Stupid College Class Quiz #6

A rent ceiling results in _____________________________

An increase in the quantity of rental units demanded.

Tax incidence is the actual division of the ___________________________

Burden of the tax between buyers and sellers in a market

International trade ______________________________________

Helps consumers but hurts firms that are less efficient than their foreign competitors.

The area above the market supply curve and below the market price _________________

Is equal to the amount of economic surplus in a market.

Which of the following is a consequence of minimum wage laws?

Some employers will be reluctant to hire as many workers without a minimum wage.

The sum of consumer surplus and producer surplus is equal to __________________________

The economic surplus

A consumer is willing to purchase a product up to the point where __________________

The marginal benefit is equal to the price of the product.

Deadweight loss refers to ______________________________________

The reduction in economic surplus resulting from not being in the competitive equilibrium.

Economists have shown that the burden of a tax is ________________________________

The same whether the tax is collected from the buyer or the seller.

Which term refers to a legally established maximum price that firms may change?

a price ceiling

The minimum wage is an example of ______________________

a price floor.

In Venezuela, the government attempted to control rising food prices by implementing price ceiling in the market. These price ceilings were set __________ the market prices, which resulted in ______________ of food.

below; shortages

a minimum wage _______________________

creates deadweight loss

The difference between the _____________ for a good and the __________ is called consumer surplus.

highest price a consumer is willing to pay; price the consumer actually pays

To affect the market outcome, a price floor _____________________

must be set above the equilibrium price

A tax imposed by a government on imports of a good into a country is called a ___________________________________

tariff

Free trade refers to trade between countries

that is without restrictions.

A supply curve shows _________________________________

the marginal cost of producing one more unit of a product