Question 1

A rent ceiling set below the equilibrium rent decreases the quantity of housing supplied because

Accepted Answer

A)  landlords of previously barely profitable apartments refuse to rent them. 
B)  the supply of housing increases. 
C)  fewer tenants will search for housing. 
D)  demand for housing will increase. 
E)  the supply curve of housing immediately shifts leftward. 
A)  landlords of previously barely profitable apartments refuse to rent them. 
B)  the supply of housing increases. 
C)  fewer tenants will search for housing. 
D)  demand for housing will increase. 
E)  the supply curve of housing immediately shifts leftward.

Question 2

Suppose that the government imposes a price ceiling on gasoline that is below the equilibrium price.The black market for gasoline is ________ market in which the price ________ ceiling price.

Accepted Answer

A)  a legal; exceeds the 
B)  an illegal; exceeds the 
C)  a legal; is less than the 
D)  an illegal; is less than the 
E)  an illegal; equals 
A)  a legal; exceeds the 
B)  an illegal; exceeds the 
C)  a legal; is less than the 
D)  an illegal; is less than the 
E)  an illegal; equals

Question 3

-The graph shows the labor market for apple pickers in Ohio.If the government sets a minimum wage of $5 an hour,________ apple pickers are unemployed.

Accepted Answer

A)  6,000 
B)  8,000 
C)  10,000 
D)  14,000 
E)  more than 14,000 
A)  6,000 
B)  8,000 
C)  10,000 
D)  14,000 
E)  more than 14,000

Question 4

We know that the minimum wage causes unemployment.So,why does the government impose one?

Accepted Answer

The main reason for the minimum wage is

Question 5

If a rent ceiling is below the equilibrium rent,some allocation scheme must be used.The allocation methods include all of the following EXCEPT

Accepted Answer

A)  charging the equilibrium rent. 
B)  refusing to rent to individuals on the basis of sex, race, or some other attribute. 
C)  requiring a payment, such as key money, in addition to the rent. 
D)  the creation of a black market. 
E)  increased search activity. 
A)  charging the equilibrium rent. 
B)  refusing to rent to individuals on the basis of sex, race, or some other attribute. 
C)  requiring a payment, such as key money, in addition to the rent. 
D)  the creation of a black market. 
E)  increased search activity.

Question 6

-In the figure above,if the minimum wage rate is $8 per hour,then after taking account of resources lost in job search,the workers' surplus is the area ________ and the firms' surplus is the area ________.

Accepted Answer

A)  e; c 
B)  d; b 
C)  a; f 
D)  f; a 
E)  a + b + c + d + e; f 
A)  e; c 
B)  d; b 
C)  a; f 
D)  f; a 
E)  a + b + c + d + e; f

Question 7

In a housing market with a rent ceiling set below the equilibrium rent,

Accepted Answer

A)  some people seeking an apartment to rent will not be able to find one. 
B)  the total cost of renting an apartment will decrease for all those seeking housing. 
C)  some landlords will not be able to find renters to fill available apartments. 
D)  search will decrease because renters no longer need to search for less expensive apartments. 
E)  None of the above answers are correct because to have an impact, the rent ceiling must be set above the equilibrium rent. 
A)  some people seeking an apartment to rent will not be able to find one. 
B)  the total cost of renting an apartment will decrease for all those seeking housing. 
C)  some landlords will not be able to find renters to fill available apartments. 
D)  search will decrease because renters no longer need to search for less expensive apartments. 
E)  None of the above answers are correct because to have an impact, the rent ceiling must be set above the equilibrium rent.

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

Suppose the current equilibrium wage rate for lifeguards in Houston is $7.85 an hour.A minimum wage law that creates a price floor of $8.50 an hour leads to

Accepted Answer

A)  a surplus of lifeguards in Houston. 
B)  a shortage of lifeguards in Houston. 
C)  no changes in the lifeguard market. 
D)  a change in the quantity of lifeguards supplied but no change in the quantity of lifeguards demanded. 
E)  an increase in the number of lifeguards employed. 
A)  a surplus of lifeguards in Houston. 
B)  a shortage of lifeguards in Houston. 
C)  no changes in the lifeguard market. 
D)  a change in the quantity of lifeguards supplied but no change in the quantity of lifeguards demanded. 
E)  an increase in the number of lifeguards employed.

Question 10

When the minimum wage is raised,the ________ union labor ________.

