Practice test 2 - A shortage is the same thing as scarcity....

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A shortage is the same thing as scarcity. results from the imposition of a price floor. results when a price ceiling is imposed above the market-clearing price. results when the amount that suppliers wish to supply exceeds the amount that consumers wish to purchase at a particular price. none of the above. Correct Answer: none of the above. A minimum wage that is set below the equilibrium wage Correct Answer: will have no effect on employment. A shortage exists when Correct Answer: the quantity demanded is greater than the quantity supplied. Auction markets usually Correct Answer: find an equilibrium. A price floor is placed in a market at $47 (above the equilibrium price). The equilibrium quantity would be 93 if the equilibrium price were to prevail. Which of the following will occur? Correct Answer: At $47, there will be a surplus. A price ceiling Correct Answer: may result in a shortage. A price floor
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Correct Answer: is a legal limit below which the price cannot fall. A price floor on an agricultural product may result in a surplus unless the Correct Answer: demand is increased to reduce the excess supply. Auction markets usually Correct Answer: find an equilibrium. A price ceiling that is set below the equilibrium price Correct Answer: both prohibits the market from clearing and causes a shortage. A price floor on an agricultural product may result in a surplus unless the Correct Answer: demand is increased to reduce the excess supply. A price ceiling placed on a market for apartments is called Correct Answer: rent control. All but which one of the following are the result of rent controls? Correct Answer: An increase in housing. A price ceiling is likely to result in Correct Answer: a black market. All but which one of the following are methods that economists might suggest to reduce crime? Correct Answer: Lowering the cost of crime.
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Black markets are likely to exist when Correct Answer: the government sets a price ceiling. It is difficult to remove a price ceiling because Correct Answer: there are some gainers with political clout. Price floors in labor markets are called Correct Answer: minimum wages. Price floors can work Correct Answer: only if the government buys the surplus. Price ceilings exist because Correct Answer: there are influential gainers. Rent control is a price ceiling in the rental housing market. produces more discrimination on the basis of sex, race, and religion. is income redistribution from landlords to tenants. usually results in a decline in the number of rental units over time correct Answer: all of the above. Suppose the Rose Bowl game is played in a stadium with seating for 100,000 people, but there are 125,000 people willing to pay the (below-equilibrium) price of $12 per ticket. How could this problem of a shortage of tickets be solved?
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Correct Answer: By allowing a black market to operate. Suppose that a price floor is placed in the corn market by the government.
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Practice test 2 - A shortage is the same thing as scarcity....

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