Econ Unit 6

Minimum wage is a form of ________ which impacts the factor market.

• Disequilibrium

• Price floor

• Price ceiling

• Rationing

If there is great demand for a product, but the government outlaws or over-regulates it, this is likely to create a ____________

• Ration

• Disequilibrim

• Excess

• Black market

In Chicago, a very expensive housing development was forced by the city to become rent-controlled. What happened to the property values after this, and to the surrounding area?

• Property values increased, crime reduced

• Property values decreased, crime reduced

• Property values increased, crime increased

• Property values decreased, crime increased

This is also called the "market-clearing price" and it is when the market price is optimal.

• Surplus

• Excess

• Equilibrium

• Rationing

What are some of the most common uses of price ceilings?

• To help set a price for agricultural goods

• For pricing of consumer electronics

• To help set wages for factory workers

• In order to properly price food service products

If the state of California passes a new higher tax on gasoline, what is most likely to occur:

• The price of gasoline is most likely to decrease.
• The price of gasoline is most likely to stay the same.
• The price of gasoline is most likely to be unaffected.
• The price of gasoline is most likely to increase.

Pickleball has become very popular. As a result, what is happening to the supply of products available for purchase in stores to help with this activity?

• There is less inventory, as it is usually sold out instantly

• There is more inventory as consumer demand has forced supply to increase

• There is more inventory because it is popular, but not as popular as tennis

• There is no change in inventories

If there is a surplus of sweaters in a clothing store as summer is approaching, what is the store likely to do:

• Increase the price in order to get more profit

• Drop the price to eliminate the surplus

• Not change the price but just order less

• Lower the price, but only on bulk orders

During WWII, the government enforced ___________ in order to make sure that most of the metals, rubbers, and other materials were able to be used in the war effort. This also happened with food products.

• rationing
• stockpiling
• wasting
• hoarding

If there is a drought and farmers are forced to conserve water, what is likely to happen to the corn crop that year?

• It will be reduced

• It will be increased due to outsourcing

• It will be unchanged as they plant the same amount each year

• It will decrease temporarily but increase after a few months