1. Rent controls are examples of:

a. Price ceilings

b. Price floors

c. Equilibrium prices

d. The invisible hand

2.When a binding price ceiling is imposed in a market:

a. A shortage results

b. A surplus results

c. Suppliers are made better off

d. No one is made better off

3.Which of the following causes a shift of the demand curve?

a. A change in price

b. Quantity demanded changes even though price remains unchanged

c. An external factor that causes a change in quantity demanded and price

d. An external factor that causes a change in quantity demanded at every price

4.Which of the following causes a shift of the demand curve?

a. A change in price

b. Quantity demanded changes even though price remains unchanged

c. An external factor that causes a change in quantity demanded and price

d. An external factor that causes a change in quantity demanded at every price

5.What happens to the equilibrium price and quantity of dark chocolate when doctors announce its anti-aging benefits?

a. Equilibrium price increases and equilibrium quantity increases

b. Equilibrium price increases and equilibrium quantity decreases

c. Equilibrium price decreases and equilibrium quantity increases

d. Equilibrium price decreases and equilibrium quantity decreases

6.What happens to the equilibrium price and quantity when demand decreases?

a. Equilibrium price increases and equilibrium quantity increases

b. Equilibrium price increases and equilibrium quantity decreases

c. Equilibrium price decreases and equilibrium quantity increases

d. Equilibrium price decreases and equilibrium quantity decreases

7.What happens to the equilibrium price and quantity of wheat when a more productive type is farmed?

a. Equilibrium price increases and equilibrium quantity increases

b. Equilibrium price increases and equilibrium quantity decreases

c. Equilibrium price decreases and equilibrium quantity increases

d. Equilibrium price decreases and equilibrium quantity decreases

9.In the market for ice-cream, the price of frozen yogurt has decreased. As they are substitutes, this will:

a. Increase the demand for ice-cream

b. Decrease the demand for ice-cream

c. Increase the supply for ice-cream

d. Decrease the supply for ice-cream

10.Which of the following causes a movement along the supply curve?

a. A change in price

b. A change in production costs

c. An external factor that causes a change in quantity supplied and price

d. An external factor that causes a change in quantity supplied at every price

11.If a good has several close substitutes, it is likely to have relatively:

a. Elastic demand

b. Inelastic demand

c. Unit elastic demand

d. None of the above

12.The price elasticity of demand measures how responsive:

a. Buyers are to changes in income

b. Buyers are to changes in price

c. Sellers are to changes in price

d. Sellers are to changes in buyers' incomes

13.If a good has substitute options available, it is:

a. More responsive to price changes

b. Less responsive to price changes

c. There is no change to responsiveness as it is unrelated to being price conscious

d. There is no change to responsiveness as it does not affect the share of the household budget

14.When a shareholder in a company dies, the business of the company stops.

a. True

b. False

15.The Treaty of Waitangi is a statute made by the Parliament of New Zealand.

a. True

b. False