Question 1

The objective of rent controls is to

Accepted Answer

A) ensure an adequate supply of rental housing for the poor. 
B) keep rents below levels that would be observed in a freely competitive market. 
C) encourage the construction of new rental units. 
D) raise revenue for the local government. 
A) ensure an adequate supply of rental housing for the poor. 
B) keep rents below levels that would be observed in a freely competitive market. 
C) encourage the construction of new rental units. 
D) raise revenue for the local government.

Question 2

If the government created a surplus of an agricultural product due to price supports,how might they dispose of this surplus?

Accepted Answer

A) give it away to a foreign country 
B) purchase it and store it away 
C) have the farmer destroy the crop 
D) Any of these answers might be a successful tool in disposing of agricultural surpluses. 
A) give it away to a foreign country 
B) purchase it and store it away 
C) have the farmer destroy the crop 
D) Any of these answers might be a successful tool in disposing of agricultural surpluses.

Question 3

The signals in markets are determined

Accepted Answer

A) by supply and demand. 
B) for all goods by the government through the use of price controls. 
C) in an unfair manner that ends up hurting the poor. 
D) by nonprice rationing devices. 
A) by supply and demand. 
B) for all goods by the government through the use of price controls. 
C) in an unfair manner that ends up hurting the poor. 
D) by nonprice rationing devices.

Question 4

When the government restricts the quantity of a good to zero

Accepted Answer

A) an underground market develops. 
B) there is none of the good available anywhere. 
C) people's demand for the product evaporates. 
D) producers stop all production. 
A) an underground market develops. 
B) there is none of the good available anywhere. 
C) people's demand for the product evaporates. 
D) producers stop all production.

Question 5

The minimum wage laws seek to

Accepted Answer

A) penalize employers that are not complying with labor laws. 
B) assure a minimum standard of payment for work. 
C) assure that all workers are paid the same wage rate. 
D) help teenagers find work. 
A) penalize employers that are not complying with labor laws. 
B) assure a minimum standard of payment for work. 
C) assure that all workers are paid the same wage rate. 
D) help teenagers find work.

Question 6

Producer surplus is

Accepted Answer

A) the total difference between the total amount that producers actually receive for an item and the total amount that they would have been willing to accept. 
B) the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item. 
C) the total difference between the total amount that consumers are willing to pay for an item and the total amount that producers would like to receive. 
D) the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item. 
A) the total difference between the total amount that producers actually receive for an item and the total amount that they would have been willing to accept. 
B) the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item. 
C) the total difference between the total amount that consumers are willing to pay for an item and the total amount that producers would like to receive. 
D) the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.

Question 7

Suppose local educators argue that teachers' salaries are too low.At the same time it is said that the school district received 750 applications for 5 new openings.Are salaries too low? Explain.

Accepted Answer

It is difficult to claim salaries are to

Question 8

Suppose that initially a market is in equilibrium at a price of $10 and a quantity of 5000 units per day.Several months later,the market is in a new equilibrium at a price of $5 and a quantity of 5000 units per day.What happened in the market?

Accepted Answer

For price to fall,either demand had to d

Question 9

Under rent controls,

Accepted Answer

A) there is a shortage of rental units. 
B) the quantity supplied of rental units is greater than it would be under freely competitive markets. 
C) there is less government involvement in rental markets overall because there is a better supply of low-income housing. 
D) all renters are better off than under freely competitive markets. 
A) there is a shortage of rental units. 
B) the quantity supplied of rental units is greater than it would be under freely competitive markets. 
C) there is less government involvement in rental markets overall because there is a better supply of low-income housing. 
D) all renters are better off than under freely competitive markets.

Question 10

Chocolate has just been found to increase your expected life span by 5 years if you eat it every day.In the market for chocolate,this information will lead to

Accepted Answer

A) an increase in price and a decrease in quantity. 
B) an increase in price and an increase in quantity. 
C) a decrease in price and a decrease in quantity. 
D) a decrease in price and an increase in quantity. 
A) an increase in price and a decrease in quantity. 
B) an increase in price and an increase in quantity. 
C) a decrease in price and a decrease in quantity. 
D) a decrease in price and an increase in quantity.

