宏观经济学题库2

MicroeconomicsflOe(Parkin)

Chapter6GovernmentActionsinMarkets

1AHousingMarketWithaRentCeiling

1)Apriceceilingisaprice

A)belowwhichasellercannotlegallysell.

B)abovewhichasellercannotlegallysell.

C)thatcreatesasurplusofthegood.

D)BothanswersAandCarecorrect.

Answer:B

Topic:PriceCeiling

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

2)Apriceceiling.

A)makesitillegaltochargeahigherpricethanthespecifiedprice

B)ismoreeffectivewhenitishigher

C)isnecessarytomaintainmarketequilibrium

D)occursinhousingmarketsonly

Answer:A

Topic:PriceCeiling

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

3)Apriceisaregulatedthatmustbesetbelowtheequilibriumpriceto

haveaneffect.

A)floor;price

B)floor;quantity

C)ceiling;price

D)ceiling;quantity

Answer:C

Topic:RentCeiling

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

4)Inordertohaveaneffect,apriceceilingmustbeset.

A)abovetheequilibriumprice

B)equaltotheequilibriumprice

C)belowtheequilibriumprice

D)bysuppliers

Answer:C

Topic:RentCeiling

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

5)Arentceilingbelowtheequilibriumrentwillcreate

A)amoreefficientallocationofhousing.

B)alargernumberofapartmentsrented.

C)nochangeinthenumberofapartmentsrented.

D)increasedsearchtimeandblackmarkets.

Answer:D

Topic:RentCeiling

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

6)Arentceiling.

A)increasesthequantityofrentalunitssupplied

B)cannotchangethemarketprice

C)setaboveequilibriumpricehasnoeffect

D)generallyaimsatinsuringthatlandlordsreceiveahigherrentthanwouldotherwisebethe

case

Answer:C

Topic:RentCeiling

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

7)Arentceilingsetabovetheequilibriumrent

A)restrictsthequantitydemandedbutnotthequantitysupplied.

B)restrictsthequantitysuppliedbutnotthequantitydemanded.

C)restrictsboththequantitydemandedandthequantitysupplied.

D)hasnoeffect.

Answer:D

Topic:RentCeiling

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

8)Apriceceiling,suchasarentceiling,

A)alwaysresultsinasurplus.

B)alwaysresultsinashortage.

C)resultsinasurplusiftheceilingpriceislessthantheequilibriumprice.

D)resultsinashortageiftheceilingpriceislessthantheequilibriumprice.

Answer:D

Topic:PriceCeiling

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

9)Whichofthefollowingisaneffectofapriceceilingsetbelowtheequilibriumprice?

A)Lessofthegoodisproducedwiththeceilingthanwouldbeproducedwithouttheceiling.

B)Thepriceceilinghasnoeffectonthemarketequilibrium.

C)Consumerscanbuymorethantheycanattheequilibriumpricebecausetheceilingpriceis

lower.

D)Noneoftheaboveanswersiscorrect.

Answer:A

Topic:PriceCeiling

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

10)Supposethegovernmentimposesapriceceilingongasolinethatislessthantheequilibrium

price.Asaresult,

A)thepriceofgasolinerisestotheequilibriumprice.

B)thereisincentiveforbuyerstoundertakesearchactivity.

C)thesupplyofgasolinewillincreaseandthesupplycurvewillshiftrightward.

D)thedemandforgasolinewilldecreaseandthedemandcurvewillshiftleftward.

Answer:B

Topic:PriceCeiling

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

11)WhichofthefollowingisNOTapotentialimpactofarentceilingsetbelowtheequilibrium

rent?

A)asurplus

B)anincreaseinsearch

C)adeadweightloss

D)Noneoftheabovebecausetheyareallimpactsofarentceilingsetbelowtheequilibrium

rent.

Answer:A

Topic:PriceCeiling

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

12)Apriceceilingcanresultinwhichofthefollowing?

A)inefficiency

B)blackmarkets

C)increasedsearchactivities

D)Alloftheaboveanswersarecorrect.

