Quiz for:
Understanding Government Economic Controls

Question 1

What is an effect of removing a price ceiling?

Question 2

Which market condition does government intervention seek to improve by addressing externalities?

Question 3

What happens to consumer surplus when a price floor is removed?

Question 4

What is the result of a mandated production quantity below the equilibrium quantity?

Question 5

What is the primary purpose of implementing a price floor?

Question 6

How does an inelastic supply or demand curve affect surplus under a price floor?

Question 7

What shift occurs in the supply curve due to taxes on production?

Question 8

How does a subsidy affect the supply curve?

Question 9

What happens to deadweight loss when a quantity control mandates overproduction?

Question 10

What does the government aim to achieve by implementing quantity controls?

Question 11

In the context of taxes, what determines the tax burden distribution?

Question 12

What economic phenomenon occurs when quantity supplied exceeds quantity demanded due to a price floor?

Question 13

What financial measure shifts the supply curve left, causing underproduction?

Question 14

What is a likely outcome of a binding price ceiling?

Question 15

Which type of curve bears no tax burden in a perfectly elastic situation?