Question 1

The benefit of a price ceiling to ________ is ________.

Accepted Answer

A)  producers; the selling price of the product is above the equilibrium price 
B)  producers; the ceiling creates excess demand 
C)  consumers; the selling price of the product is below the equilibrium price 
D)  consumers; the ceiling creates excess supply 
A)  producers; the selling price of the product is above the equilibrium price 
B)  producers; the ceiling creates excess demand 
C)  consumers; the selling price of the product is below the equilibrium price 
D)  consumers; the ceiling creates excess supply

Question 2

Quantity demanded will equal quantity supplied if a ________ is set ________ the equilibrium price.

Accepted Answer

A)  price ceiling; above 
B)  price ceiling; below 
C)  price floor; above 
D)  price ceiling; at or below 
A)  price ceiling; above 
B)  price ceiling; below 
C)  price floor; above 
D)  price ceiling; at or below

Question 3

Refer to the information provided in Figure 4.1 below to answer the questions that follow.   Figure 4.1
-Refer to Figure 4.1. The United States will import 6 million apples per day if a per-apple tax of ________ is levied on imported apples.

Accepted Answer

A)  0 cents 
B)  10 cents 
C)  20 cents 
D)  30 cents 
A)  0 cents 
B)  10 cents 
C)  20 cents 
D)  30 cents

Question 4

Refer to the information provided in Figure 4.6 below to answer the questions that follow.
Equilibrium in this market occurs at the intersection of curves S and D.   Figure 4.6
-Refer to Figure 4.6. At equilibrium, consumer surplus is area

Accepted Answer

A)  A. 
B)  A + B + C. 
C)  G. 
D)  E + F + G. 
A)  A. 
B)  A + B + C. 
C)  G. 
D)  E + F + G.

Question 5

Consumer surplus describes a situation in which there is excess quantity supplied.

Accepted Answer

A) True 
 B)False

Question 6

An example of a ________ would be the government setting the price of coffee below the equilibrium price.

Accepted Answer

A)  non-income tax 
B)  rational expenditure 
C)  black market 
D)  price ceiling 
A)  non-income tax 
B)  rational expenditure 
C)  black market 
D)  price ceiling

Question 7

For a particular product, an effective price floor results in

Accepted Answer

A)  quantity demanded greater than quantity supplied. 
B)  quantity supplied greater than quantity demanded. 
C)  quantity demanded equal to quantity supplied. 
D)  demand equal to supply. 
A)  quantity demanded greater than quantity supplied. 
B)  quantity supplied greater than quantity demanded. 
C)  quantity demanded equal to quantity supplied. 
D)  demand equal to supply.

Question 8

A U.S. import fee on oil would reduce imports and raise the price of U.S. oil products.

Accepted Answer

A) True 
 B)False

Question 9

Consumer surplus is the difference between the most a person is willing to pay and market price.

Accepted Answer

A) True 
 B)False

Question 10

Refer to the information provided in Figure 4.3 below to answer the questions that follow.   Figure 4.3
-Refer to Figure 4.3. An example of an effective price floor would be the government setting the price of pencils at

Accepted Answer

A)  $0.00. 
B)  $0.40. 
C)  $0.45. 
D)  $0.50. 
A)  $0.00. 
B)  $0.40. 
C)  $0.45. 
D)  $0.50.

Question 11

Ration coupons are tickets or coupons that give someone a right to purchase a certain amount of a product each time period such as a month.

Accepted Answer

A) True 
 B)False

Question 12

With an effective price ceiling, quantity demanded exceeds quantity supplied.

Accepted Answer

A) True 
 B)False

Question 13

If a price floor is set below the equilibrium price,

Accepted Answer

A)  quantity demanded will be less than quantity supplied. 
B)  there will be a surplus. 
C)  there will be a shortage. 
D)  the floor will be ineffective. 
A)  quantity demanded will be less than quantity supplied. 
B)  there will be a surplus. 
C)  there will be a shortage. 
D)  the floor will be ineffective.

Question 14

If the market price of coffee is $3.00 per pound but the government will not allow coffee growers to charge more than $2.00 per pound of coffee, which of the following will happen?

Accepted Answer

A)  Demand must eventually decrease so that the market will come into equilibrium at a price of $2.50. 
B)  There will be a shortage of coffee. 
C)  Supply must eventually increase so that the market will come into equilibrium at a price of $2.50. 
D)  The market will be in equilibrium at a price of $2.00. 
A)  Demand must eventually decrease so that the market will come into equilibrium at a price of $2.50. 
B)  There will be a shortage of coffee. 
C)  Supply must eventually increase so that the market will come into equilibrium at a price of $2.50. 
D)  The market will be in equilibrium at a price of $2.00.

Question 15

Refer to the information provided in Figure 4.1 below to answer the questions that follow.   Figure 4.1
-Refer to Figure 4.1. Assume that initially there is free trade. The price of apples in the United States will increase to 40 cents per apple if a ________ per apple tax tax is imposed.

