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Microeconomics9e(Parkin)
Chapter6GovernmentActionsinMarkets
1AHousingMarketWithaRentCeiling
1)Apriceceilingisaprice
A)belowwhichasellercannotlegallysell.
B)abovewhichasellercannotlegallysell.
C)thatcreatesasurplusofthegood.
D)BothanswersAandCarecorrect.
Answer:B
Topic:PriceCeiling
Skill:Recognition
AACSB:ReflectiveThinking
2)Apriceceiling,suchasarentceiling,
A)alwaysresultsinasurplus.
B)alwaysresultsinashortage.
C)resultsinasurplusiftheceilingpriceislessthantheequilibriumprice.
D)resultsinashortageiftheceilingpriceislessthantheequilibriumprice.
Answer:D
Topic:PriceCeiling
Skill:Recognition
AACSB:ReflectiveThinking
3)Whichofthefollowingisatypicaleffectofapriceceilingsetbelowtheequilibriumprice?
A)Lessofthegoodisproducedwiththeceilingthanwouldbeproducedwithouttheceiling.
B)Thepriceceilinghasnoeffectonthemarketequilibrium.
C)Consumerscanbuymorethantheycanattheequilibriumpricebecausetheceilingpriceis
lower.
D)Noneoftheaboveanswersiscorrect.
Answer:A
Topic:PriceCeiling
Skill:Recognition
AACSB:ReflectiveThinking
4)Apriceceiling.
A)makesitillegaltochargeahigherpricethanspecified
B)ismoreeffectivewhenitishigher
C)isnecessarytomaintainmarketequilibrium
D)occursinhousingmarketsonly
Answer:A
Topic:PriceCeiling
Skill:Recognition
AACSB:ReflectiveThinking
5)Aneffectivepriceceilingonagoodorservicecan.
A)occuronlyinthemarketforrentalhousing
B)createasurplusofthegoodorservice
C)increasethepriceofthegoodorservice
D)benefitthosewhoareabletobuythegoodorserviceatthelowerprice
Answer:D
Topic:PriceCeiling
Skill:Conceptual
AACSB:ReflectiveThinking
6)Supposethegovernmentimposesapriceceilingongasolinethatislessthantheequilibrium
price.Asaresult,
A)thepriceofgasolinerisestotheequilibriumprice.
B)thereisincentiveforbuyerstoundertakesearchactivity.
C)thesupplyofgasolinewillincreaseandthesupplycurvewillshiftrightward.
D)thedemandforgasolinewilldecreaseandthedemandcurvewillshiftleftward.
Answer:B
Topic:PriceCeiling
Skill:Conceptual
AACSB:ReflectiveThinking
7)WhichofthefollowingisNOTapotentialimpactofaneffectivepriceceiling,suchasarent
ceiling?
A)asurplus
B)anincreaseinsearch
C)adeadweightloss
D)Noneoftheabovebecausetheyareallpotentialimpactsofaneffectivepriceceiling.
Answer:A
Topic:PriceCeiling
Skill:Conceptual
AACSB:ReflectiveThinking
8)Apriceceilingcanresultinwhichofthefollowing?
A)inefficiency
B)blackmarkets
C)increasedsearchactivities
D)Alloftheaboveanswersarecorrect.
Answer:D
Topic:PriceCeiling
Skill:Analytical
AACSB:ReflectiveThinking
9)Priceceilings,suchasrentceilings,
A)increaseproducersurplus.
B)decreaseproducersurplus.
C)donotaffectproducersurplus.
D)mightincreaseordecreaseproducersurplus.
Answer:B
Topic:PriceCeiling
Skill:Recognition
AACSB:ReflectiveThinking
10)Apriceisaregulatedthatmustbesetbelowtheequilibriumpriceto
haveaneffect.
A)floor;price
B)floor;quantity
C)ceiling;price
D)ceiling;quantity
Answer:C
Topic:PriceCeiling
Skill:Recognition
AACSB:ReflectiveThinking
11)Whichofthefollowingisapotentialimpactofaneffectivepriceceiling?
A)ashortage
B)useofnon-pricefactorssuchasdiscriminationtoallocatetheprice-controlledgoodto
consumers
C)deteriorationinthequalityoftheprice-controlledgood
D)Alloftheabovearepotentialimpactsofaneffectivepriceceiling.
Answer:D
Topic:PriceCeiling
Skill:Conceptual
AACSB:ReflectiveThinking
12)Inordertohaveaneffect,apriceceilingmustbeset.
