Liberty University ECON 213 Quiz 4

QUIZ # 4                   ECON 213                26 OUT OF 30

·         Question 1

2 out of 2 points

Use the following table to answer the questions that follow.

What is the surplus when the price floor is $0.75 in the market for public transportation?

·         Question 2

2 out of 2 points

Let’s say that you have a friend who was caught illegally buying a good on the black market. When the judge asks you to describe your friend’s motivation as a buyer, which of the following would most likely be your reply?

·         Question 3

2 out of 2 points

Let’s say that you have a friend who was caught illegally selling a good on the black market. When the judge asks you to describe your friend’s motivation as a seller, which of the following would most likely be your reply?

·         Question 4

2 out of 2 points

Which of the following is an accurate statement about the consequence of a binding price ceiling?

·         Question 5

0 out of 2 points

Refer to the accompanying figure to answer the questions that follow.

The market is currently at market equilibrium. If a binding price ceiling of P1 is imposed, by how much would the quantity demanded change?

·         Question 6

2 out of 2 points

Use the following table to answer the questions that follow.

If the price floor for corn is set at $5.00, what amount and type of disequilibrium will be present in the market for corn?

·         Question 7

2 out of 2 points

How do producers who are subject to a binding price ceiling respond as the time frame shifts from the short run to the long run?

·         Question 8

2 out of 2 points

Use the following figure to answer the questions that follow.

The accompanying figure describes the market for gasoline in a local community. If the government were to place a price floor at P1, predict the resulting surplus or shortage.

·         Question 9

2 out of 2 points

Use the following figure to answer the questions that follow.

If the government imposes a price floor on wheat at $5, predict the amount of disequilibrium.

·         Question 10

2 out of 2 points

If the local government tells gas stations that they are not allowed to change the price of gas for three weeks during hurricane season, what will be the consequence?

·         Question 11

2 out of 2 points

Why does a surplus exist under a binding price floor?

·         Question 12

0 out of 2 points

What is the incentive to create a black market when a binding price floor exists?

·         Question 13

2 out of 2 points

Suppose you live in a community with no price controls. What do you expect to happen if your
town borders a community where there is a binding price floor on most products?

·         Question 14

2 out of 2 points

Mortimer loves sushi. He loves sushi so much that he asks his congressional representative to work for passage of a binding price ceiling law. Who would be affected by this law and how?

·         Question 15

2 out of 2 points

Suppose you live in a community with no price controls. What do you expect will happen if your town borders a community where there is a nonbinding price ceiling on most products?