Economics Price Mechanism and Private Goods Quiz
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Questions and Answers

What is the term for taxes that are a percentage of price?

  • Ad valorem taxes (correct)
  • Progressive taxes
  • Specific taxes
  • Proportional taxes
  • Which term describes a situation where one party has better information than the other in a transaction?

  • Market power
  • Perfect competition
  • Information equilibrium
  • Asymmetric information (correct)
  • What is the function of the Competition and Markets Authority (CMA) in the UK?

  • Reduce anti-competitive strategies (correct)
  • Promote monopoly power
  • Increase consumer exploitation
  • Limit market competition
  • When there is a missing market, what type of market failure occurs?

    <p>Complete market failure</p> Signup and view all the answers

    Which term refers to external effects imposed on society by the production or consumption of goods?

    <p>Externality</p> Signup and view all the answers

    What is the purpose of deregulation in an industry?

    <p>Enhance industry performance</p> Signup and view all the answers

    What term is used to describe the situation when one person's consumption of a good or service does not decrease the amount available for consumption by another consumer?

    <p>Non-rival</p> Signup and view all the answers

    Which term refers to goods where the social costs in consumption exceed the private costs in consumption?

    <p>Merit good</p> Signup and view all the answers

    What is the term for negative external effects imposed on society derived from the production or consumption of a good or service?

    <p>Negative externality</p> Signup and view all the answers

    In economics, what does the term 'nationalise' mean?

    <p>Nationalise</p> Signup and view all the answers

    What concept describes resources not being distributed optimally?

    <p>Misallocation of resources</p> Signup and view all the answers

    Which term signifies the situation where workers find it hard to switch between different occupations due to a lack of transferable skills?

    <p>Occupational immobility of labour</p> Signup and view all the answers

    What is the main characteristic of a private good?

    <p>Excludable and non-rival</p> Signup and view all the answers

    What is the key feature of a public good?

    <p>Non-excludable and non-rival</p> Signup and view all the answers

    What is the term used for a positive or negative effect on a third party not involved in a transaction?

    <p>Production externality</p> Signup and view all the answers

    What does 'regulatory capture' refer to?

    <p>Regulatory bodies influenced by industries they regulate</p> Signup and view all the answers

    Which term describes converting ownership from public to private?

    <p>Privatise</p> Signup and view all the answers

    What does 'rationing' involve?

    <p>Limiting the quantity of a good</p> Signup and view all the answers

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