Question 1

Exhibit 4-7
 3. B) N1. C) N2. D) N2 - N1." class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 4-7. The number of unskilled workers who want to work at the minimum wage is

Accepted Answer

A)  N3.
B)  N1.
C)  N2.
D)  N2 - N1.E) B) and C)
F) A) and D)

Question 2

Exhibit 4-9
 
-Refer to Exhibit 4-9. Suppose that the government imposes a price ceiling at a price of $11. How many fewer units would be exchanged at the price ceiling than would be exchanged at the equilibrium price?

Accepted Answer

A)  50
B)  30
C)  40
D)  70E) C) and D)
F) All of the above

Question 3

At the minimum wage (set above the equilibrium wage) ,

Accepted Answer

A)  all individuals who end up working are paid less than if they were paid the equilibrium wage.
B)  none of the workers will lose there jobs or find themselves working fewer hours.
C)  none of the individuals who end up working are paid more than if they were paid the equilibrium wage.
D)  there will be fewer people working (or fewer labor hours demanded)  than at the equilibrium wage.
E)  none of the aboveF) A) and B)
G) A) and E)

Question 4

Price serves as a

Accepted Answer

A)  rationing device.
B)  transmitter of information.
C)  means of determining who gets what of the available limited resources and goods.
D)  a and b
E)  all of the aboveF) B) and E)
G) A) and E)

Question 5

Suppose you live in New York City and the government has imposed price ceilings on apartment rental rates. You want to rent an apartment from Smith, who says that unless you buy the furniture in the apartment for $4,000, he cannot rent the apartment to you. The condition of buying the furniture could be considered

Accepted Answer

A)  a price ceiling.
B)  a price floor.
C)  a tie-in sale.
D)  to be something no renter would agree to.
E)  c and dF) B) and D)
G) B) and C)

Question 6

Exhibit 4-8
 
-Refer to Exhibit 4-8. If the wheat market is in competitive equilibrium the total surplus will equal

Accepted Answer

A)  area 1 + 2 + 3 + 4 + 5
B)  area 1 + 2 + 3
C)  area 2 + 3 + 4 + 5
D)  area 4 + 5E) B) and C)
F) A) and D)

Question 7

Exhibit 4-10
​
​
  Unskilled Labor Market
​
​
-Refer to Exhibit 4-10. Suppose that the government imposes a minimum wage of $7. How many fewer unskilled workers would be employed at the minimum wage, compared to the number that would be employed at the equilibrium wage?

Accepted Answer

A)  2,000
B)  3,000
C)  4,000
D)  5,000
E)  7,000F) B) and C)
G) A) and C)

Question 8

A price ceiling is a government-mandated

Accepted Answer

A)  minimum price below which legal trades cannot be made.
B)  maximum price above which legal trades cannot be made.
C)  minimum price above which legal trades cannot be made.
D)  maximum price below which legal trades cannot be made.E) All of the above
F) C) and D)

Question 9

Exhibit 4-8
 F. What has happened to the producers' surplus as a result of the imposition of the price floor? A) Producers' surplus has risen by (area 2 + 3)  B) Producers' surplus has fallen by (area 4 + 5)  C) Producers' surplus has changed by (area 3 - area 5)  D) Producers' surplus has changed by (area 2 - area 5) " class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What has happened to the producers' surplus as a result of the imposition of the price floor?

Accepted Answer

A)  Producers' surplus has risen by (area 2 + 3) 
B)  Producers' surplus has fallen by (area 4 + 5) 
C)  Producers' surplus has changed by (area 3 - area 5) 
D)  Producers' surplus has changed by (area 2 - area 5) E) C) and D)
F) A) and B) D

Question 10

-Refer to Situation 4-1. If no price controls had been in place, the effect of the oil embargo on the equilibrium price and quantity of gasoline would have been

Accepted Answer

A)  an increase in both price and quantity.
B)  an increase in price and a decrease in quantity.
C)  a decrease in price and an increase in quantity.
D)  a decrease in both price and quantity.E) A) and C)
F) All of the above

Question 11

If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor, then the

Accepted Answer

A)  minimum wage will create a surplus of unskilled labor.
B)  minimum wage will create a shortage of unskilled labor.
C)  minimum wage will not impact the unskilled labor market.
D)  unskilled labor market will change, but we cannot be certain how.E) None of the above
F) B) and D)

Question 12

When the price of a good falls, the price is transmitting information indicating that the good has become relatively

Accepted Answer

A)  scarcer.
B)  less scarce.
C)  more plentiful in demand.
D)  b and cE) B) and C)
F) A) and D)

Question 13

Exhibit 4-8
 F. What is the size of the total surplus at PF? A) area 1 + 2 + 3 B) area 1 + 2 + 3 + 4 C) area 1 + 2 + 3 + 4 + 5 D) area 1 + 2 + 3 + 4 + 5 + 6" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the size of the total surplus at PF?

