This quiz works best with JavaScript enabled. Home > Economics > Price > Controls > Price Ceilings And Floors – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Price Ceilings And Floors Quiz 2 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is not a cause for supply to change? A) Taste. B) Government regulations. C) Competition. D) Subsidy. Show Answer Correct Answer: A) Taste. 2. When price goes down supply A) Has no effect. B) Goes down. C) Depends on supply. D) Goes up. Show Answer Correct Answer: B) Goes down. 3. When will entrepreneurs be more likely to fill up their pickup trucks with flashlights and drive into a disaster area:when they can sell their flashlights for $ 5 each or when they can sell them for $ 40 each? A) £40. B) $ 35. C) $ 40. D) $ 45. Show Answer Correct Answer: C) $ 40. 4. The amount by which the quantity demanded of a good or service exceeds the quantity supplied at a given price A) Surplus. B) Equilibrium. C) Shortage. D) Scarcity. Show Answer Correct Answer: C) Shortage. 5. Which is not a determinant of demand? A) Number of buyers. B) Income. C) Tastes/preferences. D) Number of sellers. Show Answer Correct Answer: D) Number of sellers. 6. Minimum price that buyers are required to pay for a good or a service. A) Price ceiling. B) Minimum wage. C) Quota rent. D) Price floor. Show Answer Correct Answer: D) Price floor. 7. When price goes up demand A) Goes down. B) Has no effect. C) Goes up. D) Depends on supply. Show Answer Correct Answer: A) Goes down. 8. The rate of a worker's output per unit of input we call ..... A) Labor. B) Productivity. C) Effort. D) Human capital. Show Answer Correct Answer: B) Productivity. 9. One major argument in favor of price ceilings and price floors is that A) They cause black markets to emerge. B) A small group of people benefit while a large group suffers. C) They create unnecessary shortages and surpluses. D) They can correct allocation problems in certain markets. Show Answer Correct Answer: D) They can correct allocation problems in certain markets. 10. A price control placed above the equilibrium price. A) Surplus. B) Shortage. C) Inefficient Markets. D) Price Floor. Show Answer Correct Answer: D) Price Floor. 11. If demand for healthcare increases in a city, the wages of nurses in that city will likely ..... and ..... nurses will be hired. A) Increase, more. B) Decrease, more. C) Increase, fewer. D) Decrease, fewer. Show Answer Correct Answer: A) Increase, more. 12. What is market demand? A) The dividend of all individual demand. B) The product of all individual demand. C) The quotient of all individual demand. D) The sum of all individual demand. Show Answer Correct Answer: D) The sum of all individual demand. 13. What is the difference between a demand schedule and a demand curve? A) A schedule is a graph and a curve is a table. B) A schedule is written on paper and a curve is a 3d model. C) A schedule is a table and a curve is a graph. D) All of the above. Show Answer Correct Answer: C) A schedule is a table and a curve is a graph. 14. When governments impose a price ceiling, it creates a scenario where quantity demanded is greater than the quantity supplied, also known as a ..... A) Deadweight loss. B) Shortage. C) Surplus. D) Equilibrium. Show Answer Correct Answer: B) Shortage. 15. A simplified version of a complex concept or behavior expressed in the form of an equation, graph, figure, or diagram A) Economic model. B) Target price. C) Surplus. D) Rationing. Show Answer Correct Answer: A) Economic model. 16. A graphic representation of a demand schedule A) Demand. B) Demand Curve. C) Complement. D) Substitute. Show Answer Correct Answer: B) Demand Curve. 17. Maximum price sellers are allowed to charge for a good or service. A) Price ceiling. B) Quota rent. C) Quantity control. D) Price floor. Show Answer Correct Answer: A) Price ceiling. 18. Demand for a product, driven by consumers, creates demand for resources, such as labor, that is required to make the product. This is called A) Applied demand. B) Derived demand. C) Situation demand. D) Determinant demand. Show Answer Correct Answer: B) Derived demand. 19. System of allocating goods and services without prices A) Price Ceiling. B) Economic model. C) Rationing. D) Equilibrium price. Show Answer Correct Answer: C) Rationing. 20. Which is not an effect of a price floor? A) Inefficiently low quantity. B) Wasted resources. C) Inefficient allocation of sales among sellers. D) Inefficiently low quality. Show Answer Correct Answer: D) Inefficiently low quality. 21. Why was minimum wage created? A) So small businesses could be successful. B) To help the government. C) To ensure the average worker can meet their most basic needs. D) To help retired couples. Show Answer Correct Answer: C) To ensure the average worker can meet their most basic needs. 22. Which of the following is a way that a firm can eliminate a surplus? A) Raise prices. B) Create a new product. C) Offer a sale on the item. D) None of above. Show Answer Correct Answer: C) Offer a sale on the item. 23. When the price of green tea increases, we will see ..... supply curve for green tea. A) Shift to the right. B) Shift to the left. C) Movement along the curve. D) No change. Show Answer Correct Answer: C) Movement along the curve. 24. What determines price & quantity produced of goods? A) Supply. B) Demand. C) Consumers. D) Supply & demand. Show Answer Correct Answer: D) Supply & demand. 25. Why do governments impose price ceilings? A) Fairness. B) Politics. C) Misunderstanding of supply and demand. D) All of the above. Show Answer Correct Answer: D) All of the above. ← PreviousRelated QuizzesPrice QuizzesEconomics QuizzesPrice Ceilings And Floors Quiz 1 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books