IntroSpring18_quiz6.pdf - Introduction to Economics Chapter...

Introduction to Economics
Chapter 6
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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) In the above figure, a rent ceiling of $300 per month would
A) result in a shortage of 7000 units. B) not affect the equilibrium quantity.
C) result in a shortage of 2000 units. D) result in a surplus of 7000 units.
1)
2) In the above figure, a rent ceiling of $500 per month would 2)
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3) The above figure shows the demand and supply curves for housing in City B. What would be the
effects of a rent ceiling equal to $1000 per month?
C) a surplus equal to 3000 apartments
3)
D) a shortage equal to 3000 apartments
4) The above figure shows the apartment market in Big City. What is the equilibrium rent in Big City? 4)
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5) Effective rent controls
A) have no effect on search activity.
B) decrease search activity.
C) increase search activity.
D) shift the long - run housing supply curve rightward.
5)
6) With rent controls, what mechanism might arise to bring about an equilibrium? 6)
7) The price ceiling depicted in the above figure results in
B) producer surplus decreasing from $24 thousand to $6 thousand.
7)
C) a deadweight loss of $16 thousand.
D) Both answers A and B are correct.
8) The intent of minimum wage laws is to 8)
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