Microeconomic Application

Question 1

The basic economic problem

Answer 1

Water shortage (India / China)
Food scarcity

Question 2

Demand shift right

Answer 2

Spanish holidays
Commodities (oil)
Low / no alcohol drink

Question 3

Demand shift left

Answer 3

Student house as costs of uni are up
Pink papers
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, due to sugar tax
ice cream (vanilla)
Gas / electricity

Question 6

PED inelastic

Answer 6

Cigarettes, alcohol, sugary drinks, fast food
Public transport
Iphone 10
Basic commodities

Question 7

PEs ineastic

Answer 7

Basic commodities
Hethrow / Gatwick flights
Housing

Question 8

XED complements

Answer 8

Nepresso machine and capsules

Printers and ink

Question 9

XED subsitutues

Answer 9

Fast food (burgers)
Smartphones

Question 10

Normal goods (YED)

Answer 10

Restaurant dining, foreign holidays
designer clothing, theatre
housing renevations

Question 11

Inferior goods (YED)

Answer 11

Fast food, public transport

Staycations, own brand food

Question 12

Negative externalities in production

Answer 12

manufacturing, driving cars, resource depletion

Deforestation

Question 13

Postive externalities in production

Answer 13

In work training
R and D
Childcare

Question 14

Negative externalities in consumption

Answer 14

Cigarettes, alcohol, excessive sugar intake, chewing gum

Sunbeds, red meat

Question 15

Positive externalities in consumption

Answer 15

Vaccinations, healthcare, education

Public transport, excersise

Question 16

Public goods

Answer 16

food defences, roads, bridges, beaches
national parks, road signs
Street lights

Question 17

Common access resources

Answer 17

seas, air, forest

Question 18

Perfect competiton

Answer 18

market stalls, tuk tuks

Question 19

Highly competitive market

Answer 19

Fast food (USO
Cars (EU)
Supermarkets (UK)

Question 20

Monopolistic competition

Answer 20

taxis, clothing, restaurants, hotels

Streaming, coffee shops

Question 21

Competitive oligopoly

Answer 21

Super markets, soft drinks, cars, mobile phones

Question 22

Non-competitive oligooly

Answer 22

Energy, fuel, buses

Question 23

Monopoly power

Answer 23

google search, durex (80%), merlin attractions
Stage coach, UPS (36%), VW (26%(
Tesco (28%)

Question 24

Price descrimination

Answer 24

Amazon

Rail, airline, ubers (surge pricing

Question 25

Nation monpoly

Answer 25

network rail, utilities, post

Question 26

Contestable markets

Answer 26

Taxis, hotel, fast food, airline, streaming

Question 27

Loss making companies

Answer 27

Blackberry, Toys r Us, New look

Question 28

Economies of scale

Answer 28

energy, supermarkets, technology firms, online retailers

Question 29

Profit maximisation

Answer 29

Pharmaceuticals, electronics (large amount of reinvestment)

Question 30

Sales maximisation

Answer 30

Costa (UK), Netflix, Amazon, Spotify

Question 31

Corporate social responsibility

Answer 31

Disney, starbucks, microsoft, body shop, ben and jerries

Question 32

Monopoly regulation RPI - x

Answer 32

hethrow landing charges

Question 33

Monopoly regulation RPI + k

Answer 33

water, rail providers

Question 34

Mergers

Answer 34

N power / SSE

Question 35

Monopoly regulation policy merger

Answer 35

Sainsburys and Asda

Question 36

Priviisation

Answer 36

Royal mail (2013)

Question 37

Deregulations

Answer 37

Buses (1970s)

Question 38

Nationalisation

Answer 38

proposed by labour party

Question 39

Demand for labour shift right

Answer 39

pilots, air traffic controllers, child minders, app developers

Question 40

Demand for labour shift left

Answer 40

Bank clerks, advertising agencys

Question 41

WED Labour inelastic

Answer 41

Premier league footballers, layer | Plumbers, electricians

Question 42

WED Labour elastic

Answer 42

call centre callers

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, lawyers

Question 46

WES labour elastic

Answer 46

Travel agents, waitresses, driving instructors

Question 47

Monopsony employment

Answer 47

NHS, State schools, walmart, McDonolds

Question 48

Minimum wage

Answer 48

£7.83

Question 49

UK gini coefficient

Answer 49

0.34

Question 50

Policies in UK to redistribute income

Answer 50

``` Tax rich (labour and Australia) Transfer payments Gov spending on education and health Increase NMW Northen powerhouse ```

Question 51

Indirect tax

Answer 51

Cigarette tax, alcohol tax, sugar tax and carbon tax | Debated coffee cups tax

Question 52

Subsidy

Answer 52

Electric cars, solar panels, public transport | R and D, in work training, adult training

Question 53

Regulation

Answer 53

``` Bans: smoking advertising Age limits Compulsory regulation: nutrition information Quotoas (fishing) Innovation regualtion ```

Question 54

State provision

Answer 54

NHS, state schools (UK)

Question 55

Tradable pollution permits

Answer 55

Kyoto protocol, ETS (UK)

Question 56

Minimum price

Answer 56

Alcohol Scotland (50p)

Question 57

Maximum price

Answer 57

NYC rent control Energy price cap Food veeswalia