Unit 1: The price of copper

A clip from the BBC on an impending strike at Chile's major copper mine

http://news.bbc.co.uk/1/hi/business/8434330.stm

a) Using a S&D diagram, explain the effect of the strike on the world price of copper
b) Given the mine supplies 4% of total world copper, comment on the actual likely effect on the world price of copper

Unit 1: Absence from school: An example of information failure?

This BBC clip shows a wide discrepancy between truancy rates between social classes/income groups

http://news.bbc.co.uk/1/hi/uk/8432128.stm

a) What type of market failure is education normally classed as?
b) What are the 2 conditiond associated with such goods?
c) Does this video indicate information failure on the part of poorer households?
d) Why might this be the case? What else could account for the vastly different absence rates between income groups?

Unit 1: Government action to reduce smoking

The BBC reports a new campaign to encourage people to quit smoking

http://news.bbc.co.uk/1/hi/uk/8430702.stm

a) What is the market failure associated with smoking?
b) To what extent do you believe such a campaign is likely to reduce the market failure associated with smoking?

Unit 1: Government intervention to overcome the market failure asociated with "legal highs"

The BBC reports new laws banning chemical compounds which get you, allegedly, high

http://news.bbc.co.uk/1/hi/uk/8427439.stm

a) How does the free market for these compounds fail; ie why has the government banned these drugs?
b) Comment on how effective this ban will be in reducing the market failure

Unit 2: Import tarifffs on Chinese/Vietnamese shoes

This BBC clip (and article) explains the reasons for import tarifffs on Chinese/Vietnamese shoes

http://news.bbc.co.uk/1/hi/business/8426315.stm video
http://news.bbc.co.uk/1/hi/business/8426432.stm article

a) Why have the tariffs been imposed?
b) Using a diagram, show the effect of the tariff on imported Chinese/Vietnamese shoes
c) Given the tariff is 1.5 Euro on a 50 Euro pair os shoes, comment on the likely effectiveness of the tariff
d) How likely do you think the tariff has been in helping the survival of the European shoe industry?

Unit 2: Why the UK current account deficit persists

A nice summary from economics help

http://www.economicshelp.org/2009/12/why-current-accound-deficit-persists.html

Unit 2: How interest rates effect economic growth

A nice analogy from marketplace; its a little simple, but it will get you thinking

http://marketplace.publicradio.org/display/web/2009/12/15/whiteboard-interest-rates/

a) Apart from less saving, why else does the consumption expand as interest rates fall?
b) Use the AD formula to explain why this will lead to the economy expanding
c) Show the effect of this increase in AD on an AD/AS diagram and comment on the beneficial and detrimental effects this may have on the governments macroeconomic objectives

Unit 2: Recession and government finances

Economics help has this great summary explaining why government finances deteriorate in a recession

http://www.economicshelp.org/blog/economics/recession-and-government-finances/

Unit 2: Unemployment data December 2009

A summary of the latest changes from Ch4 and anforme

http://www.channel4.com/news/articles/business_money/jobless+benefit+claimant+count+down/3464992

http://www.anforme.co.uk/blog/?feed=rss2

Unit 1: Actions to reduce market failure: Volume limits on mp3 players

An interesting article/video from the BBC

http://news.bbc.co.uk/1/hi/uk_politics/8410302.stm

a) What is the apparent market failure?
b) What type of corrective action is the EU proposing?
c) Comment on the likely success of the measure in reducing the market failure
d) Suggest alternative measures the EU could take

Unit 2: Macroeconomic stability

A useful post from tutor2u on macroeconomic stability

http://www.tutor2u.net/blog/index.php/economics/comments/macroeconomic-stability/

Unit 1: Markets in action

A great liile BBC clip showing the workings of a Tanzanian fish market

http://news.bbc.co.uk/1/hi/business/8408895.stm

a) Who supplies fish to the maket
b) Who buys fish in the market?
c) How is the market price determined for any fish?
d) Does this fish market meet the economic definition of a market?

Unit 1: Problems with government actions to reduce tobacco use

This Ch4 article and video show one consequence of the government actions to reduce tobacco consumption

http://www.channel4.com/news/articles/business_money/counterfeit+tobacco+8216kills+4000+a+year8217/3457737

a) Why are the twin government policies of high indirect axation and regulation not reducing the market failure?
b) What further market failures arise from this "free" black market?
c) Suggest actions the government could take to reduce/eliminiate this black market
d) To what extent do you believe such policies would be successful?

Unit 1: Hand held mobile use while driving: A demerit good?

A great clip from the BBC

http://news.bbc.co.uk/1/hi/uk/8407404.stm

a) Define a merit good
b) Does driving while holding a hand held mobile represent an example of a demerit good? Explain your answer
c) Discuss how successful different government stratagies may be in reducing the market failure

Unit 1: The price of christmas trees

The BBC has this clip on the price of christmas trees

http://news.bbc.co.uk/1/hi/uk/8407885.stm

a) Using a S&D diagram, explain what is likely to happen to the price of nordmann fir christmas trees this year

Unit 2: The UK budget deficit

A great graphic from thre guardian

http://www.guardian.co.uk/business/interactive/2009/dec/09/pre-budget-report

Unit 2: Revision: Aggregate demand

An updated powerpoint presentation from tutor2u with good data

http://www.tutor2u.net/economics/presentations/aseconomics/macro/AggregateDemand/player.html

Unit 2: Revision: Demand deficient unemployment

A really good summary of demand deficient unemployment from economics blog

http://www.economicshelp.org/blog/economics/demand-deficient-unemployment/

Unit 1: Scottish government action on sunbeds

The BBC reports actions by the Scottish government on sunbeds

http://news.bbc.co.uk/1/hi/scotland/8385432.stm

a) What is the market failure with sunbeds?
b) List the actions the Scottish government is taking
c) Why is it taking these particular actions?
d) To what extent do you think these actions will reduce the market failure?

NB: There are other blog posts on sunbeds that you could read/watch to get a broader picture of the issue

Unit 1: Market failure; obesity in Scotland

An article from the BBC reflecting market failure in Scotland

http://news.bbc.co.uk/1/hi/scotland/8384429.stm

a) What are the private costs of obesity?
b) What sort of market failure does obesity represent?
c) Why this type of market ailure?
d) What actions could the Scottish government take to reduce the market failure?
e) Discuss how successful do you think any government policies will be in reducing obesityin Scotland

Unit 1: Revision: Market failure and efficiency

A series of posts from Economic Student covering the basics

http://rapidrevision.co.uk/economics-student/2009/11/28/efficiency-and-market-failure/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+EconomicsStudent+%28Economics+Student%29 What is market failure and efficiency?

http://rapidrevision.co.uk/economics-student/2009/12/02/causes-of-market-failure/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+EconomicsStudent+%28Economics+Student%29 What are the causes of market failure?

Unit 1: Negative externalities from schoolies week in Australia

A great video from the BBC http://news.bbc.co.uk/1/hi/world/asia-pacific/8382093.stm

a) What negative externalities arise from schoolies week in Australia ?
b) What actions could be taken to reduce the negative externalities?
c) To what extent do you think such actions would be successful in reducing the negative externalities arising from schoolies week?

Unit 2: Protectionism examples

Thanks to tutor2u for pointing out this article citing examples of protectionism

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/6622730/A-short-guide-to-protectionism.html

Unit 1: Drawbacks of using indirect taxes to reduce market failure: Pub beer

An interesting video from the BBC

http://news.bbc.co.uk/1/hi/business/8373230.stm

a) What does this seem to indicate about the price elasticity of demand for pub beer?
b) Discuss whether pub closures would indicate the government has been successful in decreasing the negative externalities associated with alcohol consumption

Unit 1: Scarcity and choice in the health service

The decision by NICE to reject a liver cancer drug is explained here

http://news.bbc.co.uk/1/hi/health/8368023.stm

and the opposing view here

http://news.bbc.co.uk/1/hi/health/8367962.stm

and a personal view, here

http://news.bbc.co.uk/1/hi/health/8367715.stm

a) Discuss whether this drug should be licenced for use in the NHS

Unit 2: Interactive unemployment data for the USA

Thanks to tutor2u for pointing out this resource

http://www.nytimes.com/interactive/2009/11/06/business/economy/unemployment-lines.html

a) Play around with the data and then decide who are the worst effected by the declining economy and who are least effected

Unit 1: Externalities in Singapore

Thanks to tutor2u for pointing out this blog with examples of externalities in Singapore

http://welkerswikinomics.com/blog/2009/11/17/an-introduction-to-consumption-externalities-from-a-singapore-perceptive/

Unit 2: Inflation: Measurement, causes and effects

Two presentations from tutor2u with almost all you need to know about inflation

http://www.tutor2u.net/economics/presentations/a2economics/macro/InflationMeasurement/player.html measurement

http://www.tutor2u.net/economics/presentations/a2economics/macro/InflationCausesEffects/player.html causes and effects

Unit 1: The price of champagne

Using the article and video,

http://www.channel4.com/news/articles/business_money/champagne+prices+down+after+bumper+crop/3421197

a) Using a S&D diagram, explain why the price of champagne has fallen

Unit 2: Unemployment: How it's measured

Tutor2u has this article that contains links to articles on the economically inactive and the 2 main measures of unemployment

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/8-million-economically-inactive-unemployment-definition/

Unit 2: The effect of USA tariffs on China's pipe exports

The BBC reports the USA imposing tariffs on Chinese pipe imports

http://news.bbc.co.uk/1/hi/world/asia-pacific/8345881.stm

a) Using a diagram, explain the effect on the price of pipes from China in the USA after the tariff has been levied
b) To what extent will this effect sales of Chinese pipes in the uSA
c) What do you think might be the next stap in this trade dispute?

