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1、Chapter 6Supply, Demand, and Government PoliciesTRUE/FALSE1.Economic policies often have effects that their architects did not intend or anticipate.ANS:TDIF:1REF:6-0NAT:AnalyticLOC:The study of economics and definitions of economicsTOP:Public policyMSC:Definitional2.Rent-control laws dictate a minim

2、um rent that landlords may charge tenants.ANS:FDIF:1REF:6-0NAT:AnalyticLOC:Supply and demandTOP:Rent controlMSC:Definitional3.Minimum-wage laws dictate the lowest wage that firms may pay workers.ANS:TDIF:1REF:6-0NAT:AnalyticLOC:Labor marketsTOP:Minimum wageMSC:Definitional4.Price controls are usuall

3、y enacted when policymakers believe that the market price of a good or service is unfair to buyers or sellers.ANS:TDIF:1REF:6-0NAT:AnalyticLOC:Supply and demandTOP:Price controlsMSC:Definitional5.Price controls can generate inequities.ANS:TDIF:1REF:6-0NAT:AnalyticLOC:Supply and demandTOP:Price contr

4、olsMSC:Definitional6.Policymakers use taxes to raise revenue for public purposes and to influence market outcomes.ANS:TDIF:1REF:6-0NAT:AnalyticLOC:Supply and demandTOP:TaxesMSC:Definitional7.If a good or service is sold in a competitive market free of government regulation, then the price of the goo

5、d or service adjusts to balance supply and demand.ANS:TDIF:1REF:6-1NAT:AnalyticLOC:Supply and demandTOP:PricesMSC:Definitional8.At the equilibrium price, the quantity that buyers want to buy exactly equals the quantity that sellers want to sell.ANS:TDIF:1REF:6-1NAT:AnalyticLOC:Supply and demandTOP:P

6、ricesMSC:Definitional9.A price ceiling is a legal minimum on the price at which a good or service can be sold.ANS:FDIF:1REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Definitional10.A price ceiling set above the equilibrium price is not binding.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply

7、and demandTOP:Price ceilingsMSC:Interpretive11.If a price ceiling is not binding, then it will have no effect on the market.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Interpretive12.To be binding, a price ceiling must be set above the equilibrium price.ANS:FDIF:2REF:6-1N

8、AT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Interpretive13.A price ceiling set below the equilibrium price is binding.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Interpretive14.A price ceiling set below the equilibrium price causes quantity demanded to exceed qu

9、antity supplied.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilings | ShortagesMSC:Interpretive15.A price ceiling set above the equilibrium price causes quantity demanded to exceed quantity supplied.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Interpretive

10、16.A binding price ceiling causes quantity demanded to be less than quantity supplied.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilings | ShortagesMSC:Interpretive17.A price ceiling set below the equilibrium price causes a shortage in the market.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Su

11、pply and demandTOP:Price ceilings | ShortagesMSC:Interpretive18.A price ceiling set above the equilibrium price causes a surplus in the market.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Interpretive19.A binding price ceiling causes a shortage in the market.ANS:TDIF:2REF:

12、6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilings | ShortagesMSC:Interpretive20.When a binding price ceiling is imposed on a market for a good, some people who want to buy the good cannot do so.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilings | ShortagesMSC:Interpretive21.Lo

13、ng lines and discrimination are examples of rationing methods that may naturally develop in response to a binding price ceiling.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Interpretive22.Price ceilings are typically imposed to benefit buyers.ANS:TDIF:2REF:6-1NAT:AnalyticL

14、OC:Supply and demandTOP:Price ceilingsMSC:Interpretive23.Binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Interpretive24.All buyers benefit from a binding pr

15、ice ceiling.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Interpretive25.A binding price ceiling may not help all consumers, but it does not hurt any consumers.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Interpretive26.When the government imposes

16、 a binding price ceiling on a competitive market, a surplus of the good arises, and sellers must ration the scarce goods among the large number of potential buyers.ANS:FDIF:1REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilings | ShortagesMSC:Definitional27.The rationing mechanisms that develop

17、 under binding price ceilings are usually inefficient.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilings | EfficiencyMSC:Interpretive28.Price is the rationing mechanism in a free, competitive market.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:PricesMSC:Interpretive29.Pric

18、es are inefficient rationing devices.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Prices | EfficiencyMSC:Interpretive30.When free markets ration goods with prices, it is both efficient and impersonal.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Prices | EfficiencyMSC:Interpretive31

19、.When a free market for a good reaches equilibrium, anyone who is willing and able to pay the market price can buy the good.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:PricesMSC:Interpretive32.If a price ceiling of $2 per gallon is imposed on gasoline, and the market equilibrium price is $

20、1.50, then the price ceiling is a binding constraint on the market.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Applicative33.If a price ceiling of $1.50 per gallon is imposed on gasoline, and the market equilibrium price is $2, then the price ceiling is a binding constrai

21、nt on the market.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Applicative34.A price ceiling caused the gasoline shortage of 1973 in the United States.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price ceilingsMSC:Interpretive35.One common example of a price ceilin

22、g is rent control.ANS:TDIF:1REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Rent controlMSC:Definitional36.The goal of rent control is to help the poor by making housing more affordable.ANS:TDIF:1REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Rent controlMSC:Definitional37.Economists argue that rent contro