Answer:D

Topic:PriceCeiling

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

13)Sherrywantstorentanapartment.Althoughrentsarebelowwhatsheiswillingtopay,she

cannotfindanapartment.Thenafteramonthofsearching,shefindsanapartmentbutshehasto

payanadditional$1,000tohavethelockschanged.Sherryhasjustexperiencedtheeffectsof

A)arentfloorwithablackmarket

B)inelasticdemand

C)amarketworkingefficiently

D)arentceiling

Answer:D

Topic:RentCeiling

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:Communication

14)Priceceilings,suchasrentceilings,setbelowtheequilibriumprice

A)increaseproducersurplus.

B)decreaseproducersurplus.

C)donotaffectproducersurplus.

D)mightincreaseordecreaseproducersurplus.

Answer:B

Topic:PriceCeiling

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

15)Whichofthefollowingisaneconomicpolicythatpromotestheefficientquantityof

apartments?

A)arentfloorabovetheequilibriumrent

B)arentceilingbelowtheequilibriumrent

C)asalestaximposedonrentinganapartment

D)noneoftheabove

Answer:D

Topic:ARegulatedHousingMarket

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

16)Arentceilingresultsinashortage.Asaresult,whichofthefollowingdoyouexpect?

A)Theshortagewillpersistaslongastheceilingisineffect.

B)Discriminationaslandlordschoosetheirtenants,possiblybasedonrace,age,orgender.

C)Ablackmarketforapartmentswherebyhigherrentsareobtainedthroughvariousother

charges.

D)Alloftheabovewouldbeexpected.

Answer:D

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:Communication

17)Apriceceilingsetbelowtheequilibriumpricesearchactivityandthe

useofblackmarkets.

A)increases;increases

B)increases;decreases

C)decreases;increases

D)decreases;decreases

Answer:A

Topic:ARegulatedMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

18)Theopportunitycostofbuyingagoodincludes

I.thepriceofthegood.

II.thevalueoftimespentsearchingforthegood.

A)onlyI

B)onlyII

C)bothIandII

D)neitherInorII

Answer:C

Topic:SearchActivity

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

19)Whenarentceilingisimposedinahousingmarket,theopportunitycostofhousingequals

the

A)rent.

B)marketequilibriumrentthatwouldprevailintheabsenceofarentceiling.

C)valueofthetimeandresourcesspentsearchingplustherent.

D)consumersurplus.

Answer:C

Topic:SearchActivity

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

20)Searchactivity.

A)occursthereisasurplusofthegood

B)isunnecessarywhenablackmarketexists

C)increaseswhenaneffectivepriceceilingissetonagood

D)decreaseswhenaneffectivepriceceilingissetonagood

Answer:C

Topic:SearchActivity

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

21)Arentceilingsetbelowtheequilibriumrentwill

A)increasesearchactivity.

B)decreasesearchactivity.

C)havenoeffectonsearchactivity.

D)shiftthehousingsupplycurverightward.

Answer:A

Topic:SearchActivity

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

22)Oneconsequenceofrentceilingssetbelowtheequilibriumrentisthat

A)asurplusofhousingunitsdevelops.

B)rentersarenolongerexploitedbylandlords.

C)itmakesthelong-runhousingsupplymoreelastic.

D)searchcostsforhousingincrease.

Answer:D

Topic:SearchActivity

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

23)Withrentcontrols,whichofthefollowingismostlikelytooccur?

A)decreasedsearchactivity

B)blackmarketactivity

C)abuildingboom

D)ahousingsurplus

Answer:B

Topic:BlackMarkets

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:Communication

24)isanillegalactivitybetweenbuyersandsellerssometimesusedtoevadeaprice

ceiling.

A)Increasedsearchactivity

B)Apricefloor

C)Creatingashortage

D)Ablackmarket

Answer:D

Topic:BlackMarkets

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

25)Arentceilingresultsinashortage.Asaresult,whichofthefollowingdoyouexpect?

A)Ashortageofapplicantsfortheapartmentsavailable.

