1			A minimum wage is an example of a:
			A)	Price floor
			B)	Price ceiling
			C)	A market in equilibrium
			D)	Producers' preference
2			Rent control is an example of a
			A)	Price floor
			B)	Price ceiling
			C)	Market in equilibrium
			D)	Producers' preference
3			What will happen if both the demand for and supply of a product increase simultaneously?
			A)	The effect on the price is indeterminate.
			B)	The price will increase.
			C)	The price will decrease.
			D)	The effect on quantity traded is indeterminate.
4			What will happen if both the demand for and supply of a product decrease simultaneously?
			A)	The effect on the price is indeterminate.
			B)	The price will increase.
			C)	The price will decrease.
			D)	The effect on quantity traded is indeterminate.
5			What will happen if both the demand for and supply of a product increase simultaneously?
			A)	The effect on the quantity traded is indeterminate.
			B)	The quantity traded will increase.
			C)	The quantity traded will decrease.
			D)	The price will rise.
6			What will happen if both the demand for and the supply of a product decrease simultaneously?
			A)	The effect on the quantity traded is indeterminate.
			B)	The quantity traded will increase.
			C)	The quantity traded will decrease.
			D)	The price will fall.
7			All of the following, except one, are examples of price ceilings. Which is the exception?
			A)	Minimum-wage legislation
			B)	Rent controls
			C)	Wartime price controls on the price of consumer necessities
			D)	A freeze on credit card interest rates
8			Which of the following types of firm would be most affected by minimum-wage legislation?
			A)	A company of management consultants
			B)	An airline company
			C)	A fast-food restaurant
			D)	A hospital
9			Which of the following is an example of a price ceiling?
			A)	Minimum-wage legislation
			B)	Dumping
			C)	Rent controls
			D)	Agricultural price supports
10			What does a vertical demand curve suggest?
			A)	That producers are unable to adjust the quantity they produce
			B)	That the price is not a determinant of the quantity demanded
			C)	That consumers will not buy the product unless it is free
			D)	That a change in supply has no effect on the price
11			What term is used to describe certain goods whose demand curve is upward sloping?
			A)	Inferior goods
			B)	Giffen goods
			C)	Complementary goods
			D)	Substitute goods

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12			Referring to the figure above, if this market is originally in equilibrium and demand increases by 10, what will be the new equilibrium price and quantity?
			A)	$3 and 45 units
			B)	$5 and 35 units
			C)	$5 and 45 units
			D)	$7 and 35 units

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13			Referring to the figure above, if the market is originally in equilibrium and supply increases by 10 units, what will be the new equilibrium price and quantity?
			A)	$3 and 35 units
			B)	$3 and 45 units
			C)	$5 and 35 units
			D)	$5 and 45 units
14			Under what circumstances would an increase in the supply of a product have no effect on the price?
			A)	If the demand curve is vertical
			B)	If the supply curve is vertical
			C)	If the demand curve is horizontal
			D)	If both the demand and supply curves are vertical
			E)	If the demand curve is upward-sloping

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15			Referring to the figure above, what is the result if this market s in equilibrium?
			A)	The wage rate would be $5 an hour, and there would be 400 unemployed workers.
			B)	The wage rate would be $5.50 an hour, and there would be 200 unemployed workers.
			C)	The wage rate would be $6 an hour, and there would be no unemployed workers.
			D)	The wage rate would be $6.50 an hour, and there would be 200 unemployed workers.
			E)	The wage rate would be $5 an hour, and there would be 1,300 unemployed workers.

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16			Referring to the figure above, what would happen if government established a minimum wage of $6.50 an hour?
			A)	The wage would stay at $6, and there would be no unemployment.
			B)	The equilibrium wage would rise to $6.50, and there would be no unemployment.
			C)	The number employed would increase by 100.
			D)	There would be 200 day-care workers unemployed.
			E)	The day-care centres would have difficulty finding sufficient workers.