1、Microeconomics, 10e (Parkin)Chapter 6 Government Actions in Markets1 A Housing Market With a Rent Ceiling1) A price ceiling is a priceA) below which a seller cannot legally sell.B) above which a seller cannot legally sell.C) that creates a surplus of the good.D) Both answers A and C are correct.Answ
2、er: BTopic: Price CeilingSkill: RecognitionQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking2) A price ceiling _.A) makes it illegal to charge a higher price than the specified priceB) is more effective when it is higherC) is necessary to maintain market equilibriumD) occurs in
3、 housing markets onlyAnswer: ATopic: Price CeilingSkill: RecognitionQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking3) A price _ is a regulated _ that must be set below the equilibrium price to have an effect.A) floor; priceB) floor; quantityC) ceiling; priceD) ceiling; quanti
4、tyAnswer: CTopic: Rent CeilingSkill: RecognitionQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking4) In order to have an effect, a price ceiling must be set _. A) above the equilibrium priceB) equal to the equilibrium priceC) below the equilibrium priceD) by suppliersAnswer: CTo
5、pic: Rent CeilingSkill: RecognitionQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking5) A rent ceiling below the equilibrium rent will createA) a more efficient allocation of housing.B) a larger number of apartments rented.C) no change in the number of apartments rented.D) incre
6、ased search time and black markets.Answer: DTopic: Rent CeilingSkill: RecognitionQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking6) A rent ceiling _.A) increases the quantity of rental units suppliedB) cannot change the market priceC) set above equilibrium price has no effectD
7、) generally aims at insuring that landlords receive a higher rent than would otherwise be the caseAnswer: CTopic: Rent CeilingSkill: ConceptualQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking7) A rent ceiling set above the equilibrium rentA) restricts the quantity demanded but
8、 not the quantity supplied.B) restricts the quantity supplied but not the quantity demanded.C) restricts both the quantity demanded and the quantity supplied.D) has no effect.Answer: DTopic: Rent CeilingSkill: AnalyticalQuestion history: Previous edition, Chapter 6AACSB: Analytical Skills8) A price
9、ceiling, such as a rent ceiling,A) always results in a surplus.B) always results in a shortage.C) results in a surplus if the ceiling price is less than the equilibrium price.D) results in a shortage if the ceiling price is less than the equilibrium price.Answer: DTopic: Price CeilingSkill: Recognit
10、ionQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking9) Which of the following is an effect of a price ceiling set below the equilibrium price?A) Less of the good is produced with the ceiling than would be produced without the ceiling.B) The price ceiling has no effect on the ma
11、rket equilibrium.C) Consumers can buy more than they can at the equilibrium price because the ceiling price is lower.D) None of the above answers is correct.Answer: ATopic: Price CeilingSkill: RecognitionQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking10) Suppose the governmen
12、t imposes a price ceiling on gasoline that is less than the equilibrium price. As a result,A) the price of gasoline rises to the equilibrium price.B) there is incentive for buyers to undertake search activity.C) the supply of gasoline will increase and the supply curve will shift rightward.D) the de
13、mand for gasoline will decrease and the demand curve will shift leftward.Answer: BTopic: Price CeilingSkill: ConceptualQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking11) Which of the following is NOT a potential impact of a rent ceiling set below the equilibrium rent?A) a sur
14、plusB) an increase in searchC) a deadweight lossD) None of the above because they are all impacts of a rent ceiling set below the equilibrium rent.Answer: ATopic: Price CeilingSkill: ConceptualQuestion history: Modified 10th editionAACSB: Reflective Thinking12) A price ceiling can result in which of
15、 the following?A) inefficiencyB) black marketsC) increased search activitiesD) All of the above answers are correct.Answer: DTopic: Price CeilingSkill: AnalyticalQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking13) Sherry wants to rent an apartment. Although rents are below wha
16、t she is willing to pay, she cannot find an apartment. Then after a month of searching, she finds an apartment but she has to pay an additional $1,000 to have the locks changed. Sherry has just experienced the effects of _.A) a rent floor with a black marketB) inelastic demandC) a market working eff
