LearningCurve - Chapter 5: Price Controls and Quotas: Meddling with Markets
The graph shows the market for wheat. If a price floor is established at $5, consumer surplus transferred to the sellers is area: D A B C
A
True or False: A black market, in which goods or services are bought and sold illegally, can develop in response to a price ceiling. This is _____. True False
True
True or False: A quota is another name for a quantity control. This is _____. True False
True
The graph shows the market for bicycles. Suppose a quota is established at 3 bicycles. The deadweight loss is: $200. $350. $150. $250.
$200.
True or False: Price floors are intended to help consumers. This is _____. True False
False
True or False: A quota is another name for a quantity control. This is _____. True False
True
The graph shows the market for bicycles. Suppose a quota is established at 3 bicycles. The deadweight loss is: $200. $350. $150. $250.
$200.
The graph shows the market for bicycles. Suppose a quota is established at 3 bicycles. The demand price is: $350. $150. $400. $250.
$350.
The graph shows the market for tutoring in economics at a university. If a quota is established at 200 hours, the deadweight loss is: $1000. $3000. $375. $1500.
$375.
The graph shows the market for tutoring in economics at a university. If a quota is established at 200 hours, the deadweight loss is: $1000. $3000. $375. $1500.
$375.
The graph shows the market for tutoring in economics at a university. If a quota is established at 200 hours, the quota rent is: $10. $15. $7.50. $1000.
$7.50.
The graph shows the market for apartments in Gotham City. If the maximum monthly rent is, in numerals, $_____, consumer surplus is area B + C.
1,000
The graph shows the market for tutoring at a university. If there is a price floor of $15, the consumer surplus transferred to those students who are able to continue getting hired for tutoring is, in numerals, $_____.
1,000
The graph shows the market for tutoring at a university. If there is a price floor of $20, deadweight loss is, in numerals, $_____.
1,500
The graph shows the market for tutoring in economics at a university. If a quota initially established at 100 hours is removed, the price of tutoring will be, in numerals, $_____.
10
The graph shows the market for tutoring at a university. If there is a price floor of $15, how much is the difference in the quantity of hours purchased and the efficient equilibrium quantity? 300 hours 100 hours 250 hours 200 hours
100 hours
The graph shows the market for tutoring at a university. If there is a price ceiling of $5, producer surplus is, in numerals, $_____.
125
The graph shows the market for tutoring in economics at a university. If a quota is established at 100 hours, the quota rent is, in numerals, $_____.
15
The graph shows the taxi market in Gotham City. Suppose a quota is established at 10 million rides per year. The deadweight loss is _____ million dollars.
15
The graph shows the market for tutoring in economics at a university. If a quota is established at 100 hours, the deadweight loss is, in numerals, $_____.
1500
The graph shows the market for bicycles. If a price ceiling is imposed at $100, the quantity supplied is _____ (how many) bicycles.
2
The graph shows the market for tutoring at a university. If there is a price ceiling of $7.50, consumer surplus is, in numerals, $_____.
2,500
The graph shows the market for tutoring in economics at a university. A price floor at (in numerals) $_____ would result in a surplus of 900 hours.
25
The graph shows the market for tutoring at a university. If a price ceiling is imposed at $5 per hour, there will be a shortage of _____ hours of tutoring.
300
The graph shows the market for tutoring at a university. If there is a price floor of $15, deadweight loss is, in numerals, $_____.
375
The graph shows the market for bicycles. If a price floor is imposed at (in numerals) $_____, there is a surplus of 6 bicycles.
400
The graph shows the market for wheat. If a price floor is established at (in a numeral/numerals) $_____, deadweight loss is the area B + C.
5
The graph shows the market for bicycles. If the quota is established at 4 bicycles, the deadweight loss is, in numerals, $_____.
50
The graph shows the market for tutoring at a university. If there is a price ceiling of $7.50, producer surplus is, in numerals, $_____.
500
The graph shows the market for tutoring at a university. If there is a price ceiling of $7.50, the difference in the price consumers have to pay and the price that they are willing to pay is, in numerals, $_____.
7.50
The graph shows the market for tutoring at a university. If there is a price floor of $15, the difference in the price sellers are willing to accept and the price floor is, in numerals, $_____.
7.50
The graph shows the market for bicycles. If a price ceiling is imposed at $100, the quantity demanded is _____ (how many) bicycles.
8
The graph shows the market for apartments in Gotham City. If the maximum monthly rent is $1000, deadweight loss is area: A. D. B. C.
A
The graph shows the market for bicycles. True or False: If a price floor of $400 is established, the quantity of bicycles purchased is six less than the quantity purchased in equilibrium. This is _____.
False
The graph shows the market for tutoring at a university. True or False: If a price ceiling is imposed at $7.50 per hour, there will be a surplus of 100 hours of tutoring. This is _____.
False
True or False: A maximum price that sellers are allowed to charge for a good or service is called a subsidy. This is _____. True False
False
True or False: If a price control reduces the quantity bought and sold below the equilibrium quantity, the result is a loss of total surplus called efficiency burden. This is _____. True False
False
True or False: The minimum price that buyers are required to pay for a good or service is a price ceiling. This is _____. True False
False
True or False: A quota imposed below the equilibrium quantity drives a wedge between the supply price and the demand price of a good. This is _____. True False
True
True or False: A quota in the market for used textbooks above the equilibrium quantity will have no effect on the market. This is _____. True Fals
True
True or False: A taxi medallion system, such as the one used in New York City, is an example of a quota. This is _____. True False
True
True or False: A taxi medallion system, such as the one used in New York City, is an example of a quota. This is _____. True False
True
True or False: A temptation to engage in illegal activity, such as bribery, is a source of inefficiency for price floors. This is _____. True False
True
True or False: Deadweight loss is the loss in total surplus that occurs whenever an action reduces the quantity transacted below the efficient market equilibrium. This is _____. True False
True
True or False: The development of a black market is a possible result of a price ceiling on used textbooks. This is _____. True False
True
A price ceiling on used textbooks causes a(n): increase in producer surplus and total surplus. increase in producer surplus and a decrease in total surplus. decrease in producer surplus and a decrease in total surplus. decrease in producer surplus and an increase in total surplus.
decrease in producer surplus and a decrease in total surplus.
A price ceiling on used textbooks causes a(n): increase in producer surplus and total surplus. increase in producer surplus and a decrease in total surplus. decrease in producer surplus and a decrease in total surplus. decrease in producer surplus and an increase in total surplus.
decrease in producer surplus and a decrease in total surplus.
A deadweight loss is the: difference between the revenue and costs of producing an obsolete product. same thing as a government budget deficit. loss a firm suffers when it goes out of business. decrease in total surplus because the quantity transacted is not the efficient equilibrium quantity.
decrease in total surplus because the quantity transacted is not the efficient equilibrium quantity.
The graph shows the market for bicycles. If a price floor of $300 is established, inefficiency results because: the quality of the bicycles is likely to be inefficiently low. sellers willing to accept less than $300 are not able to sell their bicycles. the quantity demanded at $300 is greater than the quantity supplied. the price floor causes a persistent shortage of bicycles.
sellers willing to accept less than $300 are not able to sell their bicycles.