Exam 4: Price Controls and Quotas: Meddling With Markets

A price ceiling below the equilibrium price is likely to result in a persistent ___, a transfer of surplus from _, and ___ deadweight loss.

(Multiple Choice)

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Question 121

Use the following to answer questions: -(Figure: The Shrimp Market) Use Figure: The Shrimp Market. If the government imposes a quota limiting sales of shrimp to 250 pounds, the quota rent per pound is:

(Multiple Choice)

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Question 122

(Figure: The Shrimp Market) Use Figure: The Shrimp Market. If the government wants to limit shrimp sales to 500 pounds, it can impose a price:

(Multiple Choice)

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Question 123

Use the following to answer questions: -(Table: Market for Apartments) Use Table: Market for Apartments. If a price ceiling of $700 is imposed on this market, the result will be an inefficiency in the form of a _____ million apartments.

(Multiple Choice)

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Question 124

Use the following to answer questions: -(Figure: Supply and Demand) Use Figure: Supply and Demand. A price ceiling of P₁causes:

(Multiple Choice)

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Question 125

Use the following to answer questions: -(Table: The Market for Soda) Use Table: The Market for Soda. If the government imposes a price ceiling of $0.50 per can of soda, the quantity of soda demanded will be _____ cans.

(Multiple Choice)

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Question 126

Use the following to answer questions: -(Figure: Price Controls) Use Figure: Price Controls. An effective price floor would be at price ___ and a _ would result from the difference between points ___.

(Multiple Choice)

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Question 127

The demand price of a given quantity of doughnuts is the price at which consumers will demand that quantity. The supply price for a given quantity is the price at which doughnut producers will supply that quantity.

(True/False)

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Question 128

Hugo Chávez was the president of Venezuela. Venezuela is a major producer of oil products, which remain a critical component of Venezuela's economy. Suppose President Chávez wanted to increase his popularity with the citizens of Venezuela and enacted a government policy to reduce the price of gasoline sold at state-owned gas stations to 50% of the previous price. Assuming a downward-sloping demand curve for gasoline, in theory, this policy would result in a quantity of gasoline demanded that is _____ the quantity of gasoline supplied.

(Multiple Choice)

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Question 129

Quantity controls set below the equilibrium quantity do NOT cause:

(Multiple Choice)

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Question 130

Farmers in developing countries want the United States to reduce the subsidies that it gives to U.S. farmers because subsidized agricultural products from the United States:

(Multiple Choice)

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Question 131

(Table: Market for Butter) Use Figure: Market for Butter. If the government imposes a price floor of $0.90 per pound of butter, the quantity of butter actually purchased will be _____ million pounds.

(Multiple Choice)

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Question 132

The quota rent is the result of a supply price that is above the demand price.

(True/False)

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Question 133

If the supply curve for clams is upward sloping, a quota that is set below the equilibrium quantity will result in a supply price that is lower than the equilibrium price.

(True/False)

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Question 134

All else equal, if a price floor above the equilibrium is imposed on a market and the government buys the surplus, consumer surplus will _ and producer surplus will _.

(Multiple Choice)

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Question 135

Use the following to answer questions: -(Table: The Market for Taxi Rides) Use Table: The Market for Taxi Rides. If a government quota limit at 9 million rides is imposed, the quota rent that will accrue to the owner of a taxi medallion will be _ per ride, but there will be a total missed opportunity (inefficiency) to consumers and producers of _ million rides.

(Multiple Choice)

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Question 136

(Figure: The Market for English Textbooks) Use Figure: The Market for English Textbooks. With a binding price floor at $90, the market outcome would be a _ of _ textbooks.

(Multiple Choice)

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Question 137

The quota rent is the same thing as deadweight loss.

(True/False)

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Question 138

The dictator of a small country restricts the price of cars to an amount less than or equal to $1,200 (a price below the equilibrium price for cars). Such a policy would set a:

(Multiple Choice)

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Question 139

When the government removes a binding price floor:

(Multiple Choice)

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Question 140

Showing 121 - 140 of 187

A price ceiling below the equilibrium price is likely to result in a persistent ___, a transfer of surplus from _, and ___ deadweight loss.

Use the following to answer questions: -(Figure: The Shrimp Market) Use Figure: The Shrimp Market. If the government imposes a quota limiting sales of shrimp to 250 pounds, the quota rent per pound is:

(Figure: The Shrimp Market) Use Figure: The Shrimp Market. If the government wants to limit shrimp sales to 500 pounds, it can impose a price:

Use the following to answer questions: -(Table: Market for Apartments) Use Table: Market for Apartments. If a price ceiling of $700 is imposed on this market, the result will be an inefficiency in the form of a _____ million apartments.