Accepted Answer

A)  area 1 + 2 + 3
B)  area 1 + 2 + 3 + 4
C)  area 1 + 2 + 3 + 4 + 5
D)  area 1 + 2 + 3 + 4 + 5 + 6E) C) and D)
F) A) and B)

Question 14

Which of the following is false?

Accepted Answer

A)  When the U.S.government imposed price ceilings on gasoline, the result was a surplus of gasoline.
B)  When the U.S.government imposed price ceilings on gasoline, the result was a shortage of gasoline.
C)  If a price ceiling is imposed below the equilibrium price in a given market, the result is a shortage in that market.
D)  First-come-first-served is a commonly used rationing device.E) None of the above
F) B) and C)

Question 15

Suppose the government imposes a price ceiling above the equilibrium price of a given good. Which of the following is the most likely result?

Accepted Answer

A)  Some other rationing device will emerge to allocate the good among buyers.
B)  Some buyers and sellers will be willing to risk breaking the law in order to exchange the good at a price above the equilibrium price since there would be a shortage of the good at the price ceiling.
C)  No change will occur in the market.
D)  Brute force will be used to allocate the good among buyers.
E)  a, b, and dF) B) and D)
G) A) and D)

Question 16

Exhibit 4-1
 
-Refer to Exhibit 4-1. Some buyers will offer sellers $7 per unit instead of the $6 price ceiling because

Accepted Answer

A)  $7 is closer to the equilibrium price and buyers prefer equilibrium prices to all others.
B)  they think it is only fair for sellers to receive higher prices.
C)  they want to increase their chances of buying a good for which there is a shortage.
D)  it is customary to pay more than the price ceiling.E) All of the above
F) A) and C)

Question 17

A price floor (set above the equilibrium price)  on rice will

Accepted Answer

A)  force otherwise profitable farmers out of business.
B)  result in a shortage of rice.
C)  result in a surplus of rice.
D)  clear the market for rice.
E)  both a and bF) B) and E)
G) A) and D) C

Question 18

Exhibit 4-1
 
-Refer to Exhibit 4-1. The number of units bought and sold at the price ceiling is

Accepted Answer

A)  75.
B)  125.
C)  175.
D)  100.E) C) and D)
F) B) and C)

Question 19

Exhibit 4-6
 
-Refer to Exhibit 4-6. At a wage of $7, there will be a __________ of unskilled workers equal to __________ thousand workers.

Accepted Answer

A)  shortage; 10
B)  surplus; 20
C)  surplus; 10
D)  shortage; 20
E)  surplus; 15F) All of the above
G) A) and D)

Question 20

Exhibit 4-8
 F. What is the size of the consumers' surplus at PF? A) area 5 B) area 6 C) area 1 + 2 + 4 D) area 1" class="answers-bank-image d-inline" rel="preload" >
-Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the size of the consumers' surplus at PF?

Accepted Answer

A)  area 5
B)  area 6
C)  area 1 + 2 + 4
D)  area 1E) B) and C)
F) None of the above D

Exam 4: Prices Free Controlled and Relative

Exhibit 4-7 -Refer to Exhibit 4-7. The number of unskilled workers who want to work at the minimum wage is

Correct Answer
verified

Exhibit 4-9 -Refer to Exhibit 4-9. Suppose that the government imposes a price ceiling at a price of $11. How many fewer units would be exchanged at the price ceiling than would be exchanged at the equilibrium price?

Correct Answer
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At the minimum wage (set above the equilibrium wage) ,

Correct Answer
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Price serves as a

Correct Answer
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Exhibit 4-8 -Refer to Exhibit 4-8. If the wheat market is in competitive equilibrium the total surplus will equal

Correct Answer
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Exhibit 4-10 Unskilled Labor Market -Refer to Exhibit 4-10. Suppose that the government imposes a minimum wage of $7. How many fewer unskilled workers would be employed at the minimum wage, compared to the number that would be employed at the equilibrium wage?

Correct Answer
verified

A price ceiling is a government-mandated

Correct Answer
verified

Exhibit 4-8 -Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P_F. What has happened to the producers' surplus as a result of the imposition of the price floor?

Correct Answer
verified
D

-Refer to Situation 4-1. If no price controls had been in place, the effect of the oil embargo on the equilibrium price and quantity of gasoline would have been

Correct Answer
verified

If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor, then the

Correct Answer
verified

When the price of a good falls, the price is transmitting information indicating that the good has become relatively

Correct Answer
verified

Exhibit 4-8 -Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P_F. What is the size of the total surplus at P_F?

