1) An effective price support and subsidy to sugar growers? ______.
A. makes the sugar market more efficient
B. creates a deadweight loss
C. increases consumer surplus
D. eliminates producer surplus
2) The table shows the market for apartments.
If a rent ceiling is set at? $900 a? month, what is the housing? shortage? If a rent ceiling is set at? $1,500 a? month, what is the housing? shortage?
When a rent ceiling is set at? $900 a? month, the housing shortage is ______
apartments a month.
When a rent ceiling is set at? $1,500 a? month, the housing shortage is _______
apartments a month.
3) If a minimum wage is introduced that is above the equilibrium wage? rate, ______.
A. the quantity of labor demanded increases
B. unemployment decreases because more workers accept jobs at the higher minimum wage
C. the supply of labor increases and the supply of labor curve shifts rightward
D. ?job-search activity increases
4) Which of the following is not an outcome of an effective rent ceiling in a housing? market?
A. increased search activity for? rent-controlled housing
B. the price in the black market falls below the rent ceiling
C. a shortage of housing at the rent ceiling
D. long waiting lists of potential renters for? rent-controlled housing
5) In a housing market with an effective rent? ceiling, _______
A. all consumer surplus is eliminated by the costs incurred through search activity
B. all consumers? gain, and the deadweight loss is borne by the landlords who? can't supply housing at the new lower price
C. all landlords? gain, and the deadweight loss is borne by the consumers who? can't find housing
D. consumers who do find housing at the controlled rent gain
6) An effective price support in the wheat market? ______.
A. increases the quantity of wheat supplied and creates a surplus of wheat
B. decreases the demand for wheat and creates a surplus of wheat
C. decreases the supply of wheat and creates a shortage of wheat
D. increases the supply of wheat and creates a surplus of wheat
7) A minimum wage is efficient when it is set? _______.
A. equal to? $10 an hour
B. below the equilibrium wage rate
C. equal to? $5 an hour
D. above the equilibrium wage rate.