Economics MCQs

A. A maximum price usually set by government that sellers may charge for a good
B. The different between the initial equilibrium price and the equilibrium price after a decrease in supply
C. A minimum price usually set by government that sellers must charge for a good
D. A minimum price that consumers are willing to pay for a good.

A. Supply exceeds demand
B. A surplus exists
C. There is perfectly inelastic demand for the good
D. Demand exceeds supply

A. Quantity demanded will be greater than quantity supplied
B. Quantity demanded will be less than quantity supplied
C. Demand will be less than supply.
D. Quantity demanded will equal quantity supplied .

A. Goods are sold at prices above legal or official price.
B. Buyers and/or sellers are not paying taxes as they should
C. Illegal substances are sold
D. Transactions are not recorded in the gdp figures.

A. There is under-consumption in the free market
B. There is over consumption in the free market
C. The government may tax to decrease production
D. Society could be made off it less was produced

A. The government sells assets to a the private sector
B. The government bans a product
C. The government takes control of an industry
D. The government taxes a product to a raise its price

A. Not provided in the free market economy
B. Under provided in the free market economy
C. Over provided in the free market economy
D. Provided free

A. Supply is price elastic
B. Demand is price inelastic
C. The government buys up all the excess production
D. All output must be sold at a maximum price

A. The price elasticity of supply is – 3
B. The price elasticity of supply is – 0.2
C. The price elasticity of supply is – 2
D. The price elasticity of supply is infinity

A. Increase equilibrium price and quantity
B. Decrease equilibrium price and quantity
C. Increase equilibrium price and decrease quantity
D. Decrease equilibrium price and increase quantity