Economics Unit 2 Lesson 2

What is the term used to describe the situation where the quantity supplied equals the quantity demanded in a market?

• Disequilibrium

• Market Equilibrium

• Excess Supply

• Excess Demand

Which of the following is an example of a price control that sets a maximum price for a good or service?

• Price Floor

• Price Ceiling

• Market Price

• Equilibrium Price

What is the result when a price floor is set above the equilibrium price?

• Excess Demand

• Market Equilibrium

• Excess Supply

• Black Market

Which of the following best describes a black market?

• A market where goods are sold at the equilibrium price

• A market where goods are sold illegally, often due to price controls

• A market where there is excess supply

• A market where there is excess demand

What happens to the equilibrium quantity when there is an increase in demand, assuming supply remains constant?

• It decreases

• It remains the same

• It increases

• It becomes zero

Which of the following is a likely consequence of rent control?

• Increased supply of rental housing

• Decreased demand for rental housing

• Shortage of rental housing

• Surplus of rental housing

What is the term for the price at which the quantity supplied equals the quantity demanded?

• Market Price

• Market-Clearing Price

• Price Floor

• Price Ceiling

If a minimum wage is set above the equilibrium wage, what is the likely outcome in the labor market?

• Excess Demand for Labor

• Excess Supply of Labor

• Market Equilibrium

• Decreased Unemployment

What is the effect of a price ceiling set below the equilibrium price on the market?

• Surplus

• Shortage

• Equilibrium

• No effect

Which of the following describes a situation where the quantity demanded exceeds the quantity supplied?

• Excess Supply

• Market Equilibrium

• Excess Demand

• Disequilibrium