Unit 1: Car scrappage: Subsidies as a means of increasing production/consumption

The BBC reports sales of new cars much higher that the same month last year

http://news.bbc.co.uk/1/hi/business/8343948.stm

a) Using a diagram, explain the effect of the car scrappage scheme on the car market

Unit 1: Government action to reduce smoking

An intersting escalation in govt action to reduce smoking is proposed in Scotland

http://news.bbc.co.uk/1/hi/scotland/8340947.stm

a) How does smoking lead to market failure?
b) What therefore does any policy regarding smoking aim to achieve?
c) To what extent do you think making it a criminal offence for under 18's to buy cigarettes would reduce the market failure?

Unit 2: Structure and state of the Balance of payments

From economics teacher comes this good summary of the BoP structure

http://rapidrevision.co.uk/economics-student/2009/11/07/faq-what-is-balance-of-payments/

and the UK position

http://rapidrevision.co.uk/economics-student/2009/11/09/faq-what-is-the-current-balance-of-payments-position-for-the-uk/

and this from Anforme

http://www.anforme.co.uk/blog/?p=881

Unit 1: Market failure in the car tyre market

An interesting clip from the BBC showing changing consumer behaviour in the recession

http://news.bbc.co.uk/1/hi/uk/8335214.stm

a) What form does government intervention take in the car tyre market?
b) Why does the government do this? In what way would a free market in tyres fail?
c) To what extent is the market failure increasing in the recession

Unit 1: Income elasticity of demand for coffee

A really interesting video clip from the BBC

http://news.bbc.co.uk/1/hi/business/8334993.stm

a) Explain what income elasticity of demand measures and state the formula
b) Given what is said in the video, would it be true to say that coffee bought on the high street is an inferior good?

Unit 2: GDP Data

From economics help, this useful graphic of UK economic growth

http://www.economicshelp.org/blog/economics/latest-gdp-statistics/

Unit 2: What is GDP and what is the GDP per capita of various countries?

A great summary of GDP from the BBC

http://news.bbc.co.uk/1/hi/business/88618.stm

and thanks to tutor2u for pointing out this GDP per capita resource

http://snippets.com/what-is-the-gdp-per-capita-for-every-country.htm

Unit 2: Inflation and Unemployment data October 2009

A good summary of the latest position from anforme

http://www.anforme.co.uk/blog/?p=818 inflation
http://www.anforme.co.uk/blog/?p=826 unemployment

Unit 1: Cigarette vending machine bans ....and more

The BBC reports plans to ban cigarette vending machines and make cigarettes under the counter items in shops

http://news.bbc.co.uk/1/hi/uk_politics/8303975.stm

a) Explain the economic justification for such actions
b) To what extent do you think such measures will be successful in reducing the market failure associated with smoking?

A good article explaining the improving UK trade deficit

http://www.volterra.co.uk/custompage/einsight-1009.php#Section1

a) What is meant by a trade deficit?
b) What is meant by an improving deficit?
c) Why does the srticle suggest the UK trade deficit has improved?

Unit 1: The price of champagne

Thanks to tutor2u for this Daily Mail article

http://www.dailymail.co.uk/news/article-1219016/Champagne-fall-10-bottle-price-plummets-recession.html

The same story is also in the Times

http://www.timesonline.co.uk/tol/news/world/article6867031.ece

a) Using a S&D diagram, explain what has happened to the demand for campagne and the resulting changes in the market
b) Draw another diagram to show the effect of the smaller harvest next year and explain the resulting changes in the market

Unit 1: The price of sugar

An article from the Guardian with lots of S&D economics in it

http://www.guardian.co.uk/business/2009/oct/06/sugar-prices-soar-new-oil

a) Explain the 2 factors that have lead to a decrease in the supply of raw sugar
b) Explain what has happened to the demand for sugar
c) Using your answers to a) and b) and a diagram, explain what has happened to the sugar market
d) Define price elasticity of supply
e) Given the 2 statements below, discuss whether the price elasticity of supply will be elastic or inelastic
"The sugar available now is dependent upon the sugar planted last year": "Stockpiles of sugar are available"
f) Define price elasticity of demand
g) Do you believe the price elasticity of demand for sugar to be elastic or inelastic? Explain your reasoning

Unit 2: Macro data

A really useful powerpoint on latest key macro data from tutor2u

http://www.tutor2u.net/economics/presentations/inthelongrun/player.html

Unit 1: The price of milk

This BBC article explains that the price of milk in the EU is falling

http://news.bbc.co.uk/1/hi/business/8289976.stm
http://news.bbc.co.uk/1/hi/business/8289972.stm video

a) Using a diagram, explain why the price of milk is falling
b) Why are farmers dumping milk and witholding supplies?
c) Using a diagram, show the effect of farmers witholding supplies on the price of milk

Unit 1: Increasing demand for real ale

This BBC article says demand for real ale is rising

http://news.bbc.co.uk/1/hi/business/8290264.stm

a) Which determinant of demand has changed leading to the increasing demand for real ale?
b) Show this effect on a demand curve

Unit 1: The price elasicity of demand for postage stamps

This BBC article is a good example of price elasicity of demand in action

http://news.bbc.co.uk/1/hi/business/8283362.stm

a) Define price elasicity of demand
b) Using the information in the article, calculate the PED for first and second class stamps
c) What do the 2 numbers you have calculated tell you about the demand for the 2 products?
d) Why is demand for these 2 products as you have described? (Hint: Look at the factors that influence PED)
e) What advice would you give Royal mail about their pricing structure as a result of your calculations?

Unit 2: Latest UK growth figures

From anforme, a useful summary and chart

http://www.anforme.co.uk/blog/?p=768

Unit 1: Government intervention in the mp3 player market

An interesting story from the BBC highlighting market failure in the mp3 player market and a possible EU response

http://news.bbc.co.uk/1/hi/business/8279348.stm

a) What examples of information failure are there in the article?
b) What examples of negative externalities are there in the article?
c) How successful do you think the EU proposal would be in reducing the market failure?

Unit 1: Price Elasticity of Supply in the USA whisky industry

Thanks to tutor2u for pointing out this article on Price Elasticity of Supply in the USA whisky industry

http://www.guardian.co.uk/business/andrew-clark-on-america/2009/jul/20/fooddrinks-marketingandpr

a)Is the supply of Knob Creek whisky elastic or inelastic? Explain your answer

Unit 2: Causes and effects of a depreciating pound

2 useful articles from economics help covering the causes and effects of a depreciating pound

http://www.economicshelp.org/blog/economics/pound-sterling-depreciation/ Causes
http://www.economicshelp.org/blog/economics/winners-and-losers-from-weak-pound/ Effects; winners and losers

Unit 1: The price of chocolate

Thanks to tutor2u for this link and questions on how S&D are efffecting the price of chocolate

http://www.dailymail.co.uk/news/article-1215682/Worst-cocoa-shortage-40-years-fuels-chocolate-price-rise-fears.html

1. With the aid of a demand and supply diagram explain why the price of cocoa has risen. (5)
2. Explain, with reference to the article why cocoa and chocolate are said to be a
derived demand. (3)
3. Cadbury have said that if cocoa prices remain high they would have no choice but to raise the price of chocolate. Discuss whether this is the best option for Cadbury and other chocolate manufacturers. (8)

Unit 1: The falling demand for apples

A thanks to tutor2u for highlighting this article about the falling demand for apples

http://www.dailymail.co.uk/news/article-1215030/Apples-losing-crunch-nation-abandons-fruit-favour-sweets-junk-food.html

a) Using the factors that influence demand, explain why demand for apples is falling
b) Draw a diagram to show the effect on the demand curve of this change in demand

Unit 2: Worsening UK unemployment

A summary of the latest figures from anforme

http://www.anforme.co.uk/blog/?feed=rss2

Unit 2: Falling UK inflation

The latest figures show falling CPI inflation

http://news.bbc.co.uk/1/hi/business/8256181.stm

This article also has a diagram showing recent changes in inflation

http://www.anforme.co.uk/blog/?feed=rss2

a) What is the govt CPI target
b) What is the difference betwen CPI inflation and RPI inflation?

