Tuesday, May 29, 2007

Unit 2: Alcohol consumption; an example of a demerit good

A brief clip from the BBC outlining the new plans for drinks labelling

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6690000/newsid_6697300?redirect=6697379.stm&news=1&nbram=1&bbram=1&nbwm=1&bbwm=1 >

a) Why could alcoholic drinks currently de described as a demerit good?
b) How does the market fail in this case?
c) What sort of efficiency is not being achieved?
d) How should the new proposals reduce the market failure?
e) Discuss how effective you think these new measures will be in tackling the problem

This clip outlines another problem with midle aged people drinking at home and once again illustrates the negative externalities associated with alcohol

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6720000/newsid_6721800?redirect=6721825.stm&news=1&nbwm=1&bbram=1&nbram=1&bbwm=1 >

Monday, May 28, 2007

Unit 3: Revision mindmap for National and International economy

Geoff Riley has come up with this revision minmap for the macro module which you might find useful for some of the links it shows


Unit 3: Latest UK economic data for the AS exams

From Geoff Riley comes this useful one page summary of UK economic data


Unit 1: Market share of the world PC market

This data shows the share each of the major manufactures has in the world PC market

Hewlett Packard: 17.6%
Dell: 13.6%
Acer: 6.8%
Lenovo/IBM: 6.3%
Toshiba: 4.1%
Source: Gartner Dataquest, Q1, 2007

a) What share of the world market do these top 5 firms have?
b) Which market structure do you think best represents the PC manufacturing industry?
c) Which of the criteria for that market structure are/are not present?

The figures come from the following interesting BBC article on Chineses manufactures trying to break in to the world market for branded goods


Unit 2: Rise in US minimum wage

The minimum wage in the USA is set to rise


a) Draw a diagram to show the effect of this on the US labour markets
b) Explain what the diagram shows is likely to happen as a result
c) To what extent is this likely to actually happen?

Unit 1: Demand for on-line shopping

This BBC report shows that demand for on-line shopping is rising at an increasing rate


a) Which of the factors that effect demand has/have altered?
b) Draw a demand diagram to show this effect

Unit 3: Costs and benefits of economic growth in Shanghai

A good BBC article on economic growth in China


a) What are the economic benefits of this rapid economic growth for Shanghai and its citizens?
b) What have been thecosts of such rapid growth?
c) What plans have the authorities to reduce these drawbacks?
d) Evaluate how successful you believe such policies are likely to be

Unit 2: Government intervention to overcome the market failure associated with litter

This BBC clip shows what is happening in Scotland to try and alleviate the problem of people dropping litter

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6680000/newsid_6688400?redirect=6688463.stm&news=1&bbwm=1&nbwm=1&bbram=1&nbram=1 >

a) What is the market failure that litter dropping represents?
b) Which of the 3 approaches open to government to overcome market failure is being used here?
c) What drawbacks are there to using this method?
d) Evaluate how successful you believe this approach will be in tackling this specific example of street littering

Thursday, May 24, 2007

Unit 2: Government action to increase recycling and reduce market failure

The BBC article and the video clip points the way forward for the government on the issue of rubbish disposal


< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6680000/newsid_6686300?redirect=6686357.stm&news=1&bbram=1&nbram=1&nbwm=1&bbwm=1 >

a) Why, in economic terms, is rubbish going to landfill a form of market failure?
b) Why don't people recycle more?
c) What does this make recyclable rubbish in terms of market failure?
d) What approach is the government proposing to increase recycling?
e) Evaluate how successful this policy will be

This clip raises some issues from the householders point of view

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6680000/newsid_6686300?redirect=6686357.stm&news=1&bbram=1&nbram=1&nbwm=1&bbwm=1 >

Has your view of how successful the new scheme might be now changed?

Unit 2: Action by the competition commission against BskyB

The CC will investigate the purchase in ITV by BskyB


Why? What is Sky accused of?

Unit 2: Income inequality in the UK

A good revision aid from Geoff Riley on poverty, inequality of income and what the govt has done to reduce income inequality


Wednesday, May 23, 2007

Unit 2: Government action to curb illegal behaviour: BA fines

BA seems likely to be heavily fined for engaging in price fixing


Unit 3: International competitiveness of the UK

A good, brief summary of the UK position from Geoff Riley


Ask yourself, What supply side policies could the government introduce to improve the UK's competitiveness?

Wednesday, May 09, 2007

Monday, May 07, 2007

Unit 3: Interest rates over the last 10 years

This link from Geoff Riley's blog has some good graphs showing links between interest rate changes over the last 10 years and other economic variables


What link can you see between between changes in interest rates and
a) Economic growth?
b) Inflation?

Unit 3: Productivity

A great page from Geoff Riley on the importance to the economy of increases in productivity and its role in supply side policies


Wednesday, May 02, 2007

Unit 3: The effect of China on the UK economy

A great revision aid from Geoff Riley covering many macroeconomic topics by looking at the influence of China on the UK economy