Review questions test2

Review questions test2 - Review Questions for Midterm#2...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Clague Economics 102 You should answer these questions yourself first. An answer code will be posted on the Thursday before the test. Questions chap 6 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. _C___ 1. A price ceiling is binding when it is set a. above the equilibrium price, causing a shortage. b. above the equilibrium price, causing a surplus. c. below the equilibrium price, causing a shortage. d. below the equilibrium price, causing a surplus. _A___ 2. Which of the following observations would be consistent with a binding price ceiling in a market? a. A smaller quantity of the good is bought and sold after the price ceiling becomes effective than before the price ceiling became effective. b. A smaller quantity of the good is demanded after the price ceiling becomes effective than before the price ceiling became effective. c. A larger quantity of the good is supplied after the price ceiling becomes effective than before the price ceiling became effective. d. All of the above are correct. __A__ 3. Under rent control, landlords cease to be responsive to tenants' concerns about the quality of the housing because a. with shortages and waiting lists, they have no incentive to maintain and improve their property. b. they become resigned to the fact that many of their apartments are going to be vacant at any given time. c. with rent control the government guarantees landlords a minimal level of profit. d. with rent control it becomes the government's responsibility to maintain rental housing. __D__ 4. Which of the following observations would be consistent with a binding price floor in a market? a. A smaller quantity of the good is bought and sold after the price floor becomes effective than before the price floor became effective. b. A smaller quantity of the good is demanded after the price floor becomes effective than before the price floor became effective. c. A larger quantity of the good is supplied after the price floor becomes effective than before the price floor became effective. d. All of the above are correct. __D__ 5. Which of the following is not a result of government-imposed rent control? a. fewer new apartments offered for rent b. less maintenance provided by landlords c. bribery d. higher quality housing __B__ 6. The minimum wage, if it is binding, lowers the incomes of a. no workers. b.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/07/2008 for the course ECON 102 taught by Professor Clague during the Spring '08 term at San Diego State.

Page1 / 5

Review questions test2 - Review Questions for Midterm#2...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online