23、l is a highly efficient way to help the poor raise their standard of living.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:The study of economics and definitions of economicsTOP:Economists | Rent controlMSC:Interpretive38.Because supply and demand are inelastic in the short run, the initial shortage caused by ren

24、t control is large.ANS:FDIF:1REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Rent control | ElasticityMSC:Definitional39.The primary effect of rent control in the short run is to reduce rents.ANS:TDIF:1REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Rent controlMSC:Definitional40.The housing shortages cause

25、d by rent control are larger in the long run than in the short run because both the supply of housing and the demand for housing are more elastic in the long run.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Rent control | ElasticityMSC:Interpretive41.The effects of rent control in the long

26、run include lower rents and lower-quality housing.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Rent controlMSC:Interpretive42.Rent control may lead to lower rents for those who find housing, but the quality of the housing may also be lower.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandT

27、OP:Rent controlMSC:Interpretive43.In a free market, the price of housing adjusts to eliminate the shortages that give rise to undesirable landlord behavior.ANS:TDIF:1REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Rent controlMSC:Definitional44.A price floor is a legal minimum on the price at which a go

28、od or service can be sold.ANS:TDIF:1REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Definitional45.A price floor set above the equilibrium price is not binding.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive46.If a price floor is not binding, then it wi

29、ll have no effect on the market.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive47.To be binding, a price floor must be set above the equilibrium price.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive48.A price floor set below the e

30、quilibrium price is binding.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive49.A price floor set below the equilibrium price causes quantity supplied to exceed quantity demanded.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive50.A p

31、rice floor set above the equilibrium price causes quantity supplied to exceed quantity demanded.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floors | SurplusesMSC:Interpretive51.A binding price floor causes quantity supplied to be less than quantity demanded.ANS:FDIF:2REF:6-1NAT:Analy

32、ticLOC:Supply and demandTOP:Price floors | SurplusesMSC:Interpretive52.A price floor set below the equilibrium price causes a surplus in the market.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive53.A price floor set above the equilibrium price causes a surplus in t

33、he market.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floors | SurplusesMSC:Interpretive54.A binding price floor causes a shortage in the market.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floors | SurplusesMSC:Interpretive55.When a binding price floor is imposed on a

34、 market for a good, some people who want to sell the good cannot do so.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floors | SurplusesMSC:Interpretive56.Discrimination is an example of a rationing mechanism that may naturally develop in response to a binding price floor.ANS:TDIF:2REF:

35、6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive57.Price floors are typically imposed to benefit buyers.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive58.Binding price floors benefit sellers because they allow sellers to sell all the goods they

36、want at a higher price.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive59.Not all sellers benefit from a binding price floor.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive60.A binding price floor may not help all sellers, but it d

37、oes not hurt any sellers.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Interpretive61.The rationing mechanisms that develop under binding price floors are usually efficient.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floors | EfficiencyMSC:Interpretive62.When

38、a free market for a good reaches equilibrium, anyone who is willing and able to sell at the market price can sell the good.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:PricesMSC:Interpretive63.If the equilibrium price of an airline ticket is $400 and the government imposes a price floor of

39、$500 on airline tickets, then fewer airline tickets will be sold than at the market equilibrium.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Applicative64.If the equilibrium price of an airline ticket is $500 and the government imposes a price floor of $400 on airline ticket

40、s, then fewer airline tickets will be sold than at the market equilibrium.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Supply and demandTOP:Price floorsMSC:Applicative65.One common example of a price floor is the minimum wage.ANS:TDIF:1REF:6-1NAT:AnalyticLOC:Labor marketsTOP:Minimum wageMSC:Definitional66.The g

41、oal of the minimum wage is to ensure workers a minimally adequate standard of living.ANS:TDIF:1REF:6-1NAT:AnalyticLOC:Labor marketsTOP:Minimum wageMSC:Definitional67.The United States is the only country in the world with minimum-wage laws.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Labor marketsTOP:Minimum wa

42、geMSC:Interpretive68.States in the U.S. may mandate minimum wages above the federal level.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Labor marketsTOP:Minimum wageMSC:Interpretive69.In the labor markets, workers determine the supply of labor and firms determine the demand.ANS:TDIF:1REF:6-1NAT:AnalyticLOC:Labor

43、 marketsTOP:Labor demand | Labor supplyMSC:Definitional70.In an unregulated labor market, the wage adjusts to balance labor supply and labor demand.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Labor marketsTOP:WagesMSC:Interpretive71.A binding minimum wage causes the quantity of labor demanded to exceed the qua

44、ntity of labor supplied.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Labor marketsTOP:Minimum wageMSC:Interpretive72.A binding minimum wage creates unemployment.ANS:TDIF:2REF:6-1NAT:AnalyticLOC:Labor marketsTOP:Minimum wage | UnemploymentMSC:Interpretive73.A binding minimum wage may not help all workers, but it does not hurt any workers.ANS:FDIF:2REF:6-1NAT:AnalyticLOC:Labor marketsTOP:Minimum wageMSC:Interpretive74.A binding minimum wage raises the incomes of those workers who have jobs, but it lowers the incomes of workers who cannot find jobs.ANS:

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