Review Part 2 - 1 A quota A limits the price producers can...

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1) A quota A) limits the price producers can charge B) limits the quantity producers can sell C) is often used with agricultural products D) A and C E) B and C.
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1) A quota A) limits the price producers can charge B) limits the quantity producers can sell C) is often used with agricultural products D) A and C E) B and C.
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2) The value of a quota A) is the quota rent. B) the net price producers receive. C) the high price the consumers now pay. D) A and B.
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2) The value of a quota A) is the quota rent. B) the net price producers receive. C) the high price the consumers now pay. D) A and B.
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3) A price floor set above the equilibrium price will result in A) a continuation of the market-determined equilibrium price and quantity. B) the quantity supplied exceeding quantity demanded and thus a surplus in the market. C) a new market-determined equilibrium at a higher price and lower output level. D) the quantity demanded exceeding quantity supplied and thus a shortage in the market. E) increased government revenue.
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3) A price floor set above the equilibrium price will result in A) a continuation of the market-determined equilibrium price and quantity. B) the quantity supplied exceeding quantity demanded and thus a surplus in the market. C) a new market-determined equilibrium at a higher price and lower output level. D) the quantity demanded exceeding quantity supplied and thus a shortage in the market. E) increased government revenue.
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4) A price ceiling set above the equilibrium price will result in A) fewer exchanges. B) shortages. C) surpluses. D) black markets. E) the equilibrium price occurring.
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4) A price ceiling set above the equilibrium price will result in A) fewer exchanges. B) shortages. C) surpluses. D) black markets. E) the equilibrium price occurring.
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5) The equilibrium price of natural gas would be $2.00, but to protect consumers the government has fixed the price at $1.50. At this ceiling price the quantity ________ will be greater than the quantity ________, resulting in a ________ of natural gas. A) demanded; supplied; surplus B) demanded; supplied; shortage C) supplied; demanded; surplus D) supplied; demanded; shortage E) demanded; supplied; reduction in equilibrium price
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5) The equilibrium price of natural gas would be $2.00, but to protect consumers the government has fixed the price at $1.50. At this ceiling price the quantity ________ will be greater than the quantity ________, resulting in a ________ of natural gas. A) demanded; supplied; surplus B) demanded; supplied; shortage C) supplied; demanded; surplus D) supplied; demanded; shortage E) demanded; supplied; reduction in equilibrium price
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6) Which of the following is an example of a black-market transaction? A) A person buys a product below the ceiling
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Review Part 2 - 1 A quota A limits the price producers can...

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