Question 1

To be effective,a price ceiling must be set

Accepted Answer

A price ceiling is a government-imposed maximum price that cannot exceed a certain level. To be effective, a price ceiling must be set below the equilibrium price. If the price ceiling is set above the equilibrium price, it will have no impact on the market since the market price is already lower than the ceiling. Setting the price ceiling at equilibrium or by producers is not practical since these prices are determined by the market forces of supply and demand.

Question 2

A maximum allowable price for a good or service is a

Accepted Answer

A maximum allowable price for a good or service is known as a price ceiling. It is a government-imposed limit on how high a price can be charged for a certain good or service. The aim of a price ceiling is to help consumers who might not be able to afford the market price of a good or service, but it can also create shortages and reduce the supply of the good or service.

Question 3

Which of the following is true of the first U.S.minimum wage?

Accepted Answer

The statement "It was set under the Fair Labor Standards Act" is true. The statement "It was instituted in 1938" is also true. The statement "It set the minimum wage at 25 cents per hour" is true. Finally, the statement "It applied only to certain designated industries" is true as well. Therefore, all options are true and the correct answer is E.

Question 4

The Following Questions Refer to the graph below. 
-If the demand for rental housing is DD and the supply of rental housing is SS,the equilibrium rent and quantity (number of units in thousands)are

Accepted Answer

The answer of The Following Questions Refer to the graph...

Question 5

In a mixed economy,governments may intervene in markets in which of the following ways?

Accepted Answer

In a mixed economy, governments may intervene in markets through various measures such as price ceilings, minimum wages, and agricultural price supports, among others. Thus, all of the given choices (A, B, and C) are correct.

Question 6

Which of the following is true of how markets react to government intervention? They react

Accepted Answer

Markets tend to react in ways that offset intended impacts of government interventions. This is due to the complex and dynamic nature of market systems, which can make it difficult for policymakers to fully anticipate and control all the potential outcomes of their actions. As a result, interventions may have unintended consequences or cause market participants to adjust their behavior in ways that undermine the intended effects of the policy.

Question 7

Some states also have their own minimum wage legislation.Generally these laws set the state minimum wage

Accepted Answer

The passage states that "Generally these laws set the state minimum wage Above the federal minimum wage".

Question 8

As of summer 2009,the U.S.federal minimum wage is set at what rate per hour?

Accepted Answer

As of summer 2009, the U.S. federal minimum wage is set at $7.25 per hour. This minimum wage rate has remained the same since 2009, but it may change in the future due to legislative action.

Question 9

The consequences of government intervention

Accepted Answer

Government interventions can lead to unintended consequences that were not foreseen by policy makers. For example, a regulation designed to protect consumers may increase costs for businesses, leading to higher prices for consumers. This can have a disproportionate impact on low-income individuals who may not be able to afford the higher prices.

Question 10

During the 1970's about how many cities in the U.S.had rent controls?

Accepted Answer

During the 1970s, about 200 cities in the U.S. had implemented some form of rent control. This was largely in response to the housing crisis and inflation that characterized the era, leading many local governments to adopt policies aimed at stabilizing rental prices and protecting tenants.

Question 11

A minimum allowable price for a good or service is known as

Accepted Answer

A minimum allowable price for a good or service can be referred to as a price floor, a form of price support, and in the context of labor, it is known as a minimum wage.

Question 12

Which of the following is true of the U.S.minimum wage over the 1980s and 1990s?

Accepted Answer

The minimum wage was unchanged from 1981 to 1990, and then increased in 1991, 1996, and 1997.

Question 13

In 1981,the U.S.federal minimum wage was increased to

Accepted Answer

The U.S. federal minimum wage was increased to $3.35 per hour in 1981.

Question 14

Price ceilings may be used on a selective basis to

Accepted Answer

Price ceilings are used to limit the maximum price that can be charged for a particular good or service. The main objective is to make the good or service more affordable and accessible to all income levels, which is consistent with choice D. Price ceilings can be particularly effective in markets where there is a lot of competition, as businesses may be forced to reduce their prices to attract customers. However, price ceilings can also lead to shortages and inefficiencies in the market.

Question 15

In a market economy,if the market supply of a product decreases relative to its demand,the product's price will

Accepted Answer

If the market supply of a product decreases relative to its demand, then there will be less of the product available for consumers to purchase. This will create a scarcity of the product, which will drive up its price as consumers compete to purchase the remaining supply. Therefore, the price will rise.

Question 16

As the price of rental housing falls,which of the following occurs?

