Economics | Baamboozle - Baamboozle | The Most Fun Classroom Games!

What is a subsidy?

It is a financial support to a supplier, occasionally to consumers. It usually involves a tax reduction, a payment, loans or a rebate.

Oops!

Check

Okay!

Check

What happens if the government introduces a subsidy on a producer?

A fall in their unit costs will lead to an outward shift of the market supply curve (shifts down), Lower equilibrium price, Increase in the equilibrium quantity

Oops!

Check

Okay!

Check

What is a producer incidence of tax?

The proportional of total tax revenue paid by producers (for indirect taxes)

Oops!

Check

Okay!

Check

Maximum price should be fixed above the equilibrium. True or False?

False

Oops!

Check

Okay!

Check

Who is benefiting from the subsidy?

Who is benefiting from the subsidy proves the incidence [that indicates who, by law, the subsidy is intended to help.]

Oops!

Check

Okay!

Check

Who does minimum price controls protect?

The sellers

Oops!

Check

Okay!

Check

What is the impact of minimum prices?

It will create a surplus in the market. Normally the price would fall as a result, but it is not allowed to fall below the min, so the surplus remains

Oops!

Check

Okay!

Check

What type of people does a subsidy involve?

It involves an individual, a business, or institution, that receives a benefit from the government.

Oops!

Check

Okay!

Check

monster

Reset all scores!

Oops!

seesaw

Swap points!

Okay!

rocket

Go to first place!

Okay!

banana

Go to last place!

Oops!

baam

Lose 5 points!

Oops!

seesaw

Swap points!

Okay!

fairy

Take points!

baam

Lose 25 points!

Oops!

A consequence of minimum oprice:

There is more supply than demand, which produces a surplus

Oops!

Check

Okay!

Check

What is an consumer incidence of tax?

The proportional of total tax revenue paid by costumers (for indirect taxes)

Oops!

Check

Okay!

Check

What is the impact of subsidies shown in the diagram?

A subsidy will shift the supply curve to the right and therefore lower the equilibrium price in a market. The aim of the subsidy is to encourage production of

Oops!

Check

Okay!

Check

banana

Go to last place!

Oops!

shark