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-The graph shows the market for holiday condos in West Palm Beach.If a rent ceiling is set at $1,700 a week,the quantity of holiday condos rented ________. A) is 2,000 a week B) is 4,000 a week C) is 5,000 a week D) is some amount, but more information is needed to determine the amount. E) depends on the black market -The graph shows the market for holiday condos in West Palm Beach.If a rent ceiling is set at $1,700 a week,the quantity of holiday condos rented ________.


A) is 2,000 a week
B) is 4,000 a week
C) is 5,000 a week
D) is some amount, but more information is needed to determine the amount.
E) depends on the black market

Correct Answer

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-The above figure shows the market for winter jackets.In an effort to keep the nation warm,the president places a price ceiling of $100 in the market for winter jackets.Which of the following statements is true? A) After taking account of the resources lost in search, consumer surplus increases when the price ceiling is in place. B) There will be a surplus of jackets. C) Because the price of a jacket is lowered, consumers end up buying more jackets with the price ceiling than without it. D) Producer surplus decreases if there is a price ceiling. E) The quantity supplied of jackets is greater that quantity demanded when there is a price ceiling. -The above figure shows the market for winter jackets.In an effort to keep the nation warm,the president places a price ceiling of $100 in the market for winter jackets.Which of the following statements is true?


A) After taking account of the resources lost in search, consumer surplus increases when the price ceiling is in place.
B) There will be a surplus of jackets.
C) Because the price of a jacket is lowered, consumers end up buying more jackets with the price ceiling than without it.
D) Producer surplus decreases if there is a price ceiling.
E) The quantity supplied of jackets is greater that quantity demanded when there is a price ceiling.

Correct Answer

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

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-The above figure shows the domestic market for wheat.Suppose this market is isolated from global competition and the government intervenes by setting a support price of $15 a ton.As a result of this price support,the total subsidy paid to wheat farmers equals A) $4 billion. B) $3 billion. C) $3.5 billion. D) $1.5 billion. E) $4.5 billion -The above figure shows the domestic market for wheat.Suppose this market is isolated from global competition and the government intervenes by setting a support price of $15 a ton.As a result of this price support,the total subsidy paid to wheat farmers equals


A) $4 billion.
B) $3 billion.
C) $3.5 billion.
D) $1.5 billion.
E) $4.5 billion

Correct Answer

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-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? A) Firms' surplus increase with the minimum wage. B) Workers who retain their jobs have their wages rise. C) The market is efficient. D) The quantity supplied of workers is less that quantity demanded. E) Unemployment decreases because firms employ their workers more carefully. -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?


A) Firms' surplus increase with the minimum wage.
B) Workers who retain their jobs have their wages rise.
C) The market is efficient.
D) The quantity supplied of workers is less that quantity demanded.
E) Unemployment decreases because firms employ their workers more carefully.

Correct Answer

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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 ________.


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

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One result of a minimum wage is


A) illegal hiring of people at wages below the minimum wage.
B) more people with jobs.
C) a change in the equilibrium wage.
D) lower costs paid by firms.
E) fewer people searching for work because they realize that firms have decreased the number of people hired.

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The unemployment caused by minimum wage would be larger if


A) both labor demand and labor supply are more elastic.
B) both labor demand and labor supply are more inelastic.
C) minimum wage is set equal to the equilibrium wage rate.
D) minimum wage is set below the equilibrium wage rate.
E) both labor demand and labor supply are perfectly inelastic.

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Both price supports and a price floor can


A) create a deadweight loss.
B) decrease output below the equilibrium quantity.
C) decrease the price below the equilibrium price.
D) increase consumer surplus.
E) have no effect on producer surplus.

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


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.

Correct Answer

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Following a major natural disaster that destroys housing,a rent ceiling ________ be an effective policy to increase the quantity of more affordable housing for displaced residents because it would ________.


A) would not; discourage rebuilding and result in a shortage
B) would not; cause the quantity supplied to exceed the quantity demanded
C) would; cause increased search activity
D) would; create a black market that would result in a lower rent
E) would; encourage a greater quantity supplied

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


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.

Correct Answer

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


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.

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Which of the following results from a price ceiling? i.increased search activity ii.surplus iii.black market


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

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With a price support program,who receives a subsidy?


A) only consumers
B) only producers
C) the government
D) importers
E) both consumers and producers receive a subsidy

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Who gains from a price support? Who loses? Explain how the size of the gain compares to the size of the loss.

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Producers gain from a price support beca...

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A rent ceiling on housing creates a problem of allocating the available housing units because


A) the demand for housing decreases and the demand curve shifts leftward.
B) the supply of housing increases and the supply curve shifts rightward.
C) a shortage of apartments occurs.
D) a surplus of apartments occurs.
E) it eliminates search, which is one of the major ways housing units are allocated.

Correct Answer

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A minimum wage set above the equilibrium wage


A) decreases the deadweight loss in the market.
B) decreases the workers' surplus because workers must spend resources looking for jobs.
C) increases the firm's surplus.
D) increases the market's efficiency.
E) has no effect on the market.

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Which of the following describes a difference between a price support and a price ceiling?


A) A price support creates a deadweight loss while a price ceiling does not.
B) A price ceiling is a regulated price while a price support is a regulated quantity.
C) A price support decreases the quantity while a price ceiling does not.
D) A price ceiling increases the price above the equilibrium price while a price support does not.
E) A price support attempts to raise the price above the equilibrium price while a price ceiling does not.

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Showing 221 - 239 of 239

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