Government Intervention in Price Mechanism
Economics ⇒ Government and the Economy
Government Intervention in Price Mechanism starts at 10 and continues till grade 12.
QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Government Intervention in Price Mechanism.
How you perform is determined by your score and the time you take.
When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.
See sample questions for grade 10
Describe how subsidies act as a form of government intervention in the price mechanism.
Describe one way in which government intervention can help reduce income inequality.
Describe the role of the government in correcting market failures through price mechanism intervention.
Explain how a price floor can lead to surplus in the market.
Explain how government intervention in the price mechanism can protect the interests of both consumers and producers.
Explain the difference between a price ceiling and a price floor.
Explain the impact of a price ceiling on the supply of goods.
Explain the term 'black market' in the context of price controls.
Which of the following is a direct effect of a price ceiling on consumers? (1) Higher prices, (2) Lower prices, (3) No change, (4) Increased supply
Which of the following is a disadvantage of government intervention in the price mechanism? (1) Efficient allocation, (2) Black marketing, (3) Price stability, (4) Consumer protection
Which of the following is a government intervention to make goods affordable for the poor? (1) Price floor, (2) Price ceiling, (3) Tax increase, (4) Import ban
Which of the following is a government policy to support producers? (1) Price ceiling, (2) Price floor, (3) Tax increase, (4) Import ban
A price ceiling is set ______ the equilibrium price.
Fill in the blank: Government intervention in the price mechanism can help control ______ in the economy.
Fill in the blank: Government intervention in the price mechanism is often justified to correct ______ failures.
Fill in the blank: The government may intervene in the price mechanism to prevent ______ exploitation.
True or False: A price floor is a minimum price set by the government, usually above the equilibrium price.
True or False: A price floor set below the equilibrium price will have no effect on the market.
True or False: Government intervention always leads to efficient allocation of resources.
True or False: Government intervention in the price mechanism is always beneficial for all sections of society.
