Unit 1: The rise in demand for Harris tweed

Sky reports the resurgence in demand for Harris tweed

http://news.sky.com/skynews/Home/Business/Harris-Tweed-Sales-Soar-Despite-Downturn-And-Pressure-On-Consumer-Spending/Article/201012315863849?f=rss

a) Using economic theory, explain why demand for harris tweed has risen

Unit 1: How do you increase demand for onions in Japan?

....well this is how they do it

http://www.bbc.co.uk/news/world-12037155

Unit 2: Latest UK macroeconomic data

Thanks to tutor2u for this

http://www.tutor2u.net/economics/presentations/ukecondec10/player.html

Unit 1: Tradable permit carbon trading scheme set up in California

From the BBC

http://www.bbc.co.uk/news/world-us-canada-12016137

a) Discuss how successful you think this scheme will be in educing CO2 emissions in California

Unit 2: Inflation: EU resource

Thanks to turo2u for pointing out this great resource on most aspects of inflation

http://ec.europa.eu/economy_finance/focuson/inflation/index_en.htm

Unit 1: The sharp rise in the price of heating oil

A really good clip from the BBC

http://www.bbc.co.uk/news/uk-12009112

a) Using a S&D diagram, explain why the price of heating oil has risen so rapidly
b) What do you think will happen to the price in 3 months time? Explain your answer

Unit 2: USA unemployment data

Latest figures

http://www.bbc.co.uk/news/business-11996435

a) Comment on the UK's unemployment problem in the light of these figures

Unit 2: December 2010: Rising unemployment hits 2.5 million

Latest unemployment data and commentary

http://news.sky.com/skynews/Home/Business/The-Number-Of-People-Out-Of-Work-Rises-Above-25-Million-In-The-Three-Months-To-October/Article/201012315855647?f=rss Sky
http://www.channel4.com/news/unemployment-rises-to-2-5-million Ch4
http://www.bbc.co.uk/news/business-11998364 BBC

a) How equal are the effects of unemployment in the UK economy?

Unit 2: Inflation at 3.3%

A nice clip from the BBC showing why inflation has risen.....again

http://www.bbc.co.uk/news/uk-11993210

a) Why is inflation only 3.3% if food prices are rising by 5% and alcohol by 10%?

Unit 1: Subsidies for electric cars

The BBC reports subsidies to buyers of electric cars

http://www.bbc.co.uk/news/technology-11993882

a) Analyse the likely effect of the subsidy on the market
b) Comment on the assertion that this subsidy is likely to kick start the market for electric cars in the UK

Unit 1: BA increases long haul fares

.....reports sky

http://news.sky.com/skynews/Home/Business/British-Airways-Blames-Higher-Oil-Price-For-10-Increase-In-Long-Haul-Fuel-Surcharge/Article/201012215854078?f=rss

a) Using a S&D diagram, why they have increased the price
b) Comment on the extent to which this will decrease demand for these flights

Unit 2: Rising inflation rate in China

As reported by the BBC

http://www.bbc.co.uk/news/business-11975628

a) What does the inflation rate measure?
b) What is the most likely cause of the rising Chinese inflation rate?
c) Why is it suggested that interest rates will rise?

Unit 1: Externalities associated with a new dam in Laos

An interesting clip from the BBC

http://www.bbc.co.uk/news/business-11960537

a) What are the positive and negative externalities associted with the dam?

Unit 1: The rising price of petrol

Petrol hits an all time high claims the BBC and Sky

http://www.bbc.co.uk/news/business-11968437
http://www.bbc.co.uk/news/uk-11957664
http://news.sky.com/skynews/Home/Business/Fuel-Costs-In-Britain-Hit-Record-Levels-With-Unleaded-Costing-An-Average-Of-12176p-A-Litre/Article/201012215851065?f=rss Sky

a) Using a S&D diagram, explain the cause of this price rise

Unit 1: Falling demand at HMV

HMV looks to be in long term decline

http://news.sky.com/skynews/Home/Business/HMV-Confirms-Plunging-Sales-And-Wider-Pre-Tax-Losses-As-Christmas-Trading-Hit-By-Snow/Article/201012215850428?f=rss

a) Using demand theory, explain the reason for the short term fall in demand at HMV and the reasons for the longer term decline

Unit 1: Asprin; a merit good?

The latest news on the potential power of asprin from the BBC

http://www.bbc.co.uk/news/health-11933781 video
http://www.bbc.co.uk/news/health-11930988 article

a) To what extent does this this extract suggest asprin is a merit good?
b) If it is a merit good, how does the market fail?
c) What actions could the government take to reduce this market failure?
To what extent do you believe the government can reduce the market failure?