Unit 1: Falling hotel prices

The BBC reports falling hotel prices across the UK

http://news.bbc.co.uk/1/hi/business/8256107.stm

a) Using a S&D diagram, explain why hotel prices have fallen in the UK during 2009
b) How would you account for the differing rates of decline in different parts of the UK

Unit 2: The limitations of using GDP to measure a nation's progresshappiness

Economics help reports on the new report from 2 Nobel economists once again oulining the limitations of GDP as a measure of an economy's progress

http://www.economicshelp.org/blog/economics/gdp-and-happiness/

Unit 2: Increasing govt expenditure in China

This BBC clip shows how an economic stimulus by the govt can influence the economy

http://news.bbc.co.uk/1/hi/world/asia-pacific/8256073.stm

a) Using the AD formula and an AD/AS diagram, explain the effect of major projects like this on the Chinese economy
b) What evidence is there in the video that this project will have a positive multiplier effect in the economy

Unit 2: Escalating trade dispute between the USA and China

The BBC reports an escalating trade dispute between the USA and China

http://news.bbc.co.uk/1/hi/business/8253365.stm

a) Define protectionism
b) What type of protectionist measure has the usa imposed?
c) Using a diagram, explain how this should restrict imports of chinese tyres in to the USA
d) Give 1 reason why imports of Chinese tyres may not fall
e) What word would you use to describe China's rsponse?
f) What is the danger of such tit for tat measures?

Unit 1: The problem of enforcing regulations

This BBC clip/article suggests that regulations by themselves may not reduce market failure

http://news.bbc.co.uk/1/hi/health/8253869.stm video
http://news.bbc.co.uk/1/hi/uk/8253676.stm article

a) What is the intention of the regulation?
b) Why is it not working as intended?
c) What disadvantages of using regulation does this illustrate?
d) What actions do you suggest could improve the effectiveness of the regulation?

Unit 1 : The rising price of second hand cars

An interesting clip and article from the BBC

http://news.bbc.co.uk/1/hi/uk/8251990.stm video
http://news.bbc.co.uk/1/hi/business/8251920.stm article

a) Using a S&D diagram, explain why the price of second hand cars is rising
b) Using a S&D diagram, explain why the price of second hand cars was falling a year ago as the recession took hold of the economy

Unit 1: The effect of the scrappage scheme on car sales

This BBC clip and article says car sales are rising, but from a low base

http://news.bbc.co.uk/1/hi/business/8238287.stm http://news.bbc.co.uk/1/hi/business/8237493.stm article

a) Using a S&D diagram, explain why more cars are being sold

Unit 1: Needs and wants

A clear distinction between needs and wants from economics help

http://rapidrevision.co.uk/economics-student/2009/09/03/faq-what-are-wants-and-needs/

Unit 1: Actions to reduce the market failure in the lightbulb market

A really helpful clip/articles from the BBC

http://news.bbc.co.uk/1/hi/uk/8230463.stm video
http://news.bbc.co.uk/1/hi/world/europe/8230961.stm article
http://news.bbc.co.uk/1/hi/uk/8229476.stm article

a) How does the market for traditional lightbulbs fail?
b) What type of action is the EU taking to reduce this failure?
c) Why are some customers unhappy at the EU decision?
d) To what extent do you think their actions will be successful?

Unit 1: Actions to reduce excessive alcohol negative externalities

According to the BBC, new laws are coming in to effect in Scotland to reduce excessive alcohol negative externalities

http://news.bbc.co.uk/1/hi/scotland/8229188.stm

and in England and Wales, alohol asbos

http://news.bbc.co.uk/1/hi/uk/8230052.stm

a) What are the negative externalities associated with excessive alcohol consumption?
b) How does the free market fail?
c) What laws/regulations are coming in to effect in Scotland to reduce excessive alcohol negative externalities?
d) What laws/regulations are coming in to effect in England and Wales to reduce excessive alcohol negative externalities?
e) To what extent do you think the new laws will be successful in reducing the market failure?

Unit 2: Macro data

A useful source of data graphs

http://www.volterra.co.uk/custompage/einsight-0809.php#Section1

a) Look at the GDP/Unemployment graph. What link is there between the 2 variables? How can you explain this?
b) The RPI graph clearly shows the deflation in this measure of unemployment that the UK is experiencing

Unit 2: Investment

A summary of investment from economics student

http://rapidrevision.co.uk/economics-student/2009/08/28/the-implications-of-low-investment/

Unit 1: Information failure: Drinking "by stealth"

An interesting article from the BBC re alcohol consumption

http://news.bbc.co.uk/1/hi/health/8223294.stm

a) How does this "stealth drinking" represent information failure?
b) What actions could the government take to reduce this information failure and so reach a more allocatively efficient consumption of alcohol?
c) What other examples of information failure are mentioned in the article?

Unit 1: Tory plans to reduce the negative externalities from excessive drinking in city centres

From the Cambridge Evening News comes this interesting article on Tory proposals to reduce the negative externalities from excessive drinking in city centres

http://www.cambridge-news.co.uk/cn_news_home/DisplayArticle.asp?ID=443452

a) What are the PRIVATE benefits of many people flocking to city centres to drink?
b) What are the EXTERNAL benefits of many people flocking to city centres to drink?
c) What are the PRIVATE costs of many people flocking to city centres to drink?
d) a) What are the EXTERNAL costs of many people flocking to city centres to drink?
e) To what extent do you belive each of the proposals would reduce the market failure?

Unit 1: Negative externalities associated with lead smeltering in China

A great BBC article and video explaing the negative externalities associated with lead smeltering in China

http://news.bbc.co.uk/1/hi/world/asia-pacific/8211081.stm

a) Explain what a negative externality is
b) Use the article and video to explain the negative externalities associated with lead smeltering in this particular plant in China
c) Why does lead smeltering not always produce this sort of market failure? (Hint: Think of the actions the govt can take)

Unit 2: Consumer spending and saving data

A powerpoint from tutor2u packed with relevant data

http://www.tutor2u.net/economics/chartrooms/consumerspendingsaving/player.html

Unit 2: Economic growth in Japan

This BBC video explains why the Japanese economy has returned to growth

http://news.bbc.co.uk/1/hi/business/8204723.stm

a) How is economic growth measured?
b) State the formula for aggregate demand
c) According to the video, which components of AD are fuelling the growth in Japan?

Unit 1: Information failure in the food and drink industry

Three video stories that may/may not make you alter your lifestyle

http://news.bbc.co.uk/1/hi/health/8194584.stm Alcohol and oral cancer
http://news.bbc.co.uk/1/hi/health/8194584.stm Alcohol and teenage liver disease
http://news.bbc.co.uk/1/hi/health/8194584.stm Processed meat and bowelcancer risk

a) How would the market fail as a result of this information failure?
b) Outline 2 policies the govt could take to reduce these sorts of market failure
c) To what extent do you think any govt action is likely to be successful in reducing the market failure

Unit 2: Economic growth/Aggregate demand/Unempoyment data August 2009

From tutor2u a powerpoint on Economic growth/Aggregate demand/Unempoyment data August 2009

http://www.tutor2u.net/economics/chartrooms/aggregatedemand/player.html

Unit 2: Unemployment data August 2009

A powerpoint from tutor2u on the latest figures

http://www.tutor2u.net/blog/index.php/economics/comments/unemployment-in-the-uk-labour-market/#When:09:15:00Z

This BBC clip explains the problem

http://news.bbc.co.uk/1/hi/business/8197057.stm

Unit 1: The price of sugar

Tutor2u has this useful post explaining the rise in the price of sugar

http://www.tutor2u.net/blog/index.php/economics/comments/imbalance-between-supply-and-demand-drives-sugar-prices-to-28-year-high/#When:06:17:00Z

a) Explain, using a diagram, what has happened to the demand for, and supply of, sugar and why the price has risen

Unit 1: Economic systems: How different countries supply health care

This BBC article shows how differnt coutries provide health care

http://news.bbc.co.uk/1/hi/health/8201711.stm

a) Explain how the idea of economic systems can be used to explain how the various countries allocate their scarce resources to answer the 3 basic economic questions any society has to answer

Unit 1: Negative externalities associated with drunkeness

Two sobering videos from the BBC

http://news.bbc.co.uk/panorama/hi/front_page/newsid_8190000/8190335.stm
http://news.bbc.co.uk/1/hi/uk/8192652.stm

a) Who were the 2 parties involved in the economic transaction that resulted in this injury?
b) What is a negative externality/external cost?
c) List all the negative externalities resulting from that transaction that you see in the clip
d) Why are these things negative externalities?
e) What other negative externalities would arise from this assault/injury that are not mentioned in the clip?
f) To what extent do you think the solutions suggested in the second video are likely to be successful in reducing the market failure?

Unit 1: Income elasticity of demand and technology products

An interesting BBC report on an OFCOM survey

http://news.bbc.co.uk/1/hi/sci/tech/8186846.stm

a) Using evidence from the clip, explain what can you say about the income elasicity of demand for techn ology products compared to foreign holidays, eating out, CD's etc

Unit 2: The effects of the rise in value of the £

The BBC reports the value of the £ rising to a 10 month high

http://news.bbc.co.uk/1/hi/business/8183144.stm

a) What has to have happened in the market for the value of the £ to have risen?
b) What sections of the UK economy would benefit from this rise in the value of the £?
c) What sections of the UK economy might be adversely effected by this rise in the value of the £?