Question 11

Federally provided agricultural subsidies in the United States have ________ with the passage of the 2002 Farm Security Act and the 2007 Food,Security,and Bioenergy Act.

Accepted Answer

A) been abolished 
B) been maintained 
C) increased to the level of EU price supports 
D) been made a function of tax revenues 
A) been abolished 
B) been maintained 
C) increased to the level of EU price supports 
D) been made a function of tax revenues

Question 12

Rationing occurs for goods

Accepted Answer

A) that have a positive price. 
B) that have a zero price. 
C) that have a negative price. 
D) that are not manufactured. 
A) that have a positive price. 
B) that have a zero price. 
C) that have a negative price. 
D) that are not manufactured.

Question 13

Price floors are designed to

Accepted Answer

A) establish a minimum allowable price. 
B) allow free market prices to be achieved. 
C) create shortages where none existed before. 
D) none of the above. 
A) establish a minimum allowable price. 
B) allow free market prices to be achieved. 
C) create shortages where none existed before. 
D) none of the above.

Question 14

Which of these would NOT be considered a middleman in a market?

Accepted Answer

A) A produce wholesaler 
B) An apple farmer 
C) A smartphone retailer 
D) A fruit distributor 
A) A produce wholesaler 
B) An apple farmer 
C) A smartphone retailer 
D) A fruit distributor

Question 15

Rent controls primarily benefit

Accepted Answer

A) property owners. 
B) people looking for rental units. 
C) builders. 
D) people who already occupy rental units. 
A) property owners. 
B) people looking for rental units. 
C) builders. 
D) people who already occupy rental units.

Question 16

If the federal government sets a minimum price for wheat at $5.00 per bushel when the equilibrium price is $4.50,then

Accepted Answer

A) a surplus will be created causing the price to fall to the equilibrium price of $4.50. 
B) a permanent surplus will develop because the government established the minimum price at $5.00. 
C) a shortage will be created causing the price to rise to the equilibrium price of $4.50. 
D) a permanent shortage will develop because the government established the minimum price at $5.00. 
A) a surplus will be created causing the price to fall to the equilibrium price of $4.50. 
B) a permanent surplus will develop because the government established the minimum price at $5.00. 
C) a shortage will be created causing the price to rise to the equilibrium price of $4.50. 
D) a permanent shortage will develop because the government established the minimum price at $5.00.

Question 17

Government imposed price controls often lead to

Accepted Answer

A) illegal trades of the good. 
B) the most efficient use of resources. 
C) the equilibrium solution in terms of price and quantity. 
D) maximization of profits. 
A) illegal trades of the good. 
B) the most efficient use of resources. 
C) the equilibrium solution in terms of price and quantity. 
D) maximization of profits.

Question 18

The income of consumers increases.and the wage rate in the DVD industry increases.As a result,

Accepted Answer

A) the price of DVDs stays the same and the quantity sold can either increase or decrease,depending on whether the change in demand is greater than the change in supply. 
B) the price of DVDs increases and the quantity sold can either increase,decrease or stay the same depending on whether the change in demand was greater than the change in supply. 
C) the equilibrium quantity sold increases and price can either increase or decrease,depending on whether the change in demand is greater than the change in supply. 
D) the equilibrium quantity sold can either increase or decrease and the price can either increase or decrease,depending on whether the change in demand was greater than the change in supply. 
A) the price of DVDs stays the same and the quantity sold can either increase or decrease,depending on whether the change in demand is greater than the change in supply. 
B) the price of DVDs increases and the quantity sold can either increase,decrease or stay the same depending on whether the change in demand was greater than the change in supply. 
C) the equilibrium quantity sold increases and price can either increase or decrease,depending on whether the change in demand is greater than the change in supply. 
D) the equilibrium quantity sold can either increase or decrease and the price can either increase or decrease,depending on whether the change in demand was greater than the change in supply.

