Econ chapter 6

Which of the following is not correct?

A minimum wage would be binding for workers with high skills and much experience.

Which of the following is not a rationing mechanism used by landlords in cities with rent control?

Price

The minimum wage was instituted to ensure workers

a minimally adequate standard of living.

If a binding price floor is imposed on the video game market, then

a surplus of video games will develop.

A surplus results when a

binding price floor is imposed on a market.

One disadvantage of government subsidies over price controls is that subsidies

make higher taxes necessary.

In the housing market, supply and demand are

more elastic in the long run than in the short run, and so rent control leads to a larger shortage of apartments in the long run than in the short run.

Rent-control laws dictate

only a maximum rent that landlords may charge tenants.

The imposition of a binding price ceiling on a market causes

quantity demanded to be greater than quantity supplied.

In the 1970s, long lines at gas stations in the United States were primarily a result of the fact that

the U.S. government maintained a price ceiling on gasoline.

If a price floor is not binding, then

the equilibrium price is above the price floor.

If a price ceiling is not binding, then

there will be no effect on the market price or quantity sold.