ECON 102 QUESTIONS AND ANSWERS LATEST UPDATED
VERSION, GRADED A+.
If a black market develops, the housing market is. (Rent Ceiling was lower than equilibrium and there
was still a demand)
Unfair according to the fair results view of fairness and unfair according to the fair rules view of fairness.
The government of Venezuela controls the price of food and there are shortages of milk, rice, coffee,
pasta, sugar, corn flour and cooking oil. Eggs have disappeared from store shelves.
The price controls describe in the news clip are
Price Ceilings
Suppose that Congress caps executive pay at a level below the equilibrium.
The quantity of executives demanded will ______, the quantity of executives supplied will ______
Increase; Decrease
Executive Pay will fall.
The outcome is inefficient because
The marginal benefit to firms exceeds the marginal cost of work to executives
concerned about the political fallout from rising college tuition, the U.S government decides to
impose a price ceiling on tuition at $25,000 a student. If more colleges opened and drove the
equilibrium price to $20,000 a student, __ of college education would emerge. The U.S market for
college educaiton would be ___.
Neither a surplus nor shortage; efficient
Concerned about the political fallout from rising gas prices, the government decides to impose a price
ceiling on gasoline of $2.00 a gallon. If a global shortage of oil sends the equilibrium price of gasoline
to $2.50 a gallon, ___ of gasoline will emerge. The market for gasoline will be ___.
a shortage: inefficient because marginal benefit exceeds marginal cost
Concerned about the political fallout from rising gas prices, suppose that the U.S government imposes
a price ceiling of $3.00 a gallon on gasoline. The price ceiling creates lines at the pumps when the price
ceiling _____.
Is below the market equilibrium price.
suppose the government introduces a ceiling on the fees that lawyers are permitted to charge. How
would the amount of work done by lawyers, the consumer surplus of people who hire lawyers, and
the producer surplus of law firms change?
VERSION, GRADED A+.
If a black market develops, the housing market is. (Rent Ceiling was lower than equilibrium and there
was still a demand)
Unfair according to the fair results view of fairness and unfair according to the fair rules view of fairness.
The government of Venezuela controls the price of food and there are shortages of milk, rice, coffee,
pasta, sugar, corn flour and cooking oil. Eggs have disappeared from store shelves.
The price controls describe in the news clip are
Price Ceilings
Suppose that Congress caps executive pay at a level below the equilibrium.
The quantity of executives demanded will ______, the quantity of executives supplied will ______
Increase; Decrease
Executive Pay will fall.
The outcome is inefficient because
The marginal benefit to firms exceeds the marginal cost of work to executives
concerned about the political fallout from rising college tuition, the U.S government decides to
impose a price ceiling on tuition at $25,000 a student. If more colleges opened and drove the
equilibrium price to $20,000 a student, __ of college education would emerge. The U.S market for
college educaiton would be ___.
Neither a surplus nor shortage; efficient
Concerned about the political fallout from rising gas prices, the government decides to impose a price
ceiling on gasoline of $2.00 a gallon. If a global shortage of oil sends the equilibrium price of gasoline
to $2.50 a gallon, ___ of gasoline will emerge. The market for gasoline will be ___.
a shortage: inefficient because marginal benefit exceeds marginal cost
Concerned about the political fallout from rising gas prices, suppose that the U.S government imposes
a price ceiling of $3.00 a gallon on gasoline. The price ceiling creates lines at the pumps when the price
ceiling _____.
Is below the market equilibrium price.
suppose the government introduces a ceiling on the fees that lawyers are permitted to charge. How
would the amount of work done by lawyers, the consumer surplus of people who hire lawyers, and
the producer surplus of law firms change?
