Liberty University ECON 213 Quiz 4
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?
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Rating:
5/