation that sets the lowest price at which it is legal to trade a good is a

-The above figure shows a labor market with a minimum wage of $8 an hour.How many people are employed when the minimum wage is in place?

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?

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

-The figure above shows the labor market in a region.For a minimum wage to change the wage rate and amount of employment,it must be

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 7: Government Actions in Markets

-The demand and supply schedules for pizza are in the table above.A price ceiling of $2 per slice results in

Rent controls

Who loses and who gains from the minimum wage?

-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 a housing market with a rent ceiling equal to $1,000.In this figure,what area is equal to the resources lost due to search?

Suppose the city of Chicago imposes a rent control program that fixes rents at $400 below the equilibrium rent.With this plan

The methods that governments use to support farmers vary,but they almost always involve some or all the following methods EXCEPT

A black market for housing exists because of a rent ceiling.The rent for housing in the black market 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

-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

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

Assuming that the rent ceiling is strictly enforced so that there is no black market,which of the following statements about a housing market with a rent ceiling set below the equilibrium rent is correct?

In a housing market with a rent ceiling set below the equilibrium rent,as time passes the supply of apartments

-The above figure shows the domestic market for tomatoes.Suppose this market is isolated from global competition and there is a support price set at $16.In this figure,what area equals the producer surplus?

Suppose the equilibrium wage rate for apricot pickers is $7.00 per hour and at that wage rate the equilibrium quantity of apricot pickers employed is 14,000.If the minimum wage is set at $7.50 per hour,then the

A regulation that sets the lowest price at which it is legal to trade a good is a

-The above figure shows a labor market with a minimum wage of $8 an hour.How many people are employed when the minimum wage is in place?

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?

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

-The figure above shows the labor market in a region.For a minimum wage to change the wage rate and amount of employment,it must be

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Consumer Choice and Demand

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters