Ch 6 Prices

An equilibrium price is the goal of a price floor or a price ceiling.​

• True

• False

The government sometimes “fixes” prices to achieve a socially desirable goal.​

• True

• False

The minimum wage is an example of a government price control.​

• True

• False

In the United States, prices are determined entirely by the actions of buyers and sellers.

• True

• False

Price floors and price ceilings keep items from attaining their equilibrium prices.​

• True

• False

What do low prices signal buyers to do?​

• nothing

• buy more

• buy less

• substitute

Which rationing method was instituted for gasoline in the mid-1970s?

•   ​distribution of ration vouchers  

• ​administration of gas sales through post offices  

• ​manufacturing of more fuel-efficient automobiles  

• ​purchasing days determined by license plate numbers

 How does the government ensure that farmers receive a target price for their goods?​

•   ​by granting them nonrecourse loans  

• ​by establishing and maintaining price ceilings  

• ​by purchasing and distributing their crops at market prices  

• ​by forcing certain farm goods to maintain an equilibrium price​

 What effect would a bumper crop most likely have on the price of that crop?​

•    ​increase  

•   ​decrease  

• ​equilibrium  

• ​no effect

Who among the following benefits the most from rent control?

•   ​people with children and pets  

• ​tenants in rent-controlled apartments

• ​owners of rent-controlled apartments  

• ​people who perform maintenance and repairs on buildings