Business School 101 Quiz

What factors, besides supply and demand, can influence your decision to use public transportation instead of driving?

• Traffic congestion

• Car maintenance costs

• Government policies

• Weather conditions

What is a price ceiling?

• A minimum price set above market equilibrium

• A price set by producers

• A maximum price set below market equilibrium

• A price set at market equilibrium

What can be a consequence of implementing a price floor?

• Decreased supply

• Shortages

• Increased demand

• Surpluses

How does a tax on a good typically affect the market?

• It increases supply

• It lowers prices for consumers

• It decreases demand

• It increases the quantity sold

What is the effect of a subsidy on the supply curve?

• Shifts the demand curve to the left

• Keeps the supply curve unchanged

• Shifts the supply curve to the right

• Shifts the supply curve to the left

What is deadweight loss?

• A gain in market equilibrium

• An increase in consumer surplus

• A loss of economic efficiency due to market distortions

• A decrease in producer surplus

What unintended consequence might result from rent controls?

• Increased housing quality

• Higher rental prices

• Decreased housing availability

• More investment in housing

What was a result of Venezuela's price controls on staple foods?

• Increased domestic production

• Decreased market distortions

• Empty shelves and black markets

• Higher private investment

What is a potential downside of electric vehicle subsidies?

• They increase greenhouse gas emissions

• They only benefit consumers who wouldn't buy EVs otherwise

• They are not cost-effective for all consumers

• They decrease EV adoption

What was the primary goal of the UK's sugar tax?

• To increase sugar production

• To boost the beverage industry

• To promote sugar consumption

• To reduce sugar content in beverages