Foundations of economics 6th by parkin ch07 clicker questions

that differs from the market equilibrium price Question 1 A price ceiling is a government regulation that makes it illegal to charge a price _______... Question 2 If the government impos

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Government

CLICKER QUESTIONS

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Question 1

Question 2

Question 3

Question 4 Question 5

Question 8 Question 9 Question 6

Question 6 Question 10

Checkpoint 7.1 Checkpoint 7.2 Checkpoint 7.3

Question 7

CHECKPOINT 7.1

A below the equilibrium price

B above the equilibrium price

C above what most people can afford

D above some specified level

E that differs from the market equilibrium price

Question 1

A price ceiling is a government regulation that makes it illegal to charge a price _

CHECKPOINT 7.1

A a shortage of 2,000 units

B a shortage of 4,000 units

C a surplus of 2,000 units

D a surplus of 4,000 units

E no shortage or surplus of units

Question 2

If the government imposes a rent ceiling of $400 a month in the

housing market shown, it will

create

CHECKPOINT 7.1

A will help eliminate the problem of scarcity

B allocate resources efficiently

C ensure that housing goes to the poorer people

D benefit the people who live in rent-controlled apartments

E benefit landlords because they know what rent to charge

their tenants

Question 3

Rent ceilings

CHECKPOINT 7.2

A increases the quantity of labor services supplied but

does not change the quantity of labor demanded

B decreases the quantity of labor services demanded but

does not change the quantity of labor supplied

C shifts the labor supply curve rightward

D shifts the labor demand curve leftward

E increases the amount of unemployment

Question 4

A minimum wage set above the equilibrium wage rate

_

CHECKPOINT 7.2

A the quantity of labor services demanded increases

B job search activity increases

C the supply of labor increases

D unemployment decreases because more workers accept

jobs at the higher minimum wage rate

E the quantity of labor supplied decreases because

unemployment increases

Question 5

If a minimum wage is set is above the equilibrium wage rate, _

CHECKPOINT 7.2

A the outcome in the labor market is inefficient

B both workers’ and firms’ surpluses shrink

C resources used in job search increases

D both options A and C occur

E options A, B, and C occur

Question 6

If a minimum wage is set above the equilibrium wage rate,

CHECKPOINT 7.2

A both employment and unemployment will decrease

B the deadweight loss will increase

C fewer resources will be lost in job search

D the labor market will be more efficient

E workers’ surplus will increase

Question 7

If the government increases the minimum wage rate, _

CHECKPOINT 7.3

A buy some of the good produced

B export some of the good produced

C receive a subsidy from the producers

D insure that imports are readily available

E be careful to always set the price support below the

equilibrium price

Question 8

To keep the market price equal to the price support, the government must

CHECKPOINT 7.3

A $4 a ton

B $32,000

C $8,000

Question 9

The figure shows a price

support program in an

agricultural market The amount

of the subsidy necessary to

keep the price at the support

price is _

CHECKPOINT 7.3

A increases consumer surplus, and the quantity produced is

efficient

B increases producer surplus, but the quantity produced is

inefficient

C increases both consumer surplus and producer surplus

D lowers producers’ marginal cost of production and does not

create a deadweight loss

E does not create a surplus, so the quantity produced is

Question 10

A price support with a subsidy