microeconomics

Question 1

London Takeaways - monopolistic

Answer 1

1000 small companies, low sunk costs and each has a slightly different type of good

Question 2

advantages of demergers

Answer 2

diseconomies of scale, specialisation, raise money, conflicts in culture

Question 3

examples of non-price competition

Answer 3

advertising, loyalty cards, branding and quality

Question 4

acronym for factors affecting PED

Answer 4

NASBIT - Necessity, Addiction/habit, Substitutes, Branding, Income, Time

Question 5

acronym for factors affecting PES

Answer 5

TEASS Time, state of the Economy, Availability of inputs, Spare capacity, Stockpiles

Question 6

Adam Smith

Answer 6

economics as a science, specialisation and division of labour, invisible hand, leissez-faire

Question 7

advantages of free market

Answer 7

efficient allocation of resournces by price mechanism, lower prices due to competition, consumer choice

Question 8

disadvantages of free market

Answer 8

inequality, monopolies, market failure

Question 9

advantages of command economy

Answer 9

government can correct market failure, stop monopoly abuse, reduced inequlity

Question 10

disadvantages of command economy

Answer 10

limited choice, government failure, destroys incentives

Question 11

examples of external benefits in consumption

Answer 11

vaccinations stop spreading of disease, healthy food leads to more productive workers

Question 12

types of government failure

Answer 12

min price leads to x - inneficiency, max price leads to shortages, law of unintended consequences, information gaps, administration costs

Question 13

examples of unintended consequences leading to government failure

Answer 13

speed bumps and ambulances, black markets, you dont drive today, cobras in 1930s deli

Question 14

examples of information gaps leading to government failure

Answer 14

Alan Greenspan and 2008 economic crisis, garden bridge, carbon tax

Question 15

how many workers are at risk of being replaced by capital in the next 15 years

Answer 15

> 10 million

Question 16

factors affecting elasticity of supply for labour

Answer 16

skills and qualifications, unemployment, time

Question 17

factors affecting elasticity of demand for labour

Answer 17

substitutes, percentage of total cost, time

Question 18

causes of labour market shifts

Answer 18

derived demand, productivity, capital costs, migration, income tax and benefits, non-pecuniary benefits

Question 19

cost of smoking related illness to NHS

Answer 19

£3-6bn a year

Question 20

cost to NHS of alcohol related illness

Answer 20

£3 - 5 bn a year

Question 21

how much does the UK government spend on education

Answer 21

£80 bn a year

Question 22

how much does the UK government spend on healthcare

Answer 22

£110 bn a year

Question 23

how much of public expendature in the UK is spent on education and health

Answer 23

2/7

Question 24

percentage of smartphones that don’t use Android or IOS

Answer 24

1%

Question 25

percentage of internet searches that use google

Answer 25

90%

Question 26

most densely populated country in Africa

Answer 26

The Gambia

Question 27

The Gambia Gini coeficient

Answer 27

0.47

Question 28

trump corp. tax cut

Answer 28

35% to 21%

Question 29

cost to US society of government shutdown

Answer 29

$11 bn

Question 30

American Recovery and Reinvestment Act

Answer 30

> $700bn

Question 31

how much did UK gdp fall in the recession

Answer 31

6%

Question 32

how much did US GDP fall in the recession

Answer 32

4.2%

Question 33

impact of QE in the UK

Answer 33

raised output by up to 2% in 2009

Question 34

value of UK QE by 2014

Answer 34

£375 bn

Question 35

problems faced by policymakers

Answer 35

inaccurate information, risks and uncertainties

Question 36

calculating the HDI

Answer 36

3√(average life expectancy at birth x average years in school x GNI per capita)

Question 37

ETS

Answer 37

2bn tonne cap and kept 10% back to sell

Question 38

example of a carbon tax

Answer 38

Austrailia £15 levy on each tonne of greenhouse gas theu emit

Question 39

percentage of A&E assault victims who had been drinking

Answer 39

80%

Question 40

how many lives would the Scottish min price save

Answer 40

58 in the first year

Question 41

how much would the Scottish min price decrease hospital admissions

Answer 41

1300

Question 42

how much have rail fares risen since 2007

Answer 42

50%

Question 43

how many franchised trains ran on time in 2017

Answer 43

87%

Question 44

private investment in the UK rail industry in 2016-17

Answer 44

over £900m

Question 45

PFI projects in the UK

Answer 45

716 as of March 2016

Question 46

percentage of teachers in the public sector in the UK

Answer 46

88%

Question 47

Number of people on insecure and low paid work

Answer 47

4millon

Question 48

Impact of ultra low emission zone

Answer 48

9400 less polluting vehicles in London per day in April compared to march