Controls On Prices MCQ with Answers PDF Download – Test 48

Price ceiling is good but it becomes the problem when prices are set

1. above the equilibrium
2. at equilibrium
3. below the equilibrium
4. itself

One of the reason that can cause deadweight loss because it discourages the idea of trade is known to be as

1. inequality
2. tax
3. social issues
4. trade issues

Mrs. John operates a business in a competitive market. The current market price is $7.50. At her profit-maximizing level of production, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should?

1. continue to operate in the short run but shut down in the long run
2. shut down in both the short run and long run
3. shut down her business in the short run but continue to operate in the long run
4. continue to operate in both the short run and long run

An economy in which there are economic activities between the domestic community and outside is known as

1. open economy
2. closed economy
3. mixed economy
4. upgraded economy

The decisions of a worker is distracted when their wages are being

1. equal
2. taxed
3. unequal
4. zero