Unit 1: Negative externalities resulting from the Norwegian oil spill

The BBC has a video of the effect of an oil spill on the Norwegian coast

http://news.bbc.co.uk/1/hi/world/europe/8182789.stm

a) Define negative externality/external cost
b) Using evidence for the video, explain the negative externalities that may arise from this oil spill
c) What additional private costs will arise for the shipping firm from this oil spill?
d) Are there any private or external benefits/positive externalities that may arise from this oil spill?

Unit 2: Positive effects of unemployment?

Tutor2u have this Sky video/article on possible advantages for those made unemployed in the current recession

http://news.sky.com/skynews/Home/video/Funemployment-Is-The-Solution-To-Unemployment-For-Some-Recession-Victims/Video/200908115351529?lpos=video_Article_Related_Content_Region_1&lid=VIDEO_15351529_Funemployment_Is_The_Solution_To_Unemployment_For_Some_Recession_Victims

a) To what extent do you believe this is an accurate reflection of the effect of unemployment on individuals?
b) Do these possible positive effects outweigh the negative effects on the economy as a whole?

Unit 1: Negative externalities associated with clearing the Corby steelworks

These BBC videos report the sad case of children born with birth defects in Corby as a result of negligence by the local authority when cleaning the site of toxic materials

http://news.bbc.co.uk/1/hi/uk/8174316.stm
http://news.bbc.co.uk/1/hi/uk/8173192.stm
http://news.bbc.co.uk/1/hi/health/8174508.stm

a) Why would such birth defects be regarded as negative externalities by economists?

Unit 1: Positive externalities in Greenland arising from global warming

The BBC reports on possible positive externalities in Greenland arising from global warming

http://news.bbc.co.uk/1/hi/sci/tech/8173781.stm

a) Define a positive externality
b) Describe the potential positive externalities for Greenland arising from global warming and explain why are they positive externalities.

nit 1: Negative externalities assiciated with excess alcohol

This BBC clip has news of complaining Newquay residents

http://news.bbc.co.uk/1/hi/uk/8173145.stm

a) Define a negative externality
b) List the negative externalities the residents complain about and in each case identify the 3rd party effected by the excessive alcohol consumption

Unit 1: Information failure: Sunbeds and tanning

The BBC reports the latest on sunbeds and the potential danger associated with their overuse

http://news.bbc.co.uk/1/hi/health/8172690.stm article
http://news.bbc.co.uk/1/hi/health/8174136.stm video

a) How is this market subject to information failure (watch the video as well as reading the article)?
b) What is the result of this information failure in the market?
c) Explain 2 approaches the govt could take to reduce the market failure
d) To what extent do you believe such intervention would reduce the market failure?

Unit 1: Shift of the UK PPC

From tutor2u comes this great article about the UK PPC

http://www.tutor2u.net/blog/index.php/economics/comments/did-you-feel-the-shift/

a) Define a PPC
b) Why has the UK PPC shifted outwards?
c) Does this represent an increase in actual or potential output? Explain your answer
d) Draw a diagram to show the effect of this change in legislation

Unit 2: Is the UK coming out of the recession?

Three videos from the BBC putting 2 sided arguments forward as to whether the UK is recovering from a recession or not. These are ideal for gathering information to practice your evaluation technique

http://news.bbc.co.uk/1/hi/business/8150834.stm Hugh Pym
http://news.bbc.co.uk/1/hi/business/8150625.stm Steph Flanders
http://news.bbc.co.uk/1/hi/uk/8151111.stm Richard Scott

a) To what extent might it be said the UK economy is coming out of the recession?

Unit 1: The price mechanism at work: The coffee market

From economics student comes this clear summary of channges to supply and demand and their effect on the coffee market

http://rapidrevision.co.uk/economics-student/2009/07/08/coffee-republic-the-price-mechanism-at-work/

Unit 1: The effect of a VAT cut on restaurant meal sales

France is reducing the VAT on retaurant meals in France according to this BBC clip

http://news.bbc.co.uk/1/hi/uk/8125696.stm

a) Using a S&D diagram, explain the anticipated effect on the market for restaurant meals on the reduction in VAT
b) To what extent will such a VAT cut effect the market?

Unit 1: Changes in the Chinese aircraft market

An interesting clip from the BBC on changes in the Chinese aircraft market

http://news.bbc.co.uk/1/hi/uk/8114516.stm

a) Explain what has happened to demand in the market and why
b) Explain what has happened to supply in the market and why
c) Use a S&D diagram to show these changes and explain what has happened in the market

Unit 1: The web: A public good?

The death of Michael Jackson lead to turmoil at some internet sites reports the BBC

http://news.bbc.co.uk/1/hi/technology/8120324.stm

a) What are the 2 charecteristics of a public good?
b) To what extent are web sites such as Google and Twitter public goods if the article is correct?

Unit 1: Non-toxic fire retardent as a merit good?

From tutor2u comes this brilliant clip on a new, non-toxic fire retardent

http://www.tutor2u.net/blog/index.php/economics/comments/preventing-bush-fires-are-toxin-free-retardents-merit-goods/

a) What are the 2 conditions necessary for a good to be clasified as a merit good?
b) Does this good meet both criteria and so fall in to the catagory of a merit good?
c) How does the market for this fire retardent currently fail?
d) What actions could the Australian/Greek.....governments take to reduce the market failure?

Unit 2: Progressive income tax; an example

From economics help comes this useful numerical example of how income tax can be progressive

http://www.economicshelp.org/blog/economics/income-tax-rates-explained/

Unit 1: Porsche: A superior good?

The BBC reports rapidly declining Porsche sales

Porsche has been hit hard by the global recession. Porsche has seen its nine-month unit sales slump by more than a quarter after demand for its cars was hit by the worldwide recession.
Global sales at the German carmaker declined 28% to 53,635 vehicles between August 2008 and the end of April, compared with a year earlier.

Given the world recession has seen average incomes fall by no more than 5%,

a) Calculate the income elasticity of demand for Porsche cars and then explain why they might be considered a superior good
b) Explain 3 possible reasons why demand for Porshe cars (other than falling incomes) may hasve fallen
c) Using a S&D diagram, explain why this may be a good time to buy a Porsche (assuming you are still in a well paid job and can afford to buy one)

Unit 1: Negative externalities associated motoring

This BBC clip outlines one negative externality associated with motoring

http://news.bbc.co.uk/1/hi/sci/tech/8092182.stm

a) Define a negative externality
b) Explain the negative externality outlined by the clip and article
c) Using a diagram, explain how the market fails in this case
d) Suggest 2 possible actions the govt could take to reduce the negative externality, and give 2 disadvantages of each action

Unit 2: The current account of the Balance of payments

This BBC article reports a continuing decline in the current account surplus in Japan

http://news.bbc.co.uk/1/hi/business/8089477.stm

a) What are the components of the current account of the BoP?
b) What is the effect on the Japanese economy of a declining surplus on its current account?
c) What reason is suggested for the decline in the surplus and why might this have come about?

Unit 1: Negative externalities associated with smoking

This Daily Mail article which was quoted in a tutor2u post highlights some of the negative externalities associated with smoking

http://www.dailymail.co.uk/news/article-1190911/Smokers-cost-businesses-2-1bn-year-fag-breaks-sickness.html

This BBC article suggests the costs to the NHS are much higher than previously thought

http://news.bbc.co.uk/1/hi/health/8086142.stm

a) Define a negative externality
b) Explain why the costs stated in the articles are examples of negative externalities
c) Using a diagram, explain why the negative externalities stated in the articles represent market failure
d) Comment on 2 policies the government could introduce to reduce these specific negative externalities

Unit 2: Unemployment in the USA

A great little exercise based on a BBC clip from tutor2u

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/unemployment-in-the-usa-revision/

Unit 2: How much is consumption effected by changes in disposable income?

An interesting article from the BBC on the link between disposable income and consumption

http://news.bbc.co.uk/1/hi/business/8077598.stm

a) What is the expected link between disposable income and consumption?
b) Why does it not appear to be the case in the US at the moment?

Unit 2: The consequences of unemployment

This BBC article shows how the pain of unemployment may not be spread evenly around the economy; good for evaluation comments

http://news.bbc.co.uk/1/hi/wales/8079769.stm

Unit 2: Revision: The Balance of Payments

A clear revision of the structure of the BoP from tutor2u

http://www.tutor2u.net/blog/index.php/economics/comments/qa-current-and-capital-account/

Unit 2: Revision: Supply side policies

A useful revision post from economics student on supply side policies

http://rapidrevision.co.uk/economics-student/2009/05/31/supply-side-policy-measures/

Unit 2: Revision: Potential output, actual output and the output gap

A useful revision post from economics student

http://rapidrevision.co.uk/economics-student/2009/06/02/how-can-actual-gdp-be-above-productive-potential-explaining-positive-output-gaps/

Unit 1: The price of strawberries

From tutor2u comes this exercise on S&D in the strawberry market

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/qa-demand-and-supply-in-action/

Unit 1: The price of oil: Worksheet and article

From tutor2u's GCSE blog comes this post about S&D and the price of oil. Read the article and do the worksheet; it's as good for AS as it is for GCSE!

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/q-and-a-oil-prices-rise/

Unit 2: Govt income and expenditure 2009

This graphic from the Guardian sows the areas of govt expenditure and income from the 2009 budget

http://www.guardian.co.uk/uk/interactive/2009/apr/22/budget-2009-public-sector-borrowing

Unit 2: Revision: Macroeconomic objectives

From economics student comes this handy grid to fill in on the macroecoonomic objectives

http://rapidrevision.co.uk/economics-student/2009/05/26/as-revision-checklist-of-macroeconomic-essentials/

.......and, once you've had a go, a suggested answer if you need to check it

http://rapidrevision.co.uk/economics-student/2009/05/28/answer-to-macroeconomic-essentials/

Unit 1: Cut flowers, a normal good?

This BBC article explains falling demand for cut flowers from Kenya

http://news.bbc.co.uk/1/hi/business/8065913.stm

a) Define "normal good"
b) To what extent does this article support the idea that cut flowers are a normal good?

Unit 2 Australian tax rebates as a fiscal stimulus

This BBC article explains the Australian govt's latest attempt to stimulate the economy, a $700 handout to all citizens

http://news.bbc.co.uk/1/hi/world/asia-pacific/8065525.stm

a) Explain the intended effect on the Australian economy of this action
b) To what extent is the effect on the Australian economy likely to be successful?

Unit 1: Pollution permits as a method of reducing negative externalities: Cap and trade

From Marketplace whiteboard comes this great explanation of how the cap and trade in pollution permits should work

http://marketplace.publicradio.org/videos/whiteboard/cap_and_trade.shtml

They have many other videos explaining aspects of the financial system in innovative ways....and he always ends with the same throw away line

Unit 1: The problem of free riders

From economicshelp comes this nice summary of the free rider problem and posible solutions

http://www.economicshelp.org/blog/economics/free-rider-problem/

Unit 1: The price mechanism

A good summary of what is meant by the price mechanism from economics student

http://rapidrevision.co.uk/economics-student/2009/05/21/what-is-the-price-mechanism/

Unit 2: Is Inflation Really So Bad?

From economics help comes this summary of the problems associated with inflation

http://www.economicshelp.org/2009/05/is-inflation-really-so-bad.html

Unit 2: Japan in recession

A great tutor2u post on the worsening Japanese economy

http://www.tutor2u.net/blog/index.php/economics/comments/japans-worst-ever-post-war-slump/

Unit 1: Government intervention to overcome market failure: Regulation in the US car industry

This BBC post is a good example of Government intervention to overcome market failure using regulation

http://news.bbc.co.uk/1/hi/world/americas/8056908.stm

a) What is the market failure that the government is trying to reduce?
b) How effective do you believe this policy is likely to be in reducing the market failure?

Unit 2: Revision: Consumption

A useful summary of consumption from economics student; click on the spider diagram to get a bigger image

http://rapidrevision.co.uk/economics-student/2009/05/16/consumption/

Unit 2: Economic stability

Economics student has this nice summary of what is meant by economic stability

http://rapidrevision.co.uk/economics-student/2009/05/10/economic-stability-as-a-macroeconomic-objective/

Unit 2: The effect of a change in the exchange rate on inflation

From tutor2u comes this useful post explaining how a change in the exchange rate can have an effect on inflation

http://www.tutor2u.net/blog/index.php/economics/comments/revision-the-exchange-rate-and-inflation/

Unit 2: Revision: Unemployment:

Three nice revision posts fron tutor2u

http://www.tutor2u.net/blog/index.php/economics/comments/revision-frictional-and-structural-unemployment/#extended Frictional and structural explanations

http://www.tutor2u.net/blog/index.php/economics/comments/revision-consequences-of-unemployment/ consequences of unemployment

http://www.tutor2u.net/blog/index.php/economics/comments/revision-measuring-unemployment/ How to measure unemployment

Unit 2: Revision: Productivity and Supply side policies

From economics student comes this great post on productivity and supply side policies

http://rapidrevision.co.uk/economics-student/2009/05/07/meeting-the-productivity-challenge/

Unit 2: Revision: Trend growth and the output gap

A nice revision summary from tutor2u on trend growth

http://www.tutor2u.net/blog/index.php/economics/comments/revision-trend-growth/

....and the output gap

http://www.tutor2u.net/blog/index.php/economics/comments/revision-the-output-gap/#extended

Unit 2: Unemployment in Elkhart, Indiana

An interesting post from Paul Mason in the USA

http://news.bbc.co.uk/1/hi/programmes/world_news_america/8028156.stm

a) What type(s) of unemployment are the citizens of Elkhart, Indiana experiencing
b) Explain how the negative multiplier effect will effect Elkhart

Unit 2: A different type of economic growth

This interesting post from tutor2u suggests future economic growth in the UK may be based on a different basis to that of the past years

http://www.tutor2u.net/blog/index.php/economics/comments/after-the-storm/

a) Using the AD function, explain the basis of recent UK growth
b) Why is future growth unlikely to follow the same pattern?
c) Explain the likely sources of growth explained in the article

Unit 2: Revision: Aggregate demand and Investment

Two great revision posts from tutor2u

http://www.tutor2u.net/blog/index.php/economics/comments/revision-aggregate-demand/ Aggregate demand

http://www.tutor2u.net/blog/index.php/economics/comments/revision-business-investment/ Investment

Unit 2: The UK economy in 2009

Tutor2u has this summary of the outlook for the UK economy in 2009.............it makes bleak reading

http://www.tutor2u.net/blog/index.php/economics/comments/fallout-from-the-recession/

a) Using the AD formula as you starting point, explain what is happening in the economy. Try and link the various pieces of data. Drawing an AD/AS diagram may help your thinking

Unit 1: Revision: Production possibility curves

Tutor2u has this good little summary of what you need to know about PPC's

http://www.tutor2u.net/blog/index.php/economics/comments/qa-how-the-pff-might-be-used-in-assessing-a-countrys-economic-performance/#extended

Unit 2: Revision: Balance of payments

Fron economics student comes this clear revision post for the structure of the BoP

http://rapidrevision.co.uk/economics-student/2009/04/30/balance-of-payments/

...and the causes of a current account deficit

http://rapidrevision.co.uk/economics-student/2009/05/05/the-causes-of-a-current-account-deficit/

...and what can be done to overcome a current account deficit

http://rapidrevision.co.uk/economics-student/2009/05/06/policies-to-improve-a-current-account-deficit/

Unit 2: The US recession continues

This BBC report says the US recession is continuing

http://news.bbc.co.uk/1/hi/business/8024839.stm

a) Write out the AD formula and explain what is happening to each component
b) Using an AD/AS diagram, explain the effect on the US economy
c) Using an AD/AS diagram, explain the effect the fiscal stimulus package should have on the economy
d) Why does the package not appear to be having the desired effect?

Unit 2: Revision: Government spending and budget deficits

From economic student comes this great little revision post

http://rapidrevision.co.uk/economics-student/2009/04/29/tackling-structural-budget-deficits/

Unit 2: Supply side policies in the USA: R&D

The BBC reports Obama pledging an increase in US spending on R&D

http://news.bbc.co.uk/1/hi/sci/tech/8020930.stm

a) Why is this an example of a supply side policy?
b) Using an AD/AS diagram, show the effect of this policy i(f it were to be succesful) on the US economy
c) Evaluate how successful such a policy is likely to be

Unit 1: Is renting an inferior good?

This BBC clip reports a rise in renting items rather than buying them as the recession bites

http://news.bbc.co.uk/1/hi/business/8019993.stm

a) Define inferior good
b) Discuss whether renting is an example of an inferior good

Unit 2: The depth of the UK recession

These BBC and Ch4 clips explain the worsening UK recession

http://news.bbc.co.uk/1/hi/uk/8016724.stm BBC
http://link.brightcove.com/services/player/bcpid1184614595?bctid=20970547001 Ch4

A good graphic showing the decline is in this post from the Stephanomics blog

http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2009/04/reversion_to_the_extreme.html

This clip illustrates one industry; the 50% fall in car output compared to the same month last year

http://news.bbc.co.uk/1/hi/business/8016758.stm

Unit 1: Opportunity cost of increased government debt

This graphic from the times gives a vivid example of the idea of opportunity cost

http://extras.timesonline.co.uk/pdfs/economy_250409.pdf

Economics student also has this related article

http://rapidrevision.co.uk/economics-student/2009/04/27/opportunity-cost-of-servicing-the-national-debt/

a) Define opportunity cost
b) Exlain how the graphic can be used to explain the opportunity cost of increased government debt
c) Using a PPC diagram, explain how increased government debtleads to a movement along the PPC

Unit 2: UK unemployment rises to 6.7%

The BBC reports the latest depressing unemployment figures; note also the decline in the number of vacancies available for those unemployed

http://news.bbc.co.uk/1/hi/business/8011732.stm

a) What does an unemployment rate of 6.7% mean?
b) Explain how can there be 2.1m people unemployed when there are 462,000 job vacancies

Unit 2: Deflation in the UK

Deflation (as measured by the RPI) has arrived in the UK economy. A nice chart from economics student

http://feeds2.feedburner.com/EconomicsStudent?format=xml

This BBC clip is useful

http://news.bbc.co.uk/1/hi/uk/8010442.stm

Unit 2: The effect of a depreciating £ on the Balance of Payments

An excellent summary from a question of economics on the effect of a depreciating £ on the Balance of Payments

http://aquestionofeconomics.blogspot.com/feeds/posts/default?alt=rss

Unit 2: Problems with unemployment

From economics help comes this nice summary of the problems for an economy of high/rising unemployment

http://www.economicshelp.org/2009/04/problems-of-unemployment.html

Unit 1: Revision: Price elasticity of demand

From economics student come these useful summaries of PED, its uses and its limitations

http://rapidrevision.co.uk/economics-student/2009/04/17/elasticity-of-demand-and-those-minus-signs/

http://rapidrevision.co.uk/economics-student/2009/04/18/business-uses-of-price-elasticity/

http://rapidrevision.co.uk/economics-student/2009/04/19/estimating-and-relying-on-elasticity/

Unit 1: Subsidies for electric cars

The BBC reports government plans to subsidise the purchase of electric cars from 2011

http://news.bbc.co.uk/1/hi/uk/8001509.stm

a) Using a S&D diagram, explain the likely effect on the electric car markeet of the introduction of this subsidy
b) Explain why the outcome may not be as the government intends

More on the BYD electric car at
http://news.bbc.co.uk/1/hi/world/7992180.stm
...and the GM car
http://news.bbc.co.uk/1/hi/programmes/newsnight/8000964.stm
...and the Toyota plug in hybrid
http://news.bbc.co.uk/1/hi/business/7609495.stm

Unit 1: External benefits from TB drugs

A great freakonomics article

http://freakonomics.blogs.nytimes.com/2009/04/01/an-ingenious-approach-to-drug-compliance/

a) What are the private benefits of taking the TB drugs?
b) What are the external benefits of taking the drugs?
c) Explain why the external benefits are greater than the private benefits
d) How successful do you think the suggested "pay per pee" a[[roach will be in maximising the external benefit?

Unit 1: The price of chocolate

This Ch4 video suggests that the price of chocolate is due to rise

http://link.brightcove.com/services/player/bcpid1184614595?bctid=19088159001

a) Using a S&D diagram, explain why the price of chocolate is likely to rise
b) Using economic analysis, explain why firms are getting their chocolate products certified by Fairtrade or other agencies

Unit 1: The price of chocolate

Unit 1: Subsidies: Car scrappage

Tutor2u has this excellent post looking at the pros and cons of introducing a car scrappage subsidy to help the ailing car industry

http://www.tutor2u.net/blog/index.php/economics/comments/qa-what-is-a-scrappage-subsidy-and-will-it-work-in-the-uk/

Unit 2: Supply side consequences of Government expenditure

The BBC reports that Australia's government is to spend billions setting up a super fast fibre optic network across the country

http://news.bbc.co.uk/1/hi/world/asia-pacific/7986918.stm

a) Why could this be described as a fiscal policy action by the Australian government?
b) Why could this be described supply side consequence?

Unit 2: An improvement in the UK's current account

Tutor2u has this great post on why the UK's current account is likely to further improve in 2009. Particularly good are the figures for the 4 sections of the current account and therelative importance of the surplus/deficit on each section in 2008.

http://www.tutor2u.net/blog/index.php/economics/comments/trade-adjustment/

Unit 1: Actions to overcome market failure: Calorie counts on menus

Tutor2u has this summary of voluntary action to be taken by a few large chains to list the calrie count of menu items

http://www.tutor2u.net/blog/index.php/economics/comments/calories-you-can-believe-in/

This BBC and Ch4 video clips covers the story

http://news.bbc.co.uk/1/hi/health/7985006.stm BBC video
http://link.brightcove.com/services/player/bcpid1184614595?bctid=18752147001 Ch4 video

a) What information failure is ther in eating a restaurant meal?
b) What external costs are there to obesity?
c) To what extent do you think a schemr such as this would reduce the market failure?

Unit 2: How to reduce unemployment

A useful summary from economicshelp

http://www.economicshelp.org/2009/04/dealing-with-unemployment.html

Exam technique: Evaluation skills

From tutor2u comes this powerpoint on how to improve your evaluation answers in exams

http://www.tutor2u.net/economics/presentations/ImprovingEvaluationSkills/player.html

Read it, take on board the main points and use them as you go through past papers

Unit 1: The price of tea

These 2 BBC reports suggest that tea is set to rise in price in the shops

http://news.bbc.co.uk/1/hi/business/7973857.stm
http://news.bbc.co.uk/1/hi/world/africa/8213597.stm

a) In each case, using a S&D diagram, explain why the world price of tea is set to rise
b) Using a S&D diagram, explain why this will lead to an increase in the price of tea in UK shops

You may also find this post from economicshelp useful

http://www.economicshelp.org/blog/economics/price-of-tea/

Unit 1: Tax on cigarettes

The BBC reports a large increase in the tax on cigarettes in the USA

http://news.bbc.co.uk/1/hi/world/americas/7976225.stm

a) Using a diagram, explain the likely effect on sales of cigarettes in the USA
b) The article states
"The cigarette companies have not been standing idly by. They raised prices on cigarettes a few weeks ago to start making up for the money they expect to lose in sales."
What does this statement tell you about the price elasticity of demand for cigarettes?
c) What is the market failure associated with cigarette consumption?
d) How likely is the tax to reduce the market failure associated with cigarette consumption?

Unit 2: Unemployment data

The Guardian this week had a breakdown of the latest employment data: As of Feb 2009

26.94m people were in full time employment
2.41m people were in part time employment
2.03m people were unemployed (LFS measure)
7.8m people were economically inactive (2.05m students,2.22m looking after home/family, 2m long term sick, 0.17m temporary sick, 0.59m early retired, 0.77m others)

a) How many people were economically active?
b) What % of the workforce is economically active?

Unit 2: Revision: Exchange rates

From economics student comes this handy summary of what determines exchange rates

http://rapidrevision.co.uk/economics-student/2009/03/29/how-exchange-rates-are-determined/

....and why exchange rates change

http://rapidrevision.co.uk/economics-student/2009/03/30/why-exchange-rates-change/

.....and what determines exchange rates

http://rapidrevision.co.uk/economics-student/2009/03/31/factors-influencing-exchange-rates/

.....and the implications of changes in the exchange rate

http://rapidrevision.co.uk/economics-student/2009/04/01/why-exchange-rates-matter/

Unit 2: The worldwide nature of the current recession

Various reports of shrinking economies all over the world

Ireland http://news.bbc.co.uk/1/hi/business/7965664.stm
and http://news.bbc.co.uk/1/hi/business/7976734.stm
Japan http://news.bbc.co.uk/1/hi/business/7967315.stm
and http://news.bbc.co.uk/1/hi/business/7973409.stm
New Zealand http://news.bbc.co.uk/1/hi/world/asia-pacific/7967326.stm
USA http://news.bbc.co.uk/1/hi/business/7965791.stm
Germany http://news.bbc.co.uk/1/hi/business/7973708.stm

a) Are the factors causing the recession the same in each country the same? Think in terms of the components of aggregate demand

Unit 2: A shrinking economy and rising savings ratio

The BBC reports that the UK economy shrunk by 1.6% in the last 3 months of 2008. In addition, it appears that the recession is leading people to save more

http://news.bbc.co.uk/1/hi/business/7967597.stm

a) Define the savings ratio
b) With savings interest rates at close to zero, why would peeople be saving more?
c) Using an AD/AS diagram, explain the likely consequences on the UK economy of an increase in the savings ratio
d) Following on.......explain why in the long term an increase in the savings ratio might be desiarable but why in the short run it is not

Unit 2: Revision: Protectionism

From economics student comes this handy summary of methods of protectionism. You don't need this tariff diagram for the AS exam; a simple S&D diagram showing S shifting to the left witht the resulting increase in price and fall in quantity demanded is sufficient

http://rapidrevision.co.uk/economics-student/2009/03/26/tariff-and-non-tariff-methods-of-protection/

Unit 2: Inflation up (CPI)....and down (RPI)

From a question of economics comes this useful summary of the CPI/RPI distinction and a link to the BBC

http://aquestionofeconomics.blogspot.com/2009/03/inflation-up-and-down.html
The questions associated with the post are excellent

http://news.bbc.co.uk/1/hi/uk/7961122.stm BBC video

......and this on a similar tack from economics help

http://www.economicshelp.org/blog/inflation/which-measure-of-inflation-to-use/

...plus this powerpoint on various aspects of inflation from tutor2u

http://www.tutor2u.net/blog/files/Inflation_March_2009.doc

Unit 2: Japan's fall in exports

An interesting article from the BBC describing a catastrophic decline in Japan's exports

http://news.bbc.co.uk/1/hi/business/7962656.stm

a) What would you expect the effect of this decline to be on the Japanese economy?
b) Given that imports fell by even more, explain the effect on the current account of the BoP

