WorksheetsChapter 6 - Prices - Economics
Total questions: 25
Worksheet time: 13mins
The ________________ is unique because it is the point where the price and amount supplied are equal to the prince and amount demanded.
Equilibrium Price
Excess Demand
Price Ceiling
Rent Control
Nora runs a small bakery. She notices that at the current price of her cupcakes, the quantity she bakes exceeds the quantity her customers want to buy. What term describes this situation?
Surplus
Shortage
Equilibrium
Price Floor
Which of the following is a government-imposed limit on how low a price can be charged for a product?
Price Ceiling
Price Floor
Equilibrium Price
Rent Control
When the market is in equilibrium, what is the relationship between quantity demanded and quantity supplied?
Quantity demanded is greater than quantity supplied
Quantity supplied is greater than quantity demanded
Quantity demanded equals quantity supplied
Quantity demanded is unrelated to quantity supplied
______________ occurs when the quantity demand is more then quantity supplied. This can occur when actual price in a market is lower than equilibrium price
Excess demand
Price ceiling
Rent control
none of the choices are correct
What is the term for a government-imposed limit on how high a price can be charged for a product?
Price Ceiling
Price Floor
Equilibrium Price
Rent Control
Which of the following describes a situation where the market price is above the equilibrium price?
Surplus
Shortage
Equilibrium
Price Ceiling
What happens to the quantity demanded when the price of a product is set below the equilibrium price?
It increases
It decreases
It remains the same
It becomes zero
_______________ are caused by shifts in the supply curve, which causes quantity supplied to exceed quantity demanded. Surpluses can also occur if consumers demand far less of a good than they did previously.
Surplus
Demands
Search cost
None of the choices are correct
The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers
Price floor
Market Equilibrium
Price ceiling
equilibrium price
When Lily and Michael conduct business without regard to government controls on price or quantity, they are said to do business on the _________________.
black market
brown market
farmers market
green market
Providing compensation to the unemployed and aid to dependent children are ways that the government intervenes in the economy to:
manage yearly spending
protect private property
improve public welfare
A government intervening in a market and imposing an indirect tax is likely to result in:
An increase in demand, shifting the curve to the right and causing an expansion in supply
A decrease in demand, shifting the curve to the left and causing a contraction in supply
An increase in supply, shifting the curve to the right and causing an expansion in demand
A decrease in supply, shifting the curve to the left and causing a contraction in demand
Abigail is shopping for groceries and notices that the government has set a maximum price for milk to ensure it remains affordable. Which term refers to this government-set maximum price?
equilibrium price
price ceiling
price floor
subsidy
What problem can a price floor cause?
excess supply
rent control
rationing
supply shock
Rationing and price based system is used most often in which country's economy?
Cuba
Japan
United States
Germany
A job which is considered part of the informal economy?
Nurse
Baby Sitter
Stay at home mom
Teacher
Head cheC
While working in a local market, Samuel realized that _________________________ is a safety-net workers do not have in the informal/underground economy.
Health care
Rent control
Spillover costs
none of the choices are correct
What is a monopoly?
An agreement among firms to charge one price for the same good
A market in which a single seller dominates
A market structure in which many companies sell products that are similar but not identical
An illegal agreement among firms to divide the market, set prices, or limit production
What is price fixing?
The ability of a company to control prices and total market output
Division of consumers prices into groups
An agreement among firms to charge one price for the same good
An illegal agreement among firms to divide the market, set prices, or limit production
What are the 4 conditions in a perfectly competitive market?
1. Few buyers & Sellers
2. Differentiated Products
3. Informed buyers & sellers
4. Easy market entry and exit
1. Many buyers & Sellers
2. Identical Products
3. Informed buyers & sellers
4. Easy market entry and exit
1. Many buyers & Sellers
2. Similar Products
3. Informed buyers & sellers
4. Hard market entry and exit
1. Many buyers & Sellers
2. Identical Products
3. Lack of product information
4. Easy market entry and exit
According to the learning material, whose work suggests that profit is the incentive?
Karl Marx
John Maynard Keynes
Adam Smith
Milton Friedman
What is another term for the "underground" economy?
Income
Rationing
The black market
Economists' preference
What allows consumers to know what they can afford?
Rationing and shortages
The black market
Income
Economists' preferences
What is a price floor?
A government-imposed limit on how low a price can be charged for a product
The maximum price allowed by law
A recommended retail price set by manufacturers
The equilibrium price in a free market
