Question :
52) The above figure shows the market for DVDs. The : 1226551
52) The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect and taking account of the resources lost in search, consumer surplus equals ________.
A) $900,000
B) $400,000
C) $200,000
D) $180,000
E) $100,000
53) The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect, producer surplus equals ________.
A) $900,000
B) $400,000
C) $200,000
D) $100,000
E) $1,800,000
54) The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs. After this price ceiling is in effect, deadweight loss equals ________.
A) $1,600,000
B) $200,000
C) $800,000
D) $1,800,000
E) $400,000
55) In a housing market with a rent ceiling set below the equilibrium rent, as time passes the supply of apartments
A) decreases.
B) increases.
C) does not change.
D) becomes fixed by the government.
E) increases while the demand for apartments decreases.
56) New York City, which has had a rent ceiling law for more than sixty years, has many abandoned apartment buildings throughout the city. Which of the following explains this?
A) Few workers with jobs in the city want to live in there because of pollution.
B) No building permits for new apartment buildings have been issued for over fifty years.
C) Once any building gets so old, it is abandoned.
D) Landlords have no incentive to finance maintenance and remodeling of apartment buildings.
E) Rent ceilings make the construction of new buildings so profitable that old buildings are simply abandoned.
57) Which of the following is an example of the unfairness of rent control?
A) Voluntary exchange is encouraged by rent control.
B) Racial discrimination in renting is discouraged by rent control.
C) Newcomers have a more difficult time finding apartments.
D) Rich people do not get apartments in these markets.
E) Too many people rent apartments.
58) Suppose the city of Chicago imposes a rent control program that fixes rents at $400 below the equilibrium rent. With this plan
A) the quantity of apartments demanded will increase.
B) the quantity of apartments supplied will increase.
C) young people and poor people will have an easier time finding apartments.
D) the deadweight loss in Chicago’s apartment market will be eliminated.
E) there will be a surplus of apartments offered for rent.
59) Rent controls
A) create a deadweight loss.
B) increase maintenance by landlords.
C) benefit people who live in rent controlled apartments.
D) Both answers A and C are correct.
E) Both answers B and C are correct.
60) Rent ceilings are difficult to abolish because
A) they create such large profits for landlords.
B) current renters offer political support for ceilings.
C) the government doesn’t like to give up the tax revenues associated with ceilings.
D) they result in an efficient use of resources.
E) landlords lobby to keep them in place.