Accepted Answer

A)  demand for; increases 
B)  demand for; decreases 
C)  supply of; increases 
D)  supply of; decreases 
E)  demand for; does not change 
A)  demand for; increases 
B)  demand for; decreases 
C)  supply of; increases 
D)  supply of; decreases 
E)  demand for; does not change

Question 11

-The above figure shows a labor market with a minimum wage of $8 an hour.The deadweight loss equals the

Accepted Answer

A)  area abc. 
B)  distance ab. 
C)  distance ad. 
D)  area bad. 
E)  area acd. 
A)  area abc. 
B)  distance ab. 
C)  distance ad. 
D)  area bad. 
E)  area acd.

Question 12

A price floor is

Accepted Answer

A)  the highest possible legal price that can be charged for a good or service. 
B)  usually equal to the equilibrium price established before the government imposed the price floor. 
C)  the lowest legal price at which a good or service can be traded. 
D)  a legal price of zero that can be charged for a good or service. 
E)  almost always equal to the price ceiling. 
A)  the highest possible legal price that can be charged for a good or service. 
B)  usually equal to the equilibrium price established before the government imposed the price floor. 
C)  the lowest legal price at which a good or service can be traded. 
D)  a legal price of zero that can be charged for a good or service. 
E)  almost always equal to the price ceiling.

Question 13

A price floor is considered

Accepted Answer

A)  "fair" based only on the fair results view. 
B)  "fair" based only on the fair rules view. 
C)  "unfair" based on both the fair results and fair rules views. 
D)  "unfair" based only on the fair results view. 
E)  "fair" based on the fair results view and on the fair rules view. 
A)  "fair" based only on the fair results view. 
B)  "fair" based only on the fair rules view. 
C)  "unfair" based on both the fair results and fair rules views. 
D)  "unfair" based only on the fair results view. 
E)  "fair" based on the fair results view and on the fair rules view.

Question 14

The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton.
-In the figure above,the quantity of sugar beets produced is ________ million tons per year,and the quantity bought by consumers is ________ million tons per year.

Accepted Answer

A)  30; 20 
B)  20; 30 
C)  25; 20 
D)  20; 25 
E)  25; 25 
A)  30; 20 
B)  20; 30 
C)  25; 20 
D)  20; 25 
E)  25; 25

Question 15

-The above figure shows a labor market with a minimum wage of $8 an hour.The value of the resources workers are willing to use in their job search equals the distance between point ________ and point ________.

Accepted Answer

A)  a; d 
B)  a; b 
C)  b; c 
D)  a; c 
E)  c; d 
A)  a; d 
B)  a; b 
C)  b; c 
D)  a; c 
E)  c; d

Question 16

-The graph shows the market for holiday condos in West Palm Beach.The equilibrium rent is ________ a week.

Accepted Answer

A)  any amount less than $1,550 
B)  any amount greater than $1,550 
C)  $1,550 
D)  $4,000 
E)  None of the above answers is correct. 
A)  any amount less than $1,550 
B)  any amount greater than $1,550 
C)  $1,550 
D)  $4,000 
E)  None of the above answers is correct.

Question 17

A housing shortage results when

Accepted Answer

A)  a tax is imposed on housing. 
B)  a rent ceiling below the equilibrium rent is imposed. 
C)  a rent ceiling above the equilibrium rent is imposed. 
D)  rents rise. 
E)  a rent floor below the equilibrium rent is imposed. 
A)  a tax is imposed on housing. 
B)  a rent ceiling below the equilibrium rent is imposed. 
C)  a rent ceiling above the equilibrium rent is imposed. 
D)  rents rise. 
E)  a rent floor below the equilibrium rent is imposed.

Question 18

If a minimum wage is introduced that is above the equilibrium wage rate,

Accepted Answer

A)  the quantity of labor demanded increases. 
B)  job search activity increases. 
C)  the supply of labor increases and the supply of labor curve shifts rightward. 
D)  unemployment decreases because more workers accept jobs at the higher minimum wage rate. 
E)  the quantity of labor supplied decreases because of the increase in unemployment. 
A)  the quantity of labor demanded increases. 
B)  job search activity increases. 
C)  the supply of labor increases and the supply of labor curve shifts rightward. 
D)  unemployment decreases because more workers accept jobs at the higher minimum wage rate. 
E)  the quantity of labor supplied decreases because of the increase in unemployment.

Question 19

A stated goal of a minimum wage is to

Accepted Answer

A)  increase government tax revenue. 
B)  stabilize production costs. 
C)  boost the incomes of low-wage earners. 
D)  decrease business profits. 
E)  increase business profits by making the labor market more efficient. 
A)  increase government tax revenue. 
B)  stabilize production costs. 
C)  boost the incomes of low-wage earners. 
D)  decrease business profits. 
E)  increase business profits by making the labor market more efficient.

