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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
Q

Example of state provision to solve market failure

A

The NHS, costs taxpayer between £150bn and 200 bn a year

26
Q

Example of tradeable pollution permits to correct market failure

A

The Emissions Trading Scheme (ETS)
in the EU.
Since introduction in 2005, carbon emisions have fallen and are 21% lower in 2020

27
Q

Example of minimum pricing to solve negative externalities in consumption market failure

A

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
Q

Example of maximum pricing to solve market failure

A

Rent control in NY

29
Q

Examples of Goverment failure

A

Black market for cigarretes in UK worth £2bn a year

Long wait times at NHS

30
Q

Example of law of diminishing marginal returns

A

Coffee shops, land and capital are fixed, if over employ staff

31
Q

Example of EOS

A

Airline industry; purchasing economies of airoplanes

32
Q

Example of DEOS

A

Failure of Thomas Cook travel agency due to ineffective control from management

33
Q

Example of profit maximisation

A

Pfizer, given strong research costs

34
Q

Example of profit satisficing

A

in 2018, Walmart reacted to Donald Trumps cooporation tax cut by paying workers higher wages

35
Q

Example of revenue maximisation

A

1996 Rupert Murdoch reduced price of The Times to 10p on mondays to drive at compeition, selling at loss.

36
Q

Example of sales maximisation

A

Costa Coffee in UK with aim to get ahead of rival Starbucks by opening more stores
Facebook when it was initially founded

37
Q

Example of survival

A

New firms entering UK fast food market such as Five Guys, short term objective to survive

38
Q

Example of CSR

A

The Body Shop dont test on animals

39
Q

Example of perfect competition

A

Tuk Tuks in india however there is slight barrier to entry

40
Q

Example of competitive markets

A

Airline travel since deregulation in 1990s in UK

41
Q

Example of monopoly power

A

Google, global market share of 92%

42
Q

Example of natural monopoly

A

Water companies in UK, regulated by Ofwat

43
Q

Example of First degree price discrimination

A

Amazon in 2005 were found guilty using cookies

44
Q

Example of third degree

A

Uber using Surge pricing

45
Q

Example of Monopolistic competition

A

Clothing market in UK. theory suggest no DE however is nature of comp

46
Q

Example of Oligopoly, price competition

A

UK supermarket industry, top four firms control 70%, price wars and price matching schemes

47
Q

Example of Oligopoly, non-price competition

A

Global soft drink industry; ‘duopoly’ Coke and pepsi control 70%. Compete on non-price factors

48
Q

Example of Oligopoly, price fixing cartel (overt collusion)

A

truck maker Scania fined in 2017 for organising price fixing cartel

49
Q

Example of Oligopoly, price leadership (tacit collusion)

A

Big six energy companies in UK control 94% of market. Rarely seen price compeition and lots of time seen price following

50
Q

Example of lowering barriers to entry increasing competition contestable markets

A

Global hotel market due to entry of AirBnB, technology allowed

51
Q

Example of monopoly regulation, price caps

A

UK energy price cap; from 2019 prices for energy on variable rate tariffs have been capped by OFGEM

52
Q

Example of monopoly regulation, performance targets

A

Train companies limiting length of conusmer delays

53
Q

Example of monopoly regulation, merger policy

A

in 2018 ASDA and Sainsburys wanted to merge, getting 30% market share.
CMA blocked

54
Q

Example of monopoly regulation, regulatory capture

A

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
Q

Example of privatisation

A

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
Q

Example of deregulation

A

EU open skies
Airline deregulation in 1990s

UK bus market in 1980s, ended with Oligopolies

57
Q

Example of nationlisation

A

Uk Railways labour party has suggested they get nationalised

58
Q

Example of monopsony employer

A

NHS staff UK

59
Q

Example of trade unions

A

TU density in UK was 22.3% in 2022 compared to 50% in 1970s

60
Q
A

AQA A Level Economics, micro (14 decks)

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