Title: QUIZ: Price Signals -- Economic Lowdown Audio Series
Course: Andria Testing FRE2 > Section: Price Signals -- Economic Lowdown Audio Series

Q: A(n) _________ is a situation in which the quantity demanded of a product is greater than the quantity supplied.
- surplus
- equilibrium
- shortage
A: shortage

Q: If there is a shortage of gasoline, and the price rises, consumers will likely __________.
- keep their consumption of gasoline the same
- increase their consumption of gasoline
- decrease their consumption of gasoline
- never consume gasoline again
A: decrease their consumption of gasoline

Q: If there is a shortage of gasoline, and the price rises, producers will likely __________.
- keep their production of gasoline the same
- increase their production of gasoline
- decrease their production of gasoline
- stop producing gasoline
A: increase their production of gasoline

Q: In a market system, consumers determine what is produced, a concept called __________.
- consumer surplus
- derived demand
- consumer sovereignty
- price gouging
A: consumer sovereignty

Q: When the government thinks that the price of a good is too high, they may implement a _________, which will likely lead to _______.
- price ceiling, surplus
- price floor, surplus
- price ceiling, shortage
- price floor, shortage
A: price ceiling, shortage