Question 20

Which of the following is true?
i.A price ceiling is inefficient but fair.
ii.A price floor is inefficient and unfair.
iii.A price support increases the quantity produced.

Accepted Answer

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

A rent ceiling set below the equilibrium rent decreases the quantity of housing supplied because

Suppose that the government imposes a price ceiling on gasoline that is below the equilibrium price.The black market for gasoline is market in which the price ceiling price.

-The graph shows the labor market for apple pickers in Ohio.If the government sets a minimum wage of $5 an hour,________ apple pickers are unemployed.

We know that the minimum wage causes unemployment.So,why does the government impose one?

If a rent ceiling is below the equilibrium rent,some allocation scheme must be used.The allocation methods include all of the following EXCEPT

-In the figure above,if the minimum wage rate is $8 per hour,then after taking account of resources lost in job search,the workers' surplus is the area and the firms' surplus is the area .

In a housing market with a rent ceiling set below the equilibrium rent,

A minimum wage increases unemployment by

Suppose the current equilibrium wage rate for lifeguards in Houston is $7.85 an hour.A minimum wage law that creates a price floor of $8.50 an hour leads to

When the minimum wage is raised,the union labor .

-The above figure shows a labor market with a minimum wage of $8 an hour.The deadweight loss equals the

A price floor is

A price floor is considered

The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton. -In the figure above,the quantity of sugar beets produced is million tons per year,and the quantity bought by consumers is million tons per year.

-The above figure shows a labor market with a minimum wage of $8 an hour.The value of the resources workers are willing to use in their job search equals the distance between point and point .

-The graph shows the market for holiday condos in West Palm Beach.The equilibrium rent is ________ a week.

A housing shortage results when

If a minimum wage is introduced that is above the equilibrium wage rate,

A stated goal of a minimum wage is to

Which of the following is true? i.A price ceiling is inefficient but fair. ii.A price floor is inefficient and unfair. iii.A price support increases the quantity produced.

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

A rent ceiling set below the equilibrium rent decreases the quantity of housing supplied because

Suppose that the government imposes a price ceiling on gasoline that is below the equilibrium price.The black market for gasoline is ________ market in which the price ________ ceiling price.

-The graph shows the labor market for apple pickers in Ohio.If the government sets a minimum wage of $5 an hour,________ apple pickers are unemployed.

We know that the minimum wage causes unemployment.So,why does the government impose one?

If a rent ceiling is below the equilibrium rent,some allocation scheme must be used.The allocation methods include all of the following EXCEPT

-In the figure above,if the minimum wage rate is $8 per hour,then after taking account of resources lost in job search,the workers' surplus is the area ________ and the firms' surplus is the area ________.

In a housing market with a rent ceiling set below the equilibrium rent,

A minimum wage increases unemployment by

Suppose the current equilibrium wage rate for lifeguards in Houston is $7.85 an hour.A minimum wage law that creates a price floor of $8.50 an hour leads to

When the minimum wage is raised,the ________ union labor ________.

-The above figure shows a labor market with a minimum wage of $8 an hour.The deadweight loss equals the

A price floor is

A price floor is considered

The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton. -In the figure above,the quantity of sugar beets produced is ________ million tons per year,and the quantity bought by consumers is ________ million tons per year.

-The above figure shows a labor market with a minimum wage of $8 an hour.The value of the resources workers are willing to use in their job search equals the distance between point ________ and point ________.

-The graph shows the market for holiday condos in West Palm Beach.The equilibrium rent is ________ a week.

A housing shortage results when

If a minimum wage is introduced that is above the equilibrium wage rate,

A stated goal of a minimum wage is to

Which of the following is true? i.A price ceiling is inefficient but fair. ii.A price floor is inefficient and unfair. iii.A price support increases the quantity produced.

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

Suppose that the government imposes a price ceiling on gasoline that is below the equilibrium price.The black market for gasoline is market in which the price ceiling price.

-In the figure above,if the minimum wage rate is $8 per hour,then after taking account of resources lost in job search,the workers' surplus is the area and the firms' surplus is the area .

When the minimum wage is raised,the union labor .

The figure above shows the market for sugar beets. The government intervenes in this market and sets a support price at $35 a ton. -In the figure above,the quantity of sugar beets produced is million tons per year,and the quantity bought by consumers is million tons per year.

-The above figure shows a labor market with a minimum wage of $8 an hour.The value of the resources workers are willing to use in their job search equals the distance between point and point .