This quiz works best with JavaScript enabled. Home > Price > Controls > Price Ceilings And Floors – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Price Ceilings And Floors Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The point where QS and QD are equal is called ..... A) Equilibrium. B) Shortage. C) Surplus. D) The middle. Show Answer Correct Answer: A) Equilibrium. 2. What is the perfect price for a supplier to sell a product & make sure it does not stay for long periods in the store? A) Surplus. B) Shortage. C) Equilibrium price. D) Subsidy. Show Answer Correct Answer: C) Equilibrium price. 3. A price ceiling will usually result in a A) Surplus. B) Quota rent. C) Wedge. D) Shortage. Show Answer Correct Answer: D) Shortage. 4. When governments impose a price floor, it creates a scenario where quantity supplied is greater than the quantity demanded, also known as a ..... A) Shortage. B) Equilibrium. C) Quota wedge. D) Surplus. Show Answer Correct Answer: D) Surplus. 5. This occurs when the quantity demanded exceeds the quantity supplied. A) Shortage. B) Price Floor. C) Inefficient Markets. D) Surplus. Show Answer Correct Answer: A) Shortage. 6. At a given price, when quantity supplied is greater than the quantity demanded, the market is experiencing a A) Surplus. B) Shortage. C) Equilibrium. D) Correction. Show Answer Correct Answer: A) Surplus. 7. An increase in human capital in a worker generally leads to greater ..... A) Productivity. B) Salary/wages. C) Profit for the employer. D) All of the choices are correct. Show Answer Correct Answer: D) All of the choices are correct. 8. A binding price floor must be placed ..... the point of equilibrium? A) Below. B) At the point of equilibrium. C) Creating a wedge between supply and demand. D) Above. Show Answer Correct Answer: D) Above. 9. All of the following are caused by a price ceiling EXCEPT A) Damage done to the environment. B) People must spend extra time/money to find people to buy. C) Suppliers provide a low-quality product. D) A black market emerges. Show Answer Correct Answer: A) Damage done to the environment. 10. Which job exists in part because time-sensitive wealthy individuals want to pay someone else to wait in line for them? A) Fast food employees. B) Ticket scalpers. C) Construction workers. D) Truck drivers. Show Answer Correct Answer: B) Ticket scalpers. 11. Which is not a cause for supply to change? A) Subsidy. B) Government regulations. C) Taste. D) Competition. Show Answer Correct Answer: C) Taste. 12. When price goes down supply A) Goes up. B) Goes down. C) Has no effect. D) Depends on supply. Show Answer Correct Answer: B) Goes down. 13. 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) $ 45. B) $ 40. C) $ 35. D) £40. Show Answer Correct Answer: B) $ 40. 14. The amount by which the quantity demanded of a good or service exceeds the quantity supplied at a given price A) Shortage. B) Surplus. C) Scarcity. D) Equilibrium. Show Answer Correct Answer: A) Shortage. 15. Which is not a determinant of demand? A) Tastes/preferences. B) Income. C) Number of sellers. D) Number of buyers. Show Answer Correct Answer: C) Number of sellers. 16. Minimum price that buyers are required to pay for a good or a service. A) Minimum wage. B) Price floor. C) Price ceiling. D) Quota rent. Show Answer Correct Answer: B) Price floor. 17. When price goes up demand A) Goes up. B) Goes down. C) Has no effect. D) Depends on supply. Show Answer Correct Answer: B) Goes down. 18. The rate of a worker's output per unit of input we call ..... A) Human capital. B) Productivity. C) Labor. D) Effort. Show Answer Correct Answer: B) Productivity. 19. 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. 20. A price control placed above the equilibrium price. A) Shortage. B) Price Floor. C) Inefficient Markets. D) Surplus. Show Answer Correct Answer: B) Price Floor. ← PreviousNext →Related QuizzesPrice QuizzesPrice Ceilings And Floors Quiz 1Price Ceilings And Floors Quiz 3 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books