Real world examples

🔖 REAL-WORLD EXAMPLES CHEAT SHEET — MICRO

Topic	Example	Use It To Show
Rent controls / Maximum prices	Berlin (2020 rent cap) — later ruled unconstitutional; caused housing shortages and black market subletting	Effectiveness depends on enforcement and long-term supply-side reform
	New York City rent control — led to deterioration of housing quality	Price ceilings can lead to underinvestment in supply
Minimum wage	UK National Living Wage (rose to £11.44 in 2024)	Depends on labour market flexibility, regional differences
	Seattle minimum wage — mixed evidence; some job losses in restaurants, others unaffected	Elasticity of demand for labour matters
Indirect taxes	UK sugar tax (Soft Drinks Industry Levy) — reformulated products, but regressive impact debated	Effectiveness depends on elasticity and consumer behaviour
	Carbon tax in Sweden — successful in reducing emissions	Depends on public support and long-term consistency
Subsidies	EV car subsidies in Norway — massive uptake due to tax breaks, toll exemptions	Depends on targeting and supporting infrastructure
	Farming subsidies (CAP in EU) — led to overproduction and inefficiency	Risk of government failure or misallocation
Monopoly power	Google fined €2.4bn by EU for abusing search dominance	Success of regulation depends on monitoring capacity
	Amazon’s market dominance — economies of scale drive out competitors	Entry barriers and tech-specific factors matter
Negative externalities	London Congestion Charge / ULEZ — cut pollution but hit low-income drivers	Depends on equity considerations and supporting transport alternatives
Behavioural economics	Nudges in food labelling (UK calorie counts) — limited success	Depends on how information is presented and cognitive biases
Government failure	Covid PPE contracts in UK — inefficiency, lack of oversight	Intervention may cause more harm if rushed or politically influenced
Price discrimination	Airline pricing — different fares for business vs holiday travellers	Depends on market segmentation and barriers to arbitrage
Information failure	Financial products (PPI scandal) — consumers lacked info and were mis-sold	Need for tighter regulation to correct market failure

Topic	Example	Use It To Show
Fiscal Policy	UK furlough scheme (2020–21)	Success depends on targeting and timing (prevented unemployment)
Monetary Policy	BoE rate cuts to 0.1% in 2020, sharp rises in 2022+	Effectiveness depends on confidence & inflation expectations
Quantitative Easing (QE)	BoE £895bn QE by 2021	Depends on whether liquidity reaches real economy
Inflation Control	UK inflation peaked at 11.1% in Oct 2022	Policy success depends on whether inflation is cost- or demand-push
Unemployment	UK post-COVID unemployment stayed under 5%	Depends on labour market flexibility and government support
Supply-Side Policy	UK Apprenticeship Levy (2017)	Depends on training quality and employer uptake
Globalisation	Apple’s global supply chain	Benefits depend on competitiveness and skills in domestic economy
Exchange Rate Policy	Swiss franc unpegged from euro (2015) — currency surged	Policy effectiveness depends on speculation & capital flows
Current Account Deficit	UK deficit ~4–6% of GDP for years	Sustainability depends on FDI and capital inflows
Austerity	UK austerity (2010–2016) — slow growth, falling deficit	Depends on timing in economic cycle and size of multiplier
Public Debt	Japan debt >230% of GDP, but low interest rates	Debt sustainability depends on investor confidence
Economic Growth	India >6% growth despite infrastructure issues	Long-run growth depends on inclusive development
Development Economics	Bangladesh — growth with rising female labour force	Human capital investment boosts growth potential
Trade Policy	Brexit — new EU trade barriers	Impact depends on extent of trade diversion vs creation
Foreign Direct Investment (FDI)	Tesla Gigafactory in Germany	FDI depends on stable institutions and skilled labour