Monday Quiz 10-22

Term
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A minimum wage that is set above a market's equilibrium wage will result in
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Terms in this set (10)
A minimum wage that is set above a market's equilibrium wage will result in
an excess supply of labor, that is, unemployment.
If a government imposed price ceiling legally sets the price of beef below market equilibrium, which of the following will most likely happen?
There will be a shortage of beef.
Both price floors and price ceilings lead to
a reduction in the quantity traded.
A subsidy is defined as
a payment to either the buyer or seller of a good or service, usually on a per-unit basis, when a good or service is purchased.
A price ceiling set below an equilibrium price tends to cause persistent imbalances in the market because
Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
A payment the government makes to either the buyer or seller, usually on a per-unit basis, when a good or service is purchased or sold is called a
subsidy.
When a price ceiling is imposed below the equilibrium price of a commodity,
a shortage of the good will develop.
A price ceiling that sets the price of a good below market equilibrium will cause
(1) an increase in quantity demanded of the good. (2) a decrease in quantity supplied of the good.
(3) a shortage of the good.
A black market is
a market that operates outside the legal system, either by selling illegal goods or by selling goods at illegal prices.
A market that operates outside the legal system, either by selling illegal goods or by selling goods at illegal prices is referred to in economics as a
black market.