Econ B-251 Exam 2 Study Guide COMPLETE EXAM
LATEST VERSION 2026-2027 QUESTIONS AND
ANSWERS
The symmetry principle in economics means
A) similar individuals must have similar outcomes.
B) all individuals must have similar outcomes.
C) all similar individuals must be treated similarly.
D) individuals must have different outcomes. - answer>>C) all similar individuals must be
treated similarly
With rent controls, which of the following is most likely to occur?
Choose all that apply.
A) decrease in consumer surplus.
B) Black market activity.
C) An efficient outcome.
D) An overproduction of housing.
E) An increase in search activity - answer>>A) decrease in consumer surplus; B) Black market
activity; and E) An increase in search activity
The above table shows the market for apartments.
If a rent ceiling is set at a price of $600 per month, then the housing shortage is ________
apartments.
,A) 300
B) 200
C) 0
D) 500 - answer>>C) 0
The above table shows the market for apartments. If a rent ceiling is set at a price of $300 per
month, then the housing shortage is ________ apartments.
A) 600
B) 500
C) 0
D) 100 - answer>>B) 500
At a price ceiling of $4 in the above figure a _______ of _______ units and a deadweight loss of
$ _______ occurs.
A) shortage; 300; 200
B) shortage; 200; 200
C) surplus; 400; 300
D) surplus; 200; 200 - answer>>B) shortage; 200; 200
If policy makers believe the equilibrium wage rate is unfairly "too low," then policy makers can
address this issue by imposing a price _________ __________ the equilibrium wage. As a result,
a(n) ________ of ________ occurs.
A) floor; above; surplus; labor
B) ceiling; above; surplus; jobs
C) subsidy; on; equilibrium; labor
,D) floor; below; shortage; jobs - answer>>A) floor; above; surplus; labor
The above table shows the market for labor.
If a minimum wage is set at a price of $12 per hour, then the number of unemployed workers is
__________ million. If a minimum wage is set at a price of $8 per month, then the number of
unemployed workers is _________ million.
A) 8;3
B) 9; 0
C) 6;8
D) 9; 2 - answer>>B) 9;0
Assume the demand curve intersects the x-axis at $12 and the supply curve intersects the x-axis
at $0. At a price floor of $8 in the above figure consumer surplus is $________, producer
surplus is $______________ units, and search activity is $________.
A) 100, 200, 400
B) 400, 200, 800
C) 400, 400, 800
D) 200, 400, 600 - answer>>B) 400, 400, 800
Suppose a $10 tax is placed on a good. The more elastic the supply of the good, the
A) larger the increase in the after-tax price.
B) more of the tax will be paid by the sellers.
C) less of the tax will be paid by the buyers.
D) smaller the decrease in the quantity sold. - answer>>A) larger the increase in the after-tax
price
, The figure above shows the pizza market in the city of Pepperoniville. If the government
imposes the sales tax shown in the figure on sellers, then the tax revenue is $__________.
A) 120
B) 30
C) 60,000
D) 120,000 - answer>>D) 120,000
The figure above shows the pizza market in the city of Pepperoniville. If the government
imposes the sales tax shown in the figure on sellers, then the price the buyer pays for pizza is
$________ and the price the seller receives for the pizza is $________.
A) 120,000; 90,000
B) 10, 10
C) 12, 9
D) 12, 3 - answer>>C) 12, 9
The above table shows the market for chocolate chip cookies. A $2 tax per pound of cookies is
placed on sellers. The new equilibrium price of cookies is $________ per pound and the
amount of tax paid by sellers is $_________ per pound.
A) 6,1
B) 4, 3
C) 3, 5
D) 5, 2 - answer>>A) 6, 1
LATEST VERSION 2026-2027 QUESTIONS AND
ANSWERS
The symmetry principle in economics means
A) similar individuals must have similar outcomes.
B) all individuals must have similar outcomes.
C) all similar individuals must be treated similarly.
D) individuals must have different outcomes. - answer>>C) all similar individuals must be
treated similarly
With rent controls, which of the following is most likely to occur?
Choose all that apply.
A) decrease in consumer surplus.
B) Black market activity.
C) An efficient outcome.
D) An overproduction of housing.
E) An increase in search activity - answer>>A) decrease in consumer surplus; B) Black market
activity; and E) An increase in search activity
The above table shows the market for apartments.
If a rent ceiling is set at a price of $600 per month, then the housing shortage is ________
apartments.
,A) 300
B) 200
C) 0
D) 500 - answer>>C) 0
The above table shows the market for apartments. If a rent ceiling is set at a price of $300 per
month, then the housing shortage is ________ apartments.
A) 600
B) 500
C) 0
D) 100 - answer>>B) 500
At a price ceiling of $4 in the above figure a _______ of _______ units and a deadweight loss of
$ _______ occurs.
A) shortage; 300; 200
B) shortage; 200; 200
C) surplus; 400; 300
D) surplus; 200; 200 - answer>>B) shortage; 200; 200
If policy makers believe the equilibrium wage rate is unfairly "too low," then policy makers can
address this issue by imposing a price _________ __________ the equilibrium wage. As a result,
a(n) ________ of ________ occurs.
A) floor; above; surplus; labor
B) ceiling; above; surplus; jobs
C) subsidy; on; equilibrium; labor
,D) floor; below; shortage; jobs - answer>>A) floor; above; surplus; labor
The above table shows the market for labor.
If a minimum wage is set at a price of $12 per hour, then the number of unemployed workers is
__________ million. If a minimum wage is set at a price of $8 per month, then the number of
unemployed workers is _________ million.
A) 8;3
B) 9; 0
C) 6;8
D) 9; 2 - answer>>B) 9;0
Assume the demand curve intersects the x-axis at $12 and the supply curve intersects the x-axis
at $0. At a price floor of $8 in the above figure consumer surplus is $________, producer
surplus is $______________ units, and search activity is $________.
A) 100, 200, 400
B) 400, 200, 800
C) 400, 400, 800
D) 200, 400, 600 - answer>>B) 400, 400, 800
Suppose a $10 tax is placed on a good. The more elastic the supply of the good, the
A) larger the increase in the after-tax price.
B) more of the tax will be paid by the sellers.
C) less of the tax will be paid by the buyers.
D) smaller the decrease in the quantity sold. - answer>>A) larger the increase in the after-tax
price
, The figure above shows the pizza market in the city of Pepperoniville. If the government
imposes the sales tax shown in the figure on sellers, then the tax revenue is $__________.
A) 120
B) 30
C) 60,000
D) 120,000 - answer>>D) 120,000
The figure above shows the pizza market in the city of Pepperoniville. If the government
imposes the sales tax shown in the figure on sellers, then the price the buyer pays for pizza is
$________ and the price the seller receives for the pizza is $________.
A) 120,000; 90,000
B) 10, 10
C) 12, 9
D) 12, 3 - answer>>C) 12, 9
The above table shows the market for chocolate chip cookies. A $2 tax per pound of cookies is
placed on sellers. The new equilibrium price of cookies is $________ per pound and the
amount of tax paid by sellers is $_________ per pound.
A) 6,1
B) 4, 3
C) 3, 5
D) 5, 2 - answer>>A) 6, 1