B)Discriminationastenantschoosetheirlandlords,possiblybasedonrace,age,orgender.

C)Ablackmarketforapartmentswherebyhigherrentsareobtainedthroughvariousother

charges.

D)Inthelong-run,moreandmorepeoplewillwanttobecomelandlords.

Answer:C

Topic:BlackMarkets

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

26)Withrentcontrols,whatmechanismmightarisetobringaboutanequilibrium?

A)decreasedsearchcosts

B)blackmarketactivity

C)increasedadvertisingbylandlords

D)morefavorableleasesofferedtotenants

Answer:B

Topic:BlackMarkets

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:EthicalReasoning

27)Onecommoneffectofrentceilingsinbigcitiesis

A)thatlandlordsbuildmoreapartments.

B)thatlandlordscharge"keymoney,"highpaymentschargedtonewtenantsfornewlocksand

keys.

C)toequalizethequantityofapartmentsdemandedandthequantitysuppliedinneighborhoods.

D)toreducethesearchactivitybythoseseekingshelter.

Answer:B

Topic:BlackMarkets

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:EthicalReasoning

28)Thestrictertheenforcementofapriceceiling,the

A)smalleristhedifferencebetweentheblackmarketpriceandthelegalmarketpriceofthe

good.

B)largeristhedifferencebetweentheblackmarketpriceandthelegalmarketpriceofthegood.

C)greateristheamountofthegoodavailableintotal,fromeitherthelegalmarketortheblack

market.

D)BothanswersBandCarecorrect.

Answer:B

Topic:BlackMarkets

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:Communication

29)Whichofthefollowingisaresultofarentceilingsetbelowtheequilibriumrent?

I.equityinthehousingmarket

II.efficientallocationofresources

III.ashortageofhousingunits.

A)IandII

B)IandIII

C)IIonly

D)IIIonly

Answer:D

Topic:InefficiencyofRentCeilings

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:EthicalReasoning

30)Arentceilingcreatesashortage.Asaresult,whichofthefollowingoccurs?

A)onlyalossofconsumersurplusfortenants

B)onlyalossofproducersurplusforlandlords

C)alossofbothconsumerandproducersurplus

D)againofbothconsumerandproducersurplus

Answer:C

Topic:InefficiencyofRentCeilings

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

31)Arentceilingcreatesashortage.Asaresult,thereis

A)anefficientallocationofhousing.

B)asurplusofhousing.

C)anincreaseintheproducersurplusinthehousingmarket.

D)adecreaseintheproducersurplusinthehousingmarket.

Answer:D

Topic:InefficiencyofRentCeilings

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

32)Arentceilingresultsinashortageofapartments.Asaresult,thereis

A)onlyalossofconsumersurplusfortenants.

B)onlyalossofproducersurplusforlandlords.

C)alossofbothconsumerandproducersurplus.

D)againofbothconsumerandproducersurplus.

Answer:C

Topic:InefficiencyofRentCeilings

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

33)Assumethatyourstategovernmenthasplacedapriceceilingof$.20perkilowatthouron

electricity.Theequilibriumpriceperkilowatthourforelectricityis$.25.Thegovernment's

actionwillresultin

A)asurplusofelectricityintheelectricitymarket.

B)anincreaseinthepriceofelectricityto$.25perkilowatthour.

C)anincreaseinproducersurplus.

D)adeadweightloss.

Answer:D

Topic:PriceCeiling

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

QuantityofQuantityof

Rent

apartmentsapartments

(dollarsper

supplieddemanded

month)

(permonth)(permonth)

2002010()

3004080

4006060

5008040

60010020

34)TheabovetablegivesthedemandscheduleandthesupplyscheduleforhousinginAnytown,

U.S.A.Ifarentceilingof$300isimposedinthehousingmarket,then

A)therewouldbeasurplusofapartments.

B)therewouldbeashortageofapartments.

C)themarketwouldreachequilibriumatthequantityof60housingunits.

D)thesupplyofhousingwouldincrease.

