1、371Chapter 6Supply, Demand, and Government PoliciesTRUE/FALSE1. Economic policies often have effects that their architects did not intend or anticipate.ANS: T DIF: 1 REF: 6-0NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Public policy MSC: Definitional2. Rent-control laws
2、 dictate a minimum rent that landlords may charge tenants.ANS: F DIF: 1 REF: 6-0NAT: Analytic LOC: Supply and demand TOP: Rent controlMSC: Definitional3. Minimum-wage laws dictate the lowest wage that firms may pay workers.ANS: T DIF: 1 REF: 6-0NAT: Analytic LOC: Labor markets TOP: Minimum wageMSC:
3、Definitional4. Price controls are usually enacted when policymakers believe that the market price of a good or service is unfair to buyers or sellers.ANS: T DIF: 1 REF: 6-0NAT: Analytic LOC: Supply and demand TOP: Price controlsMSC: Definitional5. Price controls can generate inequities.ANS: T DIF: 1
4、 REF: 6-0NAT: Analytic LOC: Supply and demand TOP: Price controlsMSC: Definitional6. Policymakers use taxes to raise revenue for public purposes and to influence market outcomes.ANS: T DIF: 1 REF: 6-0NAT: Analytic LOC: Supply and demand TOP: TaxesMSC: Definitional7. If a good or service is sold in a
5、 competitive market free of government regulation, then the price of the good or service adjusts to balance supply and demand.ANS: T DIF: 1 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: PricesMSC: Definitional8. At the equilibrium price, the quantity that buyers want to buy exactly equals the qu
6、antity that sellers want to sell.ANS: T DIF: 1 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: PricesMSC: Definitional9. A price ceiling is a legal minimum on the price at which a good or service can be sold.ANS: F DIF: 1 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Definit
7、ional10. A price ceiling set above the equilibrium price is not binding.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Interpretive372 Chapter 6/Supply, Demand, and Government Policies11. If a price ceiling is not binding, then it will have no effect on the market
8、.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Interpretive12. To be binding, a price ceiling must be set above the equilibrium price.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Interpretive13. A price ceiling set below the
9、equilibrium price is binding.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Interpretive14. A price ceiling set below the equilibrium price causes quantity demanded to exceed quantity supplied.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price c
10、eilings | ShortagesMSC: Interpretive15. A price ceiling set above the equilibrium price causes quantity demanded to exceed quantity supplied.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Interpretive16. A binding price ceiling causes quantity demanded to be less
11、than quantity supplied.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilings | ShortagesMSC: Interpretive17. A price ceiling set below the equilibrium price causes a shortage in the market.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilings | Short
12、agesMSC: Interpretive18. A price ceiling set above the equilibrium price causes a surplus in the market.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Interpretive19. A binding price ceiling causes a shortage in the market.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC:
13、Supply and demand TOP: 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: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilings | ShortagesMSC: Interpretive21. Long
14、lines and discrimination are examples of rationing methods that may naturally develop in response to a binding price ceiling.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Interpretive22. Price ceilings are typically imposed to benefit buyers.ANS: T DIF: 2 REF: 6-
15、1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: InterpretiveChapter 6/Supply, Demand, and Government Policies 37323. Binding price ceilings benefit consumers because they allow consumers to buy all the goods they demand at a lower price.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply a
16、nd demand TOP: Price ceilingsMSC: Interpretive24. All buyers benefit from a binding price ceiling.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Interpretive25. A binding price ceiling may not help all consumers, but it does not hurt any consumers.ANS: F DIF: 2 RE
17、F: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Interpretive26. When the government imposes 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: F DIF: 1 REF: 6-1NAT:
18、 Analytic LOC: Supply and demand TOP: Price ceilings | ShortagesMSC: Definitional27. The rationing mechanisms that develop under binding price ceilings are usually inefficient.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilings | EfficiencyMSC: Interpretive28. Price is the
19、 rationing mechanism in a free, competitive market.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: PricesMSC: Interpretive29. Prices are inefficient rationing devices.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Prices | EfficiencyMSC: Interpretive30. When free mar
20、kets ration goods with prices, it is both efficient and impersonal.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Prices | EfficiencyMSC: Interpretive31. 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: T
21、 DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: PricesMSC: Interpretive32. If a price ceiling of $2 per gallon is imposed on gasoline, and the market equilibrium price is $1.50, then the price ceiling is a binding constraint on the market.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and
22、 demand TOP: 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 constraint on the market.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Applic
23、ative374 Chapter 6/Supply, Demand, and Government Policies34. A price ceiling caused the gasoline shortage of 1973 in the United States.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price ceilingsMSC: Interpretive35. One common example of a price ceiling is rent control.ANS: T DIF:
24、 1 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Rent controlMSC: Definitional36. The goal of rent control is to help the poor by making housing more affordable.ANS: T DIF: 1 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Rent controlMSC: Definitional37. Economists argue that rent control is
25、a highly efficient way to help the poor raise their standard of living.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: The study of economics and definitions of economicsTOP: Economists | Rent control MSC: Interpretive38. Because supply and demand are inelastic in the short run, the initial shortage caused
26、 by rent control is large.ANS: F DIF: 1 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Rent control | ElasticityMSC: Definitional39. The primary effect of rent control in the short run is to reduce rents.ANS: T DIF: 1 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Rent controlMSC: Definitional
27、40. The housing shortages caused 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: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Rent control | ElasticityMSC: Interpretive4
28、1. The effects of rent control in the long run include lower rents and lower-quality housing.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Rent controlMSC: Interpretive42. Rent control may lead to lower rents for those who find housing, but the quality of the housing may also be lo
29、wer.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Rent controlMSC: Interpretive43. In a free market, the price of housing adjusts to eliminate the shortages that give rise to undesirable landlord behavior.ANS: T DIF: 1 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Rent controlM
30、SC: Definitional44. A price floor is a legal minimum on the price at which a good or service can be sold.ANS: T DIF: 1 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: DefinitionalChapter 6/Supply, Demand, and Government Policies 37545. A price floor set above the equilibrium price
31、 is not binding.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Interpretive46. If a price floor is not binding, then it will have no effect on the market.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Interpretive47. To be binding,
32、a price floor must be set above the equilibrium price.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Interpretive48. A price floor set below the equilibrium price is binding.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Interpretiv
33、e49. A price floor set below the equilibrium price causes quantity supplied to exceed quantity demanded.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Interpretive50. A price floor set above the equilibrium price causes quantity supplied to exceed quantity demanded.
