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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:
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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
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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
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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
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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
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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
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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
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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:
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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
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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.
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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
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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 ________.
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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:
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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
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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
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