Unit 3 Test Review

__________ the lowest legal price that can be paid for a good or service

• Price Ceiling

• Price Floor

• Shortage

• Surplus

What happens when the quantity supplied is greater than the quantity demanded?

• Shortage

• Ceiling

• Floor

• Surplus

___________ is the maximum legal price that can be charged for a product.

• Price Ceiling

• Price Floor

• Shortage

• Surplus

What happens when Supply = Demand?

• Shortage

• Equilibrium

• Surplus

• Price Floor

__________ is when the Q Demanded is greater than the Q supplied.

• Surplus

• Floor

• Celining

• Shortage

Which of the following is not an advantage of prices?

• Allocate goods easily

• High Cost of Administration

• They Favor No One

• Flexible

What is an uncompensated side effect that either benefits or harms an uninvolved third party?

• Internality

• Effortality

• Involvality

• Externality

What price leaves neither a shortage or a surplus?

• Market Price

• Equilibrium Price

• Perfect Price

• David Price

What is the term for when quantity demanded is greater than quantity supplied?

• Overage

• Shortage

• Surplus

• Underage

What is a type of monopoly in which one firm can produce the goods / service cheaper than any other?

• Natural Monopoly

• Geographic Monopoly

• Technological Monopoly

• Horizontal Monopoly