Economics quiz 20 questions | Economics homework help


Economics Quiz 20 Questions



Question 1 of 20         5.0 Points


If the government imposes a maximum price for milk that is above the equilibrium price __________ .


   A. this maximum price for milk will have no economic impact      

   B. quantity demanded of milk will be less than quantity supplied

   C. demand for milk will be greater than supply     

   D. the available milk supply will have to be rationed         




Question 2 of 20         5.0 Points


The difference between the maximum amount a person is willing to pay for a good and its current market price is known as __________ .

   A. the paradox of value      

   B. profits     

   C. revealed preferences       

   D. consumer surplus



Question 3 of 20         5.0 Points

Laura makes hand-made jewelry and she would be willing to sell pairs of earrings for $50. If Laura sells each pair of earrings for $65, her producer surplus per pair of earrings sold would be equal to __________ .


   A. $115       

   B. $65         

   C. $15         

   D. $50         


Question 4 of 20         5.0 Points

Assume that production costs rise and demand remains constant. The equilibrium price will __________ and the producer surplus will __________ .

   A. increase; increase

   B. increase; decrease           

   C. decrease; decrease          

   D. decrease; increase           



Question 5 of 20         5.0 Points

Suppose that you are willing to pay $25 for a new shirt and the market price is $35. In this case __________ .

   A. you will not buy the good          

   B. you will buy the good and receive a consumer surplus of $5    

   C. you will buy the good and receive a consumer surplus of –$10

   D. you will buy the good and receive a consumer surplus of –$35


Question 6 of 20         5.0 Points

Jody’s bakery makes cakes and would be willing to sell each cake for $12.50. If Jody’s bakery sells 10 cakes for $13 each, the total producer surplus for Jody’s bakery would be equal to __________ .

   A. $5.00      

   B. $12.50    

   C. $125.00  

   D. $130.00  


Question 7 of 20         5.0 Points

If the equilibrium price of gasoline is $2.75 per gallon and the government will not allow oil companies to charge more than $2.00 per gallon, which of the following will happen?

   A. Demand must eventually decrease so that the market will come into equilibrium at a price of $2.00. 

   B. Supply must eventually increase so that the market will come into equilibrium at a price of $2.00.     

   C. Total surplus in the market will be lower than it would be if the price was $2.75 per gallon.   

   D. The market will be in equilibrium at a price of $2.00.   


Question 8 of 20         5.0 Points

Tom would be willing to pay a maximum of $2,500 to attend the Super Bowl this year, and he can buy a ticket for $2,050. His consumer surplus is __________ . 

  A. $25          

   B. $50         

   C. $275       

   D. $450       


Question 9 of 20         5.0 Points

Assume that there is rent control in Chicago. Which of the following is true?  


   A. All consumers in the rental market will benefit because the rent will be lower.

   B. The total surplus will fall because there will be a shortage of apartments.        

   C. The total surplus will rise because consumer surplus will increase.        

   D. Consumer surplus will increase and as a result all consumers in the rental market will benefit.           


Question 10 of 20       5.0 Points

If the market price of salmon is $8.99 per pound but the government will not allow salmon farmers to charge more than $4.99 per pound, which of the following will happen?


   A. The supply curve for salmon will shift to the left.         

  B. There will be an excess demand for salmon.       

   C. There will be an excess supply of salmon.         

   D. The market will be in equilibrium at a price of $4.99.   



Question 11 of 20       5.0 Points

Suppose you receive a consumer surplus of $50. The $50 represents __________ .

   A. a monetary payment from the store       

   B. a monetary payment from the government        

   C. a reduction in the original price of the good      

   D. the fact that you paid $50 less than you were willing to pay for the good       



Question 12 of 20       5.0 Points

At the free market equilibrium, the efficient level of output is produced because __________ .

   A. government regulates the output level that must be produced  

   B. firms are maximizing profit        

   C. willingness to pay is the same for all consumers

   D. total surplus is maximized          


Question 13 of 20       5.0 Points

Assume that the supply of smartphones remains constant, but the price of smartphones increases. Producer surplus __________ .

   A. will decrease      

   B. will increase        

   C. will remain constant       

   D. may increase or decrease depending on the amount of the price increase         



Question 14 of 20       5.0 Points

Consumer surplus can be defined as the __________ .

