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?