A public good
Is provided by the government
Is free
Has the properties of being non executable and non diminishable
Has external cost
VAT is a good example of which kind of tax?
Direct
Ad valorem
Specific
Excise duty
With a positive externalitly
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 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
Economists use the term 'Black markets' for situations where
Goods are sold at prices above legal or official prices
Illegal substances are sold
Transactions are not recorded in the GDP figures
Buyers and /or sellers are not paying taxes as they should
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
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
Which of the following is the government most likely to subsidizes?
Negative externalities
Positive exrternalities
Monopolies
Oligopolies
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