Unit 1: Allocative efficiency: The changing highstreet

A nice BBC clip

http://www.bbc.co.uk/news/business-11924207

and this data

http://www.bbc.co.uk/news/magazine-11915437

a) Explain how the clip and article shows the concept of allocative efficiency in action

Unit 1: Rising demand for heroin in the Punjab and the resulting negative externalities

A disturbing clip from the BBC

http://www.bbc.co.uk/news/world-south-asia-11920796

a) Using economics, explain the reason for the rising demand for heroin in the pujab
b) What negative externalities arise from this drug use?

Unit 2: Economic growth to slow in 2011?

An interesting clip from the BBC

http://www.bbc.co.uk/news/business-11920882

a) Using the AD formula, explain why growth is expected to slow next year

Unit 2: Comparative unemployment figures

Latest comparative figures from the EU

http://www.bbc.co.uk/news/business-11872469

and the USA

http://www.bbc.co.uk/news/business-11913196

a) Given the figures, how much of a problem is the UK unemployment rate for the government?

Unit 1: Reducing negative externalities from ill health

Here's the new coalition plan

http://www.bbc.co.uk/news/health-11878873

a) Th what extent do you think the "nudge" strategy will reduce the cost to the NHS for alcohol and obesity (just under £7bn a year, he said)?

Unit 1: Increased excise duty on super strenght lager

The BBC reports that higher alcohol taxes are on the way on super strenght lager

http://www.bbc.co.uk/news/uk-politics-11879061

a) To what extent is this likely to reduce the negative externalities asociated with their consumption (Use a diagram in your answer)

Unit 2: The costs and benefits of economic growth

This link will take you to a page where there are 6 videos all following the transformation (or obliteration) of a Chinese village into a city....a huge, growing city. The pros and cons of economic growth are clear to see

http://news.bbc.co.uk/1/hi/programmes/world_news_america/9248873.stm

Unit 2: Economic growth in India

A good BBC clip

http://www.bbc.co.uk/news/business-11873344

a) Using the AD formula, explain the recent growth in India
b) To what extent do you believe such growth is likely to continue in the future

Unit 1: Recycling and associated positive and negative externalities

An interesting story form BBC Wales about a proposed waste recycling plant

http://www.bbc.co.uk/news/uk-wales-11906046

a) Explain the positive and negative externalities that could result from this recycling plant

Unit 1: AS microeconomics and macroeconomics key terms tests

Useful self-test tools from tutor2u

http://www.tutor2u.net/economics/quiz/asmicrorevbank/quiz.html micro
http://www.tutor2u.net/economics/quiz/asmacrorevbank/quiz.html macro

Unit 2: What is a recession?

Thanks to tutor2u for this witty Australian explanation of what a recession is

http://www.youtube.com/watch?v=_I4yBNkap78&feature=player_embedded

Unit 2: The unequal effect of unemployment: Rising long term youth unemployment

Sky news and the BBC report rising long term youth unemployment

http://news.sky.com/skynews/Home/Business/Unemployed-16-To-24-Year-Old-Numbers-Up-Fourfold-Since-Recession-Long-Term-Dole-Claimants-Surge/Article/201012115845007?f=rss

http://www.bbc.co.uk/news/uk-11893117

The bBC reports how much harder the diabled are hit by unemployment

http://www.bbc.co.uk/news/uk-11879198

a) To what extent should the government be worried by these figures?

Unit 1: The falling demand for Christas cards

Thanks to tuor2u for this article

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/demand-and-supply-in-action-sales-of-christmas-cards-plummet/

a) I don't think the price of Xmas cards has fallen despite the fall in demand. Use a S&D diagram to explain why this might be the case

Unit 1: More controls on cigarettes?

A first! An article from the Cambridge News! This is about proposed changes to selling cigarettes

http://www.cambridge-news.co.uk/Home/Hiding-cigarettes-would-do-no-good-and-hit-small-shops.htm

a) What is the market failure associated with cigarettes
b) What sort of government action is being proposed?
c) To what extent do you think the market failure would be reduced if the proposals were implemented

Unit 1: Sewer buiding and negative externalities

An interesting video from the BBC

http://www.bbc.co.uk/news/uk-england-london-11806512

a) In what way does the video show the problems of negative externalities in the free market?