A)abovetheequilibriumprice
B)equaltotheequilibriumprice
C)belowtheequilibriumprice
D)bysuppliers
Answer:C
Topic:PriceCeiling
Skill:Recognition
AACSB:ReflectiveThinking
13)Arentceiling.
A)increasesthequantityofrentalunitssupplied
B)cannotchangethemarketprice
C)setaboveequilibriumpricehasnoeffect
D)generallyaimsatinsuringthatlandlordsreceiveahigherrentthanwouldotherwisebethe
case
Answer:C
Topic:RentCeiling
Skill:Conceptual
AACSB:ReflectiveThinking
14)Sherrywantstorentanapartment.Althoughrentsarebelowwhatsheiswillingtopay,she
cannotfindanapartment.Thenafteramonthofsearching,shefindsanapartmentbutshehasto
payanadditional$1,000tohavethelockschanged.Sherryhasjustexperiencedtheeffectsof
A)arentfloorwithablackmarket
B)inelasticdemand
C)amarketworkingefficiently
D)arentceiling
Answer:D
Topic:RentCeiling
Skill:Conceptual
AACSB:Communication
15)Arentceilingthatiseffectiveresultsin.
A)asurplusofhousing
B)helpingthepoor
C)ashortageofhousing
D)nochangeinthequantityofhousingsuppliedbutadecreaseinthequantityofhousing
demanded
Answer:C
Topic:InefficiencyofRentCeilings
Skill:Recognition
AACSB:ReflectiveThinking
QuantityofQuantityof
Rent
apartmentsapartments
(dollarsper
supplieddemanded
month)
(permonth)(permonth)
20020100
3004080
4006060
5008()40
60010()20
16)TheabovetablegivesthedemandscheduleandthesupplyscheduleforhousinginAnytown,
U.S.A.Ifapriceceilingof$300isimposedinthehousingmarket,then
A)therewouldbeasurplusofapartments.
B)therewouldbeashortageofapartments.
C)themarketwouldreachequilibriumatthequantityof60housingunits.
D)thesupplyofhousingwouldincrease.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
17)TheabovetablegivesthedemandscheduleandthesupplyscheduleforhousinginAnytown,
U.S.A.Ifapriceceilingof$600wasimposedinthehousingmarket,then
A)therewouldbeasurplusofapartments.
B)therewouldbeashortageofapartments.
C)themarketwouldreachequilibriumatthequantityof60housingunits.
D)thesupplyofhousingwouldincrease.
Answer:C
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
18)Inthefigureabove,theinitialdemandcurveis£)().Therearenorentceilingsnorrentfloors.
Theequilibriummonthlyrentis
A)$100permonth.
B)$200permonth.
C)$300permonth.
D)$400permonth.
Answer:C
Topic:AHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
19)Inthefigureabove,thedemandcurveshiftsrightwardfromDotoD\.Therearenorent
controls.Intheshortrun,theincreaseindemandresultsin
A)higherrentsandadecreaseintheequilibriumquantity.
B)lowerrentsandadecreaseintheequilibriumquantity.
C)higherrentsandanincreaseintheequilibriumquantity.
D)lowerrentsandanincreaseintheequilibriumquantity.
Answer:C
Topic:AHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
20)Inthefigureabove,thedemandcurveshiftsrightwardfromDQtoD\sothatD\isthe
relevantdemandcurve.Supposethegovernmentimposesarentceilingof$300permonth.Inthe
shortruntherewillbe
A)ashortageof500,00()apartments.
B)ashortageof400,000apartments.
C)ashortageof200,000apartments.
D)noshortagenorasurplusofapartments.
Answer:C
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
21)Inthefigureabove,thedemandcurveshiftsrightwardfrom£)()toD\sothatD\isthe
relevantdemandcurve.Supposethegovernmentimposesarentceilingof$300permonth.Inthe
shortruntherewillbea
A)adeadweightlosscreated.
B)areductioninrenters*searchactivities.
C)aneliminationofablackmarket.
D)anincreasednumberapartmentsrented.
Answer:A
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
22)Inthefigureabove,thedemandcurveshiftsrightwardfrom£)()toD\sothatD\isthe
relevantdemandcurve.Supposethegovernmentimposesarentceilingof$300permonth.Inthe
shortruntherewillbe
A)ashortageandanincreaseinsearchcosts.
B)ashortageandadecreaseinsearchcosts.
C)asurplusandanincreaseinsearchcosts.
D)asurplusandadecreaseinsearchcosts.
Answer:A
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
23)Inthefigureabove,thedemandcurveshiftsrightwardfromDotoD\sothatD\isthe
relevantdemandcurve.Supposethegovernmentimposesarentceilingof$500permonth.Inthe
shortruntherewillbe
A)asurplusofapartments.