Unit 2: What We Have Tried to Boost Economic Growth

From economics help comes this great summary. Take particular note of the evaluative comments about why the policies may not have worked

http://www.economicshelp.org/2009/03/what-we-have-tried-to-boost-economic.html

Unit 1: Tradable permits: Carbon trading videos

From tutor2u come these 2 videos on carbon trading

http://www.tutor2u.net/blog/index.php/economics/comments/video-on-carbon-trading/

Unit 2: Inflation: Changes in the basket of goods

The BBC reports the annual changes in the basket of goods used to measure the CPI

http://news.bbc.co.uk/1/hi/business/7958785.stm

a) What is the CPI?
b) Why do the articles in the basket of goods alter?
c) Would you have expected the weights allocated to the various items in the basket to have changed this year? Explain your answer

Unit 2: Costs and benefits of economic growth

Economics student has this useful summary of the costs and benefits of economic growth

http://rapidrevision.co.uk/economics-student/2009/03/20/benefits-and-costs-of-economic-growth/

Unit 2:Budget deficits and national debt

Economics student has this good summary of the topic

http://rapidrevision.co.uk/economics-student/2009/03/20/government-budget-deficits-and-the-national-debt/

Unit 2: Regional Unemployment in the UK

From economics help comes this useful post on Regional Unemployment in the UK

http://www.economicshelp.org/blog/unemployment/regional-unemployment-in-uk/

a) To what extent is regional unemployment a problem for the UK?
b) What actions can the govt take to reduce regional unemployment?

Unit 1: Air travel: A normal good?

From the BBC comes this article about falling numbers of air passengers in 2008

http://news.bbc.co.uk/1/hi/business/7945721.stm

a) What evidence is ther to suggest air travel is a normal good
b) If this is the case, would the income elasticity of demand for air travel be +ve or -ve? Explain your answer
c) The following passage lists has many statistics: What use would they be for firms planning their stratagy to deal with the downturn in passenger numbers?

UK airports handled 235 million passengers in total last year, the CAA found.
The 1.9 per cent decline is only the the fourth annual decrease in passenger numbers since the end of the Second World War, the authority said.
CAA figures revealed London's airports, including Heathrow, Gatwick, Stansted, Luton and London City, saw an overall annual fall of 2%.
Stansted was particularly badly hit, with 1.4 million fewer passengers in 2008 - a 6.0% decline on 2007.
Manchester, the biggest regional airport, also saw passenger numbers fall by 3.8%.
However, not all airports were hit by a decline in travellers.
London City airport saw a rise of a 12%, Luton showed a 2.6% increase and Birmingham's numbers rose by 4.8%.
Rail competition
The CAA also revealed charter airline numbers were down 9.3% on 2007, while scheduled airlines were down 0.8%.
There was also a fall in the overall number of passengers taking domestic flights - down 4.8% to 25 million.
The authority said this was partly due to increasing numbers of people opting to take the train.

Unit 2: Revision: Economic growth

From economics student comes this useful introduction to economic growth

http://rapidrevision.co.uk/economics-student/2009/03/16/an-introduction-to-economic-growth/

..and this linking economic growth to AD and AS

http://rapidrevision.co.uk/economics-student/2009/03/17/aggregate-demand-supply-and-economic-growth/

...and this on the causes of actual and potential economic growth

http://rapidrevision.co.uk/economics-student/2009/03/18/causes-of-economic-growth/

...and this on potential output and output gaps

http://rapidrevision.co.uk/economics-student/2009/03/19/measuring-potential-output-and-output-gaps/

Unit 1: Taxation as an approach to reducing the negative externalities associated with chocolate consumption

Tutor2u has an interesting post about the BMA proposal to tax chocolate and there is a BBC vieo and article as well

http://www.tutor2u.net/blog/index.php/economics/comments/chocolate-tax-they-wouldnt-would-they/
http://news.bbc.co.uk/1/hi/scotland/glasgow_and_west/7938282.stm video

a) How does the free market for chocolate fail?
b) What are the private costs and external costs associated with consuming chocolate?
c) What are the private benefits and external benefits associated with consuming chocolate?
d) Using a S&D diagram, discuss the extent to which a tax on chocolate would reduce the market failure

Unit 1: Uses of Elasticity estimates

From economics student comes this useful summary of how price, income and cross elasticity can be used in the transport sector

http://rapidrevision.co.uk/economics-student/2009/03/13/the-use-of-elasticity-of-demand-in-transport/

Unit 2: Appreciating/depreciating exchange rates

An interesting article from economics student on exchange rates

http://rapidrevision.co.uk/economics-student/2009/03/14/currency-wars-competitive-depreciations/

a) Why is a depreciating £ good for British exporters?
b) What effect would the depreciation have on those businesses who import goods in to the UK?
c) Using a S&D diagram, explain why the Swiss Franc has appreciated
d) Using a S&D diagram, explain the effect of the Swiss authorities policy “to purchase foreign currency on the foreign exchange market to prevent any further appreciation of the Swiss franc against the euro”

Unit 2: Revision: Unemployment

Economics student has this series on revising unemployment

http://rapidrevision.co.uk/economics-student/2009/03/09/defining-unemployment/ defining unemployment

http://rapidrevision.co.uk/economics-student/2009/03/10/measuring-unemployment/ measuring unemployment

http://rapidrevision.co.uk/economics-student/2009/03/19/latest-uk-unemployment-data/ unemployment data for March 2009

Unit 2: Monetary policy: Quantitative easing - How it works and why it's needed

This BBC clip uses a car analogy to explain the process of quantitative easing

http://news.bbc.co.uk/1/hi/programmes/the_daily_politics/7925669.stm

This article also explains it

http://news.bbc.co.uk/1/hi/business/7924506.stm

This clip explains its role in conjunction with interest rate cuts

http://news.bbc.co.uk/1/hi/business/7926255.stm

But, if it all goes wrong, here's what could happen

http://news.bbc.co.uk/1/hi/business/7925981.stm

Unit 1: Alcohol abuse and govt action to reduce market failure

These BBC clips outline Scottish proposals to reduce alcohol consumption

http://news.bbc.co.uk/1/hi/uk/7918184.stm
http://news.bbc.co.uk/1/hi/programmes/the_daily_politics/7918975.stm

A summary is in this post from A question of economics

http://aquestionofeconomics.blogspot.com/2009/03/scotland-to-impose-minimum-price-on.html

This BBC post has the proposals from the Chief Medical Officer Of England

http://news.bbc.co.uk/1/hi/uk/7944334.stm article
http://news.bbc.co.uk/1/hi/uk/7944463.stm video

The government response is here

http://news.bbc.co.uk/1/hi/uk/7946351.stm video

a) What evidence is there of market failure?
b) What actions are the Scottish govt/Chief Medical Officer proposing?
c) Using a S&D diagram, discuss the likelyhood of this intervention being successful in reducing the market failure

Unit 2: Recession and unemployment

A big thanks to Geoff Riley at tutor2u for posting this BBC Newsnight video on how the UK economy is coping with the recession

http://news.bbc.co.uk/1/hi/programmes/newsnight/7892620.stm

a) Explain how the negative multiplier effect resulting from unemployment is deepening the recession
b) How does the video indicate the inequality often associated with unemployment?

Unit 2: The declining Japanese economy

This depressing report from the BBC has one analyst saying the Japanese economy is in terminal decline!

http://news.bbc.co.uk/1/hi/world/7914937.stm

a) Using the AD formula, explain what is happening in the Japanese economy
b) Using an AS/AD diagram and the multiplier concept, explain why Japan could be in terminal dacline

Unit 2: Inflation revision

From economics student blog comes this introduction to inflation with all the key definitions

http://rapidrevision.co.uk/economics-student/2009/02/28/inflation-an-introduction/

Next, a description of how to measure inflation

http://rapidrevision.co.uk/economics-student/2009/03/01/measuring-inflation/

From economics help, a brief post on the possible benefits of a low, stable rate of inflation

http://www.economicshelp.org/blog/

Then, how to interpret inflation data

http://rapidrevision.co.uk/economics-student/2009/03/02/interpreting-the-cpi/

Not forgetting, the consequences of inflation

http://rapidrevision.co.uk/economics-student/2009/03/03/consequences-of-inflation/

...and the causes of inflation

http://rapidrevision.co.uk/economics-student/2009/03/04/causes-of-inflation/

Unit 2: GDP revision

From the new economics student blog comes this revision post on GDP

http://rapidrevision.co.uk/economics-student/2009/02/27/measuring-economic-performance-gdp/

Unit 2: What can the government do to correct a large current account deficit ?

A clear Q&A post from tutor2u

http://www.tutor2u.net/blog/index.php/economics/qa-to-correct-a-large-current-account-deficit-what-can-the-government-do/#When:18:59:00Z

a) Explain what is meant by a current account deficit
b) Is a current account deficit always a problem for an economy?
c) To what extent can the government be successful in reducing a current account deficit?

Unit 1: Market failure:Tradable permits or taxation?

