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
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
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
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
In a free market system rationing occurs when there are increase in
Demand
Supply
Price
Quantity
Tax incidence is the
Behaviour of shifting the tax to another party
Structure of the tax
Ultimate distribution of a tax's burden
Measure of the impact the tax has on employment and output
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
