Navigation » List of Schools » Pierce College » Economics » Economics 002 – Principles of Economics II » Spring 2021 » Chapter 4 Practice Quiz
Below are the questions for the exam with the choices of answers:
Question #1
A will increase the price of mangoes in the United States.
B will reduce the price of mango juice in the United States.
C will discourage American producers of mangoes.
D will reduce the price of mangoes in the United States.
Question #2
A the government imposes a price floor that is higher than the market clearing price.
B the government imposes a price ceiling that is lower than the market clearing price.
C consumers and producers are allowed to trade at the market clearing price.
D free market exchanges do not exist.
Question #3
A deadweight loss.
B monopoly profits.
C producer surplus.
D opportunity cost.
Question #4
A sometimes surplus food is given away.
B small farms receive most of the benefits.
C None of these.
D food shortages result in most cases.
Question #5
A black market.
B price ceiling.
C price floor.
D import quota.
Question #6
A producers.
B free agents.
C middlemen.
D consumers.
Question #7
A the number of rental units available for rent is lower than under freely competitive markets.
B landlord-tenant relationships are more harmonious than under freely competitive markets.
C the quantity demanded of rental units is less than it would be under freely competitive markets.
D apartments tend to be nicer than they would be under freely competitive markets.
Question #8
A Market clearing price will rise, and equilibrium quantity will rise.
B Market clearing price will fall, and equilibrium quantity will fall.
C Market clearing price will rise, and equilibrium quantity will fall.
D Market clearing price will fall, and equilibrium quantity will rise.
Question #9
A political power.
B queuing.
C lotteries.
D the price system.
Question #10
A the same as a government-imposed price floor that is higher than that market clearing price.
B greater for a government-imposed price floor that is higher than that market clearing price.
C greater for a government-imposed price ceiling that is lower than that market clearing price.
D smaller for a government-imposed price ceiling that is lower than that market clearing price.
Question #11
A The market clearing price would fall, and the equilibrium quantity would fall.
B The market clearing price would fall, and the equilibrium quantity would rise.
C The market clearing price would rise, and the equilibrium quantity would rise.
D The market clearing price would rise, and the equilibrium quantity would fall.
Question #12
A increased incentives for people to purchase their own homes.
B reduced incentive to construct new rental housing.
C excessive construction of new rental housing.
D keeping rental rates too high in a normal market.
Question #13
A a decrease in the supply of MP3 music downloads.
B a decrease in both the relative price and quantity of MP3 music downloads.
C an excess number of MP3 music downloads in the market.
D more MP3 music downloads to be produced.
Question #14
A an import quota.
B the rationing function of prices protecting domestic strawberry farmers.
C a price ceiling set by government.
D a price floor set by the government.
Question #15
A market clearing price will increase.
B equilibrium quantity will increase.
C equilibrium quantity will decrease.
D market clearing price will decrease.
Question #16
A a price ceiling.
B a price floor.
C an illegal price control.
D a black market price.
Question #17
A An effective price ceiling results in a surplus of the good.
B When the market clearing price of a good is the equilibrium, then everyone can afford it.
C An effective price floor results in a shortage of the good.
D The market clearing price of a good reflects its relative scarcity.
Question #18
A exist primarily in towns or cities.
B make exchange more difficult.
C reduce transaction costs.
D increase transaction costs.