Exam 4: Price Controls and Quotas: Meddling With Markets

A minimum price that the government guarantees farmers will receive for a particular crop is a(n):

Suppose that the Canadian government imposes a binding quota on the number of Japanese-made cars allowed into Canada.Assuming that Japanese-made cars and Canadian-made cars are substitutes in consumption,we would expect the price of Japanese cars to _____ and the price of Canadian-made cars to _____.

Use the following to answer questions: Figure: The Market for Sandwiches -(Figure: The Market for Sandwiches)Use Figure: The Market for Sandwiches.How much total surplus would be lost if there were a quota of eight sandwiches that could be legally exchanged?

Price controls are always set below the market equilibrium price.

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 that 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.

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

Producers will sometimes lower the quality of a good when the government imposes:

A price control is:

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

The amount for which suppliers are willing to supply the quota limit quantity is the:

A rent-control scheme that sets the maximum allowable rent at a price below the equilibrium rental price would MOST likely be supported by:

The amount that consumers are willing to pay for the quota limit quantity is the:

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

Use the following to answer question : -(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 Canadian Football League does not license quarterbacks.This means that the free market determines the standards that an aspiring quarterback must achieve.

Use the following to answer questions: Figure: The Market for Butter -(Figure: The Market for Butter)Use Figure: The Market for Butter.If a government price floor of $1.20 is imposed on this market,an inefficiency will result in the form of a _____ of _____ million kilograms of butter.

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

Use the following to answer questions: -(Table: The Market for Pop)Use Table: The Market for Pop.If the government does NOT impose a price control,the price of a can of pop will equal:

One of the consequences of the minimum wage has been:

Use the following to answer questions: Figure: Market I -(Figure: Market I)Use Figure: Market I.A surplus of the good will result if the price is: