202120 Spring 2021 ECON 213-D11 LUO
QUIZ 6
Question 1
2 out of 2 points
The minimum wage law is an example of a:
Selected Answer:
price floor.
Question 2
2 out of 2 points
Which of the following is an accurate statement about the consequence of a binding price floor?
Selected Answer:
Binding price floors encourage the formation of a black market.
Question 3
2 out of 2 points
You would expect there to be many customers for a black market good when the opportunity cost
of finding the good under a:
Selected Answer:
binding price ceiling is high.
Question 4
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?
Selected Answer:
More consumers would purchase the product in the community without a price floor.
Question 5
0 out of 2 points
What is the incentive to create a black market when a binding price ceiling exists?
Selected Answer:
A black market emerges because buyers who have a low opportunity cost are seeking out the
product.
Question 6
2 out of 2 points
If a price ceiling is imposed at $15 per unit when the equilibrium market price is $12, there will
be:
Selected Answer:
no surplus or shortage.
Question 7
2 out of 2 points
What would you expect the consequences to size and quality would be for a product sold under a
binding price ceiling?
Selected Answer:
Both the quality and the size of the product will decrease.
Question 8
2 out of 2 points
How would an economist explain a teenager’s continued unemployment where there exists a
minimum wage?
Selected Answer:
The minimum wage law made it such that the quantity of labor willing to work at that wage was
greater than the quantity of labor demanded at that wage.
Question 9
2 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 supplied change?
Selected Answer:
It would decrease by 18,000 units.
Question 10
2 out of 2 points
Setting a price ceiling below the equilibrium price can result in:
Selected Answer:
a shortage, where the quantity demanded exceeds the quantity supplied.
Question 11
2 out of 2 points
Use the following table to answer the questions that follow.
At what price level does the labor market experience its largest surplus?
Selected Answer:
$8.00
Question 12
0 out of 2 points
If a store sells a good at the market price, even though the government authorities have set the
maximum price that can be charged for it, the store is selling the good in a(n):
Selected Answer:
legal market for a market price that is lower.
Question 13
2 out of 2 points
Why do shortages develop under a binding price ceiling?
Selected Answer:
It makes the price so low that the quantity demanded exceeds the quantity supplied in the legal
market.
Question 14
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.
Selected Answer:
There will be a surplus of 3,000,000.
Question 15
2 out of 2 points
Refer to the accompanying figure to answer the questions that follow.
If there is a $180 price ceiling imposed on a textbook, what will be the disequilibrium amount?
Selected Answer:
There will not be a shortage.
