Biology Forums - Study Force

If a government-imposed price floor legally sets the price of milk above market equilibrium, which of the following will most likely happen?
 a. The quantity of milk demanded will increase.
  b. The quantity of milk supplied will decrease.
  c. There will be a surplus of milk.
  d. There will be a shortage of milk.

QUESTION 2

A price floor that sets the price of a good above market equilibrium will cause:
 a. a decrease in quantity demanded of the good.
  b. an increase in quantity supplied of the good.
  c. a surplus of the good.
  d. all of these.

QUESTION 3

Which of the following is the most likely result of an increase in the minimum wage?
 a. An increase in the employment of unskilled workers.
  b. A decrease in the number of workers seeking minimum wage jobs.
  c. An increase in the demand for unskilled workers.
  d. A decrease in the employment of unskilled workers.

QUESTION 4

Suppose a price floor is set by the government above the market equilibrium price. Which of the following will result?
 a. There will be a surplus.
  b. The quantity demanded will exceed the quantity supplied.
  c. The demand curve will shift to the left.
  d. None of these.

QUESTION 5

The former Soviet Union was known for black markets. An explanation for the existence of these illegal markets is that:
 a. goods were not subject to price controls.
  b. the government imposed a price ceiling below the equilibrium price.
  c. the government imposed a price ceiling above the equilibrium price.
  d. all of these.

QUESTION 6

If the government imposes a price ceiling below the market equilibrium price, then:
 a. c and d.
  b. there will be excess supply.
  c. there will be excess demand.
  d. the intent is to benefit consumers.
  e. the intent is to benefit producers.

QUESTION 7

Price ceilings are imposed if the government believes:
 a. the market will not achieve an equilibrium price.
  b. the market equilibrium price is too low.
  c. an excess supply of the product exists.
  d. the market equilibrium price is too high.
  e. the demand will be less than the supply of the product.

QUESTION 8

An example of a price ceiling would be:
 a. a ration coupon.
  b. a guarantee of a target price for farm products.
  c. parity pricing.
  d. rent control.
  e. the soil bank program.

QUESTION 9

One likely result of a price ceiling is that:
 a. a surplus of product would result.
  b. the price charged in the market would be above the equilibrium price.
  c. the price charged in the market would be the equilibrium price.
  d. the available product must be rationed.
  e. the market supply curve will shift to the right.

Content hidden