Microeconomic Application Flashcards
The basic economic problem
Water shortage (India / China) Food scarcity
Demand shift right
Spanish holidays
Commodities (oil)
Low / no alcohol drink
Demand shift left
Student house as costs of uni are up
Pink papers
Dining in
Supply shift right
India subsidies (gas, fuel, rice) Air travel
Supply shift left
fizzy drinks, due to sugar tax
ice cream (vanilla)
Gas / electricity
PED inelastic
Cigarettes, alcohol, sugary drinks, fast food
Public transport
Iphone 10
Basic commodities
PEs ineastic
Basic commodities
Hethrow / Gatwick flights
Housing
XED complements
Nepresso machine and capsules
Printers and ink
XED subsitutues
Fast food (burgers) Smartphones
Normal goods (YED)
Restaurant dining, foreign holidays
designer clothing, theatre
housing renevations
Inferior goods (YED)
Fast food, public transport
Staycations, own brand food
Negative externalities in production
manufacturing, driving cars, resource depletion
Deforestation
Postive externalities in production
In work training
R and D
Childcare
Negative externalities in consumption
Cigarettes, alcohol, excessive sugar intake, chewing gum
Sunbeds, red meat
Positive externalities in consumption
Vaccinations, healthcare, education
Public transport, excersise
Public goods
food defences, roads, bridges, beaches
national parks, road signs
Street lights
Common access resources
seas, air, forest
Perfect competiton
market stalls, tuk tuks
Highly competitive market
Fast food (USO
Cars (EU)
Supermarkets (UK)
Monopolistic competition
taxis, clothing, restaurants, hotels
Streaming, coffee shops
Competitive oligopoly
Super markets, soft drinks, cars, mobile phones
Non-competitive oligooly
Energy, fuel, buses
Monopoly power
google search, durex (80%), merlin attractions
Stage coach, UPS (36%), VW (26%(
Tesco (28%)
Price descrimination
Amazon
Rail, airline, ubers (surge pricing
Nation monpoly
network rail, utilities, post
Contestable markets
Taxis, hotel, fast food, airline, streaming
Loss making companies
Blackberry, Toys r Us, New look
Economies of scale
energy, supermarkets, technology firms, online retailers
Profit maximisation
Pharmaceuticals, electronics (large amount of reinvestment)
Sales maximisation
Costa (UK), Netflix, Amazon, Spotify
Corporate social responsibility
Disney, starbucks, microsoft, body shop, ben and jerries
Monopoly regulation RPI - x
hethrow landing charges
Monopoly regulation RPI + k
water, rail providers
Mergers
N power / SSE
Monopoly regulation policy merger
Sainsburys and Asda
Priviisation
Royal mail (2013)
Deregulations
Buses (1970s)
Nationalisation
proposed by labour party
Demand for labour shift right
pilots, air traffic controllers, child minders, app developers
Demand for labour shift left
Bank clerks, advertising agencys
WED Labour inelastic
Premier league footballers, layer
Plumbers, electricians
WED Labour elastic
call centre callers
Supply of labour left
low skilled work
Supply of labour right
shelf fillers
WES labour inelastic
doctors, engineers, accountants, lawyers
WES labour elastic
Travel agents, waitresses, driving instructors
Monopsony employment
NHS, State schools, walmart, McDonolds
Minimum wage
£7.83
UK gini coefficient
0.34
Policies in UK to redistribute income
Tax rich (labour and Australia) Transfer payments Gov spending on education and health Increase NMW Northen powerhouse
Indirect tax
Cigarette tax, alcohol tax, sugar tax and carbon tax
Debated coffee cups tax
Subsidy
Electric cars, solar panels, public transport
R and D, in work training, adult training
Regulation
Bans: smoking advertising Age limits Compulsory regulation: nutrition information Quotoas (fishing) Innovation regualtion
State provision
NHS, state schools (UK)
Tradable pollution permits
Kyoto protocol, ETS (UK)
Minimum price
Alcohol Scotland (50p)
Maximum price
NYC rent control
Energy price cap
Food veeswalia
