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Economics true false

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Question;TRUE/FALSE;1. Economic;policies often have effects that their architects did not intend or anticipate.;2. Rent-control;laws dictate a minimum rent that landlords may charge tenants.;3. Minimum-wage;laws dictate the lowest wage that firms may pay workers.;4. Price;controls are usually enacted when policymakers believe that the market price of;a good or service is unfair to buyers or sellers.;5. Price;controls can generate inequities.;6. Policymakers;use taxes to raise revenue for public purposes and to influence market;outcomes.;7. If;a good or service is sold in a competitive market free of government;regulation, then the price of the good or service adjusts to balance supply and;demand.;8. At;the equilibrium price, the quantity that buyers want to buy exactly equals the;quantity that sellers want to sell.;9. A;price ceiling is a legal minimum on the price at which a good or service can be;sold.;10. A;price ceiling set above the equilibrium price is not binding.;11. If;a price ceiling is not binding, then it will have no effect on the market.;12. To;be binding, a price ceiling must be set above the equilibrium price.;13. A;price ceiling set below the equilibrium price is binding.;14. A;price ceiling set below the equilibrium price causes quantity demanded to;exceed quantity supplied.;15. A;price ceiling set above the equilibrium price causes quantity demanded to;exceed quantity supplied.;16. A;binding price ceiling causes quantity demanded to be less than quantity;supplied.;17. A;price ceiling set below the equilibrium price causes a shortage in the market.;18. A;price ceiling set above the equilibrium price causes a surplus in the market.;19. A;binding price ceiling causes a shortage in the market.;20. When;a binding price ceiling is imposed on a market for a good, some people who want;to buy the good cannot do so.;21. Long;lines and discrimination are examples of rationing methods that may naturally;develop in response to a binding price ceiling.;22. Price;ceilings are typically imposed to benefit buyers.;23. Binding;price ceilings benefit consumers because they allow consumers to buy all the;goods they demand at a lower price.;24. All;buyers benefit from a binding price ceiling.;25. A;binding price ceiling may not help all consumers, but it does not hurt any;consumers.;26. When;the government imposes a binding price ceiling on a competitive market, a;surplus of the good arises, and sellers must ration the scarce goods among the;large number of potential buyers.;27. The;rationing mechanisms that develop under binding price ceilings are usually;inefficient.;28. Price;is the rationing mechanism in a free, competitive market.;29. Prices;are inefficient rationing devices.;30. When;free markets ration goods with prices, it is both efficient and impersonal.;31. When;a free market for a good reaches equilibrium, anyone who is willing and able to;pay the market price can buy the good.;32. If;a price ceiling of $2 per gallon is imposed on gasoline, and the market;equilibrium price is $1.50, then the price ceiling is a binding constraint on;the market.;33. If;a price ceiling of $1.50 per gallon is imposed on gasoline, and the market;equilibrium price is $2, then the price ceiling is a binding constraint on the;market.;34. A;price ceiling caused the gasoline shortage of 1973 in the United States.;35. One;common example of a price ceiling is rent control.;36. The;goal of rent control is to help the poor by making housing more affordable.;37. Economists;argue that rent control is a highly efficient way to help the poor raise their;standard of living.;38. Because;supply and demand are inelastic in the short run, the initial shortage caused;by rent control is large.;39. The;primary effect of rent control in the short run is to reduce rents.;40. The;housing shortages caused by rent control are larger in the long run than in the;short run because both the supply of housing and the demand for housing are;more elastic in the long run.;41. The;effects of rent control in the long run include lower rents and lower-quality;housing.;42. Rent;control may lead to lower rents for those who find housing, but the quality of;the housing may also be lower.;43. In;a free market, the price of housing adjusts to eliminate the shortages that;give rise to undesirable landlord behavior.;44. A;price floor is a legal minimum on the price at which a good or service can be;sold.;T;45. A;price floor set above the equilibrium price is not binding.;46. If;a price floor is not binding, then it will have no effect on the market.;47. To;be binding, a price floor must be set above the equilibrium price.;48. A;price floor set below the equilibrium price is binding.;49. A;price floor set below the equilibrium price causes quantity supplied to exceed;quantity demanded.;50. A;price floor set above the equilibrium price causes quantity supplied to exceed;quantity demanded.;51. A;binding price floor causes quantity supplied to be less than quantity demanded.;52. A;price floor set below the equilibrium price causes a surplus in the market.;53. A;price floor set above the equilibrium price causes a surplus in the market.;54. A;binding price floor causes a shortage in the market.;55. When;a binding price floor is imposed on a market for a good, some people who want;to sell the good cannot do so.;56. Discrimination;is an example of a rationing mechanism that may naturally develop in response;to a binding price floor.;57. Price;floors are typically imposed to benefit buyers.;58. Binding;price floors benefit sellers because they allow sellers to sell all the goods;they want at a higher price.;59. Not;all sellers benefit from a binding price floor.;60. A;binding price floor may not help all sellers, but it does not hurt any sellers.;61. The;rationing mechanisms that develop under binding price floors are usually;efficient.;62. When;a free market for a good reaches equilibrium, anyone who is willing and able to;sell at the market price can sell the good.;63. If;the equilibrium price of an airline ticket is $400 and the government imposes a;price floor of $500 on airline tickets, then fewer airline tickets will be sold;than at the market equilibrium.;64. If;the equilibrium price of an airline ticket is $500 and the government imposes a;price floor of $400 on airline tickets, then fewer airline tickets will be sold;than at the market equilibrium.;65. One;common example of a price floor is the minimum wage.;66. The;goal of the minimum wage is to ensure workers a minimally adequate standard of;living.;67. The;United States;is the only country in the world with minimum-wage laws.;68. States;in the U.S.;may mandate minimum wages above the federal level.;69. In;the labor markets, workers determine the supply of labor and firms determine;the demand.;70. In;an unregulated labor market, the wage adjusts to balance labor supply and labor;demand.;71. A;binding minimum wage causes the quantity of labor demanded to exceed the;quantity of labor supplied.;72. A;binding minimum wage creates unemployment.;73. A;binding minimum wage may not help all workers, but it does not hurt any workers.;74. A;binding minimum wage raises the incomes of those workers who have jobs, but it;lowers the incomes of workers who cannot find jobs.;75. The;economy contains many labor markets for different types of workers.

 

Paper#57995 | Written in 18-Jul-2015

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