Monday, August 25, 2008

Unit 1: The demand for chocolate

This BBC video clip is interesting when considering the demand for chocolate

a) What economic factors influence the demand for chocolate
b) The video says price will rise but that this will not effect demand much at all. What does this tell you about the demand for chocolate?
c) Use economic theory to explain why this is the case
d) Draw a S&D diagram to show and then explain the effect of the increase in costs on the chocolate market

Sunday, August 24, 2008

Unit 2 Monetary policy: The difficulty in setting interest rates when faced with conflicting macro economic objectives

The BBC reports the latest thoughts of the MPC on interest rates

a) What problem means that interest rates should rise and how would that solve the problem?
b) What problem means that interest rates should fall and how would that solve the problem?

Unit 1: Opportunity cost in the NHS

This BBC video clip and asociated article shows how NICE has to make choices on which drugs the NHS can be prescribed video article

More on the story can be found at

a) What is meant by opportunity cost?
b) How does this decision by NICE illustrate the economic problem and the concept of opportunity cost?
c) Using a PPC, show the choices open to NICE

Unit 2: Calculating inflation

This Ch4 video is great at explaining how students face an inflation rate much higher than the official CPI

This Ch4 article also shows the typical amounts spent by students on various items

a) Explain why the student inflation rate is higher than the CPI. Include in your answer the following terms: basket of goods, weighting

Unit2: Inflation in Zimbabwe hits 11.2m%

The downward spiral of the Zimbabwe economy continues as inflation reaches a new high according to the BBC

Unit 1: Business waste: Taxation as a way to overcome market failure

This BBC article suggests that the landfill tax has been successful in reducing the amount industry sends to landfill but that further action is needed to reduce business waste

a) What sort of market failure is business waste?
b) Using a diagram explain how the landfill tax act as a stimulus to reduce the market failure
c) What advantages and disadvantages are there to using taxation to reduce the market failure associated with business waste?

Thursday, August 14, 2008

Unit 2: Rising unemployment in the UK

The latest figures show rising unemployment figures

a) Why is it suggested that UK unemployment is rising?

Unit 1: Government action to overcome market failure: Fresh fruit

This BBC video and associated article, outline government action to overcome market failure in the market for fresh fruit to overcome the problem of bad diet and obesity video article

a) What type of action is the government taking to increase consumption of fresh fruit?
b) How should this increase consumption of fresh fruit?
c) In economic terms, what sort of good is fresh fruit?
d) Why, in economic terms, is the govt so keen to increase consumption of fresh fruit?

Unit 2: Slowing economic growth in Germany

This BBC clip explains why economic growth in slowing in Germany

a) How is economic growth measured?
b) Using the aggregate demand formula and using an AD/AS diagram, explain why growth is slowing in Germany

Tuesday, August 12, 2008

Unit 2: UK inflation up to 4.4% in July

This BBC clip and associated article, explain the latest rise in the CPI video article

a) Why do fast rising food, utility and fuel prices (all over 10%) result in only a 4.4% rise in inflation?

Thursday, August 07, 2008

Unit 1: A campaign to overcome information failure: MMR

This BBC clip outlines a plan to get those wiithout full MMR protection immunised

a) What is the private cost of getting a MMR jab?
b) What is the private benefit of getting a MMR jab?
c) What are the external benefits/positive externalities associated with a MMR jab?
d) How successful is the govt information campaign likely to be in reducing the market failure?

Unit 2: Proctionism and free trade: Who wins and who loses

From Economics Help comes this useful post on free trade and protectionism

Wednesday, August 06, 2008

Unit 1: Tradable permits in action: Drax power station

From Geoff Riley comes this interesting post showing tradable permits in action

a) What is the market failure associated with Drax?
b) To what extent does the article suggest that the tradable permits system will reduce the market failure in the long run?

Sunday, August 03, 2008

Unit 1: Information faillure in the alcohol market in Scotland

The BBC has this clear example of information failure in the alcohol market in Scotland

a) How does tha alcohol market fail if information failure exists?
b) What negative externalities occur as a result according to the article?
c) Given that both information failure and negative externalities exist, what sort of good is alcohol (in economic terms)?
d) Given the results of the survey, what actions could the Scottish government take to reduce the market failure?

Unit 1: Demand for Crocs

The Guardian reports that demand for Crocs shoes is falling

a) Use a demand diagram to show what has happened to demand for Crocs and use demand theory to explain why this has happened
b) What could the Crocs producers do to try and reverse this trend and increase demand again?

Friday, August 01, 2008

Unit 1: The impact of a techological advance on the PPC

This BBC article shows the impact of improving technology on an economy's output

a) Using a diagram, show and explain what has happened to output in Russia (label one axis Agricultural output and the other Industrial output)