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WorksheetsMarkets
Total questions: 22
Worksheet time: 14mins
What is a Market??
a place where we buy medicines
a place to popularise products
a place where goods and services are exchanged for a price
a place where we buy Cars
Why are bus drivers paid less than pilots?
they are less qualified
they work for longer hours
their training takes longer periods of time
they travel shorter distances
If the demand for McDonald's hamburgers rose, which of the following diagrams would display the likely impact on the demand for McDonald's workers
All of the following are likely to increase the supply of labour EXCEPT:
an increase in migration
an increase in the retirement age
an increase in the school leaving age
an increase in the female working population
What could explain why some entertainers earn high wages?
some enjoy the job more than others
there is a high demand for their skills
there is a high number of people wanting to be entertainers
there is not much training required to be an entertainer
A Market Economy is based on?
Goods and Services
Goods and Products
Supply and Demand
Service
Who makes the decision in a Market Economy?
Government makes all the decisions
Consumers and Producers
People trade goods one for another.
Market failure results in a misallocation of resources. In some cases, this can be corrected by the government
restricting the manufacture of goods that generate positive externalities
Providing public goods
subsidising all loss-making firms
placing a tax on merit goods
A government might tax a good that creates negative externalities (eg pollution) in order to try to:
Increase price and consumption of the good to provide firms with extra revenue
Make the information avaliable more asymmetric
Decrease demand for the good and thus increase the consumer surplus
Decrease consumption of the good and thus reduce the environmental impact
Government regulation (eg ensuring good workplace safety measures are in place) may negatively affect businesses in the following ways by
Increasing business costs
Increasing profits
Lowering consumer prices
All of the above
From an economic standpoint, government intervention is justified
When the private sector is larger than public sector.
Because the government will encourage the production of private goods.
Because the government can increase the level of market power of private businesses.
When the market mechanism fails to achieve the optimal mix of output.
The federal government's role in providing aid to the poor and the aged is justified because of concerns about
Market power.
Macro failure.
Inequity.
Restricted supply.
Which is not an example of a government safety net?
Pension
Unemployment Benefits
Laws
Medicare
The ups and downs of the economy, which the government must sometimes step in to stabilize due is known as the
Regulatory cycle
Business cycle
Fiscal Policy
Monetary Policy
