Micro application

Question 1

examples of perfect competition

Answer 1

forgein exchange market
agriculture products
fruit and veg market

Question 2

key examples of oligopolies

Answer 2

supermarket
mobile networks
airlines

Question 3

examples of monopolies

Answer 3

water companies
royal mail
national grid

Question 4

example of economies of scale

Answer 4

• Amazon - distribtion centre use robotics with £775m invested
• Tesco - bulk buying

Question 5

example of diseconomies of scale

Answer 5

• starbucks - closed 600 stores due to inefficencies
• Tesco - fresh and easy as lost $1.2bn

Question 6

example of negative externalisities

Answer 6

• pollution
• factory emissions
• fast fashion

Question 7

positive externalities

Answer 7

• vaccines
• education
• public transport

Question 8

example of government indirect tax

Answer 8

• sugar tax - over 50% of manafactuers reformulated, rasied £300m for gov
• tobacoo tax - over 80% of price of a pack was tax, raises roughly £10-11 billion per year for gov

Question 9

example of government subsidies

Answer 9

• renewable energy - spent over £10bn for low carbon, renewable generate around 40% of UK electricity
• electric vehicle - production of all diesel banned in UK by 2030

Question 10

what happened due to the royal mail privitisation in 2013

Answer 10

share price rose by 13%