Exam 4: Price Controls and Quotas: Meddling With Markets

If government decides to control the amount of a good allowed to be transacted in a market,this will:

Use the following to answer questions: Figure: The Shrimp Market -(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government imposes a quota limiting sales of shrimp to 1 000 kilograms,the quota rent per kilogram is:

Use the following to answer questions: -(Figure: The Market for Economics Textbooks)Use Figure: The Market for Economics Textbooks.At a price ceiling of $40,the market outcome would be a _____ of _____ textbooks.

Rapidly increasing child daycare costs have been a major political concern since well before 1992.Suppose that the government sets the maximum price for daily child daycare expenses at $20 per day,but the current market price is $40 per day.What is MOST likely to happen?

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

Suppose that Canada removes its sugar quotas and the market price of sugar drops.Since sugar is an input in candy,in the candy bar market,we would expect consumer surplus to:

When transatlantic airfares were set artificially high by an international treaty,airlines offered customers an inefficiently high quality of service.

Use the following to answer questions: -(Figure: Rent Controls)Use Figure: Rent Controls.Without rent controls,the equilibrium rent is:

The quota rent is the:

Use the following to answer question 70: -(Table: The Market for Pop)Use Table: The Market for Pop.If the government imposes a price floor of $1 per can of pop,there will be:

Price ceilings will impose costs on society because they:

When the government imposes a quota on sales of a good or service,it usually licenses the right to sell a given quantity of the good.The market price of the licence is equal to the:

Use the following to answer questions: Figure: Market I -(Figure: Market I)Use Figure: Market I.If a price floor of $15 is imposed on this market and the government chooses to purchase the surplus,the government must buy _____ units of the good and spend a total amount of _____ on its purchase.

Use the following to answer questions: -(Figure: Supply and Demand)Use Figure: Supply and Demand.A binding price ceiling is represented by:

A minimum price set above the equilibrium price is a:

To dispose of the unwanted surplus resulting from agricultural price floors,the European Union pays exporters to sell products at a loss overseas.

A quota rent for tuna is the difference between the demand price and the supply price if a quota limit is imposed in the tuna market.

Governments continue to impose price controls.Which statement is NOT a valid reason for this?

Use the following to answer questions: -(Figure: The Market for Economics Textbooks)Use Figure: The Market for Economics Textbooks.Suppose that 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 _____.

The total amount of a good that can be transacted under a quantity control is called the: