Unit 2: Should we worry about a current account deficit?

From Economics help come two good summaries of the issues associated with a current account deficit: Excellent revision aids

http://www.economicshelp.org/2008/11/balance-of-payments-statistics-should.html
http://www.economicshelp.org/2007/03/does-current-account-deficit-matter.html

Unit 2: Should we worry about a current account deficit?

Unit 2: Rising unemployment and negative multiplier effects

Tutor2u has a series of stories highlighting the regional impact of firms laying off workers

http://www.tutor2u.net/blog/index.php/economics/comments/the-rise-of-cyclical-unemployment/

a) Explain the negative multiplier effects on the local economies of rising unemployment.

Unit 2: The menu Costs of Cutting VAT

The tutor2u blog has this good example of menu costs today

http://www.tutor2u.net/blog/index.php/economics/menu-costs-of-cutting-vat/#When:06:31:00Z

This BBC clip shows the effect on one firm

http://news.bbc.co.uk/1/hi/business/7757966.stm

Unit 2: The link between inflation and unemployment

A Good summary of the link from Economics help

http://www.economicshelp.org/blog/economics/inflation-unemployment-relationship/

Unit 2: Do fiscal stimulus packages work?

A good 2 sided look at the issue from Economics help

http://www.economicshelp.org/2008/11/do-economic-stimulus-packages-work.html

Unit 1: Negative externalities associated with binge drinking

Another example from the BBC of negative externalities associated with binge drinking and a possible solution trialled by the government

http://news.bbc.co.uk/1/hi/uk/7741067.stm

This clip also shows the private cost of excessive drinking by the young

http://news.bbc.co.uk/1/hi/health/7743321.stm

a) What negative externalities associated with binge drinking are identified in the clip?
b) What possible solution is being trialled by the government?
c) To what extent do you believe such schemes will reduce the market failure associated with binge drinking?

Unit 2: Negative multiplier effects from the decline of the Detroit motor industry

This BBC article has some examples of the negative multiplier in action

http://news.bbc.co.uk/1/hi/business/7737040.stm

a) Explain what is meant by the negative multiplier effect
b) Explain how the decline of the major motor manufacturers has lead to a negative multiplier effect in the city

Unit 1: Negative externalities associated antisocial driving

This BBC clip and associated article outline new government proposals for dealing with various types of antisocial driving such as driving under the influence of drugs and excessive speeding

http://news.bbc.co.uk/1/hi/uk/7738995.stm video
http://news.bbc.co.uk/1/hi/uk/7738919.stm article

a) Explain what negative externalities arise from antisocial driving
b) What forms of intervention in the free market are the government suggesting?
c) To what extent are the proposals likely to reduce the market failure?

Unit 2: Deflation: What is it and what are the dangers of deflation

CH4 news has this explanatory clip

http://link.brightcove.com/services/link/bcpid1184614595/bctid2579317001

Hugh Pym of the BBC has this article on what deflation is and the dangers it poses to the UK economy

http://news.bbc.co.uk/1/hi/business/7736193.stm article

His video clip explains the latest UK inflation dip and has something on deflation at the end of it

http://news.bbc.co.uk/1/hi/business/7735706.stm

Adrian Brown of the BBC has this analysis of deflation

http://news.bbc.co.uk/1/hi/business/7754487.stm

a) Why if fuel and food prices are falling is the economy not currently experiencing deflation?

Unit 1: External costs associated with obesity

This BBC clip shows how the NHS has adapted to cope with the growing size of some of their patients

http://news.bbc.co.uk/1/hi/england/7735717.stm

a) Define what is meant by a negative externality
b) Why is this additional expenditure by the NHS an example of the negative externalities associated with obesity

Unit 1: Developments in tradable permits carbon trading in the uk

The BBC reports that the tradable permits system is changing in the Uk

http://news.bbc.co.uk/1/hi/sci/tech/7736005.stm

a) Why are firms to be charged for 30% of the permits that they require?
b) To what extent do you believe this will reduce the market failure for 9i0 each firm and 9ii) the market as a whole

Unit 2: What should happen to interest rates?

The Economics help blog has this summary of why interest rates may fall further in the UK

http://www.economicshelp.org/blog/economics/outlook-for-interest-rates/

Unit 2: What's happening to inflation in the UK?

From Geoff Riley's tutor2u blog comes this great summary of recent movements in UK inflation in the UK and what might happen in the future

http://www.tutor2u.net/blog/index.php/economics/comments/disinflation-and-deflation/

The BBC has a summary video and article including an explanation of why deflation may not be as attractive as it seems

http://news.bbc.co.uk/1/hi/business/7734758.stm video
http://news.bbc.co.uk/1/hi/business/7734522.stm article

Unit 1: Information failure while trying to get a tan

The BBC has a classic example of information failure

http://news.bbc.co.uk/1/hi/health/7732712.stm video
http://news.bbc.co.uk/1/hi/health/7732690.stm article

a) What is the information failure in this market?
b) How might the market fail as a result?
c) What actions could the government take to reduce the market failure?

Unit 2:EU tariffs on Chinese candles

AP reorts the EU is putting variable tariffs on imports of Chinese candles for the next 6 months

http://www.google.com/hostednews/ap/article/ALeqM5jY-DSfzHnGwnfJsKxyAcn02B26yQD94FECD00

a) Explain what a tariff is
b) Using a suitable diagram, comment on the effect of the tariff on EU consumers

Unit 2: Inflationary noise

Economics help has this good description of inflationary noise and the problems it causes

http://www.economicshelp.org/blog/economics/inflationary-noise/

Unit 1: Car clubs, an inferior good?

The BBC has an interesting clip on the growth of car clubs

http://news.bbc.co.uk/1/hi/business/7728779.stm

a) Define an inferior good
b) To what extent would you argue that car clubs are an example of an inferior good

Unit 1: Negative externalities associated with smoking in the developing world

Two clips from the BBC on smoking in China and India; the figures are mind boggling!

http://news.bbc.co.uk/1/hi/world/asia-pacific/7726770.stm China
http://news.bbc.co.uk/1/hi/world/south_asia/7647665.stm India

a) What negative externalities are there for China and India of smoking on such a vast scale?
b) What private costs are there associated with smoking?
c) Comment on the likeyhood of the suggested government actions reducing the negative externalities

Unit 2: The state of the UK economy: Nov 2008

A great BBC clip showing the current position of the economy and the outlook for the economy over the next year

http://news.bbc.co.uk/1/hi/business/7724776.stm

a) What is happening, and predicted, for the 3 macroeconomic objectives mentiones; ie economic growth, inflation and unemployment?
b) Comment on the likely effect on the current account of the BoP if the predictions turn out to be true

Unit 2: Imported recession in Germany

An interesting BBC clip explaining that germany appears to have imported its recession

http://news.bbc.co.uk/1/hi/world/europe/7726218.stm

a) Using the AD formula, explain how Grermany has imported a recession
b) Using an AD/AS diagram, explain the effect on the German economy

Unit 1: External costs of obesity

BBC NI reports the external costs of obesity in the provinces at £500m

http://news.bbc.co.uk/1/hi/northern_ireland/7725986.stm

a) What is a negative cost?
b) Give examples of the external costs listed asociated with obesity
c) Suggest two measures the government can take to reduce the negative externalities associated with obesity and comment on how successful they are likely to be

Unit 2: Rising unemployment in the UK

This BBC clip and article rrising UK unemployment to an 11 year high

http://news.bbc.co.uk/1/hi/business/7723784.stm video
http://news.bbc.co.uk/1/hi/business/7724084.stm article

a) Why is unemployment rising?
b) What is the unemployment rate?
c) What are there 2 unemployment measures and what is the difference between them?
d) What actions can the government take to reduce the level of unemployment?

Unit 2: Conflicts of Objectives and Interest rates.

Form Economics help comes this summary of the conflicts of Objectives and Interest rates.

http://www.economicshelp.org/blog/economics/conflicts-of-objectives-and-interest-rates/

Unit 2: The Economics of Tax Cuts

Form Economics help comes this interesting summary of The Economics of Tax Cuts

http://feeds.feedburner.com/EconomicsEssays?format=xml

Unit 1: Falling demand for products in Wales

A sad tale showing the recession beginning to take effect in 3 different sectors of the Welsh economy

http://news.bbc.co.uk/1/hi/wales/7716867.stm

a) Use the concept of Income Elasticity of Demand to explain what is happening to these 3 companies

Unit 2:Government income/borrowing during a recession

A good summary of the topic from Economics help

http://www.economicshelp.org/2008/11/government-borrowing-in-recessions.html

a) Using an AD/AS diagram, explain how govt borrowing and the resulting increase in govt expenditure should increase economic growth. Make sure you draw the diagram to show very little inflation results in the economy

Unit 2: The problems of a Current Account Deficit

From Economics help comes this good summary of the problems associated with a Current Account Deficit

http://www.economicshelp.org/blog/economics/problems-of-a-current-account-deficit/

Unit 2: The Case for Lower Interest Rates

From Economics help comes a clear summary of the arguments as to why interest rates should fall in the UK

http://www.economicshelp.org/2008/10/case-for-lower-interest-rates.html

a) Why might decreasing interest rates not be the solution to the problems outlined?

Unit 2: Consumption, aggregate demand and economic growth

A gret little summary of the above links from tutor2u

http://www.tutor2u.net/blog/index.php/economics/comments/what-if-the-consumer-abandons-the-economy/

This BBC video clip also illustrates why the US economy is shrinking

http://news.bbc.co.uk/1/hi/business/7701255.stm

a) Using an AD/AS diagram, explain how a fall in consumption can lead to a fall in output in the economy
b) What other problems would arise in the economy if this was to occur?
c) What benefits might there be to the economy if this were to occur?
d) To what extent would such a series of events be beneficial to the UK economy in the long run?

Unit 1: Inferior goods in the UK economy

Tutor2u pointed out this article

http://edinburghnews.scotsman.com/features/Meet-the-credit-crunch-winners.4631545.jp

a) Define an inferior good including the term "income elasticity of demand"
b) To what extent do you believe the goods/services mentioned in the article are inferior goods?