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True or False Quiz
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1
Economic laws are social laws—statements of tendencies, more or less certain, more or less definite.
A)True
B)False
2
If both demand and supply increase, it is impossible to say whether price will rise or fall.
A)True
B)False
3
If demand increases and supply decreases, it is impossible to say what will happen to price.
A)True
B)False
4
A shortage is caused by either a decrease in demand or an increase in supply.
A)True
B)False
5
A price floor, to be effective, must be set below the equilibrium price.
A)True
B)False
6
A price ceiling is a government regulation stipulating the maximum price that can be charged for a product.
A)True
B)False
7
Imposing a price ceiling often results in illegal markets and rationing schemes.
A)True
B)False
8
Invariably, price floors cause shortages and price ceilings cause surpluses.
A)True
B)False
9
If the demand curve is vertical, then an increase in supply will have no effect on the price.
A)True
B)False
10
Since water is a necessity, its demand is unlimited.
A)True
B)False





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