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 reduce the price of mangoes in the United States.
C will increase the price of mangoes in the United States.
D will reduce the price of mango juice in the United States.
Question #2
A the government imposes a price ceiling that is lower than the market clearing price.
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 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 None of these.
C food shortages result in most cases.
D small farms receive most of the benefits.
Question #5
A price ceiling.
B price floor.
C import quota.
D black market.
Question #6
A free agents.
B producers.
C consumers.
D middlemen.
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 fall.
B Market clearing price will fall, and equilibrium quantity will fall.
C Market clearing price will fall, and equilibrium quantity will rise.
D Market clearing price will rise, and equilibrium quantity will rise.
Question #9
A the price system.
B queuing.
C political power.
D lotteries.
Question #10
A greater for a government-imposed price floor that is higher than that market clearing price.
B smaller for a government-imposed price ceiling that is lower than that market clearing price.
C the same as a government-imposed price floor that is higher than that market clearing price.
D greater 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 fall.
B The market clearing price would rise, and the equilibrium quantity would rise.
C The market clearing price would fall, and the equilibrium quantity would rise.
D The market clearing price would fall, and the equilibrium quantity would fall.
Question #12
A excessive construction of new rental housing.
B keeping rental rates too high in a normal market.
C increased incentives for people to purchase their own homes.
D reduced incentive to construct new rental housing.
Question #13
A a decrease in both the relative price and quantity of MP3 music downloads.
B an excess number of MP3 music downloads in the market.
C a decrease in the supply of MP3 music downloads.
D more MP3 music downloads to be produced.
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 market clearing price will increase.
C equilibrium quantity will decrease.
D market clearing price will decrease.
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 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 increase transaction costs.
B exist primarily in towns or cities.
C make exchange more difficult.
D reduce transaction costs.