ECON 201 WVU FINAL EXAM 2026 65
COMPLETE QUESTIONS AND CORRECT
ANSWERS VERIFIED FULL SOLUTION
STUDY RESOURCE GRADED A+
⩥ price celling. Answer: keeps a price from rising above a certain level
price ceilings are enacted in an attempt to keep prices low for those who
demand the product.
⩥ price floor. Answer: keeps a price from falling below a certain level
like minimum wage
⩥ A price ceiling is a(n):
a
legally established minimum price that can be charged for a good.
b
illegally established minimum price that can be charged for a good.
c
legally established maximum price that can be charged for a good.
d
,illegally established maximum price that can be charged for a good..
Answer: legally established maximum price that can be charged for a
good.
⩥ Price ceilings create five important effects:
a
shortages, reductions in product quality, wasteful lineups, a loss from
gains to trade, and a misallocation of resources.
b
surpluses, increases in product quality, search costs, gains from trade,
and resource attrition.
c
excess demand, long lines, poor service, efficiency, and arbitrage.
d
shortages, reduced time costs, low vacancy rates, blat, and deadweight
loss.. Answer: a
shortages, reductions in product quality, wasteful lineups, a loss from
gains to trade, and a misallocation of resources.
⩥ A legal maximum price at which a good can be sold is a price:
a
stabilization.
b
ceiling.
,c
support.
d
floor.. Answer: b
ceiling.
⩥ A price ceiling creates a ____ when it is set ____.
a
surplus; below the equilibrium price
b
surplus; above the equilibrium price
c
shortage; below the equilibrium price
d
shortage; above the equilibrium price. Answer: c
shortage; below the equilibrium price
⩥ Which statement is NOT an effect of a price ceiling?
a
surpluses
b
misallocation of resources
, c
loss of gains from trade
d
wasteful lineups. Answer: a
surpluses
⩥ When the maximum legal price is below the market price we say that
there is a price:
a
floor.
b
stabilization.
c
support.
d
ceiling.. Answer: d
ceiling.
⩥ Economists call the maximum legal price a price ceiling because the
price:
a
cannot legally go lower than the ceiling.
COMPLETE QUESTIONS AND CORRECT
ANSWERS VERIFIED FULL SOLUTION
STUDY RESOURCE GRADED A+
⩥ price celling. Answer: keeps a price from rising above a certain level
price ceilings are enacted in an attempt to keep prices low for those who
demand the product.
⩥ price floor. Answer: keeps a price from falling below a certain level
like minimum wage
⩥ A price ceiling is a(n):
a
legally established minimum price that can be charged for a good.
b
illegally established minimum price that can be charged for a good.
c
legally established maximum price that can be charged for a good.
d
,illegally established maximum price that can be charged for a good..
Answer: legally established maximum price that can be charged for a
good.
⩥ Price ceilings create five important effects:
a
shortages, reductions in product quality, wasteful lineups, a loss from
gains to trade, and a misallocation of resources.
b
surpluses, increases in product quality, search costs, gains from trade,
and resource attrition.
c
excess demand, long lines, poor service, efficiency, and arbitrage.
d
shortages, reduced time costs, low vacancy rates, blat, and deadweight
loss.. Answer: a
shortages, reductions in product quality, wasteful lineups, a loss from
gains to trade, and a misallocation of resources.
⩥ A legal maximum price at which a good can be sold is a price:
a
stabilization.
b
ceiling.
,c
support.
d
floor.. Answer: b
ceiling.
⩥ A price ceiling creates a ____ when it is set ____.
a
surplus; below the equilibrium price
b
surplus; above the equilibrium price
c
shortage; below the equilibrium price
d
shortage; above the equilibrium price. Answer: c
shortage; below the equilibrium price
⩥ Which statement is NOT an effect of a price ceiling?
a
surpluses
b
misallocation of resources
, c
loss of gains from trade
d
wasteful lineups. Answer: a
surpluses
⩥ When the maximum legal price is below the market price we say that
there is a price:
a
floor.
b
stabilization.
c
support.
d
ceiling.. Answer: d
ceiling.
⩥ Economists call the maximum legal price a price ceiling because the
price:
a
cannot legally go lower than the ceiling.
