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 reduce the price of mango juice in the United States.
C will discourage American producers of mangoes.
D will increase 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 ceiling that is lower than the market clearing price.
D the government imposes a price floor that is higher than the market clearing price.
Question #3
A producer surplus.
B monopoly profits.
C opportunity cost.
D deadweight loss.
Question #4
A None of these.
B sometimes surplus food is given away.
C small farms receive most of the benefits.
D food shortages result in most cases.
Question #5
A import quota.
B black market.
C price ceiling.
D price floor.
Question #6
A middlemen.
B producers.
C consumers.
D free agents.
Question #7
A landlord-tenant relationships are more harmonious than under freely competitive markets.
B the number of rental units available for rent is lower than under freely competitive markets.
C apartments tend to be nicer than they would be under freely competitive markets.
D the quantity demanded of rental units is less than it would be under freely competitive markets.
Question #8
A Market clearing price will fall, and equilibrium quantity will rise.
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 rise, and equilibrium quantity will fall.
Question #9
A lotteries.
B political power.
C queuing.
D the price system.
Question #10
A the same as 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 greater for 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 fall, and the equilibrium quantity would fall.
C The market clearing price would fall, and the equilibrium quantity would rise.
D The market clearing price would rise, and the equilibrium quantity would rise.
Question #12
A excessive construction of new rental housing.
B increased incentives for people to purchase their own homes.
C reduced incentive to construct new rental housing.
D keeping rental rates too high in a normal market.
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 a decrease in the supply of MP3 music downloads.
D an excess number of MP3 music downloads in the market.
Question #14
A a price floor set by the government.
B a price ceiling set by government.
C the rationing function of prices protecting domestic strawberry farmers.
D an import quota.
Question #15
A equilibrium quantity will decrease.
B market clearing price will increase.
C equilibrium quantity will increase.
D market clearing price will decrease.
Question #16
A a black market price.
B a price floor.
C an illegal price control.
D a price ceiling.
Question #17
A The market clearing price of a good reflects its relative scarcity.
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 An effective price floor results in a shortage of the good.
Question #18
A increase transaction costs.
B make exchange more difficult.
C reduce transaction costs.
D exist primarily in towns or cities.