Economics Price Mechanism and Private Goods Quiz

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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?

Complete market failure Signup and view all the answers

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

Externality Signup and view all the answers

What is the purpose of deregulation in an industry?

Enhance industry performance 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?

Non-rival Signup and view all the answers

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

Merit good 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?

Negative externality Signup and view all the answers

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

Nationalise Signup and view all the answers

What concept describes resources not being distributed optimally?

Misallocation of resources 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?

Occupational immobility of labour Signup and view all the answers

What is the main characteristic of a private good?

Excludable and non-rival Signup and view all the answers

What is the key feature of a public good?

Non-excludable and non-rival 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?

Production externality Signup and view all the answers

What does 'regulatory capture' refer to?

Regulatory bodies influenced by industries they regulate Signup and view all the answers

Which term describes converting ownership from public to private?

Privatise Signup and view all the answers

What does 'rationing' involve?

Limiting the quantity of a good Signup and view all the answers