Government Intervention

A legal maximum price that can be charged for a product is called:

• A price restriction

• A price ceiling

• A price floor

• A price limit

The opportunity cost of a good is

• its price in dollars and cents.

• what must be given up when one alternative is chosen.

• that value of the good created

• none of the other options

A tax on the production of a specific product is called:

• An income tax

• A value added tax

• A flat tax

• An excise/indirect tax

Placing a subsidy on a product will cause which of the following?

• An increase in demand

• A decrease in demand

• An increase in supply

• A decrease in supply

For a bank, an ATM would be considered which factor of production?

• Land

• Labor

• Capital

• Entrepreneurship

Which of the following government policies would likely cause a shortage in the market?

• Price ceiling

• Price floor

• Tax

• Subsidy

"Workers paid to help produce a good or service, whether or not they work directly for the business making it."

• Land

• Labor

• Capital

• Entrepreneurship

A minimum wage is an example of which of the following?

• A price ceiling

• A price floor

• Tax

• Subsidy

What is one thing that could cause the shift in the graph?

• a new technology makes production more efficient.

• the government has decided to provide a subsidy to companies producing this product.

• there is an increase in the number of companies making the product.

• the government has decided to place an indirect/excise tax on the production of the product.

Goods that are bought and used together are 

• complementary goods
• substitute goods
• income goods
• unrelated goods