Question : 31) Refer to Figure 4.3. Retailers will have an excess : 1381350

 

31) Refer to Figure 4.3. Retailers will have an excess supply of pencils if the government will not allow retailers to charge less than ________ for a pencil.

A) $0.50

B) $0.45

C) $0.40

D) the equilibrium price

32) A shortage will occur if a ________ is set ________ the equilibrium price.

A) price floor; below

B) price floor; above

C) price ceiling; above

D) price ceiling; below

 

33) The market will be in equilibrium if ________ is set ________ the equilibrium price.

A) a price floor; below

B) a price ceiling; below

C) actual price; above

D) actual price; below

 

34) Quantity demanded will equal quantity supplied if a ________ is set ________ the equilibrium price.

A) price ceiling; above

B) price ceiling; below

C) price floor; above

D) price ceiling, at or below

 

35) A surplus will occur if a ________ is set ________ the equilibrium price.

A) price floor; below

B) price floor; above

C) price ceiling; above

D) price ceiling; below

36) The government imposes a maximum price on apartments that is BELOW the equilibrium price. You accurately predict that

A) the law will have no economic impact.

B) the law will create a surplus of apartments.

C) renters will find that landlords start offering to furnish the apartments.

D) landlords are less likely to do routine maintenance work in the apartments.

 

37) The type of non-price rationing that most closely approaches the market outcome is

A) favored customer rationing.

B) first-come, first-served basis or queuing.

C) coupon rationing with coupons that can be resold.

D) coupon rationing with coupons that cannot be resold.

 

38) The government imposes a price ceiling on heating oil that is below the market price. The rationing scheme that will minimize the misallocation of resources would be

A) using rationing coupons that cannot be resold.

B) using rationing coupons that can be resold.

C) using rationing on a first-come, first-served basis.

D) using rationing only on weekdays.

 

39) The government imposes a price floor on wheat that is below the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest

A) using rationing coupons that cannot be resold.

B) using rationing coupons that can be resold.

C) using a queuing system to compensate for the excess demand.

D) that no rationing system will be necessary.

40) Laura is scalping tickets for a Lakers’ game. She can sell her tickets for at least a normal profit

A) when prices are too high.

B) any time the Lakers are popular.

C) when the price set by the Lakers is less than the market equilibrium price.

D) only when there is excess supply.

 

41) Related to the Economics in Practice on p. 82: If the supply of generators decreases and the demand for generators increases, the equilibrium price for generators ________ and the equilibrium quantity of generators ________.

A) will increase; will decrease

B) will increase; may increase, decrease, or stay the same

C) may increase, decrease, or stay the same; will increase

D) may increase, decrease, or stay the same; may increase, decrease, or stay the same

 

42) Related to the Economics in Practice on p. 82: If the supply of generators decreased and the equilibrium price of generators decreases, the demand for generators ________ and total revenue from the sale of generators ________.

A) decreased; will decrease

B) increased; may increase, decrease, or stay the same

C) may have increased, decreased, or stayed the same; will decrease

D) may have increased, decreased, or stayed the same; may increase, decrease, or stay the same

 

43) Related to the Economics in Practice on p. 88: The true cost of the Shakespeare in the Park tickets is

A) zero.

B) $0 plus the opportunity cost of the time spent in line.

C) the cost to put on the performance.

D) the additional cost to the city of extra security.

44) Related to the Economics in Practice on p. 88: The initial price of $0 for the Shakespeare in the Park tickets is akin to the city of New York ________ the tickets.

A) issuing a price floor on

B) issuing a price ceiling on

C) issuing ration coupons for

D) assigning favored customer status for