Unit 2: Time lags in monetary policy

Econmics help has this good article on the impact of time lags on the effectiveness of monetary policy

http://www.economicshelp.org/2008/12/time-lags-in-economics.html

Unit 1: Information failure in the fast food industry

From Economics teacher comes this good summary of why fast food represents market failure

http://business-studies.typepad.com/economics_teacher/2009/01/fast-food-information-failure.html

Unit 2: Deflation; causes and consequences

This great post from tutor2u covers deflation

http://www.tutor2u.net/blog/index.php/economics/comments/bootle-on-deflation/

Unit 2: The UK Budget Deficit

This Economics help article shows the dismal state of the government finances

http://www.economicshelp.org/2009/01/uk-budget-deficit.html

a) Define a budget deficit
b) Describe the pattern fo budget surplus/deficits shown by the graph
c) Explain why the UK government has so consistently had budget deficits

Unit 2:The Current account of the Balance of Payments in a Recession

From Economics help, this nice summary of what happens to the Balance of Payments in a recession

http://www.economicshelp.org/blog/economics/balance-of-payments-in-recession/

Unit 2: Exchange Rates: A summary

A really good summary from Economics help on exchange rates

http://www.economicshelp.org/2009/01/should-government-protect-pound.html

a) Discuss the extent to which the govt can control the exchange rate
b) What does he mean by "Exchange Rates are Not the Problem but the Symptom."
c) Discuss whether "An Exchange Rate Decline the End of the World"

nit 2: Investment: Measuring business expectations

A nice, brief article from Economics teacher on the topic of the volatility of Investment due to changing business confidence

http://business-studies.typepad.com/economics_teacher/2009/01/measuring-business-expectations.html

Unit 2: The personal cost of Unemployment

This Ch4 clip shows the cost to the individual of being unemployed

http://link.brightcove.com/services/link/bcpid1184614595/bctid8702579001

a) What sre the costs to the individual of being unemployed?
b) What small benefit does the person see in his being made redundant?

Unit 3: Unemployment rises in the UK to 1.9m

This BBC clip (and linked article) explains the latest unemployment figures

http://news.bbc.co.uk/1/hi/uk/7841545.stm video
http://news.bbc.co.uk/1/hi/business/7841349.stm article

a) What is meant by the job rate?
b) Why do government finances suffer as the number unemployed rises
c) Using a S&D diagram, explain why it is suggested the £ will fall in value as the UK economy deterioates

Unit 2: Why National Debt Effects the Exchange Rate

A good little article from Economics help explaining the factors, including the national debt, that effect the exchange rate

http://www.economicshelp.org/2009/01/why-national-debt-effects-sterling.html

Unit 2: UK inflation fall: January 2009

The BBC reports a fall in the UK inflation rate

http://news.bbc.co.uk/1/hi/business/7839023.stm

a) Why have the CPI and RPI fallen?
b) What is happening to average prices in the UK?

Unit 2: BBC credit crunch glossary

A lot of technical terms are thrown around when commentators talk about the credit crunch. As a result, this BBC credit crunch glossary could prove useful

http://news.bbc.co.uk/1/hi/magazine/7642138.stm

Unit 1: What's an inferior good in 2009?

An interesting article from the BBC about rising sales of inferior goods as the recession starts to bite

http://news.bbc.co.uk/1/hi/business/7824072.stm

a) Define an inferior good
b) What examples of inferior goods are suggested in the article?
c) When deciding whether something is an inferior good, what assumption is made?
d) What examples are given that this might not always be the case?

Unit 2: China's exports in record decline

The BBC reports that China's exports are in record decline

http://news.bbc.co.uk/1/hi/business/7825573.stm

a) Explain, using an AD/AS diagram, the effect you would expect this decline to have on the Chinese economy
b) Explain why this may not be the outcome

Unit 2: UK's trade gap hits record level

The BBC reports that the UK's trade gap hits a record level

http://news.bbc.co.uk/1/hi/business/7826085.stm

a) What does the trade gap measure?
b) Why has it got worse?
c) How should the depreciating £ have helped UK trade to narrow the gap?
d) Why has this not happened?
e) Why might the overall BOP curreent account figure not be as bad as the trade figures indicate?

Unit 2: Investment spending declines in Japan

The BBC reports that Investment spending is declining in Japan

http://news.bbc.co.uk/1/hi/business/7830032.stm

a) Using an AS/AD diagram, discuss the short and long run effect on the Japanese economy of this decline in Investment spending

Unit 2: Hyperinflation in Zimbabwe: The Z$100tr note!

