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Mac Econ 4
| Question | Answer |
|---|---|
| A price floor set above the equilibrium price is binding. | True |
| If a price floor is not binding, then | there will be no effect on the market price or quantity sold |
| Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor, the | quantity demanded of toothpaste decreases, and the quantity of toothpaste that firms want to supply increase |
| The goal of rent control is to | help the poor by making housing more affordable |
| Policymakers use taxes to raise revenue for public purposes and to influence market outcomes. | True |
| In the market for apartments, rent control causes the quantity supplied | to fall and quantity demanded to rise |
| A legal minimum on the price at which a good can be sold is called a | price floor |
| A binding minimum wage creates unemployment. | True |
| Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling, the | quantity demanded of physicals increases, and the quantity supplied of physicals decreases |
| If a surplus exists in a market, then we know that the actual price is | above the equilibrium price and quantity supplied is greater than quantity demanded |
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cupcake1010