0
Explain whether the introduction of maximum prices by a government would solve the problem of scarcity?
Wiki User
∙ 9y ago
The term "maximum price" refers to the highest price that one is allowed to charge for selling a product, or a service. Introducing a maximum price helps to solve the problem of scarcity by allowing more people the ability to purchase something that may be previously been out of their means.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
How is price determined under imperfect market?
Remember under this market there's a government intervention.the Government determine the prices of the market by using the minimum(the minimum that the market can charge) and maximum wage(Maximum that the market can charge)
Define Micro economics and explain their merits and demerits?
microeconomics seeks to explain the working of individual prices, wages, particular industries. merits of microeconomics: 1. formulating economics policies and scare resource of the country 2. achieve maximum output with minimum input.
Explain why both short-term and long-term planning are important?
short term is financial asset used to run business at the market level whereas longterm is to invest to get maximum profit.
When does a price ceiling occur?
The ceiling price (maximum price) is set by the government. It is set below the equilibrium price (because if it were above, there will be a surplus and equilibrium will be stored due to market forces). It is illegal to sell any item above the maximum price. By setting a maximum price, a shortage is created - since quantity demanded is greater than quantity supplied. The purpose of maximum price is to ensure that the price of goods is affordable, especially for poorer families. Unfortunately, by setting a maximum price, there is a possibility that a black market will arise since there will be large numbers of unsatisfied and better-off customers who are willing to pay more than the government-set price. The floor price (minimum price) is another price control that the government uses. It is set above the equilibrium price. Because quantity demanded is less than quantity supplied, a surplus is created. These surplus goods are usually stockpiled by the Government. The purpose of a minimum price is to protect producers from receiving low prices for their produce.
What explains why the game of economics cannot eliminate scarcity?
Because our economies are not organized for maximum *economy*: everything in capitalism is based on getting people to consume, use up, spend, need, want...more and more, to the point where large portions of the world's population are dying young from consuming things they don't need. If resources were shared in a need-based (as opposed to "greed-based") way, there would be no need to make lots of money in order to survive (or to exploit humans, animals, and nature the way it's being done now). If our economy were organized for maximum economy and prosperity for all, the race for market superiority would end, and people would start focusing on methods to solve problems, such as famine, climate change, loss of biodiversity, and pollution, all of which are results and causes of scarcity. But the main reason for scarcity is that capitalism needs scarcity in order to give things value. The rule of supply and demand says that the rarer or more "limited" something is, the higher the price tag. So scarcity is a welcome, integral part of how our current system works...because it's a system that doesn't put human or global needs first, but rather turns it all into a big game as you call it, where it's about trying to win while everyone else loses. Instead we ought to realize that if anybody loses at all, then we all lose, because it means our economy has failed and we have failed to become humane enough to always put people and peace before profit and power.
What is the maximum sales tax on a used car in Illinois?
explain type of tax
Explain the used of a maximum minimum thermometer is used?
i dont no just leave me alone
Who gives maximum corporate tax to government of India?
Mubai
Who is gives maximum tax in India government?
Income Tax
What is the libertarian party slogan?
Minimum Government, Maximum Freedom
The Indian government gets maximum revenue from?
Corporate tax
What are conservatism?
Conservatism is when the government doesn't like/want change and their is maximum government interference in your day to day life
Explain the effect of changing the angle of projection on the magnitude of maximum height?
"the higher the altitude the lower the range "
Which direct tax gives maximum net revenue to the government?
income tax
How long is the maximum parliamentary term for national government in Ireland?
5 years.
What do other parties observe after the government acceptance of disinvestment of PSEs?
Maximum transparency
What is the maximum salary of a CNA?
15 dollars a hour and that's is a government job.
