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