17、icientlyD) a rent ceilingAnswer: DTopic: Rent CeilingSkill: ConceptualQuestion history: Previous edition, Chapter 6AACSB: Communication14) Price ceilings, such as rent ceilings, set below the equilibrium priceA) increase producer surplus.B) decrease producer surplus.C) do not affect producer surplus
18、.D) might increase or decrease producer surplus.Answer: BTopic: Price CeilingSkill: RecognitionQuestion history: Modified 10th editionAACSB: Reflective Thinking15) Which of the following is an economic policy that promotes the efficient quantity of apartments?A) a rent floor above the equilibrium re
19、ntB) a rent ceiling below the equilibrium rentC) a sales tax imposed on renting an apartmentD) none of the aboveAnswer: DTopic: A Regulated Housing MarketSkill: ConceptualQuestion history: Previous edition, Chapter 6AACSB: Analytical Skills16) A rent ceiling results in a shortage. As a result, which
20、 of the following do you expect?A) The shortage will persist as long as the ceiling is in effect.B) Discrimination as landlords choose their tenants, possibly based on race, age, or gender.C) A black market for apartments whereby higher rents are obtained through various other charges.D) All of the
21、above would be expected.Answer: DTopic: A Regulated Housing MarketSkill: AnalyticalQuestion history: Previous edition, Chapter 6AACSB: Communication17) A price ceiling set below the equilibrium price _ search activity and _ the use of black markets.A) increases; increasesB) increases; decreasesC) de
22、creases; increasesD) decreases; decreasesAnswer: ATopic: A Regulated MarketSkill: AnalyticalQuestion history: Previous edition, Chapter 6AACSB: Analytical Skills18) The opportunity cost of buying a good includesI.the price of the good.II.the value of time spent searching for the good.A) only IB) onl
23、y IIC) both I and IID) neither I nor IIAnswer: CTopic: Search ActivitySkill: RecognitionQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking19) When a rent ceiling is imposed in a housing market, the opportunity cost of housing equals theA) rent.B) market equilibrium rent that wou
24、ld prevail in the absence of a rent ceiling.C) value of the time and resources spent searching plus the rent.D) consumer surplus.Answer: CTopic: Search ActivitySkill: ConceptualQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking20) Search activity _.A) occurs there is a surplus o
25、f the goodB) is unnecessary when a black market existsC) increases when an effective price ceiling is set on a goodD) decreases when an effective price ceiling is set on a goodAnswer: CTopic: Search ActivitySkill: RecognitionQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking21)
26、A rent ceiling set below the equilibrium rent willA) increase search activity.B) decrease search activity.C) have no effect on search activity.D) shift the housing supply curve rightward.Answer: ATopic: Search ActivitySkill: ConceptualQuestion history: Modified 10th editionAACSB: Reflective Thinking
27、22) One consequence of rent ceilings set below the equilibrium rent is thatA) a surplus of housing units develops.B) renters are no longer exploited by landlords.C) it makes the long-run housing supply more elastic.D) search costs for housing increase.Answer: DTopic: Search ActivitySkill: Conceptual
28、Question history: Modified 10th editionAACSB: Reflective Thinking23) With rent controls, which of the following is most likely to occur?A) decreased search activityB) black market activityC) a building boomD) a housing surplusAnswer: BTopic: Black MarketsSkill: RecognitionQuestion history: Previous
29、edition, Chapter 6AACSB: Communication24) _ is an illegal activity between buyers and sellers sometimes used to evade a price ceiling.A) Increased search activityB) A price floorC) Creating a shortageD) A black marketAnswer: DTopic: Black MarketsSkill: ConceptualQuestion history: Previous edition, C
30、hapter 6AACSB: Reflective Thinking25) A rent ceiling results in a shortage. As a result, which of the following do you expect?A) A shortage of applicants for the apartments available.B) Discrimination as tenants choose their landlords, possibly based on race, age, or gender.C) A black market for apa
31、rtments whereby higher rents are obtained through various other charges.D) In the long-run, more and more people will want to become landlords.Answer: CTopic: Black MarketsSkill: AnalyticalQuestion history: Previous edition, Chapter 6AACSB: Reflective Thinking26) With rent controls, what mechanism m
