Question : 11) Which of the following describes a difference between a : 1239135

 

11) Which of the following describes a difference between a price support and a price ceiling?

A) A price support creates a deadweight loss while a price ceiling does not.

B) A price ceiling is a regulated price while a price support is a regulated quantity.

C) A price support decreases the quantity while a price ceiling does not.

D) A price ceiling increases the price above the equilibrium price while a price support does not.

E) A price support attempts to raise the price above the equilibrium price while a price ceiling does not.

12) Both price supports and a price floor can

A) create a deadweight loss.

B) decrease output below the equilibrium quantity.

C) decrease the price below the equilibrium price.

D) increase consumer surplus.

E) have no effect on producer surplus.

13) Which of the following is true?

i.A price ceiling set above the equilibrium price has no effects.

ii.A price ceiling set below the equilibrium price creates a surplus.

iii.A price floor set above the equilibrium price has no effects.

A) only i

B) only ii

C) only iii

D) i and ii

E) ii and iii

14) Assume a market is producing efficiently. Which type of government intervention in this market might create a deadweight loss?

i.a price ceiling

ii.a price floor

iii.a price support

A) i only

B) i and ii

C) iii only

D) ii and iii

E) i, ii, and iii

15) Which of the following is true?

i.A price ceiling is inefficient but fair.

ii.A price floor is inefficient and unfair.

iii.A price support increases the quantity produced.

A) only i

B) only ii

C) only iii

D) i and ii

E) ii and iii

16) Which of the following is true?

i.A price ceiling set below the equilibrium price decreases search activity.

ii.A minimum wage is an example of a price ceiling.

iii.A price support decreases the quantity consumed.

A) only i

B) only ii

C) only iii

D) i and iii

E) ii and iii

17) Which of the following is true?

i.A price support is inefficient.

ii.A price floor set above the equilibrium price creates a surplus.

iii.A price ceiling set above the equilibrium price creates a black market.

A) only i

B) only ii

C) only iii

D) i and ii

E) ii and iii

18) Which of the following can create a deadweight loss?

A) i only

B) i and iii

C) ii and iii

D) i, ii and iii

E) i and ii

19) Following a major natural disaster that destroys housing, a rent ceiling ________ be an effective policy to increase the quantity of more affordable housing for displaced residents because it would ________.

A) would not; discourage rebuilding and result in a shortage

B) would not; cause the quantity supplied to exceed the quantity demanded

C) would; cause increased search activity

D) would; create a black market that would result in a lower rent

E) would; encourage a greater quantity supplied

20) If an apartment owner charged ________ than a specified rent for housing, the government ________ impose a rent ceiling.

A) more; can

B) more; cannot

C) less; can

D) less; cannot

E) less; might