B)ashortageof200,000apartments.
C)ashortageof300,00()apartments.
D)neitherashortagenorasurplusofapartments.
Answer:D
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
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Quantity(thousandsofapartmentspermonth)
24)TheabovefigureshowstheapartmentrentalmarketinBigtown.Atwhatrentwilltherebe
neitherashortagenorasurplusofapartments?
A)$1250permonth
B)$1000permonth
C)$750permonth
D)$500permonth
Answer:C
Topic:AHousingMarket
Skill:Recognition
AACSB:AnalyticalSkills
25)TheabovefigureshowstheapartmentrentalmarketinBigtown.Ifseverefloodingresulted
inthedestructionofmanyofthecity'sapartmentbuildings,thenthe
A)supplycurveofapartmentswouldshiftleftwardandrentwouldriseabove$750.00.
B)demandcurveforapartmentswouldshiftrightwardandrentwouldriseabove$750.00.
C)equilibriumquantityofapartmentsrentedwouldincreasebeyond3,000.
D)equilibriummarketpriceofapartmentsrentedwouldfallbelow$750.00.
Answer:A
Topic:TheMarketResponsetoaDecreaseinSupply
Skill:Analytical
AACSB:AnalyticalSkills
26)TheabovefigureshowstheapartmentrentalmarketinBigtown.IftheBigtownHousing
Authorityimposesarentceilingbelow$750permonth,therentceilingwillhelp
A)allrenters.
B)somerentersandhurtotherrenters.
C)alllandlords.
D)somelandlordsandhurtotherlandlords.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
27)TheabovefigureshowstheapartmentrentalmarketinBigtown.IftheBigtownHousing
Authorityimposesarentceilingabove$750permonth,theceilingwill
A)helpallrenters.
B)helpsomerentersandhurtotherrenters.
C)helpalllandlords.
D)havenoeffectatallontheBigtownrentalmarket.
Answer:D
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
28)TheabovefigureshowstheapartmentrentalmarketinBigtown.Ifthereisashortageof
200,000apartmentsintheBigtownrentalmarket,itmaybebecausetheBigtownHousing
Authorityhasimposedarent
A)ceilingof$750.00monthly.
B)ceilingof$500.00monthly.
C)floorof$750.00monthly.
D)floorof$500.0()monthly.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
29)TheabovefigureshowstheapartmentrentalmarketinBigtown.Ifthemarketisin
equilibriumandthentheBigtownHousingAuthorityimposesarentceilingof$500per
apartment,whichofthefollowingwouldoccur?
A)adecreaseinthesearchtimeandexpenseoffindinganapartment
B)anincreaseinthesearchtimeandexpenseoffindinganapartment
C)anincreaseinproducersurplusbutadecreaseinconsumersurplus
D)anincreaseinefficiency
Answer:B
Topic:SearchActivity
Skill:Analytical
AACSB:AnalyticalSkills
30)TheabovefigureshowstheapartmentrentalmarketinBigtown.IftheBigtownHousing
Authorityimposesarentceilingof$500perapartment,thedeadweightlosswillbe
A)$1,000,000.
B)$500,000.
C)$250,000.
D)$125,000.
Answer:C
Topic:InefficiencyofRentCeilings
Skill:Analytical
AACSB:AnalyticalSkills
31)Theeffectofarentceilingsetabovetheequilibriumprice
A)ispowerful,eliminatingpriceasaregulatorofquantitysuppliedandquantitydemanded.
B)ispowerful,strengtheningpriceasaregulatorofquantitysuppliedandquantitydemanded.
C)encouragesthedevelopmentofblackmarkets.
D)isessentiallynonexistent.
Answer:D
Topic:ARegulatedHousingMarket
Skill:Conceptual
AACSB:ReflectiveThinking
32)Arentceilingbelowtheequilibriumrentwillencourage
A)amoreefficientallocationofhousing.
B)alargernumberofapartmentsrented.
C)nochangeinthenumberofapartmentsrented.
D)increasedsearchtimeandblackmarkets.
Answer:D
Topic:ARegulatedHousingMarket
Skill:Recognition
AACSB:ReflectiveThinking
33)Arentceilingsetabovetheequilibriumrent
A)restrictsthequantitydemandedbutnotthequantitysupplied.
B)restrictsthequantitysuppliedbutnotthequantitydemanded.
C)restrictsboththequantitydemandedandthequantitysupplied.
D)hasnoeffect.
Answer:D
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
34)Arentceilingsetbelowtheequilibriumprice
A)restrictsthequantitydemandedbutnotthequantitysupplied.
