Question : 7.4   Chapter Figures The figure above shows the supply and demand : 1226538

 

7.4   Chapter Figures

 

The figure above shows the supply and demand curves in the market for rental housing. A rent ceiling is set at $400 per month.

 

1) In the figure above, with the rent ceiling the quantity of housing supplied is ________ units, the quantity demanded is ________ units, and the quantity rented is ________ units.

A) 3,000; 6,000; 3,000

B) 3,000; 6,000; 6,000

C) 3,000; 6,000; 4,000

D) 3,000; 3,000; 3,000

E) 4,000; 4,000; 4,000

 

2) In the figure above, with the rent ceiling

A) there is a shortage of 3,000 units.

B) there is a surplus of 3,000 units.

C) there is a surplus of 2,000 units.

D) there is a shortage of 1,000 units.

E) the market is in equilibrium.

3) In the figure above, with the rent ceiling ________ units of housing are available, and black market rents might be as high as ________ a month.

A) 3,000; $625

B) 6,000; $400

C) 3,000; $550

D) 4,000; $550

E) 4,000; $625

 

The figure above shows the supply and demand curves in the market for rental housing. A rent ceiling is set at $400 per month.

 

4) As shown in the figure above, the rent ceiling

A) decreases consumer surplus.

B) increases producer surplus.

C) decreases deadweight loss.

D) increases the quantity of housing rented.

E) is efficient.

5) As shown in the figure above, the rent ceiling ________ consumer surplus and ________ producer surplus.

A) decreases; decreases

B) decreases; increases

C) increases; increases

D) increases; decreases

E) decreases; does not change

 

The figure above shows supply and demand in the market for labor. The government introduces a minimum wage of $7 per hour.

 

6) In the figure above, the number of workers employed is ________, and the wage paid is ________.

A) 3,000; $7 per hour

B) 7,000; $7 per hour

C) 5,000; $5 per hour

D) 5,000; $7 per hour

E) 3,000; $5 per hour

7) In the figure above, the number of unemployed workers is

A) 4,000.

B) 3,000.

C) 2,000.

D) 5,000.

E) zero.

 

8) The figure above shows that the lowest wage rate for which someone is willing to work is

A) $3 an hour.

B) $5 an hour.

C) $6 an hour.

D) $7 an hour.

E) $4 an hour.

 

9) In the figure above, the deadweight loss is

A) $4,000 an hour.

B) $2,000 an hour.

C) $1,000 an hour.

D) $5,000 an hour.

E) zero.

 

10) The figure above shows that the value of the resources used in job-search activity can be as large as ________ per hour.

A) $12,000

B) $8,000

C) $6,000

D) $4,000

E) $2,000

 

The figure above shows the market for sugar beets.  The government intervenes in this market and sets a support price at $35 a ton.

 

11) In the figure above, the quantity of sugar beets produced is ________ million tons per year, and the quantity bought by consumers is ________ million tons per year.

A) 30; 20

B) 20; 30

C) 25; 20

D) 20; 25

E) 25; 25

 

12) The figure above shows that to make the price support work, the government buys ________ million tons of sugar beets.

A) 10

B) 20

C) 30

D) 5

E) 15

13) The figure above shows that the government provides a subsidy to the farmers of ________ million.

A) $350

B) $1,050

C) $50

D) $100

E) $700

 

14) The figure above shows that the government subsidy accounts for ________ percent of the farmers’ revenue.

A) 33

B) 67

C) 50

D) 100

E) 25

 

15) The figure above shows that the deadweight loss from the government’s policy is

A) about $350 million.

B) about $25 million.

C) about $50 million.

D) about $100 million.

E) zero.