Economics Real World Examples

FOR WHAT	WHERE	YEAR	AMOUNT
Electric cars	Norway	2019	1.27

FOR WHAT	WHERE	YEAR	AMOUNT
Electric cars	Norway	2019	1.27

PED FOR MANUFACTURED GOOD [HL ONLY]

FOR WHAT	WHERE	YEAR	AMOUNT
Corn	United States	2023	0.210

PED FOR PRIMARY COMMODITY [HL ONLY] 

FOR WHAT	WHERE	YEAR	AMOUNT
Minimum wage	New Zealand	2022 April	Increased from NZ$20 to NZ$21.20 per hour

PRICE FLOOR

FOR WHAT	WHERE	YEAR	AMOUNT
Rent	New York City	2019	$2775/month

PRICE CEILING

FOR WHAT	WHERE	YEAR	AMOUNT
Solar panels and Producer Subsidy Renewable energy	China	2022	3.87 billion yuan

SUBSIDY

FOR WHAT	WHERE	YEAR	AMOUNT
Higher education programs (student subsidies and free tuition for state universities)	Philippines	2023	Php 1.52 billion for scholarships and grant-in-programs to about 21,000 students

CONSUMER SUBSIDY

FOR WHAT	WHERE	YEAR	AMOUNT
Cigarettes	Spain	2007 - present	70% indirect taxes  €2.95 to €4.99

NEGATIVE CONSUMPTION EXTERNALITY

FOR WHAT	WHERE	YEAR	AMOUNT
Sinovac/COVID vaccine	China	2020	Chinese govt subsidy of $8.5 million

POSITIVE CONSUMPTION EXTERNALITY

FOR WHAT	WHERE	YEAR	AMOUNT
Overfishing	Philippines	Present	10 out of 13 fishing grounds in the Philippines are overfished.

NEGATIVE PRODUCTION EXTERNALITY

FOR WHAT	WHERE	YEAR	AMOUNT
Harvard’s free ‘CS50: Intro to computer science’ course which is available to anyone, free of charge	Massachusetts, USA	2023	5.4 million free online users

POSITIVE PRODUCTION EXTERNALITY

FOR WHAT	WHERE	YEAR
Fishing (Tracking devices onto municipal fishing boats as an electronic catch documentation traceability system (eCDTS), monitors where fishermen are catching fish)	Philippines (Mindoro Strait and Lagonoy Gulf)	2020

STRATEGY FOR ADDRESSING TRAGEDY OF THE COMMONS 

FOR WHAT	WHERE	YEAR
Promote vegetable consumption: placed green arrows on the floor directing customers towards fruits and vegetables	American Grocery stores	2015

NUDGE [HL ONLY]

FOR WHAT	WHERE	YEAR	AMOUNT
Retirement savings: opt-out system & takes savings from salary raises, so take-home money doesn’t decrease	USA	2006-Present	Helped nearly 15.5 million Americans save for retirement

CHOICE ARCHITECTURE [HL ONLY]

FOR WHAT	WHERE	YEAR
2008/09 Subprime Mortgage Crisis (moral hazard)	USA	2008-2009

ASYMMETRIC INFORMATION [HL ONLY] 

FOR WHAT	WHERE	YEAR
Wet market (produce & meat)	Cubao, Manila, Philippines	Present

PERFECT COMPETITION [HL ONLY]

FOR WHAT	WHERE	YEAR
Clothing retailers (H&M, Mango, uniqlo, etc.)	Global	Present

MONOPOLISTIC COMPETITION [HL ONLY]

FOR WHAT	WHERE	YEAR
Philippine Commercial Airlines (PAL, Air Asia, Cebu Pacific)	Philippines	Present

OLIGOPOLY [HL ONLY] 

FOR WHAT	WHERE	YEAR
Oil Production (cartel)	OPEC countries (Organization of the Petroleum Exporting Countries)	Present

COLLUSIVE OLIGOPOLY [HL ONLY]

FOR WHAT	WHERE	YEAR	AMOUNT
Search engine	Google	2023	90% of all search queries.

MONOPOLY [HL]

FOR WHAT	WHERE	YEAR
Meralco (Electricity)	Manila, Philippines	Present

NATURAL MONOPOLY [HL ONLY] 

FOR WHAT	WHERE	YEAR	AMOUNT
Informal economy	Philippines	2024	34.1% of the GDP

GDP – INACCURATE MEASURE OF TRUE OUTPUT

FOR WHAT	WHERE	YEAR	AMOUNT
US Military spending: Included in GDP but does not capture social well-being	USA	2021	800 billion

GDP – INACCURATE MEASURE OF ECONOMIC WELL-BEING