AO2

Question 1

Basic economics problem

Answer 1

Water shortage CAPE TOWN SA

Question 2

Subsidies

Answer 2

Gas, fuel, rice INDIA

Electric cars UK

Question 3

Taxation

Answer 3

Sugary drinks (5g per 100ml) UK

Question 4

Max price

Answer 4

Rent control NEW YORK

Basic food VENEZUELA

Question 5

Min price

Answer 5

Alcohol SCOTLAND

Question 6

Info provision

Answer 6

5 a day
Smoking kills
Food ingredients

Question 7

Negative production externality

Answer 7

Manufacturing factories

Question 8

Positive production externality

Answer 8

Research and development

Question 9

Regulation

Answer 9

Banning smoking in public areas UK

Ban refills of soft drinks FRANCE

Question 10

Pollution permit

Answer 10

ETS EU

Question 11

Perfect competition

Answer 11

Market stalls

Tuk tuk INDIA

Question 12

Monopolistic

Answer 12

Taxi

Fast food burgers US

Question 13

Oligopoly

Answer 13

Supermarket UK (contestable)
Energy (non-contestable)

Question 14

Monopoly

Answer 14

Google

Durex (necessity)

Question 15

Price discrimination

Answer 15

1st: Amazon
2nd: airline
3rd: railway

Question 16

Profit maximisation

Answer 16

Pharmaceuticals

Apple (electronics)

Question 17

Sales maximisation

Answer 17

Costa UK
Aldi/Lidl
Netflix (initially)

Question 18

Monopoly regulation

Answer 18

Merger policy: Sainsbury’s and Asda
Privatisation: Royal Mail
Deregulation: airlines (1990s)
Nationalisation: water

Question 19

GINI coefficient

Answer 19

0.34

Question 20

Redistributing income

Answer 20

Minimum wage
Tax rich (AUSTRALIA 47%)

Question 21

Monopsony employer

Answer 21

NHS

State schools

Question 22

Limited choice/default choice

Answer 22

Pension: opt in/opt out

Question 23

Nudge

Answer 23

5 a day

Question 24

Economic sanctions

Answer 24

Banning smoking in public areas

Question 25

Anchoring

Answer 25

Cigarette packaging (smoking kills)