Unit 2.7: Price controls review terms

Review of terms for unit 2.7: Price controls

I have included this page, which contains a PDF handout as a simple revision exercise.  I find that many IB students get a degree of comfort from these short summary handouts.

1. Complete the sentences by filling in the missing blanks:

Price controls come in two types - price controls and minimum price controls.

 maximum  minimum 

 

 

2.Complete the sentences by filling in the missing blanks:

  controls are sometimes imposed to ensure that families on relatively     incomes are able to afford a place to live.  These are usually applied to rental properties in    , where there is often a shortage of   .

 Price  low  high  Rental  supply  demand  city centres 

 

 

3. Complete the sentences by filling in the missing blanks:

A     can also be introduced to guarantee workers a minimum living standard. This is called a   .

 living wage  minimum wage  minimum price 

 

 

4. Complete the sentences by filling in the missing blanks:

A minimum price or     floor must be placed     the equilibrium price for it to be effective.

above  higher  price  below 

 

 

5.Complete the sentences by filling in the missing blanks:

  are often applied to basic necessities which might otherwise be     supplied by the market.

under  over  Maximum prices  Minimum prices 

 

 

6. Complete the sentences by filling in the missing blanks:

Free or unregulated     do not necessarily produce the best outcome for either or producers.

 markets  consumers  producers 

 

 

7. Complete the sentences by filling in the missing blanks:

Following a   , designed to support food markets, there will be a of stock created.

surplus  price celiling  price floor 

 

 

8. Complete the sentences by filling in the missing blanks:

According to free market economic theory it is assumed that at the equilibrium wage there will be     employment. This is the point where the     for labour =   of labour.

 supply  demand  equilibrium  full 

 

 

9. Complete the sentences by filling in the missing blanks:

A maximum price or     must be placed     the equilibrium price for it to be effective.

 above  price ceiling  price floor  below 

 

 

10. Complete the sentences by filling in the missing blanks:

A price    will often create shortages, which may lead to a     and queues to    goods at the official outlets.

  ceiling  floor  purchase  black market 

 

 

Total Score:

Available as a PDF file at:  Review terms

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