Wednesday, December 24, 2008

Unit 1: The price of cocoa

This BBC article says the price of cocoa is at a 23 year high

a) Using a S&D diagram, explain why the price of cocoa is rising

Unit 1: Externalities associated with Christmas lights

A BBC clip explaining why a group of French activists are switching off neon lights

a) Explain the positive externalities associated with neon lights.
b) Explain the negative externalities associated with neon lights.

Sunday, December 21, 2008

Unit 1: Bolivia's alternative crops; opprotunity cost and the PPC

This BBC article explains that Bolivia's farmers are moving out of growing coca (the basis for cocaine) and in to growing rice

a) Explain the reasons why this change in crops has occured
b) Using a PPC, explain the opportunity cost of growing more rice

Unit 2: Sharply rising unemployment in the uK

The BBC reports sharply rising unemployment

This Ch4 article has a good video as well

a) What are the new figures for the 2 measures of unemployment?
b) What is the difference in the 2 methods of recording unemployment?

Saturday, December 20, 2008

Unit 2: The negative multiplier in action in Uttoxeter

This BBC clip shows how Uttoxeter has been effected by rising unemployment

a) Explain how Uttoxeter is likely to suffer a negative multiplier effect in the near future
b) What will be the effect on the macroeconomic objectives of low inflation, economic growth, low unemployment and a balance of payments equilibrium in the local economy

Unit 2: The role of time lags in monetary policy

A really good little post on economics help explaining the role of time lags in monetary policy

a) Given the information in the article, to what extent do you believe the BoE will be successful in using monetary policy to control inflation?

Monday, December 15, 2008

Unit 1: Poundland: An example of an inferior good?

This BBC clip reports the continued expansion of the Poundland chain

a) Is Poundland an inferior good or can the growth of its sales be explained by the factors that effect demand?
b) What is likely to happen to Poundland sales when the UK comes out of recession

Tuesday, December 09, 2008

Unit 1: Demerit goods: Government action to decrease cigarette consumption

Today the govt announced plans to ban all point of sale displays of cigarettes, the latest in a long list of legislation aimed at decreasing consumption video article

a) Why are cigarettes classed as demerit goods?
b) How does the free market fail in its provision of cigaretttes?
c) How will this govt proposal reduce the market failure?

Unit 1: Tradable permits and EU CO2 emissions

This BBC clip outlines opposition to the EU carbon trading scheme

a) Outline how the EU tradable permit scheme works
b) What is the main reason German heavy industry opposes the scheme?

Monday, December 08, 2008

Unit 2: Changes in the components of aggregate demand and their effect on economic growth in China

Economics help has this short explanation of what has driven China's recent economic growth and how things may change in the future

Sunday, December 07, 2008

Unit 1: Government action to overcome market failure: Cocaine use

The BBC reports the launch of a hard hitting campaign to reduce cocaine use

a) Why type of market failure does cocaine use represent? Explain your reasoning
b) What are the private costs of cocaine use?
c) What are the external costs of cocaine use?
d) Using a diagram, explain how there is market failure in the cocaine market
e) To what extent do you believe this campaign will reduce the market failure associated with cocaine use?

Unit 1: Government action to overcome market failure: Excessive alcohol consumption

The BBC reports the govts latest plans to combat excessive alcohol consumption

a) List the proposed alcohol reduction methods
b) To what extent do you think these measures will overcome the problems associated with excessive alcohol consumption

Tuesday, December 02, 2008

Unit 1: Roadworks and negative externalities

From the BBC comes this sorry tale of shops in severe difficulties due to roadworks

a) Who are the 2 parties to the economic transaction?
b) Define what is meant by the term negative externalies
b) Explain why the shops are suffering negative externalities in this example

Monday, December 01, 2008

Unit 1: A van with reduced negative externalities

WE all know the negative externalities associated with road vehicles, but here from the BBC is something new

a) What are the reduced negative externalities associated with this van?
b) What negative externalities remain?
c) Using a diagram, explain how a subsidy from the govt will encourage consumption of these vans
d) Why might the govt be reluctant to subsidise such vans?

Unit 2: How does Inflation affect Firms?

From economics help comes this good summary of how inflation affects firms