Year 10 - Economics - 18-2-16

Thai Sikh International School

E-Learning Programme – Online Assignment –dd/mm/yyyy

Name :                                                                                                Subject :  Economics

Year  :            10                                                                                 ScheduleNo. : 7                     

1.China has removed price controls on most consumer goods. Their prices are now determined by the market. The prices of a number of services, however remain under the control of the National Development Reform Commission – the Chief economic planning body in the country. These include water,oil,power, cable TV fees and parking fees for cars. The price controls are designed to protect people against monopolies and  and to keep inflation low. There is some evidence however that price controls are distorting the market and damaging the economy. Petrol stations in Southern China for instance run out of oil quite regularly.

a.How are prices determined by the market?

b.How price controls distort the market?

c.Does the extract suggest that the Chinese National Development Reforms Commission sets maximum or minimum prices on the products mentioned . Explain your answer.

getables.      (6 marks)

e.Do you think D and F limited should change production from coffee to growing more fruit? Justify your answer

(6 marks)