Exam 5: Price Controls and Quotas: Meddling With Markets

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 121

The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market at $0.40 per pound:

(Multiple Choice)

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Question 122

Quantity controls are usually in the form of price ceilings or price floors established by the government.

(True/False)

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Question 123

Use the following to answer questions: -(Table: The Market for Soda) Look at the table The Market for Soda. If the government imposes a price ceiling of $0.50 per can of soda, there will be:

(Multiple Choice)

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Question 124

Use the following to answer questions: Figure: The Market for Economics Textbooks -(Figure: The Market for Economics Textbooks) Look at the figure The Market for Economics Textbooks. Suppose the government believes textbooks are too expensive and it wants to make sure textbooks are affordable to more students. This type of price control is called a price _, and one possible binding price control would be _.

(Multiple Choice)

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Question 125

A rent ceiling must be set above the equilibrium rent to be binding.

(True/False)

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Question 126

Use the following to answer question: -(Table: The Market for Soda) Look at the table The Market for Soda. If the government imposes a price floor of $1 per can of soda, there will be:

(Multiple Choice)

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Question 127

Suppose the government sets a price floor below the current price of a good. This price floor will:

(Multiple Choice)

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Question 128

An agricultural market price support policy establishes a binding price floor, which:

(Multiple Choice)

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Question 129

Suppose that the average cost of a doctor visit is $100. If the government imposes a price ceiling of $50 on the cost of a doctor visit, there will be:

(Multiple Choice)

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Question 130

Use the following to answer question: -(Table: Market for Butter) Look at the 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 131

A quota in the market for shrimp will cause inefficiency because mutually beneficial transactions will not occur.

(True/False)

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Question 132

How is a quota limit different from or similar to a price control?

(Essay)

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Question 133

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 134

Use the following to answer question: -(Table: Market for Butter) Look at the table Market for Butter. If the government imposes a price ceiling of $0.90 per pound of butter, the quantity of butter actually purchased will be:

(Multiple Choice)

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Question 135

A persistent shortage may occur if:

(Multiple Choice)

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Question 136

Use the following to answer questions: Figure: Price Controls -(Figure: Price Controls) Look at the graph Price Controls. A price floor has been set at point b. The area of deadweight loss that results from this price floor is:

(Multiple Choice)

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Question 137

Economists in general agree that rent controls are:

(Multiple Choice)

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Question 138

How does an effective price ceiling affect the quantity demanded and the quantity supplied in a competitive market?

(Essay)

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Question 139

Use the following to answer questions: Figure: Supply and Demand -(Figure: Supply and Demand) Look at the figure Supply and Demand. A price ceiling of P₃ causes:

(Multiple Choice)

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Question 140

Showing 121 - 140 of 227

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 _.

The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market at $0.40 per pound:

Quantity controls are usually in the form of price ceilings or price floors established by the government.

Use the following to answer questions: -(Table: The Market for Soda) Look at the table The Market for Soda. If the government imposes a price ceiling of $0.50 per can of soda, there will be:

A rent ceiling must be set above the equilibrium rent to be binding.

Use the following to answer question: -(Table: The Market for Soda) Look at the table The Market for Soda. If the government imposes a price floor of $1 per can of soda, there will be:

Suppose the government sets a price floor below the current price of a good. This price floor will:

An agricultural market price support policy establishes a binding price floor, which:

Suppose that the average cost of a doctor visit is $100. If the government imposes a price ceiling of $50 on the cost of a doctor visit, there will be:

Use the following to answer question: -(Table: Market for Butter) Look at the 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.

A quota in the market for shrimp will cause inefficiency because mutually beneficial transactions will not occur.

How is a quota limit different from or similar to a price control?

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:

Use the following to answer question: -(Table: Market for Butter) Look at the table Market for Butter. If the government imposes a price ceiling of $0.90 per pound of butter, the quantity of butter actually purchased will be:

A persistent shortage may occur if:

Use the following to answer questions: Figure: Price Controls -(Figure: Price Controls) Look at the graph Price Controls. A price floor has been set at point b. The area of deadweight loss that results from this price floor is:

Economists in general agree that rent controls are:

How does an effective price ceiling affect the quantity demanded and the quantity supplied in a competitive market?

Use the following to answer questions: Figure: Supply and Demand -(Figure: Supply and Demand) Look at the figure Supply and Demand. A price ceiling of P₃ causes:

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Consumer and Producer Surplus

Elasticity

Taxes

International Trade

Decision Making by Individuals Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods Common Resources

The Economics of the Welfare

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

Exam 5: Price Controls and Quotas: Meddling With Markets

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 _____.

The market for apples is in equilibrium at a price of $0.50 per pound. If the government imposes a price ceiling in the market at $0.40 per pound:

Quantity controls are usually in the form of price ceilings or price floors established by the government.

Use the following to answer questions: -(Table: The Market for Soda) Look at the table The Market for Soda. If the government imposes a price ceiling of $0.50 per can of soda, there will be:

A rent ceiling must be set above the equilibrium rent to be binding.

Use the following to answer question: -(Table: The Market for Soda) Look at the table The Market for Soda. If the government imposes a price floor of $1 per can of soda, there will be:

Suppose the government sets a price floor below the current price of a good. This price floor will:

An agricultural market price support policy establishes a binding price floor, which:

Suppose that the average cost of a doctor visit is $100. If the government imposes a price ceiling of $50 on the cost of a doctor visit, there will be:

Use the following to answer question: -(Table: Market for Butter) Look at the 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.

A quota in the market for shrimp will cause inefficiency because mutually beneficial transactions will not occur.

How is a quota limit different from or similar to a price control?

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:

Use the following to answer question: -(Table: Market for Butter) Look at the table Market for Butter. If the government imposes a price ceiling of $0.90 per pound of butter, the quantity of butter actually purchased will be:

A persistent shortage may occur if:

Use the following to answer questions: Figure: Price Controls -(Figure: Price Controls) Look at the graph Price Controls. A price floor has been set at point b. The area of deadweight loss that results from this price floor is:

Economists in general agree that rent controls are:

How does an effective price ceiling affect the quantity demanded and the quantity supplied in a competitive market?

Use the following to answer questions: Figure: Supply and Demand -(Figure: Supply and Demand) Look at the figure Supply and Demand. A price ceiling of P3 causes:

First Principles

Economic Models: Trade-Offs and Trade 25

Supply and Demand

Consumer and Producer Surplus

Elasticity

Taxes

International Trade

Decision Making by Individuals Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods Common Resources

The Economics of the Welfare

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Filters

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 _.

Use the following to answer questions: Figure: Supply and Demand -(Figure: Supply and Demand) Look at the figure Supply and Demand. A price ceiling of P₃ causes: