MacroEconomics Practice Problems, Chapter 4

MacroEconomics Practice Problems, Chapter 4 -...

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Practice Problems: Chapter 4 Question 1  (1 point)   Which of the following is NOT a predictable result of a price ceiling? Question 1 options: development of an illegal black market exorbitant profits for producers of the good a persistent shortage an inefficiently low quality of the good provided Question 2  (1 point)   Why did the U.S. experience a gasoline shortage in 1979? Question 2 options: because the price of gas was legally prevented from rising to its equilibrium level because the demand for gasoline had increased too much because the supply of gasoline had decreased too much because oil producers had allowed refineries to fall into disrepair Question 3  (1 point)   Which of the following statements regarding price floors is true? Question 3 options: Price floors always benefit consumers and harm producers. Price floors make markets more efficient, but they diminish profit levels. Price floors result in shortages. Price floors are intended to help certain people, but they have side effects that may  harm others in predictable ways. Question 4  (1 point)   Which of the following is a likely result of a price floor imposed on providers of a particular service? Question 4 options: The service providers will offer an inefficiently high quality.
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The service providers will offer an inefficiently low quality. A shortage will develop. The quantity demanded will increase beyond what it would be in the absence of the  price floor. Question 5  (1 point)   The medallion system used to license taxicabs in New York City is an example of Question 5 options: a price floor a price ceiling a quota an excise tax.
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