1. Under rent controls, Select one:
a. the quantity supplied of rental units is greater than it would be under freely competitive markets.
b. there is a shortage of rental units.
c. there is less government involvement in rental markets overall because there is a better supply of low-income housing.
d. all renters are better off than under freely competitive markets.
2. Which of the following is NOT a function of rental prices?
a. To stimulate the construction of new housing
b. To allocate existing scarce housing among different people
c. To provide housing to individuals below market value
d. To ration the existing housing stock
3. price floors are designed to
a. establish a minimum allowable price
b. create shortages when none existed before
c. none of these
d. allow free market prices to be achieved
4. What are the effects of an increase in the minimum wage? who would be most affected?
5. The minimum wage laws seek to
a. help teenagers find work
b. assure that all workers are paid the same wage rate
c. assure a minimum standard of payment for work
d. penalize employers that are not complying with labor laws
6. A black market s a market in which
a. goods are sold at outlet prices
b. sales taxes are effectively doubled
c. sales take place exclusively at outlet prices.
d. goods are traded at price above their legal maximum prices