If the government sets out to help low-income people by establishing a maximum amount that can be paid for rent:a. A price floor has been set and a shortage of

rental units may occur.b. A price ceiling has been set and a shortage of

rental units may occur.c. In the long run more units will appear.d. The quality of rental units will be inefficiently

high.e. A price ceiling has been set and a surplus of

rental units may occur.

If the government sets out to help low-income people by establishing a maximum amount that can be paid for rent:a. A price floor has been set and a shortage of

rental units may occur.b. A price ceiling has been set and a shortage of

rental units may occur.c. In the long run more units will appear.d. The quality of rental units will be inefficiently

high.e. A price ceiling has been set and a surplus of

rental units may occur.

If there is a binding price ceiling in the market for hybrid cars, the price would be equal to _____, consumers would demand _____, and producers would supply _____.A. P1; Q1; Q3B. P2; Q2; Q2C. P1; Q3; Q1D. P3; Q3; Q1E. P3; Q3; Q2

If there is a binding price ceiling in the market for hybrid cars, the price would be equal to _____, consumers would demand _____, and producers would supply _____.A. P1; Q1; Q3B. P2; Q2; Q2C. P1; Q3; Q1D. P3; Q3; Q1E. P3; Q3; Q2

Price ceilings that lead to shortages will impose costs on society because they:a. Will eliminate long waiting lines.b. May result in black market prices, which are

lower than the market-determined price would be.

c. Lead to a smaller quantity offered on the market.

d. Help businesses instead of consumers.e. Eliminate deadweight loss.

Price ceilings that lead to shortages will impose costs on society because they:a. Will eliminate long waiting lines.b. May result in black market prices, which are

lower than the market-determined price would be.

c. Lead to a smaller quantity offered on the market.

d. Help businesses instead of consumers.e. Eliminate deadweight loss.

When the government removes a binding price floor:a. Quantity demanded would decrease and

quantity supplied would increase.b. Quantity demanded would increase and

quantity supplied would decrease.c. An excess demand would develop.d. An excess supply would develop.e. Market efficiency is lost.

When the government removes a binding price floor:a. Quantity demanded would decrease and

quantity supplied would increase.b. Quantity demanded would increase and

quantity supplied would decrease.c. An excess demand would develop.d. An excess supply would develop.e. Market efficiency is lost.

West African cotton farmers are very upset about the subsidies the U.S. government pays to American cotton farmers. One reason for this could be that subsidized cotton from the United States:a. Leads to global cotton surpluses and lower

prices for West African farmers.b. Raises the world price of cotton.c. Has led to a global shortage of cotton.d. Has led to an increase in the demand for West

African cotton.e. Has led to improved efficiency in the global

cotton market.

West African cotton farmers are very upset about the subsidies the U.S. government pays to American cotton farmers. One reason for this could be that subsidized cotton from the United States:a. Leads to global cotton surpluses and lower

prices for West African farmers.b. Raises the world price of cotton.c. Has led to a global shortage of cotton.d. Has led to an increase in the demand for West

African cotton.e. Has led to improved efficiency in the global

cotton market.

The government imposes a quota limiting sales of clams to 1,000 pounds. According to the figure, the quota rent per pound in this case is:a. $7.50b. $5.00c. $2,500d. The quota rent can not be determined from the information

provided.e. $2.50

The government imposes a quota limiting sales of clams to 1,000 pounds. According to the figure, the quota rent per pound in this case is:a. $7.50b. $5.00c. $2,500d. The quota rent can not be determined from the information

provided.e. $2.50

If a government quota limit at 6 million rides is imposed on this market, then the quota rent that will accrue to the owner of a taxi medallion will be _____, but there will be a missed opportunity to consumers of _____.a. $1 per ride; 1 million ridesb. $2 per ride; 2 million ridesc. $3 per ride; 3 million ridesd. $4 per ride; 4 million ridese. $3 per ride; 4 million rides

If a government quota limit at 6 million rides is imposed on this market, then the quota rent that will accrue to the owner of a taxi medallion will be _____, but there will be a missed opportunity to consumers of _____.a. $1 per ride; 1 million ridesb. $2 per ride; 2 million ridesc. $3 per ride; 3 million ridesd. $4 per ride; 4 million ridese. $3 per ride; 4 million rides

If a government quota limit at 9 million rides is now imposed on this market, then the quota rent that will accrue to the owner of a taxi medallion will be _____, but there will be a missed opportunity to consumers of _____.a. $0.50 per ride; 1 million

ridesb. $2 per ride; 2 million ridesc. $3 per ride; 3 million ridesd. $4 per ride; 4 million ridese. $1 per ride; 1 million rides

If a government quota limit at 9 million rides is now imposed on this market, then the quota rent that will accrue to the owner of a taxi medallion will be _____, but there will be a missed opportunity to consumers of _____.a. $0.50 per ride; 1 million

ridesb. $2 per ride; 2 million ridesc. $3 per ride; 3 million ridesd. $4 per ride; 4 million ridese. $1 per ride; 1 million rides

If the U.S. government imposes an effective quota on the amount of French wine allowed into the United States, the price of French wine in the United States will _____ while the U.S.-produced wine will _____. (tough one)a. Stay the same; stay the sameb. Increase; decreasec. Decrease; increased. Decrease; decreasee. Increase; increase

If the U.S. government imposes an effective quota on the amount of French wine allowed into the United States, the price of French wine in the United States will _____ while the U.S.-produced wine will _____. (tough one)a. Stay the same; stay the sameb. Increase; decreasec. Decrease; increased. Decrease; decreasee. Increase; increase

If the U.S. government imposes an effective quota on the amount of French wine allowed into the United States, the price of French wine in the United States will _____ while the U.S.-produced wine will _____. (tough one)a. Stay the same; stay the sameb. Increase; decreasec. Decrease; increased. Decrease; decreasee. Increase; increase

Quotas often:a. Result in fewer incentives to engage in illegal

activities.b. Create a surplus of goods in the market.c. Create more efficient market outcomes.d. Are necessary to increase the quantity of the

goods in the market.e. Cause a wedge between the supply price and

demand price and discourages mutually beneficial transactions.

Quotas often:a. Result in fewer incentives to engage in illegal

activities.b. Create a surplus of goods in the market.c. Create more efficient market outcomes.d. Are necessary to increase the quantity of the

goods in the market.e. Cause a wedge between the supply price and

demand price and discourages mutually beneficial transactions.

Black market or illegal activities increase with the imposition of price controls in markets. Black marketsa. Improve the situation of all participants in

the price-controlled market.b. Worsen the situation for those people who

obey the rules imposed by the government.c. Have little or no real impact on price-

controlled markets.d. Create greater respect in society for the next

to obey laws.

Black market or illegal activities increase with the imposition of price controls in markets. Black marketsa. Improve the situation of all participants in

the price-controlled market.b. Worsen the situation for those people who

obey the rules imposed by the government.c. Have little or no real impact on price-

controlled markets.d. Create greater respect in society for the next

to obey laws.

An effective quantity control, or quota,a. Limits the price that suppliers can charge for

the good or service in the regulated market.b. Limits the price that consumers must pay for

the good or service in the regulated market.c. Limits the amount of the good or service

available in the regulated market.d. Increases the quantity of the good in the

regulated market to a quantity above equilibrium.

An effective quantity control, or quota,a. Limits the price that suppliers can charge for

the good or service in the regulated market.b. Limits the price that consumers must pay for

the good or service in the regulated market.c. Limits the amount of the good or service

available in the regulated market.d. Increases the quantity of the good in the

regulated market to a quantity above equilibrium.