Exam 7: Government Actions in Markets

Assume a market is producing efficiently.Which type of government intervention in this market might create a deadweight loss? i.a price ceiling ii.a price floor iii.a price support

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

One of the consequences of a rent ceiling set below the equilibrium rent is

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

The unemployment caused by minimum wage would be larger if

A price ceiling is a government regulation that makes it illegal to charge a price

A minimum wage set above the equilibrium wage rate creates

A rent ceiling in a housing market

If a price ceiling is introduced in the market for milk below the market equilibrium price,then the producer surplus made by dairy farmers ________.

Will an increase in the minimum wage create more unemployment if the supply and demand for labor are highly elastic or highly inelastic?

Is the minimum wage fair?

-The above figure shows the market for biologists.The government decides to set a minimum wage for biologists of $18 per hour.After this minimum wage is in effect,unemployment equals ________ workers.

How does the elasticity of demand for labor affect the deadweight loss from an increase in the minimum wage? Why?

Setting a price support in the market for sugar beets above equilibrium price ________ the quantity produced and ________ the quantity bought by consumers.

Suppose the equilibrium wage rate for apricot pickers is $9.00 per hour in California and at that wage rate the equilibrium quantity of apricot pickers is 14,000.If the minimum wage is set at $7.50 per hour,then the

Which of the following is true? i.A price ceiling set above the equilibrium price has no effects. ii.A price ceiling set below the equilibrium price creates a surplus. iii.A price floor set above the equilibrium price has no effects.

In a market with a price support set above the equilibrium price,

In a housing market with a rent ceiling below the equilibrium rent,apartment seekers spend more time searching for an apartment than they would in a housing market without a rent ceiling.Why does this difference exist?

Suppose the equilibrium rent in Boston is $1,500.A rent ceiling of $1,600 per month leads to

Suppose the current equilibrium wage rate for landscapers is $6.65 in Little Rock; $7.50 in St.Louis and $9.05 in Raleigh.An increase in the minimum wage to $7.50 per hour results in unemployment of landscapers in