True Answer Correct 309 A binding price floor causes a shortage in the market

True answer correct 309 a binding price floor causes

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European governments hiring the surplus of workers. (True Answer )Correct 309 A binding price floor causes: a shortage in the market. Incorrect a surplus in the market. Incorrect wasted resources. Incorrect a surplus in the market and wasted resources. (True Answer )Correct 310 Suppose that a binding price floor is in place in a particular market. If the market is deregulated and the price floor is removed, which of the following effects could occur? The quantity demanded would decrease and the quantity supplied would increase. Incorrect An excess demand would develop. Incorrect There would be a decrease in the quality of the good supplied. (True Answer )Correct There would be an increase in the quality of the good supplied. Incorrect 311 One of the consequences of the minimum wage has been: decreased unemployment for low-skill workers. Incorrect workers offering to work off the books for less than the minimum wage. (True Answer )Correct lower production costs for small businesses. Incorrect increased employment for high-skill workers. Incorrect 312 Price controls: always increase economic efficiency. Incorrect always lead to more equitable results. Incorrect can result in inequitable outcomes. (True Answer )Correct are always set below the equilibrium price. Incorrect 313 Producers may supply a good with an inefficiently high quality if the government imposes: a price control. Incorrect
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an excise tax. Incorrect a binding price floor. (True Answer )Correct a binding price ceiling. Incorrect 314 In Europe the minimum wage has led to: lower unemployment, especially among young workers. Incorrect a proliferation of large companies in Italy. Incorrect widespread evasion of the minimum wage law in the black market for labor. (True Answer )Correct European governments hiring the surplus of workers. Incorrect 315 A price floor is likely to cause deadweight loss because: buyers incur additional search costs looking for the scarce good. Incorrect the quantity of the good being bought and sold is less than the equilibrium quantity. (True Answer )Correct a black market emerges and sellers sell the good at prices above the price floor. Incorrect some buyers who want to buy at the controlled price are unable to find a seller willing to sell at that price. Incorrect 316 Which is not an inefficiency caused by price floors? inefficiently low quality (True Answer )Correct inefficient allocation of sales among sellers Incorrect wasted resources Incorrect illegal activity Incorrect 317 Figure: The Market for Hybrid Cars
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Reference: Ref 5-21 (Figure: The Market for Hybrid Cars) Look at the figure The Market for Hybrid Cars. What area represents consumer surplus if there is a binding price floor at P 1 ?
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