Accepted Answer

When the price of rental housing falls, the quantity demanded of housing increases because lower prices make housing more affordable to a larger number of people.

Question 17

The purpose of a price ceiling may be to hold down

Accepted Answer

The purpose of a price ceiling is to hold down inflation by limiting the amount that sellers can charge for a good or service. This can help make goods and services more affordable for consumers, especially those with limited incomes. Price ceilings are often implemented for basic necessities such as food or housing. However, they can also have unintended consequences such as shortages or reduced quality.

Question 18

Price floors are often instituted for which of the following purposes?

Accepted Answer

Price floors are often instituted to increase the income of sellers by setting a minimum price for a good or service. This means that sellers cannot sell the good or service for less than the price floor, which can increase their profits. Price floors may also lead to surpluses if the minimum price is above the equilibrium price, as there will be more supply than demand at the higher price. Price floors are not typically used to prevent inflation, make goods and services accessible to all income levels, or increase wages of workers.

Question 19

As the price of rental housing increases,which of the following will happen?

Accepted Answer

When the price of rental housing increases, several effects can occur simultaneously. Property owners may convert commercial properties to rental housing to capitalize on higher rents (A), developers may be incentivized to build more rental housing due to the potential for higher profits (B), some renters may decide to buy homes instead of renting if the cost of renting becomes too high relative to the cost of buying (C), and the average number of renters per unit may increase as individuals group together to afford rent (D).

Question 20

The Following Questions Refer to the graph below. -If demand and supply are DD and SS and demand increases to D₁D₁,the new equilibrium rent and quantity (number of units in thousands)are

Accepted Answer

The increase in demand shifts the demand curve to the right, leading to a higher equilibrium price and quantity. Among the given options, $800 and 25 thousand units best represent this scenario, indicating a higher rent and increased quantity due to the demand shift.

Quiz 3: Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

To be effective,a price ceiling must be set

A maximum allowable price for a good or service is a

Which of the following is true of the first U.S.minimum wage?

The Following Questions Refer to the graph below. -If the demand for rental housing is DD and the supply of rental housing is SS,the equilibrium rent and quantity (number of units in thousands) are

In a mixed economy,governments may intervene in markets in which of the following ways?

Which of the following is true of how markets react to government intervention? They react

Some states also have their own minimum wage legislation.Generally these laws set the state minimum wage

As of summer 2009,the U.S.federal minimum wage is set at what rate per hour?

The consequences of government intervention

During the 1970's about how many cities in the U.S.had rent controls?

A minimum allowable price for a good or service is known as

Which of the following is true of the U.S.minimum wage over the 1980s and 1990s?

In 1981,the U.S.federal minimum wage was increased to

Price ceilings may be used on a selective basis to

In a market economy,if the market supply of a product decreases relative to its demand,the product's price will

As the price of rental housing falls,which of the following occurs?

The purpose of a price ceiling may be to hold down

Price floors are often instituted for which of the following purposes?

As the price of rental housing increases,which of the following will happen?

The Following Questions Refer to the graph below. -If demand and supply are DD and SS and demand increases to D₁D₁,the new equilibrium rent and quantity (number of units in thousands) are

Quiz 3: Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

To be effective,a price ceiling must be set

A maximum allowable price for a good or service is a

Which of the following is true of the first U.S.minimum wage?

The Following Questions Refer to the graph below. -If the demand for rental housing is DD and the supply of rental housing is SS,the equilibrium rent and quantity (number of units in thousands) are

In a mixed economy,governments may intervene in markets in which of the following ways?

Which of the following is true of how markets react to government intervention? They react

Some states also have their own minimum wage legislation.Generally these laws set the state minimum wage

As of summer 2009,the U.S.federal minimum wage is set at what rate per hour?

The consequences of government intervention

During the 1970's about how many cities in the U.S.had rent controls?

A minimum allowable price for a good or service is known as

Which of the following is true of the U.S.minimum wage over the 1980s and 1990s?

In 1981,the U.S.federal minimum wage was increased to

Price ceilings may be used on a selective basis to

In a market economy,if the market supply of a product decreases relative to its demand,the product's price will

As the price of rental housing falls,which of the following occurs?

The purpose of a price ceiling may be to hold down

Price floors are often instituted for which of the following purposes?

As the price of rental housing increases,which of the following will happen?

The Following Questions Refer to the graph below. -If demand and supply are DD and SS and demand increases to D1D1,the new equilibrium rent and quantity (number of units in thousands) are

The Following Questions Refer to the graph below. -If demand and supply are DD and SS and demand increases to D₁D₁,the new equilibrium rent and quantity (number of units in thousands) are