   A. value a consumer receives from a good minus the price paid for that good      

   B. maximum amount the consumer would pay for a good 

   C. actual amount paid for a good minus the benefit of using that good    

   D. marginal utility of a good divided by its price  





Question 15 of 20       5.0 Points

A ban on imported avocados would result in __________ .

   A. an increase in total surplus because domestic production will increase 

   B. no change in total surplus because the reduction in consumer surplus will offset the increase in producer surplus           

   C. a reduction in total surplus because a deadweight loss is created         

   D. It is impossible to say what will happen to total surplus.          



Question 16 of 20       5.0 Points

In the market equilibrium, with a price of $500 there are 2000 apartments. If the government decides to enact a rent control policy, with a maximum price of $400, it reduces the quantity to 1500 apartments. Due to the rent control decreasing the total surplus of the market, the policy generates a(n) __________ .

   A. excess supply     

   B. equilibrium         

   C. higher price         

   D. deadweight loss 



Question 17 of 20       5.0 Points

If the government sets a minimum price above the equilibrium price for soybeans, which of the following statements will be correct?

   A. There will be an efficient level of output produced.     

   B. There will be excess supply.       

   C. There will be excess demand.    

   D. all of the above  


Question 18 of 20       5.0 Points

Which of the following would result from a quota imposed on the quantity of cars that can be imported into the United States?

   A. an increase in the total surplus   

   B. an increase in producer surplus  

   C. an increase in prices for consumers        

   D. an increase in consumer surplus 



Question 19 of 20       5.0 Points

If the government sets a maximum price for gasoline above the equilibrium price, __________ .

   A. quantity demanded of gasoline will be equal to quantity supplied of gasoline 

   B. there will be excess demand for gasoline           

   C. there will be excess supply of gasoline  

   D. demand for gasoline will be less than supply of gasoline          



Question 20 of 20       5.0 Points

Assume that Crystal’s demand for handbags remains constant, but the price of handbags increases. Crystal’s consumer surplus __________ .

   A. decreases

   B. increases 

   C. remains constant 

   D. may increase or decrease depending on the amount of the price decrease        









Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers, and so ensure that our papers are 100 percent original. Our Team of professionals does not miss the mark; they ensure that step by step each paper is written uniquely. We never duplicate or work as we compare papers rest assured. We deliver our work a day before time to ensure that you don’t miss your deadlines. It is not only doing the work but delivering it at the right time. We capture the consequences of late remittances. .

Money-back guarantee

We value customer satisfaction here at and make sure that you get the best value for your Money. It happens that sometimes you can pay twice for your order or may want to cancel it, or you feel that it doesn’t meet your requirements; our money back guarantee will give you the opportunity to get back your money. We will also refund 100% of money paid double. In case your paper does not satisfy your requirements , we request that you notify us via writing within 2 days otherwise on the third day we will assume that you have been satisfied. Do all your correspondences through our email address

Read more

Zero-plagiarism guarantee

At, our professional writers know the consequence plagiarism does for our clients. We have updated software’s such as article checker and copyscape to check for originality of the custom papers before submission of the final paper to the you. Our guarantee to the customer is that we will write 100% original papers for them that are quality, timely and of low cost. We have experienced professional and competent PhD writers who will write quality custom papers for you..

Read more

Free-revision policy

. At, we are proud to provide top-quality Essay writing service to our esteemed customers. We are ready to take up that challenging academic assignment that is giving you sleepless nights and simplify it for you according to your desired requirements. We are willing to revise your paper if it does not meet your requirements. At, we do not compromise with quality; thus, we offer unlimited free revisions until the customer is satisfied with their custom paper. Our unlimited free revision services are provided under the following terms:.. .

Read more

Privacy policy knows that client’s information is an essential tool for our company. It means that whatever the client requests from our service is kept strictly confidential. It means that whoever writes for this company understands the terms and conditions hence you should not be worried because you will never see your work somewhere else...

Read more

Fair-cooperation guarantee

Rest assured that we will always be attentive to your needs and requirements. We belief in the phrase treat your neighbour as you would want them to treat you. We leave nothing to chance and always look forward to a good interaction with each other.. .

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages