Vocabulary Set #7 (Fall 2021)

Question 1

Quantity supplied is GREATER THAN quantity demanded; causes prices to fall

Accepted Answer

Surplus

Question 2

A legal price floor on the wage rate (market price for labor)

Accepted Answer

Minimum Wage

Question 3

Quantity demanded is GREATER THAN Quantity supplied; (prices RISE)

Accepted Answer

Shortage

Question 4

Situation in which markets & supply and demand are OUT OF BALANCE

Accepted Answer

Disequilibrium

Question 5

Gov't sets the MAXIMUM price for a good; causes shortages because it's BELOW equilibrium

Accepted Answer

price ceiling

Question 6

Gov't sets the LOWEST possible price for a good; causes SURPLUS because it's above equilibrium

Accepted Answer

Price Floor

Question 7

When a local government limits the amount of rent certain tenants can be charged by landlords

Accepted Answer

Rent Controls

Question 8

Price at which quantity supplied IS EQUAL TO quantity demanded

Accepted Answer

Equilibrium

Questions 8