Which of the following is the government most likely to subsidizes ?
Negative externalities
Positive exrternalities
Monopolies
Oligopolies
Merit goods are
Not provided in the free market economy
Under provided in the free market economy
Over provided in the free market economy
Provided free
In a free market system rationing occurs when there are increase in
Demand
Supply
Price
Quantity
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
If a maximum price is set above equilibrium there will be:
A price fall
A price increase
Excess supply
Excess demand
If the market price is below the equilibrium price
Demand will be less than supply
Quantity demanded will be less than quantity supplied
Quantity demanded will be greater than quantity supplied
Quantity demanded will equal quantity demanded
Economist say that there has to be some form of rationing whenever
Merit goods are produced
Inflation occurs
There are externalities
There is excess demand
When supply increases is an an agricultural market farmers earnings might fall because
Supply is price elastic
Demand is price inelastic
The government buys up all the excess production
All output must be sold at a maximum price
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
If the price in a market is fixed by the government above equilibrium.
There is excess equilibrium
There is excess supply
There is equilibrium
