Unit 3: Tariffs: lightbulbs

This BBC article gives an example of a tariff inaction

http://news.bbc.co.uk/1/hi/business/6968809.stm

a) Why is the tariff imposed?
b) Draw a S&D diagram to show the effect of the tariff in the market
c) Discuss the positive and negative effects of the tarif on EU consumers, EU producers and overseas producers

Unit 2: Internalising externalities: Alcohol

This BBC article suggests that late night bars should pay for the policing in city centres

http://news.bbc.co.uk/1/hi/scotland/6968438.stm

a) What are the negative externalities associated with late night city centre drinking?
b) How would the proposal internalise the externality?
c) Draw a S&D diagram to show the effect on the market of internalising the externality and explain how it would reduce the market failure

Unit 1:The price of beef

British shoppers could pay more for meat because of the rising feed costs paid by farmers says this BBC clip.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6960000/newsid_6966100?redirect=6966171.stm&news=1&bbwm=1&nbwm=1&nbram=1&bbram=1&asb=1 >

a) Does the rising cost of feed effect the demand for, or the supply of beef?
b) Draw a S&D diagram to show this change and the resulting increase in the price of beef

Unit 2: Overcoming information failure with demerit goods: Cigarettes

This BBC clip and related article shows the latest govt policy initiatives to deal with information failure in the cigarette market. Under new regulations all UK tobacco products will have to carry picture health warnings

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6960000/newsid_6968000?redirect=6968013.stm&news=1&amp;nbwm=1&bbram=1&nbram=1&bbwm=1&asb=1 >

http://news.bbc.co.uk/1/hi/health/6967160.stm

a) What aspect of a demerit good is this picture campaign trying to counter?
b) What other method does the clip say the government is introducing to reduce cigarette consumption?
c) To what extent do you think these and other measures will overcome the market failure associated with cigarette consumption

Unit 1: Supply and Demand; the price of wheat

This BBC article says the price of wheat has risen

http://news.bbc.co.uk/1/hi/business/6962211.stm

a) Identify the supply reasons for the price rise
b) Identify the demand reasons for the price rise
c) Draw a S&D diagram to show both of these changes and explain the effect on the price of wheat

Unit 3: Hyperinflation: Zimbabwe

The BBC reports that Zimbabwe's economy continues to deteriorate and its inflation rate reach a new high of 7600% p.a.

http://news.bbc.co.uk/1/hi/business/6959164.stm

a) What sort of problems does such a rate of inflation lead to in the economy?

Unit 2: Externalities associated with alcohol consumption

This BBC Wales article argues that overconsumption of alcohol is a growing problem

http://news.bbc.co.uk/1/hi/wales/6955616.stm

a) What are the negative externalities associated with excessive alcohol consumption?
b) Evaluate how successful the 4 point BMA proposals are likely to be in reducing the problem
c) Evaluate how successful the banning of drinking on the streets is likely to be in reducing the problem

Unit 1: Price Elasicity of Demand: Car parking charges in Cardiff

This BBC article reports a sharp rise in car parking charges in Cardiff

http://news.bbc.co.uk/1/hi/wales/south_east/6957302.stm

a) Why do you believe NCP has put up prices?
b) What is likely to happen to demand for spaces in the car parks?
c) Does NCP believe the the demand for these spaces to be elastic or inelastic?
d) Why do you believe this to be the case?
e) Based on your answer to c), draw a diagram to show the effect on NCP's total revenue of this price rise

Unit 2: Internalising externalities: Rubbish collection

This BBC article seems to suggest households would be willing to pay for the rubbish they put out to be collected

http://news.bbc.co.uk/1/hi/uk/6957814.stm

a) What are the externalities associated with the production of household rubbish?
b) How would this scheme internalise the externalities?
c) Draw a S&D diagram to show the effect of this pay as you throw policy and explain the effect on the market
d) Evaluate how successful you believe such a scheme would be if implemented

Unit 1: Substitute goods: Telephones

This BBC article shows how demand for 2 substitute products has changed over time

http://news.bbc.co.uk/1/hi/business/6959049.stm

a) How close are landlines and mobiles as substitute products?
b) Why if they are substitutes do most people have both?

Unit 1: The demand for cigarettes

This Guardian article says the demand for cigarettes in the UK has dropped

http://business.guardian.co.uk/story/0,,2153163,00.html

a) Explain why is this the case using demand theory
b) Explain why, using economics ideas, why this fall in demand might be temporary

Unit 1: The price of chocolate

This Guardian article says the price of chocolate is set to rise

http://business.guardian.co.uk/story/0,,2153285,00.html

a) Why is the price set to rise?
b) Draw a S&D diagram to show how this price rise will occur and explain what your diagram shows

Unit 3: Inflation falls in the UK

July saw a surprise drop in UK inflation. THis BBC clip explains why the UK's rate of inflation fell below analysts' forecasts to 1.9% in July.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6940000/newsid_6947000?redirect=6947089.stm&news=1&amp;bbram=1&bbwm=1&nbwm=1&nbram=1&asb=1 >

a) What are suggested as the reasons for the unexpected fall in inflation?
b) How do falls in the prices of these items lead to inflation (as measured by the CPI) decreasing?

Unit 1: Demand for Microsoft's Xbox

Microsoft intend to decrease the price of the Xbox in Europe following a similar decrease in the USA

http://news.bbc.co.uk/1/hi/business/6954718.stm

a) Why are Microsoft decreasing the price?
b) What view do you believe does Microsoft has regarding the Price elasticity of demand for the Xbox?
c) What is the economic link between the Xbox, the PS3 and the Wii?

Unit 2: Market dominance and the Competition Commission: Supermarkets and their suppliers

The CC announces it will investigate possible abuse by Tesco and Asda of their dominant market position in their dealings with their suppliers says this BBC clip and article

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6950000/newsid_6954400?redirect=6954485.stm&news=1&amp;nbram=1&nbwm=1&bbram=1&bbwm=1&asb=1 >

http://news.bbc.co.uk/1/hi/business/6953474.stm

a) What is the alleged abuse of market dominance that will be investigated?

Unit 2: Negative externalities: The ski resort with no snow

As global warming accelerates, low level ski resorts are feeling the consequences says this BBC clip

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6920000/newsid_6922700?redirect=6922777.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&asb=1 >

a) Why is global warming a negative externality for this ski resort?

Unit 1: Demand for Polish products

The rise in the Polish population in the Uk has seen a rise inh demand for Polish products in the UK

This BBC clip shows how UK retailers have reacted to this change in demand
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6920000/newsid_6929800?redirect=6929868.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&asb=1 >

Unit 2: Brocolli, a merit good!

This BBC article suggests that brocolli might be termed a merit good

http://news.bbc.co.uk/1/hi/health/6927359.stm

a) Why is brocolli a merit good?
b) What could the government do to increase consumption of brocolli?

Unit 2: Demerit goods: Patio heaters

This BBC article outlines the growth in the sales of outdoor patio heaters

http://news.bbc.co.uk/1/hi/uk/6914276.stm

a) Why could the heaters be considered as demerit goods?
b) What actions could governments take to attack both aspects of patio heaters being demerit goods?

Unit 2: Negative externalities associated with office printers

Working in an office may have external costs according to this BBC article

http://news.bbc.co.uk/1/hi/world/asia-pacific/6923915.stm

a) What are the external costs?
b) Why are they external costs?
c) What possible actions could governments take to reduce these negative externalities?