Government Intervention (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the main purpose of government intervention in markets?
What is the main purpose of government intervention in markets?
To correct market failures
Which approach works with market mechanism to influence behaviour?
Which approach works with market mechanism to influence behaviour?
Market-based policy
How does an indirect tax affect the supply curve?
How does an indirect tax affect the supply curve?
Shifts it vertically upward
What is deadweight loss from taxation?
What is deadweight loss from taxation?
Welfare loss no one recovers
In a tradable permit system, what shape is the supply curve?
In a tradable permit system, what shape is the supply curve?
Vertical
What happens when government sets a minimum price above equilibrium?
What happens when government sets a minimum price above equilibrium?
Excess supply occurs
What is the unintended consequence of rent controls?
What is the unintended consequence of rent controls?
Less accommodation available
Where is the optimal level of pollution reduction?
Where is the optimal level of pollution reduction?
Where MB equals MC
What helps solve asymmetric information in used car markets?
What helps solve asymmetric information in used car markets?
AA inspection schemes
How can the polluter pays principle be implemented?
How can the polluter pays principle be implemented?
Through pollution taxation