What is a government attempt to control the high cost of rent for low income families?
Rent control is a government program that places a limit on the amount that a landlord can demand for leasing a home or renewing a lease.
What is it called when the government uses some tool other than money to allocate goods?
Quantity supplied will exceed quantity demanded, so the price will drop. What is it called when the government uses some tool other than money to allocate goods? Rationing.
Why did communist governments use a command economic system?
Which is an example of a good whose price goes down because of improvements in technology? Why did Communist governments use a command economic system for many years? Quantity demanded will exceed quantity supplied, so the price will drop. Excess supply means that producers will make less of the good.
On which kinds of goods do governments generally place price ceilings *?
Usually set by law, price ceilings are typically applied to staples such as food and energy products when such goods become unaffordable to regular consumers. A price ceiling is essentially a type of price control.
What is the name of the smallest amount that can legally?
26 Cards in this Set
| What happens when wages are set above the equilibrium level by law? | Firms employ fewer workers than they would at the equilibrium wage. |
|---|---|
| What is the name of the smallest amount that can legally be paid to most workers for an hour of work? | minimum wage |
What types of goods does the government place price ceilings on quizlet?
Excess supply occurs when the quantity supplied is more than the quantity demanded. What types of goods does the government place price ceilings on? The government places price ceiling son goods that are essential but too expensive for some customers.
Which of the following is an example of government influence on supply?
Subsidies
What is the effect of import restrictions on prices?
What effect do import restrictions have on prices? They cause prices to rise. They cause prices to drop. They often cause prices to rise steeply and then drop.
When price rises what happens to income?
When prices rise, what happens to income? It goes down. It buys less.
What are three reasons countries restrict trade?
Governments three primary means to restrict trade: quota systems; tariffs; and subsidies. A quota system imposes restrictions on the specific number of goods imported into a country. Quota systems allow governments to control the quantity of imports to help protect domestic industries.
Why do countries use trade barriers?
Countries put up barriers to trade for a number of reasons. Sometimes it is to protect their own companies from foreign competition. Or it may be to protect consumers from dangerous or undesirable products. Or it may even be unintended, as can happen with complicated customs procedures.
What are the major barriers to international trade?
The three major barriers to international trade are natural barriers, such as distance and language; tariff barriers, or taxes on imported goods; and nontariff barriers. The nontariff barriers to trade include import quotas, embargoes, buy-national regulations, and exchange controls.
What are the factors that affect international trade?
7 Most Influential Factors Affecting Foreign Trade
- 1) Impact of Inflation:
- 2) Impact of National Income:
- 3) Impact of Government Policies:
- 4) Subsidies for Exporters:
- 5) Restrictions on Imports:
- 6) Lack of Restrictions on Piracy:
- 7) Impact of Exchange Rates:
What are the five trade barriers?
The barriers can take many forms, including the following:
- Tariffs.
- Non-tariff barriers to trade include: Import licenses. Export control / licenses. Import quotas. Subsidies. Voluntary Export Restraints. Local content requirements. Embargo. Currency devaluation. Trade restriction.
What is meant by trade barriers?
A barrier to trade is a government-imposed restraint on the flow of international goods or services. Tariffs raise the price of imported goods relative to domestic goods (good produced at home). Another common barrier to trade is a government subsidy to a particular domestic industry.
What are the types of tariff barriers?
These are non tax restrictions such as (a) government regulation and policies (b) government procedures which effect the overseas trade. It can be in form of quotas, subsidies, embargo etc. Quotas – It is a numerical limit on the quantity of goods that can be imported or exported during a specified time period.
What are examples of non-tariff barriers?
Common examples of non-tariff barriers include licenses, quotas, embargoes, foreign exchange restrictions, and import deposits.
What are the 2 types of tariffs?
There are two basic types of tariffs imposed by governments on imported goods. First is the ad valorem tax which is a percentage of the value of the item. The second is a specific tariff which is a tax levied based on a set fee per number of items or by weight.