ECON-1150 Chapter 3

The imposition of a price floor results in a ________ of the product.

Price ceilings have been introduced in Canada on _______ and ________.

Term to describe the effect that a free-market system has of directing the self-interests of individuals towards a common goal.

The free-market system described in Chapter 2 was a perfect system. In reality, however, there are certain imperfections that impede the operation of a market. The text book reviews TWO of these imperfections, which are they?

Excises Taxes have been introduced in Canada on _______ and ________.

The imposition of an excise tax ________ the equilibrium price of the product and ________ the equilibrium quantity.

A box without hinges, key or lid,
Yet golden treasure inside is hid.

no caps, plural

In order to account for third-party costs, the government undertakes action to decrease the supply of the product. This ________ the equilibrium price and ________ the equilibrium quantity.

Natural Monopolies have been introduced in Canada on _______ and ________.

The imposition of a price ceiling results in a ________ of the product.

Select 3 advantages of the free-market approach has to economic decision making ?

Term to describe a transaction between a buyer and a seller may also have an impact on others, either positive or negative.

In 2007 the Canadian average total income for a unattached non-elderly male was:

Term to describe those industries in which it is more efficient to have only one company or supplier of a product or service.

Term used to describe goods and services not provided by the free-market system due to the difficulty of charging a fee to the beneficiaries of the good or service.

Assume it's 2005, you're single and living in a city with more than 500,000 people. Statistics Canada's before-tax low-income cut-off (LICO) for this demographic is:

In a free-market system, some people may not be able to compete in the job market. Government has intervened in order to achieve a more equitable distribution of income. Which of the following are examples of the government's efforts ?

In order to account for third-party benefits, the government undertakes to ________ the demand for or ________ the supply of this product.

Term to describe what is levied by government on the suppliers of certain products.

Term to describe a government-imposed maximum price.

Term to describe a government-imposed minimum price.

Which of the following are public goods ?

Classical economists believe fluctuations in economic activity were temporary and the free-market system would make adjustments to return to a period of more stable economic activity. When economic conditions did not improve during the 1930's, governments became more in interested the writings of English economist _____________. He argued that in order to ensure stability in the economy, governments had to intervene by spending more and taxing less. After WWII Canada stated that it would assume responsibility for economic stabilization.

In 1776 a Scottish philosopher named Adam Smith wrote a book 'The Wealth of Nations'.
Mr Smith believed that the free-market system would channel selfish, egotistic motives toward the betterment of society.

Price floors have been introduced in Canada on _______ and ________.