RWE Flashcards
Subsidy
US agricultural subsidies: $20 billion per year (2020)
Ensures steady domestic food supply, provides economic stability to farmers, increases international competitiveness
Price Mechanisms
(Price Floor)
From 305 to 310 rupees
The federal government raises the floor price for cane, also known as the Fair And Remunerative Price, almost every year. 2023
Price Mechanisms
(Price Ceiling)
The Indian government has introduced a price ceiling for essential drugs in order to make them more accessible to the general public and reduce the fleecing of patients. 2023
reduce the risk of rejection of organ post-transplant
Negative externalities of consumption - government intervention
singapor cigarretes, 12 HK$ tax, lowered population that smokes, also increased age from 18 to 21 from 2018-2021
Government Intervention, Positive Externalities of Production
India, Rs 4500 crore subsidy to aid vaccine to vaccine manufacteres like serum institue of india
Negative externality in production
Jan 2022
Fish oil pills,
high amount of fish caught in peru
harmful and unsustainbale pratice, naggtive overexploitation of common pool ressource
too many juvenile anchevoitas, bad for envronemtn as populaiton cannot sustain itself
Positive externality in consumption
US covid vaccines 40$ per vaccine
Direct provision of merit goods
SG - Low-income Families are eligible to sign their children up for the Financial Assistance Scheme (FAS). Under the FAS, students get to enjoy subsidised school fees and transportation fees, and free textbooks. This increases the affordability of education in Singapore, effectively tackling the underconsumption of pre-tertiary education in Singapore that is caused by high income inequality.
Supply-Side Policies & Low Unemployment
As of 2021, Singaporean government funded $1.2 billion for a government program called SkillsFuture that aims to reskill the workforce through training to gain skills that are in demand. Citizens are provided with credit that can only be used to go to a training programme.
Legislation for positive externalities of consumption/merit goods
Vaccinations in Australia - making it mandatory for children to get vaccine to enroll in school - done through legislation
Contractionary monetary policy
UK 2023, highest ever interest rate 5.25% august 2023
less inflation
7.9%
Expansionary monetary policy
During recession in late 2008 the fed reduced interest rate to 0
Expansionary fiscal policy
Barack Obama’s economic stimulus package, ended the recession following the 2008 financial crisis. Cut taxes by $290 billion, spent $220 billion in unemployment benefits, allocated $275 billion to federal contracts to create jobs. Helped build consumer confidence after the recession and reduce unemployment
Contractionary fiscal policy
In the 90s, Bill Clinton raised income taxes from 28% to 36% for high income earners. Corporate tax also increased from 34% to 36% for corporations. Inflation fell from 6% to 3%. However, unemployment increased
UK during the 2010-11 budget cycle. The British government aimed for a deficit reduction of £40 billion. To achieve this, they planned to cut £1 in government spending for every £3 in new tax revenue. However, the actual fiscal adjustment involved significant tax increases, including a raise in the VAT from 17.5% to 20%, and new tax brackets for higher incomes,
Trade liberalisation
USMCA - US Mexico and Canada Agreement, signed in Nov 2018, allows select products to be traded tariff-free between the three countries, e.g. automobiles, dairy, intellectual property
Made to replace NAFTA, with a few changes. Not yet ratified.
