Micro Examples

Question 1

Basic Economic Problem

Answer 1

World Scarcity: India, South Africa

Food Scarcity: Worldwide

Question 2

Demand Shift Right

Answer 2

Spanish Holidays
Commodities e.g Oil
Low/No Alcohol Drinks

Question 3

Demand Shift Left

Answer 3

Student Housing (UK)
Print Newspaper, Dining In

Question 4

Supply Shift Right

Answer 4

India Subsidies (Gas, Fuel, Rice)
Air Travel

Question 5

Supply Shift Left

Answer 5

Fizzy Drinks
Ice Cream (Vanilla)
Gas/Electricity

Question 6

PED Inelastic

Answer 6

Cigarettes, Alcohol, Sugary Drinks, Fast Food, Public Transport, iPhone, Basic Commodities

Question 7

PES Inelastic

Answer 7

Basic Commodities, Gas/Electricity, Housing, Heathrow/Gatwick Airport

Question 8

XED Complements

Answer 8

Nespresso Machines/Capsules, Printers/Ink, Games Consoles/Games

Question 9

XED Substiutes

Answer 9

Fast Food Burgers, Smartphones

Question 10

YED Normal Goods

Answer 10

Restaurant Dining, Foreign Holidays, Designer Clothing, Theatre, House Renovation

Question 11

YED Inferior Goods

Answer 11

Fast Food, Public Transport, Staycations, Own Brand Food

Question 12

Negative Externalities in Production

Answer 12

Manufacturing, Driving Cars, Resource Depletion, Resource Degradation, Deforestation, Loss of Biodiversity, Desertification

Question 13

Negative Externalities in Consumption

Answer 13

Cigarettes, Alcoholic Drinks, Sugar, Fat, Chewing Gum, Sun Beds, Red Meat

Question 14

Positive Externalities in Consumption

Answer 14

Vaccinations, Healthcare, Education, Public Transport, Exercise, School Lunches

Question 15

Positive Externalities in Production

Answer 15

In Work Training, R+D, Childcare

Question 16

Public Goods

Answer 16

Flood defences, Roads, Bridges, Beaches, National Parks, Road Signs, Street Lights, Defence, Traffic Lights

Question 17

Common Access Resources

Answer 17

Seas, Air, Forests

Question 18

Indirect Tax solutions to Market Failure

Answer 18

Cigarette, Alcohol, Sugar, Carbon, Fuel, (Lattes and Plastics?)

Question 19

Subsidy solutions to Market Failure

Answer 19

Electric Cars, Solar Panels, Public Transport, R+D, In Work Training, Adult Training

Question 20

Regulation Solutions to Market Failure

Answer 20

Bans, Limits, Compulsory, Quotas, Innovative Regulation

Question 21

State Provision

Answer 21

NHS, State Schools, Various Public Goods

Question 22

Tradable Pollution Permits

Answer 22

Kyoto Protocol, ETS (EU)

Question 23

Minimum Price solutions to Market Failure

Answer 23

Alchohol Scotland

Question 24

Maximum Price solutions to Market Failure

Answer 24

Rent Control (New York, Berlin), Energy Price Cap, Food Venezuela

Question 25

Perfect Competition

Answer 25

Market Stalls, Tuk Tuks, Foreign Exchange

Question 26

Highly Competitive Markets

Answer 26

Fast Food, Cars, Short Haul Airlines, Supermarkets

Question 27

Monopolistic Competition

Answer 27

Taxis, Clothing, Restaurants, Hotels, Streaming, Coffee Shops, Hairdressers/Salons

Question 28

Oligopoly (Competitive)

Answer 28

Supermarkets, Soft Drinks, Cars, Mobile Phones, Short Haul Airlines

Question 29

Oligopoly (Non-Competitive)

Answer 29

Energy, Supermarket Fuel, Bus

Question 30

Monopoly Power

Answer 30

Google Search (88%), Durex (80%), Gazprom, Merlin Attractions, Stagecoach Cambridge, London Underground, UPS (26% Worldwide), VW (26-27% EU), Tesco (28%), Motorway Fuel Providers

Question 31

Price Discrimination

Answer 31

1st Degree: Amazon | 3rd Degree: Rail, Airlines, Hotels, Uber (surge pricing)

Question 32

Natural Monopoly

Answer 32

Rail Infrastructure (Network Rail), Utilites, Post

Question 33

Contestable Markets

Answer 33

Taxis, Hotels, Fast Food, Airlines, Parcel Delivery, Streaming

Question 34

Loss Making Companies

Answer 34

Blackberry, Monarch, Toys R Us, New Look, Maplin, Restaurants

Question 35

Economies of Scale

Answer 35

Energy, Supermarkets, Airlines, Tech Firms, Online Retailers

Question 36

Profit Maxmisation

Answer 36

Pharmaceuticals, Electronics | Due to need to keep investing in R+D

Question 37

Sales Max (Growth Max)

Answer 37

Costa (UK), Netflix?, Amazon?, Spotify?

Question 38

Corporate Social Responsiblities

Answer 38

Disney, Starbucks, Microsoft, Body Shop, Ben + Jerry's

Question 39

Monopoly Regulation

Answer 39

``` RPI: Trains, Gatwick RPI - X: Heathrow RPI + k: Water Quality Control: Rail, Internet, Energy Merger: NPower/SSE, Sainsbury's/Asda Privatisation: Royal Mail, Railways Deregulation: Airlines, Buses Nationalisation: Railways, Energy, Water, Royal Mail ```

Question 40

Demand for Labour

Answer 40

Pilots, Air Traffic Controllers, Child Minders, App Developers, Bank Clerks, Advertising Agency

Question 41

WED Labour - Inelastic

Answer 41

Premier League Footballers, Plumbers, Electricians

Question 42

WED Labour - Elastic

Answer 42

Call Centre Workers

Question 43

Supply of Labour Left

Answer 43

Low skilled work

Question 44

Supply of Labour Right

Answer 44

Shelf fillers

Question 45

WES Labour - Inelastic

Answer 45

Doctors, Engineers, Accountants, Pilots, Lawyers

Question 46

WES Labour - Elastic

Answer 46

Travel Agents, Waitresses, Driving Instructors

Question 47

Monopsony Employer

Answer 47

NHS, State Schools, Walmart, McDonalds

Question 48

Living Wage

Answer 48

£8.21 per hour

Question 49

Gini Coefficient

Answer 49

0.34

Question 50

Policies to Redistribute Income

Answer 50

``` Tax Rich (Labour, Australia) Transfer Payments (Labour) Government Spending on Education and Health Increasing Minimum Wage (Living Wage) Northern Powerhouse ```