2.7.2 Main forms of government intervention in markets

Calculate the indirect tax paid by airlines for the catering meals they bought in 2021 if the domestic indirect tax rate on food was 6.5$$% and their expenditure on meals was US$54 506.70.

Calculate the indirect tax paid by airlines for the catering meals they bought in 2021 if the domestic indirect tax rate on food was 6.5$$% and their expenditure on meals was US$54 506.70.

Calculate the indirect tax paid by airlines for the catering meals they bought in 2021 if the domestic indirect tax rate on food was 6.5$$% and their expenditure on meals was US$54 506.70.

A government decides to impose an indirect tax on unhealthy drinks. Discuss the consequences for the stakeholders in these markets.

A government decides to impose an indirect tax on unhealthy drinks. Discuss the consequences for the stakeholders in these markets.

A government decides to impose an indirect tax on unhealthy drinks. Discuss the consequences for the stakeholders in these markets.

Using a demand and supply diagram, explain the effect of government subsidies on the US corn market (paragraph [5]).

Using a demand and supply diagram, explain the effect of government subsidies on the US corn market (paragraph [5]).

Using a demand and supply diagram, explain the effect of government subsidies on the US corn market (paragraph [5]).

Draw and label the new supply curve following the granting of the subsidy to domestic cotton producers on Figure 3.

Draw and label the new supply curve following the granting of the subsidy to domestic cotton producers on Figure 3.

Draw and label the new supply curve following the granting of the subsidy to domestic cotton producers on Figure 3.

Calculate the cost to the government of San Marcus of providing this subsidy to domestic cotton producers.

Calculate the cost to the government of San Marcus of providing this subsidy to domestic cotton producers.

Calculate the cost to the government of San Marcus of providing this subsidy to domestic cotton producers.

Calculate the change in the consumer surplus resulting from the subsidy.

Calculate the change in the consumer surplus resulting from the subsidy.

Calculate the change in the consumer surplus resulting from the subsidy.

Explain why a government might decide to impose a price ceiling on goods and services such as essential foods or rented housing.

Explain why a government might decide to impose a price ceiling on goods and services such as essential foods or rented housing.

Explain why a government might decide to impose a price ceiling on goods and services such as essential foods or rented housing.

Explain two reasons why a government might impose indirect taxes.

Explain two reasons why a government might impose indirect taxes.

Explain two reasons why a government might impose indirect taxes.

Calculate the shortage resulting from the imposition of the maximum price.

Calculate the shortage resulting from the imposition of the maximum price.

Calculate the shortage resulting from the imposition of the maximum price.

Calculate the change in producer surplus resulting from the imposition of the maximum price.

Calculate the change in producer surplus resulting from the imposition of the maximum price.

Calculate the change in producer surplus resulting from the imposition of the maximum price.

Calculate the change in consumer expenditure on rice resulting from the imposition of the maximum price.

Calculate the change in consumer expenditure on rice resulting from the imposition of the maximum price.

Calculate the change in consumer expenditure on rice resulting from the imposition of the maximum price.

State two methods of non-price rationing.

State two methods of non-price rationing.

State two methods of non-price rationing.

Explain the impact on consumers, producers and the government of a price floor being introduced in an agricultural market.

Explain the impact on consumers, producers and the government of a price floor being introduced in an agricultural market.

Explain the impact on consumers, producers and the government of a price floor being introduced in an agricultural market.

Using a demand and supply diagram, explain how a subsidy changes the consumer surplus for a good (paragraph [6]).

Using a demand and supply diagram, explain how a subsidy changes the consumer surplus for a good (paragraph [6]).

Using a demand and supply diagram, explain how a subsidy changes the consumer surplus for a good (paragraph [6]).

Using Figure 2, calculate the revenue (in rupees per day) collected from the indirect taxes on petrol in New Delhi.

Using Figure 2, calculate the revenue (in rupees per day) collected from the indirect taxes on petrol in New Delhi.

Using Figure 2, calculate the revenue (in rupees per day) collected from the indirect taxes on petrol in New Delhi.

Explain two forms of government intervention in markets.

Explain two forms of government intervention in markets.

Explain two forms of government intervention in markets.

Discuss the view that governments should tax the consumption of gasoline (petroleum).

Discuss the view that governments should tax the consumption of gasoline (petroleum).

Discuss the view that governments should tax the consumption of gasoline (petroleum).

Using a demand and supply diagram, explain why the increase in the minimum wage might affect Cambodia’s garment manufacturing competitiveness against other countries in the region (paragraph [4]).

Using a demand and supply diagram, explain why the increase in the minimum wage might affect Cambodia’s garment manufacturing competitiveness against other countries in the region (paragraph [4]).

Using a demand and supply diagram, explain why the increase in the minimum wage might affect Cambodia’s garment manufacturing competitiveness against other countries in the region (paragraph [4]).

Explain why governments impose price floors in the market for agricultural products.

Explain why governments impose price floors in the market for agricultural products.

Explain why governments impose price floors in the market for agricultural products.

Explain why governments provide subsidies.

Explain why governments provide subsidies.

Explain why governments provide subsidies.

Using a demand and supply diagram, explain the impact on households of “removing some subsidies on food” (paragraph [5]).

Using a demand and supply diagram, explain the impact on households of “removing some subsidies on food” (paragraph [5]).

Using a demand and supply diagram, explain the impact on households of “removing some subsidies on food” (paragraph [5]).

Governments intervene in markets to support firms and to promote equity. Explain one policy that could be used to support firms and one policy that could be used to promote equity.

Governments intervene in markets to support firms and to promote equity. Explain one policy that could be used to support firms and one policy that could be used to promote equity.

Governments intervene in markets to support firms and to promote equity. Explain one policy that could be used to support firms and one policy that could be used to promote equity.

Using a demand and supply diagram, explain how the rise in the maximum price of maize would change the welfare loss associated with the maximum price (Text E, paragraph [2]).

Using a demand and supply diagram, explain how the rise in the maximum price of maize would change the welfare loss associated with the maximum price (Text E, paragraph [2]).

Using a demand and supply diagram, explain how the rise in the maximum price of maize would change the welfare loss associated with the maximum price (Text E, paragraph [2]).

Sketch a demand and supply diagram to show the impact of an indirect tax on the market for social media applications such as WhatsApp (Text E, paragraph [1]).

Sketch a demand and supply diagram to show the impact of an indirect tax on the market for social media applications such as WhatsApp (Text E, paragraph [1]).

Sketch a demand and supply diagram to show the impact of an indirect tax on the market for social media applications such as WhatsApp (Text E, paragraph [1]).

With reference to Figure 1, explain how the price floor will impact on allocative efficiency in the market for tomatoes.

With reference to Figure 1, explain how the price floor will impact on allocative efficiency in the market for tomatoes.

With reference to Figure 1, explain how the price floor will impact on allocative efficiency in the market for tomatoes.

Calculate the revenue per kilogram (after tax has been paid) to producers when the price is NZ$24 per kg.

Calculate the revenue per kilogram (after tax has been paid) to producers when the price is NZ$24 per kg.

Calculate the revenue per kilogram (after tax has been paid) to producers when the price is NZ$24 per kg.