Refer to Figure 4-8. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the value of the deadweight loss after the imposition of the price floor?

Assume Congress passes a new tax of $2.00 per pack on cigarettes. The effect on the supply curve is a(n):

a. decrease in supply. b. increase in supply. c. decrease in quantity supplied. d. increase in quantity supplied.

Union contracts with built-in cost-of-living adjustments and home mortgages that vary with the rate of inflation are:

a. inappropriate ways of combating inflation. b. examples of bracket creep. c. means of implementing fiscal policy. d. steps that can be taken to decrease the adverse impacts of inflation. e. examples of failed discarded policies of the 1970s.