Government Intervention in Price Mechanism
Economics ⇒ Government and the Economy
Government Intervention in Price Mechanism starts at 10 and continues till grade 12.
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Describe how subsidies act as a form of government intervention in the price mechanism.
Describe one way in which government intervention can help reduce income inequality.
Describe the role of the government in correcting market failures through price mechanism intervention.
Explain how a price floor can lead to surplus in the market.
Explain how government intervention in the price mechanism can protect the interests of both consumers and producers.
Explain the difference between a price ceiling and a price floor.
Explain the impact of a price ceiling on the supply of goods.
Explain the term 'black market' in the context of price controls.
Explain why black markets may develop when the government imposes price controls.
Explain why the government may impose a price ceiling on essential goods.
State one example of government intervention in the Indian economy related to price mechanism.
State one possible negative effect of imposing a price ceiling.
State one reason why the government may provide subsidies to farmers.
State one way in which government intervention in the price mechanism can lead to inefficiency.
What is meant by 'price mechanism' in an economy?
