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/