Notesale: Turn your study into money

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Economics Example List
Microeconomics
Concept

Examples

Substitutes

Android phones and iPhones

Complements

Toothbrushes and toothpaste

Competitive Supply

Use of corn for both food and biofuels

Joint Supply

Petroleum, plastics, lubricants all made from crude oil

Derived Demand

Demand from steel is derived from demand for cars

Inferior Goods

Cheap processed foods/salted vegetables

Veblen Goods

Luxury handbags

Government Intervention
Concept

Examples

Agricultural goods

In Venezuela, price ceilings on basic foods have led to massive shortages in
supermarkets and a thriving black market where goods sell for much more than the
legal maximum price
...


Rent controls

Rent controls in New York cap increases on rent that landowners can charge
...
However, many people are still unable
to rent houses due to an undersupply of residential units
...
This has led to thousands of tons of unsold butter having to be
purchased by the government, with much of the excess being wasted
...
There was also a 4
...


Agricultural

India spends more than $19 billion annually on food subsidies for the poor
...


Legislation

Singapore legislates compulsory polio vaccinations for all new-borns
...
There is less change of disease
outbreak for the whole community
...


The National Healthcare Service in the United Kingdom are funded primarily
through government expenditure, and provide free medical services to citizens
...
For example, Microsoft
employees that improve their technical skills contribute more to the overall
computer industry when they utilise their skills for other companies in the future,
Logging companies that adopt sustainable foresting practices, such as those under
the Sustainable Forestry Initiative, help to alleviate global warming through the
planting of trees that photosynthesise and take in carbon dioxide from the air
...


Problem

Pollution caused by dumping of waste into rivers affects fishing and the health of
people living near them
...


Tax

Norway’s imposition of a carbon tax has led to an estimated reduction of 5% of
emissions since 1991
...


Tradeable pollution
permits for carbon
emissions

Implementation of pollution permits in the European Union has reduced emissions
by 8% since 2005, with significantly lower costs than expected
...


In 2013 China imposed anti-pollution measures on firms, closing down dozens of
coal-fired plants that failed to meet regulatory requirements
...


Indirect taxes

Legislation

The sale of alcohol to people under 18 is prohibited in Singapore, reducing
demand for alcohol and preventing youth from forming habits that lead to
addiction to drinking
...


Government advertising campaigns and warning labels on cigarettes in Singapore
have been successful, correlating with a decline in smoking rates in Singapore over
the past decade
...


Contractionary
Monetary Policy
(Raising Interest
Rates)

In 2015, South Africa increased interest rates in order to counter rising inflation rates
...


Expansionary Fiscal
Policy

In response to slowing growth forecasts, the South Korean adopted more expansionary fiscal policies in
2015, increasing government expenditure by 3% and accelerating many public works projects that were
scheduled for the next year
...
The budget surplus for the year
exceeded $6 billion, which was higher than average
...
The government has also offered tax
incentives to companies that spend on research
...


Reduction in
income/corporate tax

Iceland reduced the corporate tax rate from 18% to 15% in 2008 to boost
growth and attract corporate investment in its recovery from the global
financial crisis
...

The Singaporean government has also set up Continuing Education and
Training (CET) centres for workers to undergo retraining, with more than
150,000 workers benefitting from the scheme
...


Privatisation

In 2015, China has started partial privatisation of many State Owned
Enterprises (SOEs) in oil, gas, and electricity, in order to combat slowing
economic growth
...


Labour Market Reforms

In 2015, the United Kingdom reduced unemployment benefits for job
seekers, lowering the benefit cap that recipients were eligible for, as part of a
series of budget cuts
...
5% in 2015 was largely based off increased consumer expenditure by
domestic households, countering the effect of sluggish export revenue
...
Many poor households were especially hard hit in the ensuing
winter, posing health risks and safety concerns because of cold and poorly lit homes
...


International Trade
Concept

Examples

Tariffs

The South African government imposed a 15% tariff on steel in 2015, to protect domestic steel
industries from cheap Chinese imports

Dumping

Chinese and Taiwanese firms were accused of selling solar panels at far below cost price in the United
States, prompting the US government to impose tariffs
...


Quotas

China imposed quotas for wheat, corn and rice in 2015

Fixed Exchange
Rates

Hong Kong, Saudi Arabia

Freely Floating
Exchange Rates

Australia, USA, Japan

Free Trade Area

NAFTA - North American Free Trade Area (USA, Canada, Mexico)

Customs Union
Common Market

Mercosur (Argentina, Brazil, Paraguay, Uruguay, Venezuela)
Customs union of Russia, Belarus and Kazakhstan
European Union

Development
Concept

Examples

Overspecialisation/Price
Volatility of Primary
Products

More than 90% of Malawi’s export revenues come from tobacco, sugarcane, and cotton, leading
to volatile earnings as the prices of such agricultural goods are prone to fluctuation
...


Export-led Growth

Singapore and Hong Kong relied on trade liberalisation and heavy investments in key sectors such
as education to increase export competitiveness
...




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