Economics Chapter 6

When demand is greater than supply, the market is at a

• surplus.
• shortage.
• equilibrium.
• none of the above.

At which of the following scenarios is the price the most stable?

• Surplus
• Shortage
• Equilibrium
• Price Ceiling

In a market economy, a high price is signal for

• producers to produce more and buyers to buy less.
• producers to produce more and buyers to buy more.
• producers to produce less and buyers to buy less.
• producers to produce less and buyers to buy more.

In a market economy, a low price is a signal for

• producers to produce more and buyers to buy less.
• producers to produce more and buyers to buy more.
• producers to produce less and buyers to buy less.
• producers to produce less and buyers to buy more.

If there is a shortage in a market, the price is likely to

• increase.
• decrease.
• remain the same.
• fluctuate.

If there is a surplus in a market, the price is likely to

• increase.
• decrease.
• remain the same.
• fluctuate.

Which of the following is an example of a price ceiling?

• minimum wage.
• "free lunch" program.
• rent control.
• government subsidies.

At a given price, a surplus occurs when

• the quantity demanded is more than the quantity supplied.
• the quantity demanded is the same as the quantity supplied.
• the quantity supplied is less than the quantity demanded.
• the quantity supplied is greater than the quantity demanded.

When economic or political conditions are stable,

• the price of gold rises to $850 per ounce.
• the supply of gold decreases.
• the price of gold decreases.
• the demand for gold increases.