Nationalization occurs when:
The government sells assets to the private sector
The government bans a product
The government takes ownership of a business
The government taxes a product to raise its price
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
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
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
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
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
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
If the price is a market is fixed by the government below equilibrium.
There is excess equilibrium
There is excess supply
There is equilibrium
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 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.
