Equilibrium, Disequilibrium & Price Controls

Question 1

Which of the following is a price control?

Accepted Answer

price ceiling, price floor

Question 2

Left to itself, a market always tends to move towards

Accepted Answer

equilibrium

Question 3

Price floors create

Accepted Answer

surplus

Question 4

When equilibrium price is too high to meet economic goals, we use a

Accepted Answer

price control, price ceiling

Question 5

In a market economy, prices are used to

Accepted Answer

signal buyers & sellers, allocate goods & services, allow buyers & sellers to communicate

Question 6

In a market economy, prices are set by

Accepted Answer

the market

Question 7

What does this graph illustrate?

Accepted Answer

demand increase

Question 8

Surplus happens when

Accepted Answer

prices are too high

Question 9

What will happen to equilibrium price?

Accepted Answer

Goes down

Question 10

Disequilibrium is caused by

Accepted Answer

price change

Question 11

Price floors protect

Accepted Answer

sellers

Question 12

Minimum wage is an example of

Accepted Answer

price floor, minimum legal price

Question 13

What market condition is illustrated by "A"?

Accepted Answer

Shortage, Excess Demand

Question 14

Price controls are put in place by

Accepted Answer

government

Question 15

Supply increases cause the total number of goods/service to

Accepted Answer

increase

Question 16

When there is a surplus,

Accepted Answer

QS > QD

Question 17

Price ceilings create

Accepted Answer

shortage

Question 18

What causes a new equilibrium?

Accepted Answer

demand shift, simultaneous demand & supply shifts, supply shift

Question 19

What doesn't shift the curve

Accepted Answer

price change

Question 20

Which of the following is an effect of surplus?

Accepted Answer

Illegal activity, QD < QS, Inefficiently high supply, Wasted resources

Question 21

When the price is too low there is

Accepted Answer

shortage, disequilibrium

Question 22

To be effective, price ceilings must be set

Accepted Answer

below equilibrium

Question 23

When the market is at equilibrium

Accepted Answer

QD=QS, it is balanced

Question 24

What is the equilibrium price?

Accepted Answer

$50

Question 25

When demand increases,

Accepted Answer

EP & EQ increase

Equilibrium, Disequilibrium & Price Controls

Questions 25

Equilibrium, Disequilibrium & Price Controls

Questions 25