Supply and Demand and Correct Answer
Question 1
0 out of 1 points A minimum wage law in a competitive labor market
Answer
Selected Answer: causes equality between the quantity of labor supplied and the quantity demanded.
Correct Answer: creates a surplus of labor.
Response Feedback: creates a surplus of labor.
Question 2
0 out of 1 points A price ceiling set below the equilibrium price means that the quantity supplied ____ the quantity demanded so that a ____ exists.
Answer
Selected Answer: is less than; surplus
Correct Answer: is less than; shortage
Response Feedback:
The correct answer is A
Question 3
0 out of 1 points A price support set above the equilibrium price does which of the following? i) decreases producer surplus ii) decreases consumer surplus iii)decreases the marginal cost of the last unit produced
Answer
Selected Answer: i and ii.
Correct Answer: ii only.
Response Feedback: ii only.
Question 4
1 out of 1 points When a price support is set above the equilibrium price, producers ____ the quantity supplied and consumers ____ the quantity demanded.
Answer
Selected Answer: increase; decrease
Correct Answer: increase; decrease
Response Feedback: increase; decrease
Question 5
0 out of 1 points A price ceiling is
Answer
Selected Answer: the highest price at which the quantity demanded equals the quantity supplied.
Correct Answer: a maximum legal price.
Response Feedback: a maximum legal price.
Question 6
0 out of 1 points In a housing market with a rent ceiling set below the equilibrium rent,
Answer
Selected Answer:
None of the above answers are correct.
Correct Answer: some people seeking an apartment to rent will not be able to find one.
Response Feedback:
The correct answer is B
Question 7
0 out of 1 points The deadweight loss associated with a minimum wage occurs because
Answer
Selected Answer: the minimum wage decreases the quantity of labor supplied.
Correct
0 out of 1 points A minimum wage law in a competitive labor market
Answer
Selected Answer: causes equality between the quantity of labor supplied and the quantity demanded.
Correct Answer: creates a surplus of labor.
Response Feedback: creates a surplus of labor.
Question 2
0 out of 1 points A price ceiling set below the equilibrium price means that the quantity supplied ____ the quantity demanded so that a ____ exists.
Answer
Selected Answer: is less than; surplus
Correct Answer: is less than; shortage
Response Feedback:
The correct answer is A
Question 3
0 out of 1 points A price support set above the equilibrium price does which of the following? i) decreases producer surplus ii) decreases consumer surplus iii)decreases the marginal cost of the last unit produced
Answer
Selected Answer: i and ii.
Correct Answer: ii only.
Response Feedback: ii only.
Question 4
1 out of 1 points When a price support is set above the equilibrium price, producers ____ the quantity supplied and consumers ____ the quantity demanded.
Answer
Selected Answer: increase; decrease
Correct Answer: increase; decrease
Response Feedback: increase; decrease
Question 5
0 out of 1 points A price ceiling is
Answer
Selected Answer: the highest price at which the quantity demanded equals the quantity supplied.
Correct Answer: a maximum legal price.
Response Feedback: a maximum legal price.
Question 6
0 out of 1 points In a housing market with a rent ceiling set below the equilibrium rent,
Answer
Selected Answer:
None of the above answers are correct.
Correct Answer: some people seeking an apartment to rent will not be able to find one.
Response Feedback:
The correct answer is B
Question 7
0 out of 1 points The deadweight loss associated with a minimum wage occurs because
Answer
Selected Answer: the minimum wage decreases the quantity of labor supplied.
Correct