Application

windfall tax (a number and the industry)

£74 million on tobacco

Obesity (how much cost to the NHS annually)

£11 bn

Economies of scale (supermarket + increase in sales number+reason for use(2))

THERE ARE TWO (car)

Lidl

7% increased sales compared to 2023

go to for struggling consumers due to the cost of living.

The efficient supply chain and high profit turnover.

Tesla

Automated assembly lines spread fixed costs reducing average cost per vehicle

Pollution permits (policy + goal)

UK ETS 2021

emission trading scheme

net 0 goal by 2050

market failure general examples

fast fashion

UK defence

Regulatory capture and market failure (industry+amount fined+why)

water companies disgarding sewage into rivers

OfWat imposed £123millionon thames water

Renationalisation (example and why)

south western rail

Bringing back to public ownership, instead of shareholder prioritisation, efficiency and reliability and affordability is prioritised.

Oligopolistic merger (name of firms and impact +turnover number )

THERE ARE 2

Barrat and redrow

increased market concentration

turnover £7.5bn

nationwide take over virgin money

Become second largest mortgage lender in the UK

Tax for obesity (name and date + impact + 2025 policy reform)

Sugar tax 2018

Successful reformulation of drinks

Reduced consumption

2025 change - now includes milk based drinks such as milkshakes and sugar threshold is reduced

Example of diseconomies of scale

Uber

Communication breakdowns, overlapping work causing a loss of efficiency and overall unproductive.

Privatised firm

Royal Mail

State owned firms (3)

Network rail, Scunthorpe steel 25’, British business bank (supports small and medium sized firms)

UK duopoly

Shell Recharge and BP Pulse - EV charging stations

National food strategy (3 goals + 1 number )

1. escape junk food and protect NHS
   - sugar and salt reformulation tax and using revenue to get fruit and veg for low income families (£2.9-3.9bn)
   - mandatory reporting for large food companies → sales of HFSS, fruit, veg
   - eat and learn programme → curriculum changes

2. Reduced diet related inequality
   - extend eligibility for free school meals

UK Ad ban (on what? + impact and why)

junk food ad ban to reduce exposure of HFSS to children

not 5-9 pm

Successful privatisation of British firm (name+year+why good)

British airways

1980s

went from one national airline to multiple - increases competition

greater consumer choice - cheaper carriers developed - no inefficiencies - stronger incentive to innovate

Ryanair (5 points)

highly contestable market

direct sell only, ticketless travel, smaller airports cheaper, no free food, one type of aircraft only

barriers to entry - Availability of takeoff and landing slots, leasing new aircraft costs, securing air operators licence from EU, retaliatory behaviour, overcoming existing loyalty

does not negotiate with TU

price discrimination - elastic demand

unsuccessful privatisation (industry + why +cost)

Rail

There is a fragmentation of services - infrastructure, operating companies and rolling stock companies lead to coordination problems and accountability issues 

£7.1bn 2018’ to 19’ in subsidies with no improvement

Government project success vs failure

1. (why = 2)

2. (why = 4 + number = 1 + year)

Crossrail vs HS2

• Improved east west connectivity across London and reduced journey times

• Was over budget from £14.8 to £19 billion - however was manageable. Had minimal political or public opposition

• Massive cost overruns - estimated £38 billion ballooned over £100 billion in 2020

• Most impactful northern legs to Manchester and Leeds were cancelled in 2023

• Unlikely to open before 2033

• Project became a symbol of government mismanagement

Pharma companies cost (for what and how much)

R&D $2.6bn average year

patents give legal monopoly

price discrimination

• Parallel trading where firms buy drugs cheaper in a market and resell in higher price markets

• excessive regulation may incentivise firm to relocate

Theory of firm objective (name+objective)

Nvidia - makes huge profits however their main objective is to revenue maximise - which they can use for continuous improvements

Name 5 top tech firms

facebook

apple

amazon

Netflix

google

Amazons profit and market

most profitablity comes not from retail but from AWS cloud services

they are diversified

Streaming firms bidding war (2 numbers)

Netflix vs paramount bid for Warner Bros

$72bn vs $108bn

UK policy put in place for tech giants (explains + one key company example+effects on UK economy (number))

DST

digital services tax is a 2% tax on revenue for large multinational firms that provide services to UK users

Amazon avoided corporation tax in 2020/21 but not DST

could have cost £575 million in lost tax revenue in 2024 - public services

Regional development example (cars date and multiple effects)

Britishvolt 2022 → an electric car battery making plant receives millions in funding for a factory in Northumberland

said to create 3000 jobs

local firms to benefit

attracts people for jobs - 5000 new jobs in the supply chain

• multiplier effect

• government intervention to help achieve net zero target and banned sale of new petrol and diesel for 2030

• Eos

• Green transition

Norways tax system - linked to inequality and poverty - one figure + gini coefficient

progressive tax system

high standard of living

low gini coefficient

highest rate of income tax is 39.6%-48% - greater redistribution

gini = 0.26

UK - universal credit - an increase in income decreases benefits however does not account for extra costs accumulated or extra income tax or NI

labour market examples

2024 junior doctor strike - BMA - dead 35% pay rise

44 days of lost work
1.5million rescheduled appointments

agreed 22.3% pay rise

cost estimated £1.7bn to tax payers → from temporary staff, higher waiting list, pay rise, higher workload)

UK minimum wage 2026 and consequence

£12.71

There was an estimated 411,000 young people NEET aged 16 to 24 years who were unemployed in October to December 2025.

Uks income and wealth inequality

0.35

0,6

Universal credit UK

reduced UC for new claimants 6th April 2026

every £1 additional increase in income 55p is deducted form benefits = self defeating → additional costs incurred????