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
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
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
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 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
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
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
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.
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