Question 1

A price floor creates a situation in which one party wins and another party loses, and the gains for the winner are equal to the losses for the loser.

Accepted Answer

A) True 
 B)False

Question 2

If the current market price of good Z is below the equilibrium price of good Z

Accepted Answer

A) it must be because the government has imposed a price ceiling in the market for good Z. 
B) there is a shortage of good Z. 
C) there is a surplus of good Z. 
D) demand must necessarily decrease to restore equilibrium. 
A) it must be because the government has imposed a price ceiling in the market for good Z. 
B) there is a shortage of good Z. 
C) there is a surplus of good Z. 
D) demand must necessarily decrease to restore equilibrium.

Question 3

There are two goods in the economy, apples and bread. The relative price of apples has increased. This could be due to

Accepted Answer

A) an increase in the absolute price of apples, ceteris paribus . 
B) a simultaneous decrease in the absolute price of apples and an increase in the absolute price of bread, ceteris paribus . 
C) a decrease in the absolute price of apples, ceteris paribus . 
D) an increase in the absolute price of bread, ceteris paribus . 
A) an increase in the absolute price of apples, ceteris paribus . 
B) a simultaneous decrease in the absolute price of apples and an increase in the absolute price of bread, ceteris paribus . 
C) a decrease in the absolute price of apples, ceteris paribus . 
D) an increase in the absolute price of bread, ceteris paribus .

A price floor creates a situation in which one party wins and another party loses, and the gains for the winner are equal to the losses for the loser.

If the current market price of good Z is below the equilibrium price of good Z

There are two goods in the economy, apples and bread. The relative price of apples has increased. This could be due to

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Supply, Demand, and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages, Union, and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

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Exam 4: Prices: Free, Controlled, and Relative

A price floor creates a situation in which one party wins and another party loses, and the gains for the winner are equal to the losses for the loser.

If the current market price of good Z is below the equilibrium price of good Z

There are two goods in the economy, apples and bread. The relative price of apples has increased. This could be due to

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Supply, Demand, and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages, Union, and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Filters