More depressing news on Zimbabwe from the BBC including the need to issue a Z$100tr note to deal with its hyperinflation

http://news.bbc.co.uk/1/hi/world/africa/7832601.stm

Unit 2: Fiscal policy in Germany

This BBC clip (and report) reports an expansionary fiscal policy in germany

http://news.bbc.co.uk/1/hi/business/7825609.stm video
http://news.bbc.co.uk/1/hi/business/7825513.stm

a) Using an AD/AS diagram, explain how the stimulus package should effect the German economy
b) Explain why this may not be the actual outcome

Unit 2: Decreasing Chinese Aggregate demand

A really interesting clip on the shrinking Chinese economy

http://news.bbc.co.uk/1/hi/world/7826768.stm

a) Why are Chinese exports decreasing?
b) What does it mean if China has a trade surplus?
c) If both consumption and exports are falling in China, explain the effect this would have on China's AD and show this on a diagram

Unit 2: Falling consumption and a shrinking economy

This BBC clip explains that a lot of the fall in aggregate demand in the UK is due to falling consumer confidence

http://news.bbc.co.uk/1/hi/business/7822334.stm

a) Explain how falling confidence effects consumption
b) Using the AD formula, explain how this leads to a fall in AD; explain any assumptions you are making
c) Show on an AD/AS diagram the effect on the AD curve and the resulting effect on output(real gdp)

Unit 2: Long term unemployment; a supply side problem

From Geoff Riley comes this interesting post on long term unemployment and how difficult it is to cure

http://www.tutor2u.net/blog/index.php/economics/comments/long-term-unemployment/

This BBC clip outlines the government plans

http://news.bbc.co.uk/1/hi/uk_politics/7822692.stm

a) Why is long term unemployment a supply side problem?
b) To what extent can government succeed in reducing long term unemployment using supply side measures?

Unit 2: A supply side policy to combat graduate unemployment

It looks as though 2009 will be a bad year to graduate with fewer firms recruiting graduates due to the economic downturn. To help graduates gain the skills for employment when the upturn arrives, the BBC reports the government is proposing internships for graduates who can't find employment

http://news.bbc.co.uk/1/hi/uk/7822165.stm video
http://news.bbc.co.uk/1/hi/education/7821629.stm article

Ch4 has a video as well

http://link.brightcove.com/services/player/bcpid1184614595?bctid=6850877001

a) Why is this proposal an example of a supply side policy?
b) Evaluate how likely is it that it will reduce unemployment

Unit 2: Monetary policy: Alternatives to changing interest rates

A very topical post from the Economics Teacher blog explaining that monetary policy is potentially much more than merely changing interest rates

http://business-studies.typepad.com/economics_teacher/2009/01/from-from-interest-rate-cuts-to-quantitative-easing.html

The BBC has this clip on UK interest rates as they hit an all time low

http://news.bbc.co.uk/1/hi/uk/7818010.stm

a) Why might traditional monetary policy be losing its effectiveness in influencing aggregate demand?
b) How can quantitative easing help monetary policy become more effective?
c) What policies does the BBC clip suggest the UK gov has used to try and stimulate aggregate demand in the UK?

Unit 1: Govt action to overcome market failure: The fading out of traditional lightbulbs

The BBC reports the start of the demise of the traditional lightbulb. Some great footage of production

http://news.bbc.co.uk/1/hi/uk/7814502.stm

a) What are the negative externalities asociated with traditional lightbulbs?
b) What type of policy is the EU using to reduce the market failure?
c) To what extent do you believe the policy will succeed?
d) To what extent could the new energy efficient lightbulbs be considered to be merit goods?

Unit 2: How good are policies to combat unemployment?

From economics help comes this short article. I particularly like the final paragraph which would be a wonderful evaluative conclusion: Read it and learn!

http://www.economicshelp.org/2009/01/unemployment-benefits-and-costs.html

Unit 2: Impact of deflation

From Economics teacher comes this great summary of the effects of deflation

http://business-studies.typepad.com/economics_teacher/2009/01/impact-of-deflation.html

Unit 1: Cosmetic surgery; a normal good?

This BBC article says demand for cosmetic surgery is shrinking

http://news.bbc.co.uk/1/hi/england/cambridgeshire/7809614.stm

a) Explain why believe demand for cosmetic surgery is a normal good
b) Based on the artyicle, state 2 things would you expect to be the case if you calculated the income elasticity of demand for cosmetic surgery

Unit 2: Govt expenditure and lower unemployment

Ch4 has this great video on Govt expenditure and how it will lead to lower unemployment

http://link.brightcove.com/services/link/bcpid1184614595/bctid6339624001

a) What types of policies is he suggesting the govt use?
b) Explain how the increased govt expenditure will create jobs in both the short and the longer term
c) What problems may arise from creating jobs in this way?

Unit 2: Will the UK recover quickly from the recession ?

Fron Economics Teacher comes this excellent 2 sided summary

http://business-studies.typepad.com/economics_teacher/2009/01/arguments-for-and-against-a-recovery.html

a) What elements of fiscal policy and monetary policy does the article suggest are being used to aid the recovery?
b) Assuming they will be successful, using an AD/AS diagram, explain how these policies will see the economy grow out of the recession

Unit 2: The government tries to stimulate the Indian economy

This BBC article explains how the government is trying to stimulate the Indian economy

http://news.bbc.co.uk/1/hi/business/7808561.stm

a) Explain the monetary and fiscal policy measures the Indian government is taking
b) Using an AD/AS diagram, explain the intended consequences for the Indian economy
c) Why might this package fail to achieve its objectives?