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AQA A Level Economics, micro > Real life examples > Flashcards

Real life examples Flashcards

1
Q

Example of Scarcity

A

Water in india. Prices have increased significantly, high demand from population growth

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2
Q

Example of demand shift left

A

Demand for peloton bikes has fallen due to reports of dangerous design faults

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3
Q

Example of demand shift right

A

Electric cars

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4
Q

Example of supply shift right

A

Subsidies on fuel to reduce costs of production for producers in INDIA

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5
Q

Example of supply shift left

A

Uk subsidies for home solar panels ended in 2019

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6
Q

Example of price inelasic demand

A

Pharmaceutical firms increasing prices of essential medicines given patent protection and profit motives; Pfizer

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7
Q

Example of price elastic supply

A

Covid vaccine manufacturers responded quickly

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8
Q

Example of compliment goods (XED)

A

Printers and printer ink

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9
Q

Example of subsititute goods

A

Coke and pepsi

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10
Q

Example of normal goods

A

Holidays

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11
Q

Example of inferior goods

A

Margerine

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12
Q

Example of indirect taxes, having negative consequences

A

Fuel duty in France in November 2018, met with mass protest, not passed

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13
Q

Example of subsidy

A

Inluenza vaccinations in hong kong

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14
Q

Example of min price,to protect primary commodity producers

A

Cocoa in Ghana, as of 2024 it is $1.62/kg.
NO INTERVENTION BUYING, instead farmers suplemented with income top up

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15
Q

Example of max. price

A

Basic food items in Venezuela / rent control in NY

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16
Q

Example of negative externalitiesin conusmption

A

Smoking cigarretes

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17
Q

Example of positive externalities

A

Physical exercise

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18
Q

Example of de-merit goods

A

Red meat, over consumed, risk of diabetes

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19
Q

Example of merit goods

A

Education

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20
Q

Example of public goods

A

Flood defences

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21
Q

Example of common acces resources

A

Deforestation in Kuala Lumpur.
Malaysia lost 15% of its forest coverage since 2000

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22
Q

Example of indirect tax to solve overconusmption / overproduction market failure

A

UK Sugar tax. Made 50% of companies change their recipes to ensure sugar volumes fell below tax threshold

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23
Q

Example of subsidies to solve market failure

A

Museums in UK since 2001 to provide free entry. Can be considered merit goods

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24
Q

Example of regulation to solve market failure

A

Plastic Waste in UK ; banning plastic straws

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25
Example of state provision to solve market failure
The NHS, costs taxpayer between £150bn and 200 bn a year
26
Example of tradeable pollution permits to correct market failure
The Emissions Trading Scheme (ETS) in the EU. Since introduction in 2005, carbon emisions have fallen and are 21% lower in 2020
27
Example of minimum pricing to solve negative externalities in consumption market failure
Alcohol in scotland Min price of 50p per unit of alcohol to reduce consumption. Reduced consumption by around 8% Excess revenue kept by retailers
28
Example of maximum pricing to solve market failure
Rent control in NY
29
Examples of Goverment failure
Black market for cigarretes in UK worth £2bn a year Long wait times at NHS
30
Example of law of diminishing marginal returns
Coffee shops, land and capital are fixed, if over employ staff
31
Example of EOS
Airline industry; purchasing economies of airoplanes
32
Example of DEOS
Failure of Thomas Cook travel agency due to ineffective control from management
33
Example of profit maximisation
Pfizer, given strong research costs
34
Example of profit satisficing
in 2018, Walmart reacted to Donald Trumps cooporation tax cut by paying workers higher wages
35
Example of revenue maximisation
1996 Rupert Murdoch reduced price of The Times to 10p on mondays to drive at compeition, selling at loss.
36
Example of sales maximisation
Costa Coffee in UK with aim to get ahead of rival Starbucks by opening more stores Facebook when it was initially founded
37
Example of survival
New firms entering UK fast food market such as Five Guys, short term objective to survive
38
Example of CSR
The Body Shop dont test on animals
39
Example of perfect competition
Tuk Tuks in india however there is slight barrier to entry
40
Example of competitive markets
Airline travel since deregulation in 1990s in UK
41
Example of monopoly power
Google, global market share of 92%
42
Example of natural monopoly
Water companies in UK, regulated by Ofwat
43
Example of First degree price discrimination
Amazon in 2005 were found guilty using cookies
44
Example of third degree
Uber using Surge pricing
45
Example of Monopolistic competition
Clothing market in UK. theory suggest no DE however is nature of comp
46
Example of Oligopoly, price competition
UK supermarket industry, top four firms control 70%, price wars and price matching schemes
47
Example of Oligopoly, non-price competition
Global soft drink industry; 'duopoly' Coke and pepsi control 70%. Compete on non-price factors
48
Example of Oligopoly, price fixing cartel (overt collusion)
truck maker Scania fined in 2017 for organising price fixing cartel
49
Example of Oligopoly, price leadership (tacit collusion)
Big six energy companies in UK control 94% of market. Rarely seen price compeition and lots of time seen price following
50
Example of lowering barriers to entry increasing competition contestable markets
Global hotel market due to entry of AirBnB, technology allowed
51
Example of monopoly regulation, price caps
UK energy price cap; from 2019 prices for energy on variable rate tariffs have been capped by OFGEM
52
Example of monopoly regulation, performance targets
Train companies limiting length of conusmer delays
53
Example of monopoly regulation, merger policy
in 2018 ASDA and Sainsburys wanted to merge, getting 30% market share. CMA blocked
54
Example of monopoly regulation, regulatory capture
Boeing accepted fault for 2 fatal crashes in 2019, but made agreement with US government making them imune from legal prosecution by paying 2.5bn in fines
55
Example of privatisation
Royal mail in october 2013, before was loss-making Raised 2 billy for gov, strict regulation from Ofcom 11,000 jobs were lost in 3 years prost privitisation
56
Example of deregulation
EU open skies Airline deregulation in 1990s UK bus market in 1980s, ended with Oligopolies
57
Example of nationlisation
Uk Railways labour party has suggested they get nationalised
58
Example of monopsony employer
NHS staff UK
59
Example of trade unions
TU density in UK was 22.3% in 2022 compared to 50% in 1970s
60

AQA A Level Economics, micro (14 decks)

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