Correct Answer
verified

Which of the following is false?

Correct Answer
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Suppose the government imposes a price ceiling above the equilibrium price of a given good. Which of the following is the most likely result?

Correct Answer
verified

Exhibit 4-1 -Refer to Exhibit 4-1. Some buyers will offer sellers $7 per unit instead of the $6 price ceiling because

Correct Answer
verified

A price floor (set above the equilibrium price) on rice will

Correct Answer
verified
C

Exhibit 4-1 -Refer to Exhibit 4-1. The number of units bought and sold at the price ceiling is

Correct Answer
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Exhibit 4-6 -Refer to Exhibit 4-6. At a wage of $7, there will be a of unskilled workers equal to thousand workers.

Correct Answer
verified

Exhibit 4-8 -Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P_F. What is the size of the consumers' surplus at P_F?

Correct Answer
verified
D

Exam 4: Prices Free Controlled and Relative

Exhibit 4-7 -Refer to Exhibit 4-7. The number of unskilled workers who want to work at the minimum wage is

Correct AnswerverifiedShow Answer

Exhibit 4-9 -Refer to Exhibit 4-9. Suppose that the government imposes a price ceiling at a price of $11. How many fewer units would be exchanged at the price ceiling than would be exchanged at the equilibrium price?

Correct AnswerverifiedShow Answer

At the minimum wage (set above the equilibrium wage) ,

Correct AnswerverifiedShow Answer

Price serves as a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Exhibit 4-8 -Refer to Exhibit 4-8. If the wheat market is in competitive equilibrium the total surplus will equal

Correct AnswerverifiedShow Answer

Exhibit 4-10 ​ ​ Unskilled Labor Market ​ ​ -Refer to Exhibit 4-10. Suppose that the government imposes a minimum wage of $7. How many fewer unskilled workers would be employed at the minimum wage, compared to the number that would be employed at the equilibrium wage?

Correct AnswerverifiedShow Answer

A price ceiling is a government-mandated

Correct AnswerverifiedShow Answer

Exhibit 4-8 -Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What has happened to the producers' surplus as a result of the imposition of the price floor?

Correct AnswerverifiedD

-Refer to Situation 4-1. If no price controls had been in place, the effect of the oil embargo on the equilibrium price and quantity of gasoline would have been

Correct AnswerverifiedShow Answer

If the minimum wage law sets a price floor above the equilibrium wage in the market for unskilled labor, then the

Correct AnswerverifiedShow Answer

When the price of a good falls, the price is transmitting information indicating that the good has become relatively

Correct AnswerverifiedShow Answer

Exhibit 4-8 -Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the size of the total surplus at PF?

Correct AnswerverifiedShow Answer

Which of the following is false?

Correct AnswerverifiedShow Answer

Suppose the government imposes a price ceiling above the equilibrium price of a given good. Which of the following is the most likely result?

Correct AnswerverifiedShow Answer

Exhibit 4-1 -Refer to Exhibit 4-1. Some buyers will offer sellers $7 per unit instead of the $6 price ceiling because

Correct AnswerverifiedShow Answer

A price floor (set above the equilibrium price) on rice will

Correct AnswerverifiedC

Exhibit 4-1 -Refer to Exhibit 4-1. The number of units bought and sold at the price ceiling is

Correct AnswerverifiedShow Answer

Exhibit 4-6 -Refer to Exhibit 4-6. At a wage of $7, there will be a __________ of unskilled workers equal to __________ thousand workers.

Correct AnswerverifiedShow Answer

Exhibit 4-8 -Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at PF. What is the size of the consumers' surplus at PF?

Correct AnswerverifiedD

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Exhibit 4-10 Unskilled Labor Market -Refer to Exhibit 4-10. Suppose that the government imposes a minimum wage of $7. How many fewer unskilled workers would be employed at the minimum wage, compared to the number that would be employed at the equilibrium wage?

Correct Answer
verified

Correct Answer
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Exhibit 4-8 -Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P_F. What has happened to the producers' surplus as a result of the imposition of the price floor?

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D

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Exhibit 4-8 -Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P_F. What is the size of the total surplus at P_F?

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C

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Exhibit 4-6 -Refer to Exhibit 4-6. At a wage of $7, there will be a of unskilled workers equal to thousand workers.

Correct Answer
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Exhibit 4-8 -Refer to Exhibit 4-8. Suppose that wheat producers lobby the government for a price floor and receive one. This price floor is set at P_F. What is the size of the consumers' surplus at P_F?

Correct Answer
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D