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