Unit 2: GDP and GDP growth data

From CNN comes this intersting graphic showing GDP size and GDP growth for the G20 countries

http://money.cnn.com/news/economy/g20/interactive/index.html

Unit 1: Food as a demerit good?

Thanks to tutor2u for this link to some really calorific foods

http://him.uk.msn.com/in-the-know/photos.aspx?cp-documentid=155233809

a) Why might these foods be thought of as being examples of demerit goods?

Unit 2: Latest Unemployment and inflation figures: Nov 2010

Thanks to anforme for their analysis

http://www.anforme.co.uk/blog/?p=1703 unemployment
http://www.anforme.co.uk/blog/?p=1695 inflation

Unit 2:" Inlation is higher for the elderly" claim

The BBC reports the story

http://www.bbc.co.uk/news/business-11733748

a) Comment on the significance of this story on the impact of inflation on the UK economy

Unit 2: The causes of current (Nov 2010) and future inflation in the uk

This BBC video lets you hear the reasons from the horses mouth as Mervyn King explains

http://www.bbc.co.uk/news/business-11726275

a) What type of inflation is the UK currently experiencing? Explain your answer
b) Explain why inflation in the future
i) might rise
ii) might fall
c) To what extent is an inflation rate 1% above target a problem for the UK economy

Unit 2: Supply side policies to help the unemployed

This video clip shows what happens in Brixton once you have been unemployed for 12 months

http://www.bbc.co.uk/news/uk-politics-11719668

and in Wolverhampton

http://www.bbc.co.uk/news/uk-11731634

and the new government policy is explained here

http://www.bbc.co.uk/news/uk-11732186

a) Discuss the likely success of such schemes in reducing unemployment in the UK

Unit 1: Pricing Wales rugby tickets

Despite being the world's top rugby nation (don't go by rankings and results) Wales failed to sell out the millenium stadium last Saturday

http://www.bbc.co.uk/news/uk-wales-11707900

a) Using a S&D diagram, explain why there were so many empty seats
b) Explain a policy the Welsh Rugby Union should follow to ensure a full stadium for every fixture and comment on the likely success of the policy

Unit 2: Compulsory work placement; a supply side policy?

This BBC clip shows the latest coalition proposal to get people off benefits and back in to work

http://www.bbc.co.uk/news/uk-politics-11705086

a) How is this an example of a supply side policy?
b) To what extent do you think such a policy would succeed in reducing unemployment?

Unit 2: GDP and the quality of life

I always like to highlight the limitations of GDP as an indicator of the quality of life. This economicshelp post highlights the major issues in the discussion

http://www.economicshelp.org/blog/economics/quality-of-life-indicators/

Unit 1: Increasing airport tax

Look at the table in this Ch4 article

http://www.channel4.com/news/ba-boss-airport-tax-will-damage-uk-economy

a) Suggest 2 reasons why the government has inreased these taxes
b) Using the concept of PED, explain why there is such a difference in the increases

Unit 2: Graduate unemployment rising...again

A deeply depressing article and video from the BBC showing the burden of unemployment being borne unequally in the economy

http://www.bbc.co.uk/news/education-11652845 article
http://www.bbc.co.uk/news/business-11667290 video

Unit 1: Elasticity in the tablet computer market

An interesting clip from the BBC on competition in the tablet computer market

http://www.bbc.co.uk/news/technology-11665362

a) Explain why all of these products would not have the same PED value
b) Which would have the most inelasic demand? Why?
c) Would the income elasticity of demand for these products be positive or negative? Why?
d) How could you use the concept of cross ED in this market?

Unit 2: tutor2u presentation on unemployment

http://www.tutor2u.net/economics/presentations/a2economics/macro/UnemploymentUK/default.html unemployment

Unit 2: tutor2u presentation on measuring inflation

http://www.tutor2u.net/economics/presentations/a2economics/macro/InflationMeasurement/default.html inflation

Unit 2: How inflation is measured in the USA

Thanks to tutor2u for pointing out this graphic showing the weights of the different sections of the US CPI index

http://www.nytimes.com/interactive/2008/05/03/business/20080403_SPENDING_GRAPHIC.html

Unit 2: Supply side policies announced by government

Sky news reports (with video) the launch of centres to link universities to industry

http://news.sky.com/skynews/Home/Technology/David-Cameron-Announces-200m-Hi-Tech-Hub-Network-Advanced-Manufacturing-Research-Centre-Rotherham/Article/201010415772325?f=rss

This BBC clip shows the announcement of a national infrastructure plan

http://www.bbc.co.uk/news/business-11619093

a) In what way are these supply side policies?
b) Using an AD/AS diagram, discuss the likely effect of these policies on the UK economy

Unit 1: Negative externalities from youth alcohol consumption

A nice clip from the BBC

http://www.bbc.co.uk/news/health-11611522 video
http://www.bbc.co.uk/news/health-11605549 article

a) Discuss how successful restrictions on the consumption of alcohol are in reducing the negative externalities associated with its consumption

Unit 1: How changes in fashion can effect demand and price

Thanks to tutor2u for posting this clip from the Hudsucker proxy showing how changes in taste and fashion can effect demand
http://www.tutor2u.net/blog/index.php/economics/comments/economics-at-the-movies-hudsucker-proxy-and-consumer-demand/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:19:33:00Z

Unit 1: Spains tough anti-tobacco laws

This BBC clip reports that Spain is set to restrict smoking

http://www.bbc.co.uk/news/world-europe-11593698

a) Explain, using economic terms, why Spain is enforcing these restrictions
b) Explain using a diagram, how the restrictions should reduce the market failure
c) Discuss the extent to which the policy is likely to succeed

Thanks to tutor2u for this brilliant clip showing division of labour/specialisatioin and a whole lot more!

http://www.tutor2u.net/blog/index.php/economics/comments/economics-at-the-movies-manufactured-landscapes/

Thanks to tutor2u for this

http://www.tutor2u.net/blog/index.php/economics/comments/picturenomics-1-congestion-and-externalities/

a) Look at the picture and list all the negative externalities you can see

Unit 1: Government spending and alternative cuts

A great graphic from the Guardian allowing you to select what spending you would cut

http://www.guardian.co.uk/politics/interactive/2010/oct/19/comprehensive-spending-review-cuts

Unit 1: Increasing demand for Harris Tweed

Strange as it may seeem, Sky reports increasing demand for Harris Tweed

http://news.sky.com/skynews/Home/Business/Doctor-Whos-Matt-Smith-Credited-With-Making-Tweed-Cool-As-Harris-Tweed-Collaborates-With-Topman/Article/201010315760483?f=rss

a) Using a diagram, explain the causes and consequences of this increased demand for Harris Tweed

Unit 1: The impact of subsidies on the quantity demanded

A post from the BBC which clearly shows the impact of subsidies on the quantity demanded

http://www.bbc.co.uk/news/business-11549448

a) Using a S&D diagram, explain how the withdrawl of the subsidy (ie the scrappage scheme) has effected the market

Unit 2: The output gap

Thanks to tutor2u for posting this link to the Washington post; a great graphic to explain the output gap

http://www.washingtonpost.com/wp-srv/business/the-output-gap/index.html

Unit 1: £100,000 for a bottle of whisky!!!!!!!

From the Guardian comes this tale of an astranomical price for a bottle ow whisky

http://www.guardian.co.uk/business/2010/oct/14/whyte-mackay-malt-record-price

a) Usins a S&D diagram, explain why the price of this whisky is so high

Unit 2: Unemployment: September 2010

A nice summary from Anforme

http://www.anforme.co.uk/blog/?p=1584

a) In what way are these figures (i) good and (ii) bad news for the British economy?

Unit 1: Snowfall and the economic problem

Thanks to tutor2u for this post illustrating the economic problem

http://www.tutor2u.net/blog/index.php/economics/comments/bad-snow-fall-in-london/

Unit 1: The elasticity of demand for a University education

Thanks to tutor2u for this post

http://www.tutor2u.net/blog/index.php/economics/comments/lifting-the-cap-on-tuition-fees-a-question-of-price-elasticity/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:04:56:01Z

a) Discuss whether the demand for a University education is likely to be elastic or inelastic

Unit 1: Negative externalities: Hungary's toxic mud

These BBC clips shows the effect ot the breaching of a toxic sludge resevoir

http://www.bbc.co.uk/news/world-europe-11482313
http://www.bbc.co.uk/news/world-europe-11472785

a) Explain the negative externalities associated with this story

Unit 2: Consumption and savings

Thanks to tutor2u for this resource on what determines the level of consumption and savings

http://www.tutor2u.net/blog/index.php/economics/comments/video-resources-on-consumption-and-saving/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:07:00:00Z

Unit 1: Cuba moves towards a mixed economy

Thanks to tutor2u for this summary of the changes afoot in Cuba (Use the hyperlinks)

http://www.tutor2u.net/blog/index.php/economics/comments/castros-command-move-to-a-mixed-economy/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:15:16:00Z

a) Explain how the plans mean Cuba's economy will become more like the mixed model

Unit 1: The end of cheap cotton clothes?

