Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ECONOMICS UNIT 2 + RWE > REAL WORLD EXAMPLES > Flashcards

REAL WORLD EXAMPLES Flashcards

1
Q

Tax on demerit Goods

A

Country: UK
Year: 2023

Tax on cigarettes (16.9)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Natural Monopoly

A

Country: Peru

Sedapal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Merit Goods

A

Country: USA

Public Libraries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Demerit Goods

A

Country: USA

The Supreme Court (SC) on Sunday issued an interim order prohibiting the advertisement of alcoholic beverages by media houses.

UK ban vapes 2023

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Shortage

A

Country: Worldwide
Year: 2020

COVID-19 pandemic and toilet paper shortage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Surplus

A

Country: Peru
Year: 2023

Due to favourable weather conditions or overproduction, agricultural markets can experience a surplus of certain crops.

Farmers may produce more than the market demands, resulting in an oversupply of products like corn, wheat, or fruits.

20% more than expected having a toll on factories

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Substitutes

A

Country: Worldwide

Coke and Pepsi

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Complementary

A

Coffee machines and coffee pods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Inferior Goods

A

Instant noodles –> However, as consumer income increases, people may choose to purchase higher-quality or more nutritious food options instead of instant noodles.

With a higher income, individuals may have the means to afford fresher ingredients, healthier meals, or dine out at restaurants. As a result, the demand for instant noodles may decline as consumers switch to superior alternatives.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Luxury (Elastic)

A

Fine Wine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Necessity (Inelasic)

A

Medicine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Perfectly Elastic Demand

A

Tesla provides free chargers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Perfectly Inelastic Demand

A

Salt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Subsidies

A

Country: India
Year: 2021

Encourage electric vehicle use (up to 40%) in consumer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Price Floor

A

Country: Peru
Year:
Price floor affecting basmati rice India as exports have declined, price floor imposed of $1200 a ton

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Price Ceiling

A

Country: India
Year: 2016

Price ceiling on uber rides (Resulted in a shortage of available drivers) –> High surge in prices paid by the consumer using transportation and rise sharing services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Minimum Wage

A

Country: UK
Year: 2023

Minimum wage increase, reducing income inequality since the pandemic. A surge in hiring booster earnings for some of the lowest paid (10.42)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Low-interest Rate*

A

Country: Japan
Year: 2023

Encourage, borrowing spending and investment (-0.1)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Common Access Resources

A

Country: Australia
Year:

Educate tourists on the ecological importance of the coral and managing recreational activity: Tourism, rising demand for coral –> Pollutants from boats nearby

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Negative Externality of Consumption

A

Country: UK
Year: 2016

20% tax on sugary drinks (contributor to the high sugar intakes of children)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Negative Externality of Production

A

Country: Ireland
Year: 2010

Carbon tax –> Pollution imposes significant costs on society

Country : USA
Year: 2013

DuPont released harmful chemicals up until 2013 into the Ohio River, known to cause cancer. Currently facing a lawsuit from the state of Ohio

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Positive Externality of Consumption

A

Country: New Zealand
Year:

Offer free vaccines –> Underallocation of vaccines

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Positive Externality of Production

A

Country: Norway
Year: 2022

Production of EVs (Less pollution, less noise pollution, environmentally friendly)

OTHERS: (first 1997 - now 2022)
Production of hybrid car technology by Toyota, as they are providing free access to their patents and providing parts to competitors, to increase the use of lower-emission technology

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Moral Hazard

A

Country: Global Financial Crisis
Year: 2008

Financial institutions and government bailouts ( moral hazard in this situation arises from the fact that financial institutions were aware that if their risky investments went sour and they faced significant losses, the government would step in to rescue them.

This knowledge created a sense of security and incentivized these institutions to take excessive risks, engage in irresponsible lending practices, and invest in high-risk assets)

25
Q

Asymmetric Information

A

Country: Siri Lanka
Year: 2021

Pharmacists in Sri Lanka

26
Q

Subsidies to Regulate Externalities

A

Country: UK
Year: 2022

Renewable Energy Subsidies –> This leads to a reduction in greenhouse gas emissions, improved air quality, and decreased reliance on fossil fuels, thereby addressing the negative externality associated with carbon emissions.

27
Q

Monopolistic Compeion

A

Country: Peru
Year:

Rotisserie chicken market (Different income levels)

28
Q

Oligopoly

A

Country: Peru
Year:

Claro (37%)
Entel (24%)
Telefonica (23%) –> Overall 90%

29
Q

Monopoly

A

Country: Peru
Year:
Intercorp - Farmacies (83%)

30
Q

Perfect Compeititon

A

Country: Peru
Year:

Blueberry market (270,000 tonnes, worht $1bn to peruvian economy)

31
Q

Expansionary Fiscal Policy

A

Country: European Union
Year: 2020

In response to the COVID-19 pandemic, the European Union implemented a recovery plan that includes €750 billion in funds to support member countries’ economic recoveries.

The plan includes significant spending on green initiatives, digital infrastructure, and social welfare programs.

32
Q

Contractionar Fiscal Policy

A

Country: South Korea
Year: 2022

South Korea said on Tuesday it would cut annual government spending for the first time in more than a decade next year, as it strives to cut back on pandemic-era stimulus and help the central bank temper inflationary pressures.

The government plans to cut spending for public infrastructure by 10.2%, while subsidies and other spending for small- to medium-sized businesses will decline by 18% next year.

33
Q

Expansionary Monetary Policy

A

Country: USA
Year: 2007

For most of 2007, the fed funds rate was fairly stable at 5.25%. When troubling signs in the housing market first started to appear, the Fed reduced the rate to 4.75% in September 2007. Once the housing market collapsed, and the recession began in December 2007, the rate decreased to 4.25%.

