A* Content

Question 1

Basic Economic Problem

Answer 1

Water scarcity in India, South Africa

Food scarcity worldwide

Question 2

Demand Shift right

Answer 2

Spanish holidays,
commodities like oil,
low/no alcohol drinks

Question 3

Demand shift left

Answer 3

Student housing (UK)
Print newspapers 
Eating out due to takeways

Question 4

Supply shift right

Answer 4

India subsidies

Air travel due to more firms

Question 5

Supply shift left

Answer 5

Fizzy drinks due to sugar tax
Ice cream due to increase in price of vanilla
Gas/electricity

Question 6

PED inelastic

Answer 6

Cigarettes, alcohol, sugary drinks, fast food, public transport, iPhone, basic commodities

Question 7

PES inelastic

Answer 7

Basic commodities, gas/electricity, housing

Question 8

XED complements

Answer 8

Nespresso machines/capsules
Printers/ink
Games consoles/games

Question 9

XED substitutes

Answer 9

Fast food burgers

Smartphones

Question 10

YED normal goods

Answer 10

Restaurant dining, foreign holidays, designer clothing, theatre, house renovation

Question 11

YED inferior goods

Answer 11

Fast food, public transport, own brand food, staycations

Question 12

Negative externality in production

Answer 12

Manufacturing, resource depletion, degradation, deforestation, loss of biodiversity,

Question 13

Negative externality in consumption

Answer 13

Cigarettes, alcoholic drinks, sugar, fats, chewing gum, sun beds, red meat

Question 14

Positive externality in consumption

Answer 14

Vaccinations, healthcare, education, public transport, exercise, school lunches

Question 15

Positive externality in production

Answer 15

In work training, childcare, research and development

Question 16

Public goods

Answer 16

Flood defences, bridges, roads, national parks, street lights, national defence, traffic lights

Question 17

Common access resources

Answer 17

Seas, air, forests

Question 18

Indirect tax and Market failure

Answer 18

Cigarette, alcohol, sugar, carbon, fuel

Considering : latte cups and plastic

Question 19

Subsidy and market failure

Answer 19

Electric cars, solar panels, public transport, research and development, in work training , adult training

Question 20

Regulation and Market failure

Answer 20

Bans (plastic straws and cotton pads), limits, compulsory, quotas, innovative regulation

Question 21

State provision

Answer 21

NHS, state schools, various public goods

Question 22

Traceable pollution permits

Answer 22

Emissions trading scheme (ETS) in EU, Kyoto protocol

Question 23

Minimum price and market failure

Answer 23

Alcohol in Scotland is 50p per unit of alcohol minimum

Question 24

Maximum price and Market Failure

Answer 24

Rent control (New York, Berlin and proposed by Corbyn)
Energy Price cap by Conservative party
Food cap in Venezuela

Question 25

Perfect competition

Answer 25

Market stalls, Tuk Tuks, foreign exchange

Question 26

Highly competitive markets

Answer 26

Fast food, cars, short haul airlines, supermarkets

Question 27

Monopolistic

Answer 27

Taxis, clothing, restaurants, hotels, streaming, coffee shops, hairdressers/salons

Question 28

Oligopoly (competitive)

Answer 28

Supermarkets, soft drinks, cars, mobile phones, short haul flights

Question 29

Oligopoly (non-competitive)

Answer 29

Energy, supermarket fuel, bus

Question 30

Monopoly power

Answer 30

Google search, Durex, merlin attractions, London Underground, UPS, Volkswagen in EU, Tesco, motorway fuel providers

Question 31

Price discrimination

Answer 31

1st degree - Amazon | 3rd degree - Rail, airlines , Uber, hotels

Question 32

Natural monopoly

Answer 32

Rail infrastructure , utilities, post

Question 33

Contestable markets

Answer 33

Taxis, hotels, fast food, airlines, parcel delivery, streaming

Question 34

Loss making companies

Answer 34

BlackBerry, Monarch, Toys R us, New look, Mallon, Restaurants (Byron, prezzo)

Question 35

Economies of scale

Answer 35

Energy, supermarkets, airlines, tech firms, online retailers

Question 36

Profit maximisation

Answer 36

Pharmaceuticals, electronics

Question 37

Sales maximisation (growth max)

Answer 37

Costa (UK), | Netflix, Amazon, Spotify may all be shifting

Question 38

Corporate social responsibilities

Answer 38

Disney, Starbucks, Microsoft, Body shop, Ben & Jerry’s

Question 39

Monopoly regulations

Answer 39

``` Quality control - water, energy Proposed merger - Sainsbury’s and ASDA Privatisation - Royal Mail, railways Deregulation - airlines, buses Nationalisation (proposed) - railways, energy, water , Royal Mail ```

Question 40

Demand for labour

Answer 40

Pilots, air traffic controllers, child minders, app developers, bank clerks, advertising agency

Question 41

WED labour - inelastic

Answer 41

Premier league footballers, plumbers, electricians

Question 42

WED labour - elastic

Answer 42

Call centre workers

Question 43

Supply of labour

Answer 43

Low skilled work

Question 44

Supply of labour right

Answer 44

Shelf fillers

Question 45

WES labour - inelastic

Answer 45

Doctors, engineers, accountants pilots, lawyers

Question 46

WES labours - elastic

Answer 46

Travel agents, waitresses, driving instructors

Question 47

Monopsony employer

Answer 47

NHS, state schools, Walmart (dominant in the world), McDonald’s

Question 48

Living wage

Answer 48

£7.83 / hour for over 25

Question 49

UK Gini coefficient

Answer 49

0.34

Question 50

Policies to redistribute income

Answer 50

``` Tax rich (labour/Australia) Transfer payments (labour) Govt spending on Education/health Increase minimum wage (living wage) Northern powerhouse ```