34、ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floors | SurplusesMSC: Interpretive51. A binding price floor causes quantity supplied to be less than quantity demanded.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floors | SurplusesMSC: Interpretive52. A
35、 price floor set below the equilibrium price causes a surplus in the market.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Interpretive53. A price floor set above the equilibrium price causes a surplus in the market.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply an
36、d demand TOP: Price floors | SurplusesMSC: Interpretive54. A binding price floor causes a shortage in the market.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floors | SurplusesMSC: Interpretive55. When a binding price floor is imposed on a market for a good, some people who
37、want to sell the good cannot do so.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floors | SurplusesMSC: Interpretive56. Discrimination is an example of a rationing mechanism that may naturally develop in response to a binding price floor.ANS: T DIF: 2 REF: 6-1NAT: Analytic LO
38、C: Supply and demand TOP: Price floorsMSC: Interpretive376 Chapter 6/Supply, Demand, and Government Policies57. Price floors are typically imposed to benefit buyers.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Interpretive58. Binding price floors benefit sellers b
39、ecause they allow sellers to sell all the goods they want at a higher price.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Interpretive59. Not all sellers benefit from a binding price floor.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floors
40、MSC: Interpretive60. A binding price floor may not help all sellers, but it does not hurt any sellers.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Interpretive61. The rationing mechanisms that develop under binding price floors are usually efficient.ANS: F DIF: 2
41、REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floors | EfficiencyMSC: Interpretive62. When 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: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: PricesMSC: I
42、nterpretive63. If the equilibrium price of an airline ticket is $400 and the government imposes a price floor of $500 on airline tickets, then fewer airline tickets will be sold than at the market equilibrium.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Applicativ
43、e64. If the equilibrium price of an airline ticket is $500 and the government imposes a price floor of $400 on airline tickets, then fewer airline tickets will be sold than at the market equilibrium.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Supply and demand TOP: Price floorsMSC: Applicative65. One c
44、ommon example of a price floor is the minimum wage.ANS: T DIF: 1 REF: 6-1NAT: Analytic LOC: Labor markets TOP: Minimum wageMSC: Definitional66. The goal of the minimum wage is to ensure workers a minimally adequate standard of living.ANS: T DIF: 1 REF: 6-1NAT: Analytic LOC: Labor markets TOP: Minimu
45、m wageMSC: Definitional67. The United States is the only country in the world with minimum-wage laws.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Labor markets TOP: Minimum wageMSC: InterpretiveChapter 6/Supply, Demand, and Government Policies 37768. States in the U.S. may mandate minimum wages above th
46、e federal level.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Labor markets TOP: Minimum wageMSC: Interpretive69. In the labor markets, workers determine the supply of labor and firms determine the demand.ANS: T DIF: 1 REF: 6-1NAT: Analytic LOC: Labor marketsTOP: Labor demand | Labor supply MSC: Definiti
47、onal70. In an unregulated labor market, the wage adjusts to balance labor supply and labor demand.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Labor markets TOP: WagesMSC: Interpretive71. A binding minimum wage causes the quantity of labor demanded to exceed the quantity of labor supplied.ANS: F DIF: 2
48、REF: 6-1NAT: Analytic LOC: Labor markets TOP: Minimum wageMSC: Interpretive72. A binding minimum wage creates unemployment.ANS: T DIF: 2 REF: 6-1NAT: Analytic LOC: Labor marketsTOP: Minimum wage | Unemployment MSC: Interpretive73. A binding minimum wage may not help all workers, but it does not hurt
49、 any workers.ANS: F DIF: 2 REF: 6-1NAT: Analytic LOC: Labor markets TOP: 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: T DIF: 1 REF: 6-1NAT: Analytic LOC: Labor markets TOP: Minimum wageMSC: Definitional75. The economy contains many labor markets for different types of workers.ANS: T DIF: 1 REF: 6-1NAT: Analytic LOC: Labor markets TOP: Labor marketsMSC: Definitional76. The impact of the minimum wage depends on the skill and experience of the worker.ANS: T DIF:
