When a government imposes penalties on both sellers and buyers of an illegal good,

1. the price of the good falls as does the quantity purchased. the price of the good falls, but the quantity purchased may increase or decrease. the price of the good rises, but the quantity purchased may increase or decrease. the quantity purchased of the good decreases, but the price may rise or fall. When a government imposes penalties on both sellers and buyers of an illegal good,

2. Which of the following influences does NOT shift the supply curve? an increase in consumer income a decrease in the price firms expect to receive in the future a rise in the wages paid workers development of new technology

3. Market equilibrium is a situation in which: consumers obtain the highest quantity at the lowest prices producers obtain the highest price for a given quantity sold quantity supplied equals quantity demanded at a single price the market yields a substantial surplus of goods produced

4. The number of people seeking to obtain tickets to an OSU football game is nearly always larger than the number of available tickets (and seats) to the game. This is evidence that the price of the ticket is above the equilibrium level below the equilibrium level too high for many to afford at the equilibrium level because the number of tickets bought always equals the number of tickets for sale.

5. Which of the following statements uses incorrect terminology:A: "The recent fare war among the major airlines has increased the demand for air travel.“B: "The terrorist attack on America has caused the demand for air travel to fall." A is incorrect; B is correct A is correct; B is incorrect A and B are correct A and B are incorrect

6. Which of the graphs below best illustrates a situation in which price will fall? The graph on the left The graph on the right Both graphs Neither graph

7. Between 2002 and 2003 bad weather affected the area where most of the world’s vanilla is grown. Which of the graphs below best depicts that situation? A B C D

8. After bad weather affected most of the world’s natural vanilla, which of the graphs below best depicts what happened in the market for synthetic vanilla? A B C D

9. You notice that the price of DVD players falls and the quantity of DVD players sold increases. This set of observations can be the result of: a shift of the demand curve for DVD players to the right a shift of the demand curve for DVD players to the left a shift of the supply curve of DVD players to the right a shift of the supply curve of DVD players to the left

10. Most economists believe that the U.S. minimum wage has relatively little effect because it is set too: low and therefore is nonbinding high and therefore is nonbinding low and therefore is binding high and therefore is binding

11. Which of the following is an example of a black market? a tenant in a rent controlled apartment subletting at a higher rent the purchase of an inferior radio at a department store waiting in line during the oil shortages of the 1970s none of the above

12. $2.00 $4.00 $5.00 $6.00 This figure shows the supply and demand for clams. The government imposes a quota limiting sales of clams to 8,000 lbs. The quota rent per pound is:

13. A consumer's willingness to pay for a surfboard is the minimum price at which he or she would buy the surfboard True False

14. To the extent that eBay moves the markets for collectibles and other items to equilibrium, it can be said to: maximize consumer surplus maximize producer surplus maximize total surplus create a market failure