Answer:B

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

35)TheabovetablegivesthedemandscheduleandthesupplyscheduleforhousinginAnytown,

U.S.A.Ifarentceilingof$600wasimposedinthehousingmarket,then

A)therewouldbeasurplusofapartments.

B)therewouldbeashortageofapartments.

C)themarketwouldreachequilibriumatthequantityof60housingunits.

D)thesupplyofhousingwouldincrease.

Answer:C

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

W

C

O

E

S

6

O

P

o

s

ap

pj

nu

)q

W

C2

36)Inthefigureabove,theinitialdemandcurveis£>().Therearenorentceilingsnorrentfloors.

Theequilibriummonthlyrentis

A)$100permonth.

B)$200permonth.

C)$300permonth.

D)$400permonth.

Answer:C

Topic:AHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

37)Inthefigureabove,thedemandcurveshiftsrightwardfromDoto£>j.Therearenorent

controls.Intheshortrun,theincreaseindemandresultsin

A)higherrentsandadecreaseintheequilibriumquantity.

B)lowerrentsandadecreaseintheequilibriumquantity.

C)higherrentsandanincreaseintheequilibriumquantity.

D)lowerrentsandanincreaseintheequilibriumquantity.

Answer:C

Topic:AHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

38)Inthefigureabove,thedemandcurveshiftsrightwardfrom£)otosothatD\isthe

relevantdemandcurve.Supposethegovernmentimposesarentceilingof$300permonth.Inthe

shortruntherewillbe

A)ashortageof500,000apartments.

B)ashortageof400,000apartments.

C)ashortageof200,000apartments.

D)noshortagenorasurplusofapartments.

Answer:C

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

39)Inthefigureabove,thedemandcurveshiftsrightwardfromDotoDjsothatD\isthe

relevantdemandcurve.Supposethegovernmentimposesarentceilingof$300permonth.Inthe

shortruntherewillbea

A)adeadweightlosscreated.

B)areductioninrenters'searchactivities.

C)aneliminationofablackmarket.

D)anincreasednumberapartmentsrented.

Answer:A

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

40)Inthefigureabove,thedemandcurveshiftsrightwardfromZ)otosothatD\isthe

relevantdemandcurve.Supposethegovernmentimposesarentceilingof$300permonth.Inthe

shortruntherewillbe

A)ashortageandanincreaseinsearchcosts.

B)ashortageandadecreaseinsearchcosts.

C)asurplusandanincreaseinsearchcosts.

D)asurplusandadecreaseinsearchcosts.

Answer:A

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

41)Inthefigureabove,thedemandcurveshiftsrightwardfrom£)otosothatD\isthe

relevantdemandcurve.Supposethegovernmentimposesarentceilingof$50()permonth.Inthe

shortruntherewillbe

A)asurplusofapartments.

B)ashortageof200,000apartments.

C)ashortageof300,000apartments.

D)neitherashortagenorasurplusofapartments.

Answer:D

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

250

0123456

Quantify(thousandsofapartmentspermonth)

42)TheabovefigureshowstheapartmentrentalmarketinBigtown.Atwhatrentwilltherebe

neitherashortagenorasurplusofapartments?

A)$1250permonth

B)$1000permonth

C)$750permonth

D)$500permonth

Answer:C

Topic:AHousingMarket

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

43)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

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

44)TheabovefigureshowstheapartmentrentalmarketinBigtown.IftheBigtownHousing

Authorityimposesarentceilingof$500permonth,therentceilingwillhelp

A)allrenters.

B)somerentersandhurtotherrenters.

C)alllandlords.

D)somelandlordsandhurtotherlandlords.

Answer:B

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Modified10thedition

AACSB:AnalyticalSkills

45)TheabovefigureshowstheapartmentrentalmarketinBigtown.IftheBigtownHousing

Authorityimposesarentceilingof$1,000permonth,theceilingwill

A)helpallrenters.

B)helpsomerentersandhurtotherrenters.

C)helpalllandlords.

D)havenoeffectatallontheBigtownrentalmarket.

