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- 1. Multiple ChoiceThe point at which quantity supplied and quantity demanded are the equal at the same price.The magic pointEquilibrium pointMarket placePrice flx
- 2. Multiple ChoiceA government may institute a price floor, which will likely lead to ________ of a good or service.a surplusa shortagean abundancean externality
- 3. Multiple ChoiceWhen someone benefits from the consumption or production of a good or service, but they do not bear the cost.negative externalityMarket equilibriumpositive externalitythe invisible hand
- 4. Multiple ChoiceIn order to reduce shortages, business owners will likely ____ prices.increasedecreasesetfix
- 5. Multiple ChoiceIn the market/price system, __________ determine the prices of goods and services.buyerssellersbuyers and sellers
- 6. Multiple ChoiceIf supply increases, but demand remains unchanged, which will be the result?Equilibrium price and quantity will decrease.Equilibrium price will increase, but quantity will decreaseEquilibrium price will decrease, and eq. quantity will increase
- 7. Multiple ChoiceIf demand increases, but supply remains unchanged, which is the result?Equilibrium price and quantity will increase,Equilibrium price and quantity will decreaseEquilibrium price will decrease, and quantity will increase.
- 8. Multiple ChoiceThe price system distributes all of the following efficiently except forgasolinebreakfast cerealclothingpolice protection
- 9. Multiple ChoiceThe author of the invisible hand, ________, would be in support of the free market system.Adam SmithAdam GatesBarack ObamaJohn Stossel
- 10. Multiple ChoiceA price ceiling will lead to a ______.shortagesurpluspositive externality
- 11. Multiple ChoiceWhich of the following is a consequence of rationing?a black market will be created.goods will be distributed fairlythe role of government is reduced
- 12. Multiple ChoiceMinimum wage is an example of aprice floorprice ceilingprice systemexternality
- Answer choicesTagsAnswer choicesTags