econ exam 2 Exam Question And
Answers 2024
price ceiling - correct answers✅A legal maximum on
the price at which a good can be sold
price floor - correct answers✅A legal minimum on the
price at which a good can be sold
tax incidence - correct answers✅the manner in which
the burden of a tax is shared among participants in a
market
deadweight loss - correct answers✅the fall in total
surplus that results from a market distortion, such as a
tax
binding price ceiling - correct answers✅set below
equilibrium price
binding floor price - correct answers✅set above the
equilibrium price
The government prohibits gas stations from selling
gasoline for more than $4.50 per gallon. - correct
answers✅price ceiling, non-binding
,econ exam 2 Exam Question And
Answers 2024
There are many teenagers who would like to work at gas
stations, but they are not hired due to minimum-wage
laws. - correct answers✅price floor, binding
The government has instituted a legal minimum price of
$4.50 per gallon for gasoline. - correct answers✅price
floor, binding
pressure on price - correct answers✅upward: shortage,
less quantity supplied and more quantity demanded
downward: surplus, more quantity supplied and less
quantity demanded
True or False: A price ceiling below $25 per box is a
binding price ceiling in this market. - correct
answers✅true
Because it takes many years before newly planted orange
trees bear fruit, the supply curve in the short run is
almost vertical. In the long run, farmers can decide
whether to plant oranges on their land, to plant
something else, or to sell their land altogether. Therefore,
the long-run supply of oranges is much more price
sensitive than the short-run supply of oranges. Assuming
that the long-run demand for oranges is the same as the
short-run demand, you would expect a binding price
, econ exam 2 Exam Question And
Answers 2024
ceiling to result in a ____ that is ___ in the long run than in
the short run. - correct answers✅shortage, larger
Rent controls force landlords to price apartments below
the equilibrium price level. An immediate effect is a
shortage (excess demand) of apartments, because the
quantity of apartments demanded is greater than the
quantity supplied at the regulated price. When cities
prevent landlords from charging market rents, which of
the following are common long-run outcomes? Check all
that apply.
a. The future supply of rental housing units increases.
b. Efficient use of housing space results.
c. Landlords earn lower profits from renting housing units,
but the rent charged has no effect on either the quantity
or quality of rental units.
d. The quantity of available rental housing units falls. -
correct answers✅d. The quantity of available rental
housing units falls.
Suppose a senator introduces a bill to legislate a
minimum hourly wage of $6. This type of price control is
called a ___ - correct answers✅price floor
Answers 2024
price ceiling - correct answers✅A legal maximum on
the price at which a good can be sold
price floor - correct answers✅A legal minimum on the
price at which a good can be sold
tax incidence - correct answers✅the manner in which
the burden of a tax is shared among participants in a
market
deadweight loss - correct answers✅the fall in total
surplus that results from a market distortion, such as a
tax
binding price ceiling - correct answers✅set below
equilibrium price
binding floor price - correct answers✅set above the
equilibrium price
The government prohibits gas stations from selling
gasoline for more than $4.50 per gallon. - correct
answers✅price ceiling, non-binding
,econ exam 2 Exam Question And
Answers 2024
There are many teenagers who would like to work at gas
stations, but they are not hired due to minimum-wage
laws. - correct answers✅price floor, binding
The government has instituted a legal minimum price of
$4.50 per gallon for gasoline. - correct answers✅price
floor, binding
pressure on price - correct answers✅upward: shortage,
less quantity supplied and more quantity demanded
downward: surplus, more quantity supplied and less
quantity demanded
True or False: A price ceiling below $25 per box is a
binding price ceiling in this market. - correct
answers✅true
Because it takes many years before newly planted orange
trees bear fruit, the supply curve in the short run is
almost vertical. In the long run, farmers can decide
whether to plant oranges on their land, to plant
something else, or to sell their land altogether. Therefore,
the long-run supply of oranges is much more price
sensitive than the short-run supply of oranges. Assuming
that the long-run demand for oranges is the same as the
short-run demand, you would expect a binding price
, econ exam 2 Exam Question And
Answers 2024
ceiling to result in a ____ that is ___ in the long run than in
the short run. - correct answers✅shortage, larger
Rent controls force landlords to price apartments below
the equilibrium price level. An immediate effect is a
shortage (excess demand) of apartments, because the
quantity of apartments demanded is greater than the
quantity supplied at the regulated price. When cities
prevent landlords from charging market rents, which of
the following are common long-run outcomes? Check all
that apply.
a. The future supply of rental housing units increases.
b. Efficient use of housing space results.
c. Landlords earn lower profits from renting housing units,
but the rent charged has no effect on either the quantity
or quality of rental units.
d. The quantity of available rental housing units falls. -
correct answers✅d. The quantity of available rental
housing units falls.
Suppose a senator introduces a bill to legislate a
minimum hourly wage of $6. This type of price control is
called a ___ - correct answers✅price floor
