review%20sheet%202%202014%20sp08

review%20sheet%202%202014%20sp08 - Review Sheet Exam 2 AEB...

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Review Sheet Exam 2 AEB 2014 GOLDEN RULE : If material (or a concept) is covered in class, you are responsible for it even if it does not appear on the review. Chapter 6: Supply, Demand, and Government Policies (pp. 113 – 123 ONLY) - Price Ceilings o How they work and their effect on the market (i.e. shortages) o Rent Ceilings Consequences: hard to find housing, quality of housing falls, rationing systems evolve (wait lists, racial and social discrimination, black market rents etc) Who gains?: People with connections and unethical landlords. - Price Floors o How they work and their effect on the market (i.e. surplus) o Agricultural Price Supports Agricultural target prices (price floors in agricultural markets) Government buys up any surpluses (to keep prices at the target level) Program is paid for by tax payers Surplus crop destroyed by the government o Minimum Wage laws (a price floor in the market for un-skilled labor) Results in unemployment in the market for un-skilled labor
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This note was uploaded on 04/17/2008 for the course AEB 2014 taught by Professor Multiple during the Spring '08 term at University of Florida.

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review%20sheet%202%202014%20sp08 - Review Sheet Exam 2 AEB...

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