Question : 63) The graph shows the market for holiday condos in : 1241611

 

 

63) The graph shows the market for holiday condos in West Palm Beach. The equilibrium rent is ________ a week.

A) any amount less than $1,550

B) any amount greater than $1,550

C) $1,550

D) $4,000

E) None of the above answers is correct.

 

64) In a housing market with a rent ceiling set below the equilibrium rent,

A) some people seeking an apartment to rent will not be able to find one.

B) the total cost of renting an apartment will decrease for all those seeking housing.

C) some landlords will not be able to find renters to fill available apartments.

D) search will decrease because renters no longer need to search for less expensive apartments.

E) None of the above answers are correct because to have an impact, the rent ceiling must be set above the equilibrium rent.

65) The graph shows the market for ski chalets in Aspen. The Aspen Tourist Board asks the local government to impose a rent ceiling on ski chalets. If the rent ceiling is set at $1,900 a week, then there is ________.

A) a shortage of 3,000 chalets a week

B) a surplus of 3,000 chalets a week

C) neither a shortage nor surplus of chalets

D) a shortage of 6,000 chalets a week

E) a surplus of 6,000 chalets a week.

 

66) A rent ceiling on housing creates a problem of allocating the available housing units because

A) the demand for housing decreases and the demand curve shifts leftward.

B) the supply of housing increases and the supply curve shifts rightward.

C) a shortage of apartments occurs.

D) a surplus of apartments occurs.

E) it eliminates search, which is one of the major ways housing units are allocated.

67) Suppose that the government imposes a price ceiling on gasoline that is below the equilibrium price. The black market for gasoline is ________ market in which the price ________ ceiling price.

A) a legal; exceeds the

B) an illegal; exceeds the

C) a legal; is less than the

D) an illegal; is less than the

E) an illegal; equals

 

68) If a rent ceiling is imposed that is less than the equilibrium rent, which of the following outcomes is most likely to occur?

A) reduced search activity

B) black market activity

C) a building boom

D) a housing surplus

E) None of the above answers is correct because to have an impact, the rent ceiling must be above the equilibrium rent.

69) The graph shows the market for ski chalets in Aspen. If a rent ceiling is set at $1,900 a week, then the maximum amount charged in the black market is ________ a week.

A) $1,900

B) $2,050

C) $2,125

D) $225

E) $150

70) The graph shows the market for holiday condos in West Palm Beach. If a rent ceiling is set at $1,700 a week, the quantity of holiday condos rented ________.

A) is 2,000 a week

B) is 4,000 a week

C) is 5,000 a week

D) is some amount, but more information is needed to determine the amount.

E) depends on the black market

 

71) Rent ceilings

A) increase search activity.

B) result in surpluses.

C) create efficiency.

D) benefit producers.

E) have no effect if they are set below the equilibrium rent.

72) A rent ceiling creates a deadweight loss

A) if it is set below the equilibrium rent.

B) if it is set equal to the equilibrium rent.

C) if it set above the equilibrium rent.

D) if it decreases the taxes the government collects in the housing market.

E) never, because if it did create a deadweight loss, the government would not impose it.

 

73) If a price ceiling is introduced in the market for milk below the market equilibrium price, then the producer surplus made by dairy farmers ________.

A) will increase

B) will decrease

C) will not change

D) might increase or decrease depending on whether the demand for milk increases or decreases

E) might increase or decrease depending on whether the supply of milk decreases or increases

74) The graph shows the market for rental housing in Little Rock. The market for apartments is efficient when ________.

A) the quantity of apartments demanded is 12,000 a month

B) the rent ceiling is set at $300 a month

C) there is no rent ceiling

D) the quantity of apartments supplied is 6,000 a month

E) the rent charged is less than $450

 

75) Rent ceilings

A) eliminate the problem of scarcity.

B) allocate resources efficiently.

C) ensure that housing goes to the poorer people.

D) benefit renters living in rent-controlled apartments.

E) benefit all landlords because the landlords know what rent to charge their renters.

76) A rent ceiling is

A) fair, because it helps all renters.

B) fair, because it insures that low-income families can rent apartments.

C) fair, because it helps all landlords.

D) unfair.

E) fair, because it helps more renters than it harms.