The medallion system used to license taxicabs in new

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Chapter 5 quiz

The medallion system used to license taxicabs in New York City is an example of from MICROECONO 3E at Rutgers University

1 .   Which of the following is not a predictable result of a price ceiling ?
a. development of an illegal black market
b. exorbitant profits for producers of the good
c. a persistent shortage
d . an inefficiently low quality of the good provided
Answer:  b.   exorbitant profits for producers of the good
2 .   Why did Venezuela experience a shortage of basic food in 2006 ?
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3 .   Which of the following statements regarding price floors is TRUE ?
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4 .   Which of the following is a likely result of a price floor imposed on providers of a particular service ?
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5 .   The medallion system used to license taxicabs in New York City is an example of a ( n ) :
a. price floor .
b. price ceiling .
c. quota .
d . excise tax .
Answer:  c.   quota .
6 .   What is the name given to the wedge that occurs between the supply price and the demand price of the transacted quantity , when a good is subject to quantity restrictions ?
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7 .   Which of the following is not a likely result of a quantity control in the form of a binding quota ?
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8 .   Which group would be most likely to benefit from a binding price floor imposed on wheat ?
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15 .   Why do minimum wage laws in Italy and Spain result in a greater prevalence of workers being hired in unreported jobs " off the books " than do minimum wage laws in the United States ?
a . Workers in these countries prefer short - term employment contracts .
b . The minimum wages in these countries are so low that workers typically feel they have to
9 .   A binding price floor is designed to :
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10 .   A binding price ceiling is designed to :
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11 .   A binding minimum wage is a type of :
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12 .   If a price ceiling is imposed above the equilibrium price , what is the effect ?
a . There is no visible effect on the market outcome .
b . A shortage results .
c . A surplus results .
d . The quantity demanded will decrease .
Answer:  a .   There is no visible effect on the market outcome .
13 .   If a price floor is imposed above the equilibrium price in a market , what is the effect ?
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14 .   Which of the following would enhance the level of efficiency in a market ?
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16 .   What is the result of a binding quota restriction on quantity ?
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17 .   A binding price ceiling is presented graphically as a ( n ) :
a. price at equilibrium .
b. price below equilibrium .
c. price above equilibrium .
d . inefficiently low quality of the good provided .
Answer:  b.   price below equilibrium .
18 .   A binding price floor is presented graphically as a ( n ) :
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19 .   The graphical result of a binding price ceiling is :
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20 .   The result of a binding price floor is :
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Chapter 14 / Exercise 03
Exploring Microeconomics
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5. The medallion system used to license taxicabs in New York City is an example of a(n): a. price floor.b. price ceiling.c. quota.d. excise tax.
6. What is the name given to the wedge that occurs between the supply price and the demand price of the transacted quantity, when a good is subject to quantity restrictions?
7. Which of the following is nota likely result of a quantity control in the form of a binding quota?
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Microeconomics
The document you are viewing contains questions related to this textbook.
Chapter 14 / Exercise 03
Exploring Microeconomics
Sexton
Expert Verified
8. Which group would be mostlikely to benefit from a binding price floor imposed on wheat?
9. A binding price floor is designed to: a. increase efficiency.b. raise the price above the equilibrium price.c. keep the price below the equilibrium price.d. generate a shortage.
10. A binding price ceiling is designed to:

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