Question 19

If demand and supply both decrease,

Accepted Answer

A) the equilibrium quantity definitely will decrease,and the market clearing price definitely will decrease. 
B) the equilibrium quantity definitely will decrease,and the market clearing price definitely will increase. 
C) the market clearing price definitely will decrease,but the change in the equilibrium quantity cannot be determined without more information. 
D) the equilibrium quantity definitely will decrease,but the change in market clearing price cannot be determined without more information. 
A) the equilibrium quantity definitely will decrease,and the market clearing price definitely will decrease. 
B) the equilibrium quantity definitely will decrease,and the market clearing price definitely will increase. 
C) the market clearing price definitely will decrease,but the change in the equilibrium quantity cannot be determined without more information. 
D) the equilibrium quantity definitely will decrease,but the change in market clearing price cannot be determined without more information.

Question 20

Total consumer surplus in a market is measured as the

Accepted Answer

A) area bounded above the market clearing price and beneath the market demand curve. 
B) area bounded below the market clearing price and above the market supply curve. 
C) vertical distance from the horizontal (quantity)axis to the market clearing price. 
D) horizontal distance from the vertical (price)axis to the equilibrium quantity. 
A) area bounded above the market clearing price and beneath the market demand curve. 
B) area bounded below the market clearing price and above the market supply curve. 
C) vertical distance from the horizontal (quantity)axis to the market clearing price. 
D) horizontal distance from the vertical (price)axis to the equilibrium quantity.

The objective of rent controls is to

If the government created a surplus of an agricultural product due to price supports,how might they dispose of this surplus?

The signals in markets are determined

When the government restricts the quantity of a good to zero

The minimum wage laws seek to

Producer surplus is

Suppose local educators argue that teachers' salaries are too low.At the same time it is said that the school district received 750 applications for 5 new openings.Are salaries too low? Explain.

Suppose that initially a market is in equilibrium at a price of $10 and a quantity of 5000 units per day.Several months later,the market is in a new equilibrium at a price of $5 and a quantity of 5000 units per day.What happened in the market?

Under rent controls,

Chocolate has just been found to increase your expected life span by 5 years if you eat it every day.In the market for chocolate,this information will lead to

Federally provided agricultural subsidies in the United States have ________ with the passage of the 2002 Farm Security Act and the 2007 Food,Security,and Bioenergy Act.

Rationing occurs for goods

Price floors are designed to

Which of these would NOT be considered a middleman in a market?

Rent controls primarily benefit

If the federal government sets a minimum price for wheat at $5.00 per bushel when the equilibrium price is $4.50,then

Government imposed price controls often lead to

The income of consumers increases.and the wage rate in the DVD industry increases.As a result,

If demand and supply both decrease,

Total consumer surplus in a market is measured as the

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 4: Extensions of Demand and Supply Analysis

The objective of rent controls is to

If the government created a surplus of an agricultural product due to price supports,how might they dispose of this surplus?

The signals in markets are determined

When the government restricts the quantity of a good to zero

The minimum wage laws seek to

Producer surplus is

Suppose local educators argue that teachers' salaries are too low.At the same time it is said that the school district received 750 applications for 5 new openings.Are salaries too low? Explain.

Suppose that initially a market is in equilibrium at a price of $10 and a quantity of 5000 units per day.Several months later,the market is in a new equilibrium at a price of $5 and a quantity of 5000 units per day.What happened in the market?

Under rent controls,

Chocolate has just been found to increase your expected life span by 5 years if you eat it every day.In the market for chocolate,this information will lead to

Federally provided agricultural subsidies in the United States have ________ with the passage of the 2002 Farm Security Act and the 2007 Food,Security,and Bioenergy Act.

Rationing occurs for goods

Price floors are designed to

Which of these would NOT be considered a middleman in a market?

Rent controls primarily benefit

If the federal government sets a minimum price for wheat at $5.00 per bushel when the equilibrium price is $4.50,then

Government imposed price controls often lead to

The income of consumers increases.and the wage rate in the DVD industry increases.As a result,

If demand and supply both decrease,

Total consumer surplus in a market is measured as the

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, inflation, and Deflation

Measuring the Economys Performance

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money, banking, and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters