Question 1

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

Accepted Answer

A)  Property will be switched from commercial property to rental housing
B)  More rental housing will be built
C)  Renters will be induced to buy housing
D)  The average number of renters per rental unit will increase
E)  All of the above

Question 2

If 10 workers produce 100 units of output and 11 workers produce 108 units of output,the marginal product of the 11th worker is 8.

Accepted Answer

A) True 
 B)False

Question 3

If a worker works more as the wage increases,the income effect is dominating.

Accepted Answer

A) True 
 B)False

Question 4

Rent controls result in a misallocation of resources.

Accepted Answer

A) True 
 B)False

Question 5

Price floors are instituted to increase the income of sellers.

Accepted Answer

A) True 
 B)False

Question 6

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

A)  $800 and 25
B)  $625 and 30
C)  $600 and 20
D)  $400 and 25
E)  $600 and 25

Question 7

A firm increases the number of workers it hires from 50 to 52 and,as a result,output increases from 100 to 110.Each of the additional units of output can be sold for $2.What is marginal revenue for the last 10 units produced?

Accepted Answer

A)  2
B)  5
C)  10
D)  20
E)  50

Question 8

The additional revenue a firm receives as a result of hiring an additional worker is MRP.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  To prevent inflation
B)  To make goods and services accessible to all income levels
C)  To increase the income of sellers
D)  To increase the wages of workers
E)  To do all of the above

Question 10

A firm's marginal revenue curve is also its demand curvE.

Accepted Answer

A) True 
 B)False

Question 11

A firm increases the number of workers it hires from 50 to 52 and,as a result,output increases from 100 to 110.Each of the additional units of output can be sold for $2.What is the marginal product of the 52nd worker?

Accepted Answer

A)  2
B)  5
C)  10
D)  20
E)  50

Question 12

Minimum housing standards prevent any property deterioration in rent controlled housing.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  The quantity demanded of housing increases
B)  People take in roommates to share costs
C)  Individuals move back in with their families
D)  More rental housing is constructed
E)  All of the above

Question 14

Research suggests that as the minimum wage is increased by 10%,the associated increase in the teenage unemployment rate is nearly

Accepted Answer

A)  1 percent
B)  10 percent
C)  20 percent
D)  25 percent
E)  30 percent

Question 15

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

Accepted Answer

A)  1,000
B)  200
C)  50
D)  15
E)  5

Question 16

Which of the following is true of the minimum wage?

Accepted Answer

A)  It has significantly reduced poverty in the United States
B)  A worker earning the minimum wage will keep a family of three out of poverty
C)  It results in a much more equal distribution of income in the United States
D)  Unemployment rates are unaffected by the minimum wage
E)  None of the above is true

Question 17

A firm has a given amount of capital.When it hires 10 workers,output is 30.When it hires 11 workers,output is 40.If the Law of Diminishing Returns applies,which of the following is the most likely amount of output when the firm hires 12 workers?

Accepted Answer

A)  70
B)  60
C)  50
D)  45
E)  -10

Question 18

The Following Questions Refer to the graph below. 
-If rent is controlled at $600,there will be a ______ equal to ____ thousand units in the market.

Accepted Answer

A)  Surplus; 10
B)  Surplus; 20
C)  Shortage; 10
D)  Shortage; 20
E)  Excess supply; 10

Question 19

Which effect dominates if a workers supply curve for labor is negatively sloped?

Accepted Answer

A)  Substitution
B)  Income
C)  Wage
D)  Wealth
E)  Leisure

Question 20

The Following Questions Refer to the graph below. 
-If the supply and demand for rental housing are DD and SS,what effect will a rent control law that sets the maximum allowable rent at $400 have on the market? It will lead to

Accepted Answer

A)  A surplus of 5 thousand units
B)  A shortage of 5 thousand units
C)  A surplus of 10 thousand units
D)  A shortage of 10 thousand units
E)  No change in equilibrium rent or quantity

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

Which of the following is true of the minimum wage?

Correct AnswerverifiedShow Answer

The additional revenue a firm receives as a result of hiring an additional worker is MRP.

Correct AnswerverifiedShow Answer

Rent controls result in a misallocation of resources.

Correct AnswerverifiedShow Answer

A firm increases the number of workers it hires from 50 to 52 and,as a result,output increases from 100 to 110.Each of the additional units of output can be sold for $2.What is the marginal product of the 52nd worker?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -If rent is controlled at $600,there will be a ______ equal to ____ thousand units in the market.

Correct AnswerverifiedShow Answer

Price floors are instituted to increase the income of sellers.

Correct AnswerverifiedShow Answer

A firm increases the number of workers it hires from 50 to 52 and,as a result,output increases from 100 to 110.Each of the additional units of output can be sold for $2.What is marginal revenue for the last 10 units produced?

Correct AnswerverifiedShow Answer

If 10 workers produce 100 units of output and 11 workers produce 108 units of output,the marginal product of the 11th worker is 8.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm's marginal revenue curve is also its demand curvE.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Minimum housing standards prevent any property deterioration in rent controlled housing.

Correct AnswerverifiedShow Answer

Which effect dominates if a workers supply curve for labor is negatively sloped?

Correct AnswerverifiedShow Answer

If a worker works more as the wage increases,the income effect is dominating.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm has a given amount of capital.When it hires 10 workers,output is 30.When it hires 11 workers,output is 40.If the Law of Diminishing Returns applies,which of the following is the most likely amount of output when the firm hires 12 workers?

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -If the supply and demand for rental housing are DD and SS,what effect will a rent control law that sets the maximum allowable rent at $400 have on the market? It will lead to

Correct AnswerverifiedShow Answer

Research suggests that as the minimum wage is increased by 10%,the associated increase in the teenage unemployment rate is nearly

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A firm increases the number of workers it hires from 50 to 52 and,as a result,output increases from 100 to 110.Each of the additional units of output can be sold for $2.What is the marginal product of the 52^nd worker?

Correct Answer
verified

Correct Answer
verified

The Following Questions Refer to the graph below. -If rent is controlled at $600,there will be a __ equal to thousand units in the market.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

If 10 workers produce 100 units of output and 11 workers produce 108 units of output,the marginal product of the 11^th worker is 8.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified