ECO162 - QUIZ 4

Which of the following measures will assist the government in trying to control price hike of chickens during Raya celebration?

• Price floor

• Price ceiling

• Increase in taxes

• Decrease in subsidies

When the market for goods is in equilibrium:

• the quantity supplied exceeds quantity demanded

• the quantity demanded exceeds quantity supplied

• there will be surplus of goods and services in the economy

• the quantity demanded equals quantity supplied

A rightward shift in a demand curve and a rightward shift in a supply curve both result in a:

• lower equilibrium price

• higher equilibrium price

• lower equilibrium quantity

• higher equilibrium quantity

Subsidies given to vegetable farmers will result in

• A shift in the supply curve of vegetables

• A shift in the demand curve of vegetables

• A movement along the supply curve of vegetables

• A movement along the demand curve of vegetables

A black market will tend to occur when

• no price regulation set in our economy system

• a minimum price is set by the government

• a maximum price is set by the government

• a price is set higher than the equilibrium price

Which of the followings will happen if government imposed a price floor legislation?

• Consumers will have to pay a higher price

• Quantity supplied will decrease

• Government will earn more revenue

If the government wishes to increase revenue by imposing an indirect tax, it would be most effective to place the tax on a product which

• Has a highly elastic demand

• Has a many subsitute goods

• Has a highly inelastic demand

• Is a non-essential

In a market system, prices and quantities are in equilibrium when

• the cost of production is at a minimum

• the amount people want to buy equals the amount people wish to sell

• price is equal to cost.

• demand is elastic.

If the supply of a commodity increases and at the same time the demand for it rises, its price will

• rise

• fall

• stay the same

• be indeterminate

When government implements minimum price for fishery products,

• Quantity demanded for fishery product will increases

• Producers will be encouraged to supply more of fishery products

• Demand curve for fishery products will shift to the right

• Price for fishery products will decrease