Economics Chapter 5 What The Quota Wedge Answer

Unlock access to all the studying documents.

View Full Document

149. Multiple Choice: If the U.S. government imposes a quot...

Question If the U.S. government imposes a quota on the amount of French wine allowed into

the United States and the quota is set at a quantity below equilibrium, the price of

French wine in the United States will ________ while the U.S.-produced wine will

________.

150. Multiple Choice: An upper limit on the quantity of a g…

Question An upper limit on the quantity of a good that can be bought and sold is a:

151. Multiple Choice: Quota limits cause:

Question Quota limits cause:

Points: 0

152. Multiple Choice: Suppose the United States removes the...

Question Suppose the United States removes the current sugar quotas and the market price

of sugar drops. In the candy bar market, we would expect consumer surplus to:

153. Multiple Choice: Which is not a correct statement abou...

Question Which is not a correct statement about the undesirable side effects of a quantity

control?

154. Multiple Choice: If a quota is set above the equilibri...

Question If a quota is set above the equilibrium quantity, there will be:

155. Multiple Choice: Quantity controls set below the equil...

Question

Points: 0

Quantity controls set below the equilibrium quantity cause all of the following

except:

156. Multiple Choice: Figure: Quantity Controls Reference: ...

Question Figure: Quantity Controls

Reference: Ref 5-26

(Figure: Quantity Controls) Look at the figure Quantity Controls. If the government

decides to restrict the quantity that is sold to 100, which of the following is not a

true statement?

157. Multiple Choice: Figure: The Market for Round-Trip Air…

Question

Points: 0

Figure: The Market for Round–Trip Airline Flights

Reference: Ref 5-27

(Figure: The Market for Round-Trip Airline Flights) Look at the figure The Market for

Round-Trip Airline Flights. The supply and demand graph represents the market for

round-trip airline flights between Boston and New York. Suppose the mayor of New

York decides to limit the number of flights to Q1 to reduce air pollution. What area

or areas represent consumer surplus after the quota is in place?

158. Multiple Choice: Figure: The Market for Round-Trip Air…

Question

Points: 0

Figure: The Market for Round–Trip Airline Flights

Reference: Ref 5-27

(Figure: The Market for Round-Trip Airline Flights) Look at the figure The Market for

Round-Trip Airline Flights. The supply and demand graph represents the market for

round-trip airline flights between Boston and New York. Suppose the mayor of New

York decides to limit the number of flights to Q1 to reduce air pollution. What area

or areas represent producer surplus after the quota is in place?

159. Multiple Choice: Figure: The Market for Round-Trip Air…

Question

Points: 0

Figure: The Market for Round–Trip Airline Flights

Reference: Ref 5-27

(Figure: The Market for Round-Trip Airline Flights) Look at the figure The Market for

Round-Trip Airline Flights. The supply and demand graph represents the market for

round-trip airline flights between Boston and New York. Suppose the mayor of New

York decides to limit the number of flights to Q1 to reduce air pollution. What area

or areas represent deadweight loss after the quota is in place?

160. Multiple Choice: Figure: The Market for Round-Trip Air…

Question

Points: 0

Figure: The Market for Round–Trip Airline Flights

Reference: Ref 5-27

(Figure: The Market for Round-Trip Airline Flights) Look at the figure The Market for

Round-Trip Airline Flights. The supply and demand graph represents the market for

round-trip airline flights between Boston and New York. Suppose the mayor of New

York decides to limit the number of flights to Q1 to reduce air pollution. What is the

quota wedge?

161. Multiple Choice: Figure: The Market for Hotel Rooms Re…

Question

Points: 0

Figure: The Market for Hotel Rooms

Reference: Ref 5-28

(Figure: The Market for Hotel Rooms) Look at the figure The Market for Hotel

Rooms. The local government limits the number of hotel rooms rented each night to

162. Multiple Choice: Figure: The Market for Hotel Rooms Re…

Question Figure: The Market for Hotel Rooms

Reference: Ref 5-28

(Figure: The Market for Hotel Rooms) Look at the figure The Market for Hotel

Rooms The local government limits the number of hotel rooms rented each night to

150. The resulting quota rent per room is equal to:

Points: 0

163. Multiple Choice: Figure: The Market for Hotel Rooms Re…

Question Figure: The Market for Hotel Rooms

Reference: Ref 5-28

(Figure: The Market for Hotel Rooms) Look at the figure The Market for Hotel

Rooms. If the quota rent per room is equal to $140, we know the quota limit is

equal to:

164. Multiple Choice: Reference: Ref 5-29 (Table: The Mark...

Question

Points: 0

Reference: Ref 5-29

(Table: The Market for Acupuncture) Look at the table The Market for Acupuncture.

In an effort to regulate this market, the town requires each acupuncture therapist to

purchase a license. Initially, the government issues only enough licenses to provide

for 20 treatments per month. This quota creates a quota rent equal to:

165. Multiple Choice: Reference: Ref 5-29 (Table: The Mark...

Question

Reference: Ref 5-29

(Table: The Market for Acupuncture) Look at the table The Market for Acupuncture.

The production quota of 20 acupuncture treatments creates a deadweight loss

because there are ________ additional transactions that would be welfare

improving but would not take place under the quota.

Points: 0

166. Multiple Choice: Reference: Ref 5-29 (Table: The Mark...

Question

Reference: Ref 5-29

(Table: The Market for Acupuncture) Look at the table The Market for Acupuncture.

In an effort to regulate this market, the town requires each acupuncture therapist to

purchase a license. Initially the government issues only enough licenses to provide

for 20 treatments per month. Suppose this quota is in place for many years and,

over time, the population of the town has substantially grown. This change could

result in:

167. Multiple Choice: Figure: The Market for Sandwiches Ref…

Question

Points: 0

Figure: The Market for Sandwiches

Reference: Ref 5-30

(Figure: The Market for Sandwiches) Look again at the figure The Market for

Sandwiches. How much total surplus would be lost if there were a quota of only

eight sandwiches that could be legally exchanged at a price of $5?

168. Multiple Choice: Figure: The Market for Sandwiches Ref…

Question Figure: The Market for Sandwiches

Reference: Ref 5-30

(Figure: The Market for Sandwiches) Look at the figure The Market for Sandwiches.

Referring again to the market for sandwiches during the lunch hour at a local deli,

suppose a price floor is set at $7. At this price, consumer surplus is equal to

________ and producer surplus is equal to ________.

Points: 0

169. Multiple Choice: A price ceiling will create a persist...

Question A price ceiling will create a persistent ________ and a price floor will create a

persistent ________.

170. Multiple Choice: Figure: The Shrimp Market Reference: ...

Question Figure: The Shrimp Market

Reference: Ref 5-31

(Figure: The Shrimp Market) Look at the figure The Shrimp Market. If the

government imposes a quota limiting sales of shrimp to 500 pounds, the quota rent

per pound is:

Points: 0

171. Multiple Choice: Figure: The Shrimp Market Reference: ...

Question Figure: The Shrimp Market

Reference: Ref 5-31

(Figure: The Shrimp Market) Look at the figure The Shrimp Market. If the

government imposes a quota limiting sales of shrimp to 250 pounds, the quota rent

per pound is:

172. Multiple Choice: Figure: The Shrimp Market Reference: ...

Question

Points: 0

Figure: The Shrimp Market

Reference: Ref 5-31

(Figure: The Shrimp Market) Look at the figure The Shrimp Market. If the

government imposes a quota limiting sales of shrimp to 1,000 pounds, the quota

rent per pound is:

173. Multiple Choice: Figure: The Shrimp Market Reference: ...

Question

Points: 0