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IB Econ: Government Intervention Quiz

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Intervention tools & demand elasticity

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United Arab Emirates

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IB Econ: Government Intervention Quiz
 

IB Econ: Government Intervention QuizOnline version

Intervention tools & demand elasticity

by Ms Marsden
1

Which is the primary purpose of a subsidy in a domestic market?

2

If an indirect tax is imposed, who bears most of the tax burden in a perfectly inelastic supply?

3

A price floor above equilibrium creates which outcome?

4

What happens to consumer surplus when a price ceiling is set below equilibrium?

5

Price elasticity of demand (PED) measures how quantity demanded responds to price: PED > 1 means?

6

A government uses a subsidy on a merit good. Which outcome is likely?

7

If a tax reduces the quantity traded from Q1 to Q2, what happens to government revenue?

8

How does a price ceiling typically affect shortages and allocations?

9

Which intervention most directly corrects a positive externality in consumption?

10

Inelastic PED with a tax leads to:

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