Liberty University ECON 213 Quiz 6

·  Question 1

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 2

2 out of 2 points

How would an economist explain a teenager’s continued unemployment where there exists a minimum wage?

·  Question 3

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 4

0 out of 2 points

Use the following table to answer the questions that follow.

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

·  Question 5

0 out of 2 points

If a store sells a good at the market price, even though the government authorities have set the minimum price that can be charged, the store is selling the good in a(n):

·  Question 6

2 out of 2 points

Do all buyers benefit from a binding price ceiling?

·  Question 7

2 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 supplied change?

·  Question 8

2 out of 2 points

Why is it often difficult to remove a binding price floor after it exists?

·  Question 9

0 out of 2 points

A nonbinding price floor has the following consequences:

·  Question 10

2 out of 2 points

Do all sellers benefit from a binding price floor?

·  Question 11

2 out of 2 points

The government has imposed a price control for many agricultural products in an effort to support farmers. In the case of price floor P2 in the accompanying figure, how much of a disequilibrium in quantity exists?

·  Question 12

2 out of 2 points

You are a senator from Kansas who wants to help farmers. You have worked to encourage the passage of a law that would impose a binding price floor on wheat. What would you expect your critics to say?

·  Question 13

0 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 14

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 15

2 out of 2 points

Setting a price ceiling below the equilibrium price can result in: