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Real World Examples Document 13
Real World Examples Document 13
Cross elasticity
Command economy The most famous contemporary example of a
command economy was that of the former Soviet
Union, which operated under a communist system.
Market Economy vs. Command Economy: What's the
Difference? (investopedia.com)
Market economy For example, although the United States allows
companies to set prices and workers to negotiate
wages, the government establishes parameters such
as minimum wages and antitrust laws that must be
followed.
What Are Some Examples of Free Market Economies?
(investopedia.com)
Mixed economy Although China leans more towards the socialist side,
it does have elements of a market-based system. Since
the death of its leader Mao Zedong in 1976, the nation
turned towards a more market-based approach to
revive its struggling economy. A number of market
reforms followed, allowing citizens to start businesses,
foreign direct investment, and its eventual
incorporation into the World Trade Organization
(WTO).
Mixed Economy Definition | 4 Examples, Pros, Cons -
BoyceWire
Price ceiling In 2012, after Hurricane Sandy hit the Northeast
United States, New York and New Jersey set price
ceilings on basic goods such as bottled water and
gasoline. Doing so prevented price gouging and
allowed people to afford these essentials during a
difficult time.
Types of Price Ceilings (With Examples) | Indeed.com
Price floor In 2018, Scotland became the first country in the
world to set a price floor on alcoholic beverages. The
minimum price was set at 50 pence (70 cents) per unit
of alcohol, targeting cheap, but strong alcoholic
beverages. The aim was to reduce the consumption of
cheap but highly toxic alcoholic beverages and thereby
limit the side effects.
Price Floor Definition | 5 Effects and 4 Examples |
BoyceWire
Merit good recall the obligatory nature of certain vaccinations,
certain medical examinations, a minimum education,
or certain forms of assistance.
Merit Goods - an overview | ScienceDirect Topics
Demerit good Smoking – People underestimate health costs or risks
of getting addicted. Smoking brands include Marlboro
Drinking – Health costs to drinkers. Costs to society
include more expenditure on health care and policing.
Alcohol producers include Johnny Walker
Taking drugs – Health costs to drug users – people
underestimate risks of getting addicted. External costs
of more crime. An example of a drug is cocaine.
Merit and Demerit Goods - Economics Help
sustainability The average energy-efficient bulb uses less than $1.50
of electricity per year and will last at least a decade. If
every U.S. home switched just one light fixture to
energy-efficient bulbs, we could reduce our
greenhouse gas emissions by 9 billion pounds.
6 Examples of Real-Life Sustainability | Budget
Dumpster
Public good A public good that is not actually provided for by
private or public organisations. Air is a natural
element, although clean air is free from pollution and
is non-excludable.
Public Goods Definition (Characteristics and 4
Examples) - BoyceWire
Economies of scale Warehouse stores such as Costco and Sam's Club buy
huge quantities of goods in order to receive low bulk
prices.Large shipping companies use supertankers to
transport their goods.Water companies and oil
pipelines have invested in expensive networks of pipes
and systems in order to bring resources to large
numbers of customers.
Business cycle The business cycle since the year 2000 is a classic
example. The expansion of activity happened between
2000 and 2007 was followed by the great recession
from 2007 to 2009.It started with the easy access to
bank loans and mortgages. Since new homebuyers
could easily afford loans, they purchased them. More
and more homebuyers kept purchasing homes
resulting in an increase in demand for homes.