* not completed

. If the price in a market is fixed by the government below equilibrium then assuming a downward sloping demand curve and upward sloping supply curve:

There is excess equilibrium correct incorrect

There is excess supply correct incorrect

There is excess demand correct incorrect

There is equilibrium correct incorrect

* not completed

. If the price in a market is fixed by the government above equilibrium then assuming a downward sloping demand curve and upward sloping supply curve:

There is excess equilibrium correct incorrect

There is excess supply correct incorrect

There is excess demand correct incorrect

There is equilibrium correct incorrect

* not completed

. Positive externalities are goods that are:

Not provided in the free market economy correct incorrect

Under provided in the free market economy correct incorrect

Over provided in the free market economy correct incorrect

Provided free correct incorrect

* not completed

. Agricultural prices tend to be unstable because:

Supply is usually price elastic correct incorrect

Demand is usually price elastic correct incorrect

Supply is usually stable correct incorrect

Demand and supply are often price inelastic correct incorrect

* not completed

. When supply increases in an agricultural market farmers' earnings might fall because:

Supply is price elastic correct incorrect

Demand is price inelastic correct incorrect

The government buys up all the excess production correct incorrect

All output must be sold at a maximum price correct incorrect

* not completed

. Which of the following is the government most likely to subsidize?

Negative externalities correct incorrect

Positive externalities correct incorrect

Monopolies correct incorrect

Oligopolies correct incorrect

* not completed

. With a negative production externality:

There is under-consumption in the free market correct incorrect

There is over-production in the free market correct incorrect

The government may tax to decrease production correct incorrect

Society could be made better off if less was produced correct incorrect

* not completed

. Reasons to privatise do NOT include

Raising revenue correct incorrect

Increasing the role of the market mechanism correct incorrect

Increase size of public sector correct incorrect

Creating more shareholders correct incorrect

* not completed

. Nationalization occurs when:

The government sells assets to the private sector correct incorrect

The government bans a product correct incorrect

The government takes ownership of a business from the private sector correct incorrect

The government taxes a product to a raise its price correct incorrect

* not completed

. If a maximum price is set above equilibrium there will be:

A price fall correct incorrect

A price increase correct incorrect

Excess supply correct incorrect

No effect on the equilibrium price correct incorrect