Tutor2u IB Economics Revision Quizzes 2010
(H) indicates Higher Level only.
Quiz 3 Microeconomics- Government Intervention
1. Using an appropriate diagram illustrate the effects on total revenue for a firm producing an elastic
product if the government imposes an indirect tax. (H)
2. Illustrate using a diagram an Ad valorem tax. (H)
3. State one reason why a government would wish to introduce a subsidy to a market.
4. Maximum prices can create a situation of excess demand, state two ways in which this situation can
be solved.
5. Draw a diagram to illustrate the impact of a minimum wage.
6. Define buffer stocks
7. What is a commodity agreement?
8. Draw a diagram to illustrate how a quota system would work.
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