Governments Might Choose to Intervene in a Market in an Attempt

question 97

Multiple Choice

Governments might choose to intervene in a market in an attempt to:

• A) encourage the consumption of certain goods.
• B) discourage the consumption of certain goods.
• C) redistribute surplus.
• D) All of these are correct.

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Definitions:

Commodity Exchange

A centralized trading platform where commodities, such as agricultural products, metals, and energy products, are bought and sold through contracts.

Supply And Demand

The economic principle that the price of a good rises and falls depending on how many people want it (demand) and how much of the good is available (supply).

Established Marketplace

A market or exchange with a long-standing presence, recognized for stable operations and a broad base of users or participants.

Escalator Clause

is a contract provision that allows for an automatic adjustment in prices or wages based on fluctuations in certain economic indicators.