Which of the following is the government most likely to subsidizes ?
Negative externalities
Positive exrternalities
Monopolies
Oligopolies
Agricultural prices tend to be unstable because :
Supply is price elastic
Demand is price elastic
Supply is stable
Demand and supply are price inelastic
With a positive externally
There is under consumption in the free market
There is over consumption is the free market
The government may tax to decrease production
Society could be made off less was produced.
If the price in a market is fixed by the government above equilibrium.
There is excess equilibrium
There is excess supply
There is excess demand
There is equilibrium
If a maximum price is set above equilibrium there will be:
A price fall
A price increase
Excess supply
Excess demand
If the price is a market is fixed by the government below equilibrium.
If a government were to fix a minimum wage for adult workers,economist would predict
Wages in general would fall as employers tried to hold down costs
The costs price of firms employing cheap labour would increase
Fewer young workers would be employed
There would be more unemployment
Economist say that there has to be some form of rationing whenever
Merit goods are produced
Inflation occurs
There are externalities
It is necessary to ration a good whenever
A surplus demand
Supply exceeds demand
Demand exceeds supply
There is a perfectly.inelastic demand for the good
A price ceiling is
The minimum price that consumers are willing to pay for a good
The differences between the initial equilibrium price the equilibrium price after a decrease in supply
A maximum price usually set by government ,that sellers may change for a good
A minimum price usually set by government that sellers must charge for a good