Answer:D

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Modified10thedition

AACSB:AnalyticalSkills

46)TheabovefigureshowstheapartmentrentalmarketinBigtown.Ifthereisashortageof

200,000apartmentsintheBigtownrentalmarket,itmightbebecausetheBigtownHousing

Authorityhasimposedarent

A)ceilingof$750.00monthly.

B)ceilingof$500.00monthly.

C)floorof$750.00monthly.

D)floorof$500.00monthly.

Answer:B

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

47)TheabovefigureshowstheapartmentrentalmarketinBigtown.Ifthemarketisin

equilibriumandthentheBigtownHousingAuthorityimposesarentceilingof$500per

apartment,whichofthefollowingwouldoccur?

A)adecreaseinthesearchtimeandexpenseoffindinganapartment

B)anincreaseinthesearchtimeandexpenseoffindinganapartment

C)anincreaseinproducersurplusbutadecreaseinconsumersurplus

D)anincreaseinefficiency

Answer:B

Topic:SearchActivity

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

48)TheabovefigureshowstheapartmentrentalmarketinBigtown.IftheBigtownHousing

Authorityimposesarentceilingof$500perapartment,thedeadweightlosswillbe

A)$1,000,000.

B)$500,000.

C)$250,000.

D)$125,000.

Answer:C

Topic:InefficiencyofRentCeilings

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

W

C

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E8

s00

o

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p00

)

w00

o6

d00

5

400

Quantity(thousandsofapartmentspermonth)

49)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run

equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$500

permonth.Therentceilingleadstoa

A)shortageof1000apartments.

B)shortageof2000apartments.

C)surplusof1000apartments.

D)surplusof2000apartments.

Answer:B

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

50)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run

equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$50()

permonth,whichcausesashortage.Supposethatapartmentsareanormalgoodandincomesrise.

Theincreaseinincome

A)decreasestheshortage.

B)hasnoeffectontheshortage.

C)increasestheshortage.

D)raisestherent.

Answer:C

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

51)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run

equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$500

permonth,whichcausesashortage.Supposethatapartmentsareaninferiorgoodandincomes

rise.Theincreaseinincome

A)decreasestheshortage.

B)hasnoeffectontheshortage.

C)increasestheshortage.

D)raisestherent.

Answer:A

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

52)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

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

53)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run

equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$500

permonth.Ifthelawisstrictlyenforced,themaximumforwhichanapartmentwillrentonthe

blackmarketis

A)lessthan$600permonth.

B)$600permonth.

C)$700permonth.

D)morethan$700permonth.

Answer:C

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

54)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run

equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$500

permonth.Thelossofproducersurplusasaresultofthepriceceilingis

A)$50,000permonth.

B)$250,000permonth.

C)$500,000permonth.

D)morethan$500,000permonth.

Answer:B

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

55)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

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

56)Inthefigureabove,originallytheapartmentrentalmarketisinshort-runandlong-run

equilibriumwitharentof$600permonth.Thenthegovernmentimposesarentceilingof$500

permonth.Thedeadweightlossisborneby

A)theproducersonly.

B)theconsumersonly.

C)allproducersandsomeconsumers.

D)allconsumersandsomeproducers.

Answer:C

Topic:ARegulatedHousingMarket

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

=

c

n800

」

ad)700

S600

6

O

P

)

c

£

500

1,000

Quantity(unitspermonth)

57)ThefigureshowsthemarketforrentalunitsinGladstone.Themarketisinequilibrium.The

governmentnowintroducesarentceilingof$500amonth.Thepriceofarentalunit

andthenumberofunitsrented.

A)increasesby$500permonth;decreases

B)increasesby$10()permonth;increases

C)decreasesby$100permonth;decreases

D)remainsthesame;remainsthesame

Answer:C

Topic:ARegulatedHousingMarket

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

01234567891011

Quantity(thousandsofunitspermonth)

58)Intheabovefigure,arentceilingof$300permonthwould

A)notaffecttheequilibriumquantity.

B)resultinasurplusof7000units.

C)resultina