Equilibrium and Market Intervention Quiz

What is the point where quantity demanded equals the quantity supplied?

• Shortage

• Disequilibrium

• Equilibrium

• Surplus

What happens when the quantity demanded in the market is more than the quantity supplied?

• Disequilibrium

• Equilibrium

• Surplus

• Shortage

What happens when the price is too high, encouraging sellers but discouraging buyers?

• Surplus

• Shortage

• Equilibrium

• Disequilibrium

What will market forces do when the market is in disequilibrium and prices are flexible?

• Push the market towards equilibrium

• Increase the shortage

• Create more surplus

• Maintain disequilibrium

What is the maximum price that can be legally charged for a good or service?

• Price Floor

• Price Ceiling

• Market Intervention

• Equilibrium

What is set by the government to ensure certain sellers, including workers, receive a minimum reward for their efforts?

• Market Intervention

• Price Ceiling

• Equilibrium

• Price Floor

What is the minimum wage set by the federal government above the equilibrium price?

• $8

• $5

• $6

• $7

What did the government begin setting for many commodities during the Great Depression of the 1930s?

• Market Intervention

• Market Equilibrium

• Price Floor

• Price Ceiling

What does the government do when prices fall below a certain level for commodities?

• Do nothing

• Create demand by buying excess commodities

• Increase supply

• Reduce demand

What is the worry associated with agricultural price supports?

• Decreased demand

• Overproduction

• Underproduction

• Increased competition