Market in Motion and Price Controls MCQs
Market in Motion and Price Controls MCQs
These Market in Motion and Price Controls multiple-choice questions and their answers will help you strengthen your grip on the subject of Market in Motion and Price Controls. You can prepare for an upcoming exam or job interview with these Market in Motion and Price Controls MCQs.
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1: Price ______ is A legally established maximum price
A. Ceiling
B. Floor
C. Door
D. Wall
2: Price_______ is A legally established minimum price
A. Ceiling
B. Floor
C. Door
D. Wall
3: Secondary effects of an action that may occur in addition to the initial effects
A. Is called _______ consequences
B. Unintentional
C. Unintended
D. Unwanted
E. Intentional
4: An increase in supply and an increase in demand cause a(n) ______ of equilibrium quantity.
A. Fluctuation
B. Stabilization
C. Decrease
D. Increase
5: Which of the following are the foundation of the market system?
A. Indeterminate factors
B. Supply and demand
C. Production and taxation
D. Price ceilings and price floors
6: Which of the following provides a way for both buyers and sellers to communicate about the relative value of resources?
A. Market prices
B. Market supply
C. Market controls
D. Market ceilings
7: A quantity that cannot be predicted with any certainty is said to be which of the following?
A. Surplus
B. Indeterminate
C. Shortage
D. Fluctuating
8: Which of the following will cause a decrease of equilibrium price?
A. Increase in supply and increase in demand
B. Decrease in supply and no change in demand
C. Increase in supply and decrease in demand
D. Decrease in supply and increase in demand
9: The falling prices of component parts cause the supply curve for HD televisions to ______.
A. Shift downwards
B. Shift upwards
C. Shift to the left
D. Shift to the right
10: Which of the following will cause a shortage of a product?
A. Demand stays the same; supply stays the same.
B. Supply increases; demand increases.
C. Supply increases; demand stays the same.
D. Demand increases; supply stays the same.
11: Which of the following is an accurate statement about the free market?
A. A single individual decides what to produce.
B. Several individuals decide what to produce.
C. A group of ten individuals decide what to produce.
D. Countless individuals decide what to produce.
12: If the leftward shift of the demand curve is greater than the rightward shift of the supply curve, the equilibrium price will ______ and the equilibrium quantity will ______.
A. Rise; fall
B. Fall; rise
C. Rise; rise
D. Fall; fall
13: Price ceilings cause persistent ______.
A. Shortages
B. Scarcity
C. Equilibrium
D. Surpluses
14: Which of the following distorts price signals and incentives to producers and consumers?
A. Government-enforced price floors set at the market clearing price
B. Government-enforced price floors set below the market clearing price
C. Government-enforced price ceilings set below the market clearing price
D. Government-enforced price ceilings set at the market clearing price
15: Price ceilings on rent often cause ______.
A. The building of new housing to increase
B. The rate of return for housing investments to fall
C. The repair of rent-controlled apartments to increase
D. A surplus of apartments for low-income people
16: Which of the following groups would probably have the most-favorable view of using price ceilings?
A. Middle-income people
B. Low-income people
C. Middle- to high-income people
D. High-income people
17: Which of the following age ranges are most likely to be affected adversely by the use of a high minimum wage?
A. 15–19 years
B. 25–29 years
C. 35–39 years
D. 45–49 years
18: The secondary effects of an action that may occur in addition to the initial effects are called ______.
A. Undesirable results
B. Negative consequences
C. Harsh results
D. Unintended consequences
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Market in Motion and Price Controls MCQs