Accepted Answer

A)  10 cents 
B)  20 cents 
C)  30 cents 
D)  40 cents 
A)  10 cents 
B)  20 cents 
C)  30 cents 
D)  40 cents

Question 16

An effective price ceiling will be set above the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 17

Refer to the information provided in Figure 4.5 below to answer the questions that follow.   Figure 4.5
-Refer to Figure 4.5. The price of CD-Rom drives in the United States would be $15 per CD-Rom drive, and the United States would import 9 million CD-Rom drives if the United States imposed ________ tax per CD-Rom drive on imported CD-Rom drives.

Accepted Answer

A)  no 
B)  a $10 
C)  a $15 
D)  a $25 
A)  no 
B)  a $10 
C)  a $15 
D)  a $25

Question 18

In the short run, it is necessary to nonprice ration a good whenever ________ exists.

Accepted Answer

A)  excess demand 
B)  excess supply 
C)  a surplus 
D)  market equilibrium 
A)  excess demand 
B)  excess supply 
C)  a surplus 
D)  market equilibrium

Question 19

A surplus exists when there is excess demand in a market.

Accepted Answer

A) True 
 B)False

Question 20

An example of a price ceiling would be the government setting the price of sugar

Accepted Answer

A)  above the equilibrium market price. 
B)  at the equilibrium market price. 
C)  below the equilibrium market price. 
D)  none of the above 
A)  above the equilibrium market price. 
B)  at the equilibrium market price. 
C)  below the equilibrium market price. 
D)  none of the above

The benefit of a price ceiling to is .

Quantity demanded will equal quantity supplied if a is set the equilibrium price.

Refer to the information provided in Figure 4.1 below to answer the questions that follow. Figure 4.1 -Refer to Figure 4.1. The United States will import 6 million apples per day if a per-apple tax of ________ is levied on imported apples.

Refer to the information provided in Figure 4.6 below to answer the questions that follow. Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6 -Refer to Figure 4.6. At equilibrium, consumer surplus is area

Consumer surplus describes a situation in which there is excess quantity supplied.

An example of a ________ would be the government setting the price of coffee below the equilibrium price.

For a particular product, an effective price floor results in

A U.S. import fee on oil would reduce imports and raise the price of U.S. oil products.

Consumer surplus is the difference between the most a person is willing to pay and market price.

Refer to the information provided in Figure 4.3 below to answer the questions that follow. Figure 4.3 -Refer to Figure 4.3. An example of an effective price floor would be the government setting the price of pencils at

Ration coupons are tickets or coupons that give someone a right to purchase a certain amount of a product each time period such as a month.

With an effective price ceiling, quantity demanded exceeds quantity supplied.

If a price floor is set below the equilibrium price,

If the market price of coffee is $3.00 per pound but the government will not allow coffee growers to charge more than $2.00 per pound of coffee, which of the following will happen?

Refer to the information provided in Figure 4.1 below to answer the questions that follow. Figure 4.1 -Refer to Figure 4.1. Assume that initially there is free trade. The price of apples in the United States will increase to 40 cents per apple if a ________ per apple tax tax is imposed.

An effective price ceiling will be set above the equilibrium price.

In the short run, it is necessary to nonprice ration a good whenever ________ exists.

A surplus exists when there is excess demand in a market.

An example of a price ceiling would be the government setting the price of sugar

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 4: Demand and Supply Applications

The benefit of a price ceiling to ________ is ________.

Quantity demanded will equal quantity supplied if a ________ is set ________ the equilibrium price.

Refer to the information provided in Figure 4.1 below to answer the questions that follow. Figure 4.1 -Refer to Figure 4.1. The United States will import 6 million apples per day if a per-apple tax of ________ is levied on imported apples.

Refer to the information provided in Figure 4.6 below to answer the questions that follow. Equilibrium in this market occurs at the intersection of curves S and D. Figure 4.6 -Refer to Figure 4.6. At equilibrium, consumer surplus is area

Consumer surplus describes a situation in which there is excess quantity supplied.

An example of a ________ would be the government setting the price of coffee below the equilibrium price.

For a particular product, an effective price floor results in

A U.S. import fee on oil would reduce imports and raise the price of U.S. oil products.

Consumer surplus is the difference between the most a person is willing to pay and market price.

Refer to the information provided in Figure 4.3 below to answer the questions that follow. Figure 4.3 -Refer to Figure 4.3. An example of an effective price floor would be the government setting the price of pencils at

Ration coupons are tickets or coupons that give someone a right to purchase a certain amount of a product each time period such as a month.

With an effective price ceiling, quantity demanded exceeds quantity supplied.

If a price floor is set below the equilibrium price,

If the market price of coffee is $3.00 per pound but the government will not allow coffee growers to charge more than $2.00 per pound of coffee, which of the following will happen?

Refer to the information provided in Figure 4.1 below to answer the questions that follow. Figure 4.1 -Refer to Figure 4.1. Assume that initially there is free trade. The price of apples in the United States will increase to 40 cents per apple if a ________ per apple tax tax is imposed.

An effective price ceiling will be set above the equilibrium price.

In the short run, it is necessary to nonprice ration a good whenever ________ exists.

A surplus exists when there is excess demand in a market.

An example of a price ceiling would be the government setting the price of sugar

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

The benefit of a price ceiling to is .

Quantity demanded will equal quantity supplied if a is set the equilibrium price.