B)restrictsthequantitysuppliedbutnotthequantitydemanded.
C)restrictsboththequantitydemandedandthequantitysupplied.
D)hasnoeffect.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
400
Quantity(thousandsofapartmentspermonth)
35)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run
equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$500
permonth.Therentceilingleadstoa
A)shortageof1000apartments.
B)shortageof2000apartments.
C)surplusof1000apartments.
D)surplusof2000叩artments.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
36)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run
equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$500
permonth,whichcausesashortage.Supposethatapartmentsareanormalgoodandincomesrise.
Theincreaseinincome
A)decreasestheshortage.
B)hasnoeffectontheshortage.
C)increasestheshortage.
D)raisestherent.
Answer:C
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
37)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run
equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$50()
permonth,whichcausesashortage.Supposethatapartmentsareaninferiorgoodandincomes
rise.Theincreaseinincome
A)decreasestheshortage.
B)hasnoeffectontheshortage.
C)increasestheshortage.
D)raisestherent.
Answer:A
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
38)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run
equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$500
permonth.Nowsupposethatdemandincreases.Theincreaseindemandresultsinthequantity
supplied
A)increasing.
B)stayingthesame.
C)decreasing.
D)increasing,stayingthesame,ordecreasingdependingonhowmuchdemandincreases.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
39)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run
equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$500
permonth.Ifthelawisstrictlyenforced,themaximumfbrwhichanapartmentwillrentonthe
blackmarketis
A)lessthan$600permonth.
B)$600permonth.
C)$700permonth.
D)morethan$700permonth.
Answer:C
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
40)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run
equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$50()
permonth.Thelossofproducersurplusasaresultofthepriceceilingis
A)$50,000permonth.
B)$250,000permonth.
C)$500,000permonth.
D)morethan$500,000permonth.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
41)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run
equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$500
permonth.Thelossofproducersurplus
A)issmallerthanthegaininconsumersurplus.
B)islargerthanthegaininconsumersurplus.
C)isthesamesizeasthegaininconsumersurplus.
D)couldbesmallerthan,largerthan,orthesamesizeasthegaininconsumersurplus.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
42)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run
equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$50()
permonth.Thedeadweightlossisborneby
A)theproducersonly.
B)theconsumersonly.
C)allproducersandsomeconsumers.
D)allconsumersandsomeproducers.
Answer:C
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
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Quantity(unitspermonth)
43)ThefigureshowsthemarketforrentalunitsinGladstone.Themarketisinequilibrium.The
governmentnowintroducesarentceilingof$50()amonth.Thepriceofarentalunit
andthenumberofunitsrented.
A)increasesby$500permonth;decreases
B)increasesby$100permonth;increases
C)decreasesby$100permonth;decreases
D)remainsthesame;remainsthesame
Answer:C
Topic:ARegulatedHousingMarket
Skill:Conceptual
AACSB:AnalyticalSkills
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Quantity(thousandsofapartmentspermonth)
44)ThefigureaboveshowsthedemandforandsupplyofrentalhousinginSmallton.Ifarent
ceilingissetat$800,howmanyapartmentunitsarerented?
A)2,000
B)3,000
C)4,000
D)Noneoftheaboveanswersiscorrect.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
45)ThefigureaboveshowsthedemandforandsupplyofrentalhousinginSmallton.Ifarent
ceilingissetat$800,whatistherent?
A)$800
B)$600
C)$400
D)Noneoftheaboveanswersiscorrect.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
46)ThefigureaboveshowsthedemandforandsupplyofrentalhousinginSmallton.Ifarent
ceilingissetat$800,thereis
A)ashortageof3,000unitsofrentalhousing.
B)ashortageof6,000unitsofrentalhousing.
C)asurplusof3,000unitsofrentalhousing.
D)neitherashortagenorasurplusofrentalhousing.
Answer:D
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
47)ThefigureaboveshowsthedemandforandsupplyofrentalhousinginSmallton.Ifarent
ceilingissetat$400,howmanyapartmentunitsarerented?
A)2,000
B)3,000
C)4,000
D)Noneoftheaboveanswersiscorrect.
Answer:A
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
48)ThefigureaboveshowsthedemandforandsupplyofrentalhousinginSmallton.Ifarent
ceilingissetat$400,whatistherent?
A)$800
B)$600
C)$400
D)Noneoftheaboveanswersiscorrect.
Answer:C
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
49)ThefigureaboveshowsthedemandforandsupplyofrentalhousinginSmallton.Ifarent
ceilingissetat$400,thereis
A)ashortageof4,000unitsofrentalhousing.
B)ashortageof2,000unitsofrentalhousing.