32、ight arise to bring about an equilibrium?A) decreased search costsB) black market activityC) increased advertising by landlordsD) more favorable leases offered to tenantsAnswer: BTopic: Black MarketsSkill: ConceptualQuestion history: Previous edition, Chapter 6AACSB: Ethical Reasoning27) One common
33、effect of rent ceilings in big cities isA) that landlords build more apartments.B) that landlords charge key money, high payments charged to new tenants for new locks and keys.C) to equalize the quantity of apartments demanded and the quantity supplied in neighborhoods.D) to reduce the search activi
34、ty by those seeking shelter.Answer: BTopic: Black MarketsSkill: AnalyticalQuestion history: Previous edition, Chapter 6AACSB: Ethical Reasoning28) The stricter the enforcement of a price ceiling, theA) smaller is the difference between the black market price and the legal market price of the good.B)
35、 larger is the difference between the black market price and the legal market price of the good.C) greater is the amount of the good available in total, from either the legal market or the black market.D) Both answers B and C are correct.Answer: BTopic: Black MarketsSkill: ConceptualQuestion history
36、: Previous edition, Chapter 6AACSB: Communication29) Which of the following is a result of a rent ceiling set below the equilibrium rent?I.equity in the housing marketII.efficient allocation of resourcesIII.a shortage of housing units.A) I and IIB) I and IIIC) II onlyD) III onlyAnswer: DTopic: Ineff
37、iciency of Rent CeilingsSkill: ConceptualQuestion history: Modified 10th editionAACSB: Ethical Reasoning30) A rent ceiling creates a shortage. As a result, which of the following occurs?A) only a loss of consumer surplus for tenantsB) only a loss of producer surplus for landlordsC) a loss of both co
38、nsumer and producer surplusD) a gain of both consumer and producer surplusAnswer: CTopic: Inefficiency of Rent CeilingsSkill: AnalyticalQuestion history: Previous edition, Chapter 6AACSB: Analytical Skills31) A rent ceiling creates a shortage. As a result, there isA) an efficient allocation of housi
39、ng.B) a surplus of housing.C) an increase in the producer surplus in the housing market.D) a decrease in the producer surplus in the housing market.Answer: DTopic: Inefficiency of Rent CeilingsSkill: AnalyticalQuestion history: Previous edition, Chapter 6AACSB: Analytical Skills32) A rent ceiling re
40、sults in a shortage of apartments. As a result, there isA) only a loss of consumer surplus for tenants.B) only a loss of producer surplus for landlords.C) a loss of both consumer and producer surplus.D) a gain of both consumer and producer surplus.Answer: CTopic: Inefficiency of Rent CeilingsSkill:
41、ConceptualQuestion history: Previous edition, Chapter 6AACSB: Analytical Skills33) Assume that your state government has placed a price ceiling of $.20 per kilowatt hour on electricity. The equilibrium price per kilowatt hour for electricity is $.25. The governments action will result inA) a surplus
42、 of electricity in the electricity market.B) an increase in the price of electricity to $.25 per kilowatt hour.C) an increase in producer surplus.D) a deadweight loss.Answer: DTopic: Price CeilingSkill: ConceptualQuestion history: Previous edition, Chapter 6AACSB: Analytical SkillsRent(dollars per m
43、onth)Quantity of apartmentssupplied(per month)Quantity of apartmentsdemanded(per month)200201003004080400606050080406001002034) The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a rent ceiling of $300 is imposed in the housing market, thenA) there wo
44、uld be a surplus of apartments.B) there would be a shortage of apartments.C) the market would reach equilibrium at the quantity of 60 housing units.D) the supply of housing would increase.Answer: BTopic: A Regulated Housing MarketSkill: AnalyticalQuestion history: Previous edition, Chapter 6AACSB: A
45、nalytical Skills35) The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a rent ceiling of $600 was imposed in the housing market, thenA) there would be a surplus of apartments.B) there would be a shortage of apartments.C) the market would reach equilib
46、rium at the quantity of 60 housing units.D) the supply of housing would increase.Answer: CTopic: A Regulated Housing MarketSkill: AnalyticalQuestion history: Previous edition, Chapter 6AACSB: Analytical Skills36) In the figure above, the initial demand curve is D0. There are no rent ceilings nor rent floors. The equilibrium monthly rent isA) $100 per month.B) $200 per month.C) $300 per month.D) $400 per month.
