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?