Econ Unit 3 2023

A ___ ___ keeps prices form going any lower and causes a ___.

• price ceiling; shortage
• price ceiling; surplus
• price floor; shortage
• price floor; surplus

A ___ ___ keeps prices form going any higher and causes a ___.

• price ceiling; shortage
• price ceiling; surplus
• price floor; shortage
• price floor; surplus

If the government set the price at $700, would that be a price ceiling or floor?

• Price Ceiling
• Price Floor 
• Neither

If the government set the price at $300, would that be a price ceiling or floor?

• Price Ceiling

• Price Floor

• Neither

What do price ceilings and price floors prevent?

• shortages

• surpluses

• prices reaching equilibrium

• benefits to consumers

Governments sometime "fix" prices to achieve a social desirable goal. Which of the following is an example:

• Rent Control

• Gas Prices

• Christmas Shopping

• Black Friday

True or False: the minimum wage is an example of government price controls?

• True

• False

A price ceiling will result in a

• shortage

• surplus

• equilibrium price

• equilibrium quantity

A price floor will result in a

• shortage

• surplus

• equilibrium price

• equilibrium quantity

What is the function (job) of the Legislative Branch?

• Enforce the Laws

• Create the Laws

• Judge the Laws