California State University, San Marcos - ECON 304Quiz 5. Scored 96%.

ECON 304 Quiz 5.

·         Question 1

7 out of 7 points

Exhibit 5-2



Refer to Exhibit 5-2. If the tuition is set at $50 there will be

Answer

·         Question 2

7 out of 7 points

Exhibit

Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. Suppose that the government decides to set the money price of driving on the freeway at zero, but creates programs that encourage drivers to carpool. If the carpooling program is sufficiently successful to eliminate the shortage of freeway space at 8 a.m., graphically the result of the increase in carpooling would be a

Answer

·         Question 3

7 out of 7 points

The space on the freeway is fixed at any instant of time. A supply curve that shows this is

Answer

·         Question 4

7 out of 7 points

Suppose that a television studio has two shows, X and Z, and that tickets for viewing the taping of each show is free. The equilibrium price for a ticket to view the taping of show X is $25 and the equilibrium price for a ticket to view the taping of show B is -$20. It is likely that tickets to show ________ will need to be rationed on a first-come-first-served basis, while the producers of show ________ will have a much more difficult time filling the seats in the studio since the equilibrium price for tickets to that show is a __________ number.

Answer

·         Question 5

7 out of 7 points

A toll of $1 per car is imposed on a road regardless of time of day. If the toll creates equilibrium travel flows at the busiest time of day, it will create a __________ at all other times.

Answer

·         Question 6

7 out of 7 points

Exhibit 5-1


Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. A toll of P₂ creates __________ at 8 a.m. and __________ at 11 p.m.

Answer

·         Question 7

7 out of 7 points

Exhibit 5-5




Refer to Exhibit 5-5. If the airline charges price P₂ for both aisle seats and middle seats, the result will be

Answer

·         Question 8

7 out of 7 points

Good weather in cities such as San Diego

Answer

·         Question 9

7 out of 7 points

Which of the following statements is false?

Answer

·         Question 10

7 out of 7 points

Exhibit 5-2



Refer to Exhibit 5-2. If the tuition is set at $40, there will need to be some kind of non-price rationing for

Answer

·         Question 11

7 out of 7 points

The demand for seats in 10 a.m. classes at the university is higher than the demand for seats in 8 a.m. classes. The supply is fixed. If the university can only charge a single price and wishes to maximize the total number of seats purchased during the day, it should set the price

Answer

·         Question 12

7 out of 7 points

The demand for seats in 10 a.m. classes at the university is higher than the demand for seats in 8 a.m. classes. The supply is fixed. If the university prices classes at the price required to achieve equilibrium at 10 a.m., there will be

Answer

·         Question 13

0 out of 7 points

Exhibit 5-3





Refer to Exhibit 5-3 which shows the demand and supply of a college athlete. Suppose that NCAA rules limit the amount that the college can pay this athlete, such that their payment can not exceed the cost of attending the college (currently $8,000). The impact of this ruling would be a loss of income to the athlete of __________ and an equal gain in consumers’ surplus to the college represented by ________________.

Answer

·         Question 14

0 out of 7 points

Exhibit 5-6



Refer to Exhibit 5-6. Under law 1 a renter has 30 days to vacate an apartment after being served with an eviction notice. Under law 2, the renter has 90 days to vacate after being served with an eviction notice. This graph shows that the supply of apartments is____________ under law 1 than under law 2, and thus apartment rent is _______________ under law 1 than under law 2.

Answer

Selected Answer:

b.

less; less

·         Question 15

7 out of 7 points

If patients were allowed to sue their HMO, we would expect

Answer

·         Question 1

7 out of 7 points

A toll of $1 per car is imposed on a road regardless of time of day. If the toll creates equilibrium travel flows at the busiest time of day, it will create a __________ at all other times.

Answer

·         Question 2

7 out of 7 points

Exhibit 5-2



Refer to Exhibit 5-2. If the tuition is set at $50 there will be

Answer

·         Question 3

7 out of 7 points

Residents of cities with a reputation for good weather, ceteris paribus,

Answer

·         Question 4

7 out of 7 points

If patients were allowed to sue their HMO, we would expect

Answer

·         Question 5

7 out of 7 points

Suppose that there are two laws proposed for eviction notices. Plan A requires landlords to give a renter 30 days to vacate an apartment once he has been served an eviction notice. Under Plan B, he has 60 days to vacate an apartment once he has been served an eviction notice. It follows that landlords will find

Answer

·         Question 6

7 out of 7 points

Suppose that television show A is much more popular than television show B. The equilibrium price for a ticket to view the taping of show A is $40 and the equilibrium price for a ticket to view the taping of show B is -$30. If free tickets are offered for the taping of both shows, it is likely that

Answer

·         Question 7

7 out of 7 points

Colleges and universities use such things as grade point averages and standardized test scores as

Answer

·         Question 8

7 out of 7 points

Exhibit 5-1


Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. Suppose that the government decides to set the money price of driving on the freeway at zero, but creates programs that encourage drivers to carpool. If the carpooling program is sufficiently successful to eliminate the shortage of freeway space at 8 a.m., graphically the result of the increase in carpooling would be a

Answer

·         Question 9

0 out of 7 points

Exhibit 5-3





Refer to Exhibit 5-3 which shows the demand and supply of a college athlete. Suppose that NCAA rules limit the amount that the college can pay this athlete, such that their payment can not exceed the cost of attending the college (currently, $8,000). What is the consumers’ surplus for the college?

Answer

·         Question 10

7 out of 7 points

Exhibit

Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. Which toll creates equilibrium at 8 a.m.?

