A price ceiling _____________________________.

makes it illegal to charge a higher price than specified
is necessary to maintain market equilibrium
occurs in housing markets only
is more effective when it is higher

A rent ceiling _______________________________.

set above equilibrium price is effective
always increases the quantity of rental units supplied
set below equilibrium price is effective
does not change the market price

A rent ceiling that is effective results in _______________________.

an increase in the supply of housing
a shortage of housing
helping the poor
more housing supplied than demanded

Search activity _____________________________.

decreases when a price ceiling is set on a good
increases when a price ceiling is set on a good
is unnecessary when a black market exists
occurs there is a surplus of the good

The government sets a price floor for corn which is effective. All of the following, except _______________, will occur.

A surplus of corn will be produced.
The corn market is efficient.
Tthe government will buy the corn surplus.
A deadweight loss is created.

When a minimum wage is set above the equilibrium wage rate, ______________________.

unemployment decreases
unemployment increases
search activity decreases
the supply of low-skilled workers decreases

A minimum wage law ____________________.

creates more employment opportunities for low-skilled workers
creates unemployment among low-skilled workers
creates more prosperity among younger people
increases the number of good paying jobs available to young people

Buyers respond only to the price that _______ the tax, and sellers respond to the price that _______ the tax.

includes; includes
excludes; excludes
excludes; includes
includes; excludes

If the demand for an agricultural good is inelastic, then a bumper harvest results in a lower price and farm revenue will _________________.

decrease
increase
either remain constant or increase
remain constant

A government price stabilization agency _______ inventory when the price is above the future expected price and _______ inventory when the price is below the future expected price.

sells from; buys for
buys for; sells from
sells from; sells from
buys for; buys for

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