The fact that many people drive faster than the posted speed limit suggests that A) not all price floors are enforceable. B) not all price and quantity regulations are enforceable. C) individual drivers act irrationally. D) government regulation is utterly useless. ANSWER B
Date: September 9th, 2020
Municipalities that have adopted the policy of “rent control” typically set the rentals on certain apartments well below equilibrium. As a result, A) landlords have a difficult time finding tenants. B) prospective tenants have a difficult time finding available apartments. C) there is a surplus of apartments. D) All of the above. ANSWER B […]
Date: September 9th, 2020
Considering that the U.S. places a quota on imports of steel from South Korea, which of the following would NOT likely occur? A) The price of steel in the United States would increase. B) The quantity of steel produced in the United States would increase or stay the same. C) The demand for steel in […]
Date: September 9th, 2020
In the labor market, if the government imposes a minimum wage that is below the equilibrium wage, then A) workers who wish to work at the minimum wage will have a difficult time finding jobs. B) firms will hire fewer workers than without the minimum wage law. C) some workers may lose their jobs as […]
Date: September 9th, 2020
Government prohibition of advertising cigarettes on television would most likely result in A) a rightward shift in the demand curve for cigarettes. B) a leftward shift in the demand curve for cigarettes. C) a rightward shift in the demand curve for television advertising time. D) no change in the market for either cigarette or television […]
Date: September 9th, 2020
A price restriction that tells suppliers the minimum price they can sell their goods for is also known as A) a price ceiling. B) a quota. C) a price floor. D) deadweight loss. ANSWER A
Date: September 9th, 2020
Repealing a tariff will likely A) increase the quantity produced domestically, increase the quantity purchased domestically, and reduce the price charged domestically. B) reduce the quantity produced domestically, increase the quantity purchased domestically, and reduce the price charged domestically. C) reduce the amount produced abroad, reduce the price domestically, and reduce the quantity purchased domestically. […]
Date: September 9th, 2020
If the demand curve is horizontal and the supply curve is vertical, shifts of the supply curve will lead to A) changes in the equilibrium quantity only. B) changes in the equilibrium price only. C) changes in both the equilibrium price and quantity. D) changes in the quantity demanded only. ANSWER A
Date: September 9th, 2020
Suppose a market is currently at equilibrium. A leftward shift of the demand curve would cause A) an increase in price but a decrease in quantity. B) a decrease in price but an increase in quantity. C) an increase in both price and quantity. D) a decrease in both price and quantity. ANSWER D […]
Date: September 9th, 2020
When “rent controls” result in a shortage of housing, landlords A) use criteria other than price to allocate housing. B) lower the price to allocate the housing. C) attempt to attract renters. D) None of the above. ANSWER A
Date: September 9th, 2020