Use the following to answer questions: -(Figure: Supply and Demand) Use Figure: Supply and Demand. A price ceiling of P₁causes:

Use the following to answer questions: -(Table: The Market for Soda) Use Table: The Market for Soda. If the government imposes a price ceiling of $0.50 per can of soda, the quantity of soda demanded will be _____ cans.

Use the following to answer questions: -(Figure: Price Controls) Use Figure: Price Controls. An effective price floor would be at price ___ and a _ would result from the difference between points ___.

The demand price of a given quantity of doughnuts is the price at which consumers will demand that quantity. The supply price for a given quantity is the price at which doughnut producers will supply that quantity.

Quantity controls set below the equilibrium quantity do NOT cause:

Farmers in developing countries want the United States to reduce the subsidies that it gives to U.S. farmers because subsidized agricultural products from the United States:

(Table: Market for Butter) Use Figure: Market for Butter. If the government imposes a price floor of $0.90 per pound of butter, the quantity of butter actually purchased will be _____ million pounds.

The quota rent is the result of a supply price that is above the demand price.

If the supply curve for clams is upward sloping, a quota that is set below the equilibrium quantity will result in a supply price that is lower than the equilibrium price.

All else equal, if a price floor above the equilibrium is imposed on a market and the government buys the surplus, consumer surplus will _ and producer surplus will _.

(Figure: The Market for English Textbooks) Use Figure: The Market for English Textbooks. With a binding price floor at $90, the market outcome would be a _ of _ textbooks.

The quota rent is the same thing as deadweight loss.

The dictator of a small country restricts the price of cars to an amount less than or equal to $1,200 (a price below the equilibrium price for cars). Such a policy would set a:

When the government removes a binding price floor:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 4: Price Controls and Quotas: Meddling With Markets

A price ceiling below the equilibrium price is likely to result in a persistent _____, a transfer of surplus from _____, and _____ deadweight loss.

Use the following to answer questions: -(Figure: The Shrimp Market) Use Figure: The Shrimp Market. If the government imposes a quota limiting sales of shrimp to 250 pounds, the quota rent per pound is:

(Figure: The Shrimp Market) Use Figure: The Shrimp Market. If the government wants to limit shrimp sales to 500 pounds, it can impose a price:

Use the following to answer questions: -(Table: Market for Apartments) Use Table: Market for Apartments. If a price ceiling of $700 is imposed on this market, the result will be an inefficiency in the form of a _____ million apartments.

Use the following to answer questions: -(Figure: Supply and Demand) Use Figure: Supply and Demand. A price ceiling of P1 causes:

Use the following to answer questions: -(Table: The Market for Soda) Use Table: The Market for Soda. If the government imposes a price ceiling of $0.50 per can of soda, the quantity of soda demanded will be _____ cans.

Use the following to answer questions: -(Figure: Price Controls) Use Figure: Price Controls. An effective price floor would be at price _____ and a _____ would result from the difference between points _____.

The demand price of a given quantity of doughnuts is the price at which consumers will demand that quantity. The supply price for a given quantity is the price at which doughnut producers will supply that quantity.

Quantity controls set below the equilibrium quantity do NOT cause:

Farmers in developing countries want the United States to reduce the subsidies that it gives to U.S. farmers because subsidized agricultural products from the United States:

(Table: Market for Butter) Use Figure: Market for Butter. If the government imposes a price floor of $0.90 per pound of butter, the quantity of butter actually purchased will be _____ million pounds.

The quota rent is the result of a supply price that is above the demand price.

If the supply curve for clams is upward sloping, a quota that is set below the equilibrium quantity will result in a supply price that is lower than the equilibrium price.

All else equal, if a price floor above the equilibrium is imposed on a market and the government buys the surplus, consumer surplus will _____ and producer surplus will _____.

(Figure: The Market for English Textbooks) Use Figure: The Market for English Textbooks. With a binding price floor at $90, the market outcome would be a _____ of _____ textbooks.

The quota rent is the same thing as deadweight loss.

The dictator of a small country restricts the price of cars to an amount less than or equal to $1,200 (a price below the equilibrium price for cars). Such a policy would set a:

When the government removes a binding price floor:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

A price ceiling below the equilibrium price is likely to result in a persistent ___, a transfer of surplus from _, and ___ deadweight loss.

Use the following to answer questions: -(Figure: Supply and Demand) Use Figure: Supply and Demand. A price ceiling of P₁causes:

Use the following to answer questions: -(Figure: Price Controls) Use Figure: Price Controls. An effective price floor would be at price ___ and a _ would result from the difference between points ___.

All else equal, if a price floor above the equilibrium is imposed on a market and the government buys the surplus, consumer surplus will _ and producer surplus will _.

(Figure: The Market for English Textbooks) Use Figure: The Market for English Textbooks. With a binding price floor at $90, the market outcome would be a _ of _ textbooks.