Answer

·         Question 11

0 out of 7 points

Exhibit 5-5




Refer to Exhibit 5-5. If the airline charges price P₁ for both aisle seats and middle seats, the result will be

Answer

·         Question 12

7 out of 7 points

If a college sets its tuition __________ the equilibrium tuition, then it will have to use some form of nonprice-rationing device to determine who will be accepted for admission to the college.

Answer

·         Question 13

7 out of 7 points

Good weather in cities such as San Diego

Answer

·         Question 14

7 out of 7 points

There is no toll charge to drive on freeway A. If there is freeway congestion at 9 a.m., there will be greater freeway congestion at 11 a.m. if

Answer

·         Question 15

0 out of 7 points

When the government _____________ mortgage lending standards, the indirect result is likely to be _____________ home prices.

Answer

·         Question 1

7 out of 7 points

The demand for seats in 10 a.m. classes at the university is higher than the demand for seats in 8 a.m. classes. The supply is fixed. If the university can only charge a single price and wishes to maximize the total number of seats purchased during the day, it should set the price

Answer

·         Question 2

7 out of 7 points

Exhibit 5-4




Refer to Exhibit 5-4. If tickets for viewing television show tapings are free, for which show will fans most likely have the longest wait to get tickets?

Answer

·         Question 3

0 out of 7 points

Exhibit 5-1


Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. Suppose that the government decides to set the money price of driving on the freeway at zero, but builds more freeways to eliminate the shortage of freeway space at 8 a.m. Graphically, the result of the increase in freeway space would be shown by

Answer

·         Question 4

7 out of 7 points

Good weather in cities such as San Diego

Answer

·         Question 5

7 out of 7 points

The lower the price of medical care in general, the higher the ____________________________ medical care and the ______________________ specific items that make up medical care (such as x-rays).

Answer

·         Question 6

7 out of 7 points

The space on the freeway is fixed at any instant of time. A supply curve that shows this is

Answer

·         Question 7

7 out of 7 points

The higher the price of medical care in general, the lower the ____________________________ medical care and the ______________________ specific items that make up medical care (such as, x-rays).

Answer

·         Question 8

0 out of 7 points

Exhibit 5-2



Refer to Exhibit 5-2. If the tuition is set at $70 there will be

Answer

Selected Answer:

d.

equilibrium at 10 a.m. and a shortage of seats at 8 a.m.

·         Question 9

7 out of 7 points

If patients were allowed to sue their HMO, we would expect

Answer

·         Question 10

0 out of 7 points

When the government _____________ mortgage lending standards, the indirect result is likely to be _____________ home prices.

Answer

Selected Answer:

a.

lowers; higher

·         Question 11

7 out of 7 points

If the purchase and sale of a currently illegal drug, such as marijuana, were decriminalized, we would expect

Answer

·         Question 12

7 out of 7 points

If the government sets out to make home buying easier for more people by forcing lenders to accept ____________ down payments and ______________ interest rates, the result will likely be a(n) _______________ in housing prices.

Answer

·         Question 13

7 out of 7 points

Exhibit 5-3





Refer to Exhibit 5-3 which shows the demand and supply of a college athlete. Suppose that NCAA rules limit the amount that the college can pay this athlete, such that their payment can not exceed the cost of attending the college (currently $8,000). The impact of this ruling would be a loss of income to the athlete of __________ and an equal gain in consumers’ surplus to the college represented by ________________.

Answer

·         Question 14

7 out of 7 points

Exhibit 5-6



Refer to Exhibit 5-6. Under law 1 a renter has 30 days to vacate an apartment after being served with an eviction notice. Under law 2, the renter has 90 days to vacate after being served with an eviction notice. This graph shows that the supply of apartments is____________ under law 1 than under law 2, and thus apartment rent is _______________ under law 1 than under law 2.

Answer

·         Question 15

7 out of 7 points

Exhibit 5-2



Refer to Exhibit 5-2. If the tuition is set at $50 there will be

Answer

·         Question 1

7 out of 7 points

Exhibit 5-6



Refer to Exhibit 5-6. Under law 1 a renter has 30 days to vacate an apartment after being served with an eviction notice. Under law 2, the renter has 90 days to vacate after being served with an eviction notice. This graph shows that the supply of apartments is____________ under law 1 than under law 2, and thus apartment rent is _______________ under law 1 than under law 2.

Answer

·         Question 2

7 out of 7 points

Exhibit 5-5




Refer to Exhibit 5-5. If the airline charges price P₂ for both aisle seats and middle seats, the result will be

Answer

·         Question 3

7 out of 7 points

Exhibit 5-1


Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. A toll of P₁ creates __________ at 8 a.m. and __________ at 11 p.m.

Answer

·         Question 4

7 out of 7 points

The space on the freeway is fixed at any instant of time. A supply curve that shows this is

Answer

·         Question 5

7 out of 7 points

If patients were allowed to sue their HMO, we would expect

Answer

·         Question 6

7 out of 7 points

Suppose that a television studio has two shows, X and Z, and that tickets for viewing the taping of each show is free. The equilibrium price for a ticket to view the taping of show X is $25 and the equilibrium price for a ticket to view the taping of show B is -$20. It is likely that tickets to show ________ will need to be rationed on a first-come-first-served basis, while the producers of show ________ will have a much more difficult time filling the seats in the studio since the equilibrium price for tickets to that show is a __________ number.

Answer

·         Question 7

7 out of 7 points

If the purchase and sale of a currently illegal drug, such as marijuana, were decriminalized, we would expect

Answer

·         Question 8

7 out of 7 points

Exhibit 5-1


Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. and 11 p.m. A toll of P₂ creates __________ at 8 a.m. and __________ at 11 p.m.

Answer

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