Economics multiple choice_price floor
HKCEE ECONOMICS |
3.2 Price floor
|
P.1
1. 1992/II/24
If the government imposes a price floor below the equilibrium price, there will be
A. a decrease in the sales revenue
B. a decrease in the quantity transacted
C. an excess supply
D.
no excess demand
2. 1993/II/27
Filipino maids working as domestic helpers in Hong Kong receive a minimum wage. They usually have to wait for a long time before obtaining employment in Hong Kong. They would have a shorter waiting time and more employment opportunities in Hong Kong if
A. their minimum wage was raised
B. the minimum wage legislation was removed
C. the Philippine was more political unstable
D. a surcharge was imposed on the Hong Kong employers
3. 1998/II/4
If a price floor is set below the equilibrium price of good X,
A. a shortage of good X will occur.
B. the quantity transacted will decrease.
C. the total revenue may increase or decrease, depending on the elasticity of demand for good X.
D. the total revenue will remain unchanged.
4. 1999/II/6
Unit price ($)
7
6
5
4
3
Quantity Demanded (units)
8
12
16
20
24
Quantity Supplied (units)
20
18
16
14
12
Refer to the above supply and demand schedule for good X. The government sets its minimum price at $4 per unit. What would happen if the government raised the minimum price to $6 per unit?
A. The shortage of good X would disappear.
B. The quantity transacted would increase.
C. Consumer expenditure on good X would decrease.
D. The surplus of good X would decrease.
42
HKCEE ECONOMICS |
3.2 Price floor
|
P.2
5. 2000/II/6
Hong Kong’s recent economic recession has caused a decline in people ’s income. In view of this, the government decided to lower the effective minimum wage level of Filipino maids. As a result of these TWO changes,
(1) the demand for Filipino maids should decrease.
(2) the quantity supplied of Filipino maids should decrease.
(3) the excess supply of Filipino maids should decrease.
(4) the total expenditure on the employment of Filipino maids
3.2 Price floor
|
P.1
1. 1992/II/24
If the government imposes a price floor below the equilibrium price, there will be
A. a decrease in the sales revenue
B. a decrease in the quantity transacted
C. an excess supply
D.
no excess demand
2. 1993/II/27
Filipino maids working as domestic helpers in Hong Kong receive a minimum wage. They usually have to wait for a long time before obtaining employment in Hong Kong. They would have a shorter waiting time and more employment opportunities in Hong Kong if
A. their minimum wage was raised
B. the minimum wage legislation was removed
C. the Philippine was more political unstable
D. a surcharge was imposed on the Hong Kong employers
3. 1998/II/4
If a price floor is set below the equilibrium price of good X,
A. a shortage of good X will occur.
B. the quantity transacted will decrease.
C. the total revenue may increase or decrease, depending on the elasticity of demand for good X.
D. the total revenue will remain unchanged.
4. 1999/II/6
Unit price ($)
7
6
5
4
3
Quantity Demanded (units)
8
12
16
20
24
Quantity Supplied (units)
20
18
16
14
12
Refer to the above supply and demand schedule for good X. The government sets its minimum price at $4 per unit. What would happen if the government raised the minimum price to $6 per unit?
A. The shortage of good X would disappear.
B. The quantity transacted would increase.
C. Consumer expenditure on good X would decrease.
D. The surplus of good X would decrease.
42
HKCEE ECONOMICS |
3.2 Price floor
|
P.2
5. 2000/II/6
Hong Kong’s recent economic recession has caused a decline in people ’s income. In view of this, the government decided to lower the effective minimum wage level of Filipino maids. As a result of these TWO changes,
(1) the demand for Filipino maids should decrease.
(2) the quantity supplied of Filipino maids should decrease.
(3) the excess supply of Filipino maids should decrease.
(4) the total expenditure on the employment of Filipino maids