WorksheetsGovernment Intervention: Returning to Market Equilibrium
Total questions: 10
Worksheet time: 5mins
At a price of $5, there is excess demand for smartphones. What could the government do to restore equilibrium?
Increase subsidies to smartphone producers
Impose a price ceiling
Raise import tariffs
Restrict production
At a price of $12, there is excess supply of wheat. What could the government do to help the market reach equilibrium?
Buy up the surplus stocks
Increase indirect taxes
Encourage farmers to produce more
Set a higher minimum price
At a price of $8, there is excess demand for public transport. Which measure would help restore equilibrium?
Increase ticket prices through subsidy removal
Decrease the supply of buses
Reduce the number of drivers
Impose a maximum fare limit
At a price of $15, there is excess supply of electric cars. Which policy could reduce the surplus?
Offer subsidies to consumers who buy electric cars
Impose import restrictions
Reduce consumer income
At a price of $10, the quantity demanded and supplied are equal. What should the government do?
No intervention is needed
Impose a price ceiling
Offer producer subsidies
Raise indirect taxes
At a price of $6, there is excess demand for bread. How could the government reduce pressure on prices?
Provide subsidies to bakeries to increase production
Introduce higher taxes on bread
Set a maximum price
Limit wheat imports
At a price of $20, there is excess supply of sugar. Which action would help restore equilibrium?
A) Buy and store the surplus sugar
B) Impose a tax on sugar
C) Encourage firms to produce more
D) Set a minimum price
At a price of $4, there is excess demand for housing. Which policy could help balance the market?
Increase government house-building projects
Restrict land development
Raise property taxes
Introduce rent controls
At a price of $9, there is excess supply of milk. How can the government support equilibrium?
A) Buy surplus milk or subsidize exports
B) Raise VAT on dairy products
C) Encourage more dairy production
D) Limit imports of milk powder
At a price of $7, there is market equilibrium in the car market. What policy should the government follow?
Maintain current conditions without intervention
Impose new taxes
Fix a maximum price
Provide subsidies to increase supply
