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Chapter6
Supply,Demand,andGovernmentPolicies
TRUE/FALSE
.
ANS:TDIF:1REF:6-0
NAT:AnalyticLOC:Thestudyofeconomicsanddefinitionsofeconomics
TOP:PublicpolicyMSC:Definitional
-controllawsdictateaminimumrentthatlandlordsmaychargetenants.
ANS:FDIF:1REF:6-0
NAT:AnalyticLOC:SupplyanddemandTOP:Rentcontrol
MSC:Definitional
-wagelawsdictatethelowestwagethatfirmsmaypayworkers.
ANS:TDIF:1REF:6-0
NAT:AnalyticLOC:LabormarketsTOP:Minimumwage
MSC:Definitional
unfairtobuyersorsellers.
ANS:TDIF:1REF:6-0
NAT:AnalyticLOC:SupplyanddemandTOP:Pricecontrols
MSC:Definitional
.
ANS:TDIF:1REF:6-0
NAT:AnalyticLOC:SupplyanddemandTOP:Pricecontrols
MSC:Definitional
.
ANS:TDIF:1REF:6-0
NAT:AnalyticLOC:SupplyanddemandTOP:Taxes
MSC:Definitional
,thenthepriceofthegoodor
serviceadjuststobalancesupplyanddemand.
ANS:TDIF:1REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Prices
MSC:Definitional
,thequantitythatbuyerswanttobuyexactlyequalsthequantitythatsellerswantto
sell.
ANS:TDIF:1REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Prices
MSC:Definitional
.
ANS:FDIF:1REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Definitional
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive:.
,thenitwillhavenoeffectonthemarket.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive
,apriceceilingmustbesetabovetheequilibriumprice.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings|Shortages
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings|Shortages
MSC:Interpretive
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings|Shortages
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings|Shortages
MSC:Interpretive
,somepeoplewhowanttobuythegood
cannotdoso.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings|Shortages
MSC:Interpretive
bindingpriceceiling.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive:.
lowerprice.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive
,butitdoesnothurtanyconsumers.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive
,asurplusofthegoodarises,
andsellersmustrationthescarcegoodsamongthelargenumberofpotentialbuyers.
ANS:FDIF:1REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings|Shortages
MSC:Definitional
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings|Efficiency
MSC:Interpretive
,competitivemarket.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Prices
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Prices|Efficiency
MSC:Interpretive
,itisbothefficientandimpersonal.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Prices|Efficiency
MSC:Interpretive
,anyonewhoiswillingandabletopaythemarketprice
canbuythegood.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Prices
MSC:Interpretive
$2pergallonisimposedongasoline,andthemarketequilibriumpriceis$,thenthe
priceceilingisabindingconstraintonthemarket.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Applicative
$,andthemarketequilibriumpriceis$2,thenthe
priceceilingisabindingconstraintonthemarket.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Applicative:.
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Priceceilings
MSC:Interpretive
.
ANS:TDIF:1REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Rentcontrol
MSC:Definitional
.
ANS:TDIF:1REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Rentcontrol
MSC:Definitional
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:Thestudyofeconomicsanddefinitionsofeconomics
TOP:Economists|RentcontrolMSC:Interpretive
,theinitialshortagecausedbyrentcontrolislarge.
ANS:FDIF:1REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Rentcontrol|Elasticity
MSC:Definitional
.
ANS:TDIF:1REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Rentcontrol
MSC:Definitional
supplyofhousingandthedemandforhousingaremoreelasticinthelongrun.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Rentcontrol|Elasticity
MSC:Interpretive
-qualityhousing.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Rentcontrol
MSC:Interpretive
,butthequalityofthehousingmayalsobe
lower.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Rentcontrol
MSC:Interpretive
,thepriceofhousingadjuststoeliminatetheshortagesthatgiverisetoundesirablelandlord
behavior.
ANS:TDIF:1REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Rentcontrol
MSC:Definitional
.
ANS:TDIF:1REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Definitional:.
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive
,thenitwillhavenoeffectonthemarket.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive
,apricefloormustbesetabovetheequilibriumprice.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors|Surpluses
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors|Surpluses
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors|Surpluses
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors|Surpluses
MSC:Interpretive
,somepeoplewhowanttosellthegoodcannot
doso.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors|Surpluses
MSC:Interpretive
pricefloor.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive:.
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive
.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive
,butitdoesnothurtanysellers.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Interpretive
.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors|Efficiency
MSC:Interpretive
,anyonewhoiswillingandabletosellatthemarketprice
cansellthegood.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Prices
MSC:Interpretive
$400andthegovernmentimposesapricefloorof$500onairline
tickets,thenfewerairlineticketswillbesoldthanatthemarketequilibrium.
ANS:TDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Applicative
$500andthegovernmentimposesapricefloorof$400onairline
tickets,thenfewerairlineticketswillbesoldthanatthemarketequilibrium.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:SupplyanddemandTOP:Pricefloors
MSC:Applicative
.
ANS:TDIF:1REF:6-1
NAT:AnalyticLOC:LabormarketsTOP:Minimumwage
MSC:Definitional
.
ANS:TDIF:1REF:6-1
NAT:AnalyticLOC:LabormarketsTOP:Minimumwage
MSC:Definitional
-wagelaws.
ANS:FDIF:2REF:6-1
NAT:AnalyticLOC:LabormarketsTOP:Minimumwage
MSC:Interpretive:T