Question 1

The Law of Diminishing Returns states that,as additional units of a variable input are added to a given amount of a fixed input,increases in output will

Accepted Answer

A)  Increase
B)  Decline
C)  Stay the same
D)  Accelerate
E)  Become erratic

Question 2

According to the alternative analysis of the minimum wage,which of the following might lead the demand curve for labor to be vertical over the relevant range?

Accepted Answer

A)  Firms offset higher wages by allowing longer lines during peak hours
B)  Higher wages are offset by increased efficiency
C)  Prices are increased for goods that are not price-sensitive
D)  All of the above
E)  None of the above D

Question 3

The Following Questions Refer to the graph below. 
-A minimum wage set at $12 per hour would result in a surplus of

Accepted Answer

A)  0
B)  10
C)  20
D)  35
E)  None of the above

Question 4

As the wage increases,a worker will choose to work

Accepted Answer

A)  More
B)  Less
C)  The same amount
D)  Overtime
E)  An amount that cannot be determined E

Question 5

If the supply curve of labor is positively sloped,the income effect is dominating.

Accepted Answer

A) True 
 B)False

Question 6

In the short-run,who "loses" from rent control laws?

Accepted Answer

A)  Those who cannot find rental housing
B)  People who are forced to commute
C)  Individuals who experience increased search costs for rental housing
D)  Those who must make under-the-table payments to secure rental housing
E)  All of the above

Question 7

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

Accepted Answer

A)  Above the federal minimum wage
B)  Below the federal minimum wage
C)  Equal to the federal minimum wage
D)  To either a or c
E)  To any of the above

Question 8

In the short-run,the supply of housing can increase quickly.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following represents the demand curve for labor for a firm?

Accepted Answer

A)  The MR curve
B)  The MP curve
C)  The MRP curve
D)  The MC curve
E)  None of the above

Question 10

In a mixed economy,markets adjust freely and all markets are cleareD.

Accepted Answer

A) True 
 B)False

Question 11

The Following Questions Refer to the table below. th worker is A) 20 B) 40 C) 100 D) 140 E) 160" class="answers-bank-image d-inline" rel="preload" >
-The marginal product of the 4th worker is

Accepted Answer

A)  20
B)  40
C)  100
D)  140
E)  160

Question 12

Many rent controls were established as a result of World War II and were kept even after the war endeD.

Accepted Answer

A) True 
 B)False

Question 13

The Following Questions Refer to the graph below. 
-If rent is controlled at $600,the quantity of rental housing demanded will be

Accepted Answer

A)  0
B)  30
C)  40
D)  50
E)  More than 50 D

Question 14

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

Accepted Answer

A)  To provide the intended results
B)  In ways that offset intended impacts
C)  Quickly to reverse intended effects
D)  In completely unpredictable ways
E)  So slowly that policies never work as they are intended

Question 15

The Following Questions Refer to the table below. 
-If each unit of output is sold for $5,the marginal revenue of the second unit of output sold is

Accepted Answer

A)  $5
B)  $10
C)  $40
D)  $50
E)  $200

Question 16

Working for the minimum wage provides valuable on-the-job-training.

Accepted Answer

A) True 
 B)False

Question 17

Some universities have rent controlled student housing.

Accepted Answer

A) True 
 B)False

Question 18

Rent control laws will _____________ the search costs of potential renters.

Accepted Answer

A)  Increase
B)  Decrease
C)  Eliminate
D)  Mitigate
E)  Reimburse

Question 19

6 of the 10 cities with the highest homelessness have rent control laws.

Accepted Answer

A) True 
 B)False

Question 20

The Following Questions Refer to the graph below. 
-The equilibrium rent and quantity (1,000s of units) are

Accepted Answer

A)  $900 and 30
B)  $750 and 40
C)  $600 and 30
D)  $900 and 50
E)  $600 and 50

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

The Law of Diminishing Returns states that,as additional units of a variable input are added to a given amount of a fixed input,increases in output will

Correct AnswerverifiedShow Answer

According to the alternative analysis of the minimum wage,which of the following might lead the demand curve for labor to be vertical over the relevant range?

Correct AnswerverifiedD

The Following Questions Refer to the graph below. -A minimum wage set at $12 per hour would result in a surplus of

Correct AnswerverifiedShow Answer

As the wage increases,a worker will choose to work

Correct AnswerverifiedE

If the supply curve of labor is positively sloped,the income effect is dominating.

Correct AnswerverifiedShow Answer

In the short-run,who "loses" from rent control laws?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the short-run,the supply of housing can increase quickly.

Correct AnswerverifiedShow Answer

Which of the following represents the demand curve for labor for a firm?

Correct AnswerverifiedShow Answer

In a mixed economy,markets adjust freely and all markets are cleareD.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the table below. -The marginal product of the 4th worker is

Correct AnswerverifiedShow Answer

Many rent controls were established as a result of World War II and were kept even after the war endeD.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -If rent is controlled at $600,the quantity of rental housing demanded will be

Correct AnswerverifiedD

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

Correct AnswerverifiedShow Answer

The Following Questions Refer to the table below. -If each unit of output is sold for $5,the marginal revenue of the second unit of output sold is

Correct AnswerverifiedShow Answer

Working for the minimum wage provides valuable on-the-job-training.

Correct AnswerverifiedShow Answer

Some universities have rent controlled student housing.

Correct AnswerverifiedShow Answer

Rent control laws will _____________ the search costs of potential renters.

Correct AnswerverifiedShow Answer

6 of the 10 cities with the highest homelessness have rent control laws.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -The equilibrium rent and quantity (1,000s of units) are

Correct AnswerverifiedShow Answer

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E

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The Following Questions Refer to the table below. -The marginal product of the 4^th worker is

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D

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