34
Q

Contractionary Monetary Policy

A

Country: UK
Year: 2023

Suggestion by Andrew Bailey, the Bank of England (BoE) Governor that interest rates in the UK ‘may need to go up again to slow the cost of living’ because the UK’s economy is struggling with high rates of inflation at 10.1%, which is currently more than five times higher than the BoE’s 2% inflation target.

35
Q

High Inflation Rate

A

Country: USA - New York
Year: 2023

More than three years after the United States reached an unemployment rate of 14.7 per cent, the highest number since the Great Depression, recovery efforts remain underway nationwide to reverse the effects of a pandemic-induced economic crisis.

36
Q

High Unemployment Rate

A

Country: Argentina
Year: 2023

Infaltion rate tore past 100% in Febuary

Hyperinflation since 1991

Cost-Push Inflation

37
Q

Progressive Taxation

A

Country: Denmark
Year: 2022

By up to 52.07%

38
Q

Philips Curve

A

Country: USA
Year: 2022

39
Q

Deflation

A

Country: Japan
Year: 2023

Fall in AD –> “The Lost Decade” consumer spending declined

40
Q

Structural Unemployment

A

Country: India
Year: 2022

(8.8%) Skills Gap: India faces a skills gap, where the skills possessed by job seekers do not align with the requirements of available job opportunities.

Rapid technological advancements and changes in industry demands have created a mismatch between the skills acquired by workers and the evolving needs of the job market.

This mismatch leads to unemployment as job seekers struggle to find suitable employment.

41
Q

Cyclical Unemployment

A

Country: Morroco
Year: 2021

(10.54%) Dependence on key sectors: Morocco’s economy is reliant on certain sectors, including agriculture, tourism, and manufacturing. These sectors can be vulnerable to cyclical fluctuations.

For example, agricultural activities are highly dependent on weather conditions, and a poor harvest can lead to reduced employment opportunities in the sector.

Similarly, fluctuations in global tourism demand or changes in export markets can affect employment levels in the tourism and manufacturing sectors.

42
Q

Income Distribution

A

Country: Peru
Year -

Informal Economy: A significant portion of Peru’s workforce operates in the informal sector, characterized by low wages and often precarious jobs.

Informal workers typically lack social protection, access to benefits, and stable employment contracts. This contributes to income disparities, as formal sector workers generally earn higher wages and have better working conditions.

43
Q

Income tax

A

Country: Lithuania
Year: 2021

Lithuania moved from flat taxes on personal income to progressive tax structures

44
Q

Slow Economic Growth

A

Country: Japan
Year: 2016

Economic growth rate: 0.5% (Growth had been stagnant for the first quarter of 2016)

45
Q

Economic Growth

A

Country: China
Year: 2022

(5.2%) Infrastructure development: China invested heavily in infrastructure development, including building highways, railways, airports, and ports.

These investments not only improved connectivity within the country but also facilitated trade and economic activities.

Infrastructure development played a vital role in attracting foreign investment and supporting industrial growth.

46
Q

Peru DATA

A

Unemployment: 7.93% (2023)
Inflation: 8.30% (2022)
Economic Growth: 2.40%
Income Distribution: The richest 20 percent rake in nearly half its income, according to one report, while the poorest fifth earn less than 5 percent

47
Q

Tariffs

A

Country: USA to Russia
Year: 2023

200% tariff on aluminum

48
Q

Quota

A

Country: South Africa to USA
Year: 2023

Decreased quota from 71,290 tonnes to 71,632 tonnes

49
Q

Subsidies

A

Country: China accuses USA
Year: 2023

Chinese representatives have accused the United States of implementing discriminatory and distorted industrial subsidy provisions through its Inflation Reduction Act.

The act is seen as an example of the US prioritizing its domestic law over international law and pursuing an “America First” policy, affecting not only China but also other economies like the EU and South Korea

50
Q

Free Trade

A

Country: NAFTA

NAFTA emerged from discussions that began in the 1980s between the three nations (Canada, USA and Mexico), aiming to establish a framework for increased economic cooperation and liberalized trade.

Negotiations took several years, and the agreement was finalized in 1992, entering into force on January 1, 1994.

51
Q

Common Market

A

Country: EU

52
Q

Custom Unions

A

Country: Mercosur

53
Q

Monetary Union

A

Country: EU

54
Q

Capital Account

A

Country: USA
Year: 2023

US’ current account deficit (3.7%) widens 11.5% to $943B

55
Q

Current Account

A

Current Account Surplus
Country: China
Year: 2023

Surplus under trade in goods came in at $454.2 billion, and the deficit under trade in services was $168.2 billion, data released by the administration shows.

The ratio of current account surplus to gross domestic product stood at 1.6 per cent during the period, remaining within a reasonable range

Current Account Deficit
Country: Türkye
Year: 2023

In the first eight months of 2023, the current account deficit stood at $43.13 billion, rising from the deficit of $35.06 billion a year earlier

56
Q

Financial Account

A

Country: Bangladesh
Year:2023

Financial Account Deficit

57
Q

Trade Creation*

A

Country: Bangladesh’s financial account deficit hovers near $4bn
Year:

58
Q

Trade Diversion*

A

Country:
Year:

59
Q

Exchange rates

A

Country: China
Year: 2023

Government Intervention in the exchange rate market.

China’s major state-owned banks selling US dollars to buy yuan in both onshore and offshore spot markets in early Asian trade.

On behalf (generally of the central bank)

WHY: Dollar sales came after China’s leader pledged to step up policy support for the economy amid a tortuous post-COVID-19 recovery, focusing on boosting domestic demand and signalling more stimulus steps

Yuan exchange will be kept stable at reasonable and balanced levels to invigorate the capital market and restore investor confidence

ECONOMICS UNIT 2 + RWE (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions