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 consumers and producers are allowed to trade at the market clearing price.
B free market exchanges do not exist.
C the government imposes a price floor that is higher than the market clearing price.
D the government imposes a price ceiling that is lower than the market clearing price.
Question #3
A monopoly profits.
B deadweight loss.
C opportunity cost.
D producer surplus.
Question #4
A food shortages result in most cases.
B small farms receive most of the benefits.
C None of these.
D sometimes surplus food is given away.
Question #5
A price floor.
B black market.
C import quota.
D price ceiling.
Question #6
A middlemen.
B producers.
C free agents.
D consumers.
Question #7
A apartments tend to be nicer than they would be under freely competitive markets.
B the number of rental units available for rent is lower than under freely competitive markets.
C the quantity demanded of rental units is less than it 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 rise.
B Market clearing price will fall, and equilibrium quantity will fall.
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 lotteries.
D queuing.
Question #10
A greater for a government-imposed price ceiling that is lower than that market clearing price.
B greater for a government-imposed price floor that is higher than that market clearing price.
C the same as 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 reduced incentive to construct new rental housing.
B excessive construction of new rental housing.
C keeping rental rates too high in a normal market.
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 the rationing function of prices protecting domestic strawberry farmers.
B a price ceiling set by government.
C a price floor set by the government.
D an import quota.
Question #15
A equilibrium quantity will increase.
B equilibrium quantity will decrease.
C market clearing price will increase.
D market clearing price will decrease.
Question #16
A a black market price.
B a price floor.
C a price ceiling.
D an illegal price control.
Question #17
A An effective price floor results in a shortage of the good.
B An effective price ceiling results in a surplus of the good.
C When the market clearing price of a good is the equilibrium, then everyone can afford it.
D The market clearing price of a good reflects its relative scarcity.
Question #18
A exist primarily in towns or cities.
B reduce transaction costs.
C increase transaction costs.
D make exchange more difficult.