This tutor2u presentation looks at the arguments for tradable permits or carbon taxes. A really good revision aid

http://www.tutor2u.net/economics/presentations/Europe-Carbon-Emissions-Trading.ppt#256,1,Carbon

Unit 1: Opportunity cost

From the BBC via Economics teacher comes this graphic showing the cost to the government of the UK bank rescue packages....so far

a) Define opportunity cost
b) How can this graphic be used to illustrate the concept of opportunity cost?

Unit 2: The effect of the recession on the govenment's budget

The BBC reports a sharp deterioration in government income fron tax revenues

http://news.bbc.co.uk/1/hi/uk_politics/7900483.stm video
http://news.bbc.co.uk/1/hi/business/7898871.stm article

More detail from this tutor2u powerpoint presentation

http://www.tutor2u.net/economics/presentations/recession-tax.ppt#256,1,Recession

a) Why has government revenue from taxation decreased?
b) What will happen to govt expenditure during the recession?
c) What then is you prediction for the govt's finances as the economy experiences the worse of the recession?

Unit 2: Why macro policies might not work

You know how economic theory says an expansionary fiscal or monetary stimulus to the economy should work, but...........

http://business-studies.typepad.com/economics_teacher/2009/02/smart-consumerism-and-economic-theory.html

a) Why does this Economics teacher post suggest the policy makers might not be successful?

PS If you have time, read the whole article via the link

Unit 2: Revision: Potential v actual growth

Are you clear on the difference? If not, this Economics teacher post should help

http://business-studies.typepad.com/economics_teacher/2009/02/actual-and-potential-economic-growth.html

Unit 1: Packaging: A case for internalising the externality?

The BBC reports that campaigners are suggesting that supermarkets should pay for the cost of disposing of the packaging on their products

http://news.bbc.co.uk/1/hi/business/7893403.stm

a) How is excessive packaging an example of market failure?
b) How would this proposal be an example of internalising the externality and making the polluter pay?
c) Using a S&D diagram discuss the extent to which such a policy would reduce the market failure

Unit 2: Declining inflation in the UK

The UK inflation rate (CPI) is now back within limits (2% +/-1%) at 3% reports the BBC, but RPI has fallen dramtically to just 0.1%

http://news.bbc.co.uk/1/hi/business/7893873.stm article
http://link.brightcove.com/services/link/bcpid1184614595/bctid13289662001 Ch4 video

a) Explain why CPI is now below the RPI as shown by the chart in the text having been above it in the recent past

Stuck? These post from Economics teacher and Economicshelp might help; click on the graphic in the top one

http://business-studies.typepad.com/economics_teacher/2009/02/measuring-inflation.html
http://feeds.feedburner.com/EconomicsBlog?format=xml

Unit 2: The Obama stimulus package

AP summarises the Obama stimulus package's major areas as

$240bn in tax breaks for individuals and businesses
$140bn for health care
$100bn for education
$48bn for transportation projects

a) What sort of policy would you catagorise this package as? Explain your answer

b) Explain, using an AD/AS diagram, how this package should effect the US economy in both the short and the long run

c) To what extent do you believe this package is likely to achieve its objectives?

Unit 2: Negative multiplier effects from UK car layoffs

Ch4 has this updated list of all the UK car producers layoffs

http://www.channel4.com/news/articles/business_money/downturn+hits+uk+car+makers/2902212

a) Using the information, explain, using a diagram, the negative multiplier effects on the local and national economies of these layoffs

Unit 1: Cannabis consumption as an example of market failure

The BBC has the latest govt advert to try and reduce cannabis consumption

http://news.bbc.co.uk/1/hi/uk_politics/7891857.stm

a) In what catagory of market failure would you place cannabis consumption? Explain your answer
b) To what extent do you think adverts such as these will reduce the market failure

Unit 1: The price of oil and petrol

From A question of economics comes this interesting post on the rising price of petrol; the question to anser is part of the post (Hint: Think both supply and demand)

http://aquestionofeconomics.blogspot.com/2009/02/is-higher-price-of-petrol-justified.html

Unit 2: Japan in deep recession

Japan's economy contracted by over 3% in the last quater of 2008 according to the BBC

http://news.bbc.co.uk/1/hi/business/7891939.stm video
http://news.bbc.co.uk/1/hi/business/7891849.stm article

a) Using the AD formula and an AD/AS diagram, , explain the decline in the Japanese economy
b) What role would the multiplier effect have on explaining this sharp decline?

Unit 1: Food: Normal, inferior and superior goods

A nice clip from the BBC explaining food changes

http://news.bbc.co.uk/1/hi/world/americas/7885312.stm

Another from Ch4 (and BBC articles) explaining the expansion of KFC/Domino pizza in the UK in the recession

http://link.brightcove.com/services/link/bcpid1184614595/bctid13040103001 Ch4
http://news.bbc.co.uk/1/hi/business/7892240.stm KFC article
http://news.bbc.co.uk/1/hi/business/7894033.stm Domino pizza

a) Making sure you clearly explain your reasoning, to what extent can you catagorise any of the foods as
(i) Normal goods
(ii) Inferior goods
(iii) Superior goods

Unit 2: Supply side policies powerpoint

From tutor2u comes this powerpoint on supply side policies with a printable version.

http://www.tutor2u.net/blog/files/Supply_Side_Indicators_UK.ppt p/point
http://www.tutor2u.net/economics/supply-side-policies-uk-indicators.pdf printable

Geoff Riley outlines the aim of supply side policies to be:

Increase the productive potential of the economy (ie shift AS to the right)
Improve incentives for people to work
Improve the skill level of workers
Increase the productivity of labour and capital inputs
Increase the occupational and geographical mobility of labour to reduce unemployment
Increase the level of capital investment and research and development spending by firms
Stimulate inflows of overseas capital investment
Increase business efficiency by promoting more competition within and between markets
Stimulate a faster pace of invention and innovation throughout the economy
Provide a platform for sustained non-inflationary growth of an economy

a) Do supply side policies have any other objectives? Hint: Think quantity and quality of the factors of production

Unit 2: The costs of Unemployment and a supply side approach to long term unemployment

Ch4 has this good video clip

http://link.brightcove.com/services/link/bcpid1184614595/bctid12412743001

a) What are the costs to the government of rising unemployment
b) What supply side policy to reduce long term unemployment does the video explain?
c) How likely is such a scheme to be successful?

Unit 2: Unemployment in the UK almost at 2m

Latest figures show a continued rise in both measures of unemployment in the UK. There is a useful graph at the bottom of the article and a video as well

http://news.bbc.co.uk/1/hi/business/7882745.stm#table

Unit 2: How the recession is hitting the exporting economies

A series of articles explaining how the global recession is hitting the major exporting countries

http://news.bbc.co.uk/1/hi/business/davos/7882816.stm China exports
http://news.bbc.co.uk/1/hi/business/7883783.stm USA imports
http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/ Stephanomics

a) Using an AD/AS diagram, explain the likely effect of declining exports on the economies ofmajor exporting nations
b) Why might the effects not be as bad as the model suggests?

Unit 1: Negative externalities associated motorcycling

BBC Newsbeat has this interesting clip about airbag jackets for motorcyclists

http://news.bbc.co.uk/newsbeat/hi/technology/newsid_7886000/7886427.stm

a) What are the negative externalities asociated with motorcycling?

b) To what extent do you think legislation to make the wearing of airbag jackets by all motorcyclists would be successful?

Unit 2: Quantitative easing as a form of monetary policy

Want to understand quantitative easing and how it might ease the credit crunch when interest rates reach 0%?

Watch this

http://marketplace.publicradio.org/videos/whiteboard/quantitative_easing.shtml

The Guardian also has this article

http://www.guardian.co.uk/business/2009/jan/29/question-and-answer-quantitative-easing

Unit 2: A fall in the UK balance of trade deficit

The BBC repors a fall in the UK balance of trade deficit

http://news.bbc.co.uk/1/hi/business/7880829.stm

a) Define the balance of trade
b) To what extent do you think the fall in the value of the £ is responsible for this fall in the deficit as the UK heads in to recession?

nit 1: Saturated fats; an example of market failure?

The food standards agency has just launched a new campaign viewable via the bbc at

http://news.bbc.co.uk/1/hi/health/7878680.stm

a) In what way might the consumption of saturated fats represent market failure in the form of a demerit good?
b) Using a diagram explain how this campaign might reduce the market failure

Unit 2: Pros and cons of devaluation

From Economicshelp comes this useful summary of some of the main pros and cons of devaluation

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

a) Using the article as a starting point: Discuss the extent to which a devaluation can help the government meet its macroeconomic objectives

Unit 1: The price elasticity of demand for business/first class flights

Geoff Riley has this interesting article on price cutting by airlines hard hit by the recession

http://www.tutor2u.net/blog/index.php/economics/comments/premum-flyers-go-awol/

a) Identify 3 economic reasons why demand for these flights may have fallen (Remember they are business flights mainly)
b) On the basis of the article, do you think the airlines believe demand for these flights is price elastic or inelastic? Explain your answer