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Government Market Intervention Vocabulary Clues
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Government Market Intervention Vocabulary Clues
A night market is getting ready to open. Stallholders and customers are learning how governments can influence markets. Solve the clues and use the economics words in the activities. Write each answer clearly.
Solve the clues
Write the economics term that matches each clue.
1.The point where the amount buyers want equals the amount sellers offer. What is this point called?
2.The government gives a payment to stallholders to help lower their costs. What is this payment called?
3.The government sets a legal maximum price for a basic item. What is this maximum price called?
4.The government sets a legal minimum price for a product. What is this minimum price called?
5.A government charge is added to some goods or services. What is this charge called?
6.More food is brought to the market than customers want to buy. What is this situation called?
7.Many customers want an item, but there are not enough for everyone. What is this situation called?
8.Choose the term for the amount of a product that sellers are willing and able to sell: supply or demand?
- Supply
- Demand
- Tax
- Shortage
9.Choose the term for the amount of a product that customers are willing and able to buy: supply or demand?
- Price floor
- Demand
- Surplus
- Subsidy
10.True or false: A market is a system where buyers and sellers interact to exchange goods or services.
TrueFalse
11.Sometimes a market does not use resources in a way that benefits society overall. What is the economics term for this problem?
12.Do you agree that a government should always set prices at a market? Give one reason a government might intervene and one possible drawback.
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