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