Question : 31) Refer to Figure 4.3. If the government will not : 1381059

Economics

31) Refer to Figure 4.3. If the government will not allow retailers to charge less than $0.50 for a pencil, which of the following will happen?

A) Demand must eventually increase so that the market will come into equilibrium at a price of $0.50.

B) Supply must eventually decrease so that the market will come into equilibrium at a price of $0.50.

C) Retailers will have an excess supply of pencils.

D) The market will be in equilibrium at a price of $0.50.

32) If the price ceiling is set below the equilibrium price,

A) quantity demanded will equal quantity supplied.

B) there will be a surplus.

C) there will be a shortage.

D) demand will be less than supply.

33) If the price floor is set below the equilibrium price,

A) quantity demanded will be less than quantity supplied.

B) there will be a surplus.

C) there will be a shortage.

D) the floor will be ineffective.

34) If the price ceiling is set above the equilibrium price,

A) quantity demanded will equal quantity supplied.

B) there will be a surplus.

C) there will be a shortage.

D) demand will be less than supply.

35) If the price floor is set above the equilibrium price,

A) quantity demanded will equal quantity supplied.

B) there will be a surplus.

C) there will be a shortage.

D) the floor will be ineffective.

36) The government imposes a maximum price on apartments that is ABOVE 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) coupon rationing with coupons that can be resold.

B) coupon rationing with coupons that cannot be resold.

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

D) favored customer rationing.

38) The government imposes a price ceiling on gasoline 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 can be resold.

B) using rationing coupons that cannot be resold.

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

D) using rationing only on weekdays.

39) The government imposes a price ceiling on sugar that is above 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 on a first-come, first-served basis.

C) using rationing coupons that can be resold.

D) that no rationing system will be necessary.

40) People scalping tickets for a rock concert can sell their tickets for at least a normal profit

A) any time the rock group is popular.

B) when the price set by the concert hall is less than the market equilibrium price.

C) when prices are too high.

D) only when there is excess supply.

41) Related to the Economics in Practice on p. 82: If a hurricane results in the supply of hotel rooms decreasing and the demand for hotel rooms increases, the equilibrium price for hotel rooms ________ and the equilibrium quantity of hotel rooms ________.

A) will increase; will decrease

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

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

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 a hurricane results in the supply of hotel roomsdecreasing and the equilibrium price for hotel rooms increases, the demand for hotel rooms ________ and total revenue from the sale of hotel rooms ________.

A) has decreased; will decrease

B) has decreased; 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: When acquiring a ticket for a play takes a significant amount of time, the true economic cost of that ticket would include all of the following factors EXCEPT

A) the amount of time spent acquiring the ticket.

B) the utility provided by seeing the play.

C) the earning power of the person acquiring the ticket.

D) the purchase price of the ticket.

44) Related to the Economics in Practice on p. 88: Which of the following best explains why the people who wait for hours to acquire tickets to free performances earn less on average than the people who actually see those performances?

A) The value of time spent waiting in line is less for people who earn less money.

B) People who earn more money are less likely to be aware of the opportunity to acquire free tickets.

C) High-wage individuals are more likely to have schedule conflicts that prevent them from using their tickets.

D) People interested in live performances are likely to have access to other forms of entertainment, such as television and radio.

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.