A price ceiling _____________________________.

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

A rent ceiling _______________________________.

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

A rent ceiling that is effective results in _______________________.

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

Search activity _____________________________.

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

The government adopts a price support policy for corn which is effective. All of the following, except _______________, will occur.

the target price is above the equilibrium price
a shortage of corn
the main gainers are large efficient farms
the cost of buying and storing corn falls on tax payers

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

unemployment decreases
unemployment increases
the supply of unskilled workers decreases
search activity decreases

A minimum wage law ____________________.

creates more employment opportunities for unskilled workers
creates more prosperity among younger people
creates unemployment among unskilled workers
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.

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

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

increase
remain constant
decrease
either remain constant or increase

The demand for most farm produced goods is

perfectly inelastic
elastic
inelastic
perfectly elastic