C)asurplusof3,000unitsofrentalhousing.
D)neitherashortagenorasurplusofrentalhousing.
Answer:B
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:AnalyticalSkills
50)Withrentcontrols,whichofthefollowingismostlikelytooccur?
A)decreasedsearchactivity
B)blackmarketactivity
C)abuildingboom
D)ahousingsurplus
Answer:B
Topic:ARegulatedHousingMarket
Skill:Recognition
AACSB:Communication
51)Arentceilingresultsinashortage.Asaresult,whichofthefollowingdoyouexpect?
A)Theshortagewillpersistaslongastheceilingisineffect.
B)Discriminationaslandlordschoosetheirtenants,possiblybasedonrace,age,orgender.
C)Ablackmarketforapartmentswherebyhigherrentsareobtainedthroughvariousother
charges.
D)Alloftheabovewouldbeexpected.
Answer:D
Topic:ARegulatedHousingMarket
Skill:Analytical
AACSB:Communication
52)Whenarentceilingisimposedinahousingmarket,theopportunitycostofhousingequals
the
A)rent.
B)marketequilibriumrentthatwouldprevailintheabsenceofarentceiling.
C)valueofthetimeandresourcesspentsearchingplustherent.
D)consumersurplus.
Answer:C
Topic:ARegulatedHousingMarket
Skill:Conceptual
AACSB:ReflectiveThinking
53)isanillegalactivitybetweenbuyersandsellerssometimesusedtoevadeaprice
ceiling.
A)Increasedsearchactivity
B)Apricefloor
C)Creatingashortage
D)Ablackmarket
Answer:D
Topic:BlackMarkets
Skill:Conceptual
AACSB:ReflectiveThinking
54)Arentceilingresultsinashortage.Asaresult,whichofthefollowingdoyouexpect?
A)Ashortageofapplicantsfortheapartmentsavailable.
B)Discriminationastenantschoosetheirlandlords,possiblybasedonrace,age,orgender.
C)Ablackmarketforapartmentswherebyhigherrentsareobtainedthroughvariousother
charges.
D)Inthelong-run,moreandmorepeoplewillwanttobecomelandlords.
Answer:C
Topic:BlackMarkets
Skill:Analytical
AACSB:ReflectiveThinking
55)Whichofthefollowingisaresultofaneffectiverentceiling?
I.equityinthehousingmarket
II.efficientallocationofresources
III.ashortageofhousingunits.
A)IandII
B)IandIII
C)IIonly
D)IIIonly
Answer:D
Topic:InefficiencyofRentCeilings
Skill:Conceptual
AACSB:EthicalReasoning
56)Arentceilingcreatesashortage.Asaresult,whichofthefollowingoccurs?
A)onlyalossofconsumersurplusfortenants
B)onlyalossofproducersurplusforlandlords
C)alossofbothconsumerandproducersurplus
D)againofbothconsumerandproducersurplus
Answer:C
Topic:InefficiencyofRentCeilings
Skill:Analytical
AACSB:AnalyticalSkills
57)Arentceilingcreatesashortage.Asaresult,thereis
A)anefficientallocationofhousing.
B)asurplusofhousing.
C)anincreaseintheproducersurplusinthehousingmarket.
D)adecreaseintheproducersurplusinthehousingmarket.
Answer:D
Topic:InefficiencyofRentCeilings
Skill:Analytical
AACSB:AnalyticalSkills
58)Arentceilingcreatesashortage.Asaresult,thereisadeadweightloss
A)fromonlylostconsumersurplus.
B)fromonlylostproducersurplus.
C)frombothlostconsumerandproducersurplus.
D)thatexactlyoffsetsthegainsinconsumerandproducersurplus.
Answer:C
Topic:InefficiencyofRentCeilings
Skill:Analytical
AACSB:AnalyticalSkills
59)Whichofthefollowingisaneconomicpolicythatpromotestheefficientquantityof
apartments?
A)arentfloorabovetheequilibriumrent
B)arentceilingbelowtheequilibriumrent
C)asalestaximposedonrentinganapartment
D)noneoftheabove
Answer:D
Topic:ARegulatedHousingMarket
Skill:Conceptual
AACSB:AnalyticalSkills
60)Arentceilingresultsinashortageofapartments.Asaresult,thereis
A)onlyalossofconsumersurplusfortenants.
B)onlyalossofproducersurplusforlandlords.
C)alossofbothconsumerandproducersurplus.
D)againofbothconsumerandproducersurplus.
Answer:C
Topic:InefficiencyofRentCeilings
Skill:Conceptual
AACSB:AnalyticalSkills
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