Price Legislation And Its Effects Jamb Economics Past Questions
Question 1
A minimum price legislation is also called
- A. price ceiling
- B. price floor
- C. price control
- D. price mechanism
Question 2
A price floor is usually fixed
- A. at the equilibrium and causes no shortage
- B. above the equilibrium and causes shortage
- C. below the equilibrium and causes surpluses
- D. above the equilibrium and causes surpluses
Question 3
Excess supply over demand will place a price advantage on _____
- A. government
- B. foreign investors
- C. suppliers
- D. consumers
Question 4
In the diagram above, the price P2 in price control situation, is referred to as
- A. minimum price
- B. markup price
- C. maximum price
- D. mark-down price
Question 5
Minimum price legislation by government will
- A. reduce supply
- B. increase supply
- C. reduce demand and create surplus
- D. increase demand and create scarcity
