Microeconomics examples

Question 1

monopoly general

Answer 1

postal service, railways, water and electricity suppliers

Question 2

monopoly

Answer 2

Microsoft (operating systems), Luxoticca (eyewear), AT&T (telecommunications in the US in the past)

Question 3

perfect competition

Answer 3

international markets for agricultural commodities (wheat, rice), gold, silver, foreign exchange market

Question 4

monopolistic competition general

Answer 4

shoe, clothing, computer, publishing, and restaurant industries

Question 5

monopolistic competition

Answer 5

Puma, Burger King, Hilton, Persil

Question 6

oligopoly general

Answer 6

car industry, airlines, oil, steel, aluminum, and copper industries

Question 7

oligopoly

Answer 7

American Airlines, Walt Disney, Ford, T-mobile

Question 8

inferior good

Answer 8

used cars, used clothing

Question 9

joint supply

Answer 9

petrol and diesel oil, butter and skimmed milk

Question 10

price inelastic demand goods

Answer 10

salt, tap water, cigarettes

Question 11

price elastic demand goods

Answer 11

Milka chocolate, Jaguar sports car

Question 12

income inelastic demand goods

Answer 12

electricity, water

Question 13

income elastic demand goods

Answer 13

Ferrari cars, caviar

Question 14

price inelastic supply goods

Answer 14

housing, nuclear power, rice in the short term

Question 15

price elastic supply goods

Answer 15

uber driver, plastic straws

Question 16

price ceiling

Answer 16

rent controls (New York), food price controls

Question 17

price floor

Answer 17

minimum wage (Australia- 17.70 AUD per hour)

Question 18

negative production externality

Answer 18

coal-fired power plant, forestry

Question 19

negative consumption externality

Answer 19

air travel, smoking

Question 20

positive production externality

Answer 20

research and development, private schools

Question 21

positive consumption externality

Answer 21

education, health care

Question 22

public goods

Answer 22

national defense, street light

Question 23

subsidies

Answer 23

China subsidising solar panel production in 2019 by 3 bn yuan

Question 24

indirect tax

Answer 24

UK cigarette tax 16.5% of the retail price

Question 25

externality correction

Answer 25

compulsory vaccines for students in Australia, no smoking areas in Sydney

Question 26

carbon tax

Answer 26

as of 2021, Sweden had the highest carbon tax rate worldwide at 137 U.S. dollars per metric ton of CO2 equivalent

Question 27

carbon permits

Answer 27

EU Emission Trading System

Question 28

asymmetric information

Answer 28

used cars retailer

Question 29

moral hazard

Answer 29

insurance companies