Tackle the Test: Multiple-Choice Questions

1. Question

   To be effective, a price ceiling must be set

   
   

   
   

   1. above the equilibrium price.

      
      
   
   

   2. in the housing market.

      
      
   
   

   3. to achieve the equilibrium market quantity.

      
      
   
   

   A.

   I

   B.

   II

   C.

   III

   D.

   I, II, and III

   E.

   None of the above

   To be effective, a price ceiling must be set

2. Question

   Refer to the graph provided. A price floor set at $5 will result in

   

   A.

   a shortage of 100 units.

   B.

   a surplus of 100 units.

   C.

   a shortage of 200 units.

   D.

   a surplus of 200 units.

   E.

   a surplus of 50 units.

3. Question

   Effective price ceilings are inefficient because they

   A.

   create shortages.

   B.

   lead to wasted resources.

   C.

   decrease quality.

   D.

   create black markets.

   E.

   do all of the above.

   Effective price ceilings are inefficient because they

4. Question

   Refer to the graph provided. If the government establishes a minimum wage at $10, how many workers will benefit from the higher wage?

   

   A.

   30

   B.

   50

   C.

   60

   D.

   80

   E.

   110

5. Question

   Refer to the graph for Question 4. With a minimum wage of $10, how many workers are unemployed (would like to work, but are unable to find a job)?

   A.

   30

   B.

   50

   C.

   60

   D.

   80

   E.

   110

   Refer to the graph for Question 4. With a minimum wage of $10, how many workers are unemployed (would like to work, but are unable to find a job)?