3.A current surplus is due to a price floor. If the price floor is removed,a. price would increase, quantity demanded would increase, and quantity suppliedwould increaseb. price would increase, quantity demanded would decrease, and quantity suppliedwould decreasec. price would decrease, quantity demanded would increase, and quantity suppliedwould decreased. price would decrease, quantity demanded would decrease, and quantity suppliedwould increase4.The longer a price ceiling is left below the equilibrium price in a market, thethereduction in the quantity exchanged and thethe resulting deadweight loss.a. greater; greaterb. greater; smallerc.. smaller; greaterd. smaller; smaller5.The amount of information that is necessary to make an efficient choice is generallyin the public sector than in the private sector.a. lessb. moreC.the samed. None of the above is true. Which of the following is a positive statement?a. New tax laws are needed to help the poor.1.b. Teenage unemployment should be reduced.C.We should increase Social Security payments to older adults.d. An increase in tax rates will reduce unemployment.е.It is only fair that firms protected from competition by government-grantedmonopolies pay higher corporate taxes.2.Which of the following is true?а.The intersection of the supply and demand curves shows the equilibrium price andequilibrium quantity in a market.b. A surplus is a situation where quantity supplied exceeds quantity demanded.С.A shortage is a situation where quantity demanded exceeds quantity supplied.d. Shortages and surpluses set in motion actions by many buyers and sellers that willmove the market toward the equilibrium price and quantity unless otherwiseprevented.e. All of these are true.

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A current surplus is due to a price floor. If the price floor is removed, a. price would increase, quantity demanded would increase, and quantity supplied would increase b. price would increase, quantity demanded would decrease, and quantity supplied would decrease c. price would decrease, quantity demanded would increase, and quantity supplied would decrease d. price would decrease, quantity demanded would decrease, and quantity supplied would increase

A current surplus is due to a price floor. If the price floor is removed, a. price would increase, quantity demanded would increase, and quantity supplied would increase b. price would increase, quantity demanded would decrease, and quantity supplied would decrease c. price would decrease, quantity demanded would increase, and quantity supplied would decrease d. price would decrease, quantity demanded would decrease, and quantity supplied would increase

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3.
A current surplus is due to a price floor. If the price floor is removed,
a. price would increase, quantity demanded would increase, and quantity supplied
would increase
b. price would increase, quantity demanded would decrease, and quantity supplied
would decrease
c. price would decrease, quantity demanded would increase, and quantity supplied
would decrease
d. price would decrease, quantity demanded would decrease, and quantity supplied
would increase
4.
The longer a price ceiling is left below the equilibrium price in a market, the
the
reduction in the quantity exchanged and the
the resulting deadweight loss.
a. greater; greater
b. greater; smaller
c.. smaller; greater
d. smaller; smaller
5.
The amount of information that is necessary to make an efficient choice is generally
in the public sector than in the private sector.
a. less
b. more
C.
the same
d. None of the above is true.

Which of the following is a positive statement?
a. New tax laws are needed to help the poor.
1.
b. Teenage unemployment should be reduced.
C.
We should increase Social Security payments to older adults.
d. An increase in tax rates will reduce unemployment.
е.
It is only fair that firms protected from competition by government-granted
monopolies pay higher corporate taxes.
2.
Which of the following is true?
а.
The intersection of the supply and demand curves shows the equilibrium price and
equilibrium quantity in a market.
b. A surplus is a situation where quantity supplied exceeds quantity demanded.
С.
A shortage is a situation where quantity demanded exceeds quantity supplied.
d. Shortages and surpluses set in motion actions by many buyers and sellers that will
move the market toward the equilibrium price and quantity unless otherwise
prevented.
e. All of these are true.

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