Real-World Examples - IB Economics Paper 1
Explore comprehensive case studies and real-world applications of economic theory for your IB exams
Indirect Tax PolicySouth Africa
South Africa’s Vaping Tax and Market Externalities
2024
An example of South Africa introducing a vaping tax to reduce negative externalities associated with e-cigarette use and protect public health.
negative externalitiestaxationmarket failure+2
Subsidy PolicyUnited States
U.S. Farming Subsidies During the Great Depression
1933
An example of government intervention during the Great Depression, where U.S. farmers received subsidies under the Agricultural Adjustment Act (AAA) to reduce overproduction and stabilize prices.
subsidiesmarket failureagriculture+2
Subsidy PolicyEuropean Union
EU Support Schemes for Renewable Energy
2024
An example of EU governments using subsidies and support schemes to promote renewable energy, correct positive externalities, and reduce welfare loss in energy markets.
positive externalitiessubsidiesrenewable energy+2