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 discourage American producers of mangoes.
C will reduce the price of mango juice in the United States.
D will increase the price of mangoes in the United States.
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 opportunity cost.
B producer surplus.
C deadweight loss.
D monopoly profits.
Question #4
A None of these.
B small farms receive most of the benefits.
C sometimes surplus food is given away.
D food shortages result in most cases.
Question #5
A black market.
B import quota.
C price floor.
D price ceiling.
Question #6
A free agents.
B consumers.
C middlemen.
D producers.
Question #7
A landlord-tenant relationships are more harmonious 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 the number of rental units available for rent is lower than under freely competitive markets.
Question #8
A Market clearing price will rise, and equilibrium quantity will fall.
B Market clearing price will rise, and equilibrium quantity will rise.
C Market clearing price will fall, and equilibrium quantity will fall.
D Market clearing price will fall, and equilibrium quantity will rise.
Question #9
A lotteries.
B the price system.
C queuing.
D political power.
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 ceiling that is lower 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 rise, and the equilibrium quantity would fall.
C The market clearing price would fall, and the equilibrium quantity would fall.
D The market clearing price would fall, and the equilibrium quantity would rise.
Question #12
A keeping rental rates too high in a normal market.
B reduced incentive to construct new rental housing.
C increased incentives for people to purchase their own homes.
D excessive construction of new rental housing.
Question #13
A a decrease in both the relative price and quantity of MP3 music downloads.
B a decrease in the supply 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 the rationing function of prices protecting domestic strawberry farmers.
B a price floor set by the government.
C an import quota.
D a price ceiling set by government.
Question #15
A market clearing price will decrease.
B equilibrium quantity will increase.
C market clearing price will increase.
D equilibrium quantity 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 The market clearing price of a good reflects its relative scarcity.
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 An effective price ceiling results in a surplus of the good.
Question #18
A reduce transaction costs.
B exist primarily in towns or cities.
C increase transaction costs.
D make exchange more difficult.