An interesting article and video from Sky news suggesting the price of cotton clothes is set to rise

http://news.sky.com/skynews/Home/Business/Cotton-Price-Cost-Hike-Could-Mean-End-Of-Cheap-Clothing-As-Bargain-Chains-Raise-Shop-Prices/Article/201009415743868?f=rss

a) Using a S&D diagram, explain why the price of cotton clothes is due to rise
b) Comment on the staement that low price chains such as Primark may be hit disproportionatelt by this rise in the price of cotton

Unit 1: Increasing demand for pies in the UK

An interesting article from Sky news

http://news.sky.com/skynews/Home/Sales-Of-Pies-And-Pasties-Rise-In-Recession-Says-Mintel-Research/Article/201009315732750?f=rss

a) What type of good would pies and pastries appear to be? Explain your answer

Unit 2: How to alter your exchange rate

This BBC clip explains how the Japanese cental bank intervened in the market to force down the value of the Yen

http://www.bbc.co.uk/news/business-11310620

a) Why did the central bank intervene?
b) Using a S&D diagram, explain how they manipulated the value of the Yen downwards (ie a depreciation)

Unit 2: UK inflation in Sept 2010 at 3.1%

The BBC explains why inflation remains above target

http://www.bbc.co.uk/news/business-11299602 video
http://www.bbc.co.uk/news/business-11294957 article

....as does anforme (with a graph)

http://www.anforme.co.uk/blog/?p=1533

Unit 1: Litter

An ITV documentary: It may only be available for 7 days; we'll see

http://video.stv.tv/bc/catchup-tonight-20100909-part1/

Unit 1: The price of coffee

Thanks to tutor2u for directing me to this article

http://www.dailymail.co.uk/news/article-1311303/Cost-morning-latte-set-soar-devastating-crop-shortages.html

a) Using a S&D diagram, explain why the price of coffee is set to rise

Unit 1: House Prices Down Again As Supply Rises

An article from Sky news

http://news.sky.com/skynews/Home/Business/House-Prices-In-August-Suffer-Most-Widepread-Falls-Since-May-2009-As-Supply-Increases/Article/201009215727490?f=rss

a) Using the information in the first paragraph, draw a S&D diagram to show why house prices have fallen

Unit 2: UK's worst ever trade deficit

Tales of woe fron Sky news

http://news.sky.com/skynews/Home/Business/UK-Trade-Deficit-Surge-In-Oil-And-Chemical-Imports-Widens-Gap-To-New-Record/Article/201009215723952?f=rss

a) What is meant by a trade deficit?
b) Why has it worsened?

Unit 2: Interest rates: What are they and how do they work in the economy

A nice video from the BBC

http://www.bbc.co.uk/news/business-11238317

Unit 2: The shrinking Greek economy

A useful article from the BBC explaining the shrinking Greek economy

http://www.bbc.co.uk/news/business-11229042

a) Using the Aggregate demand formula, explain why the Greece's GDP is falling

Unit 1: The price of wheat

The drought continues in Russia according to this BBC video

http://www.bbc.co.uk/news/business-11202745

a) Using a S&D diagram, explain the likely effect on the world price of wheat by the reduced Russian harvest/Russian export ban
b) Using a S&D diagram, explain the likely effect of this on the price of products that have wheat as a major component (eg bread, cornflakes, beef etc)

Unit 2: Why have a spending review?

A nice summary from the BBC

http://www.bbc.co.uk/news/business-10810962

Unit 2: Macroeconomic introduction

A brilliant introduction to the UK macroeconomy from tutor2u

http://www.tutor2u.net/economics/presentations/ukeconsep2010/player.html

Unit 2: Australia's economic growth

The BBC reports strong economic growth in Australia

http://www.bbc.co.uk/news/business-11154030

a) Explain why interest rates might rise as a consequence of this strong growth in the Australian economy

Unit 1: Negative externalities associated with alcohol

Another clip from the BBC outlining some of the negative externalities associated with alcohol

http://www.bbc.co.uk/news/health-11155591

Unit 1: Demand for amour plated cars in Mexico

A nice clip from the BBC

http://news.bbc.co.uk/1/hi/programmes/world_news_america/8955232.stm

a) Using demand theory, explain the rise in demand for amour plated cars in Mexico
b) Show the effect of this on a demand diagram

Unit 1: Information failure in 3 markets

3 stories from the BBC that may indicate information failure for consumers

http://www.bbc.co.uk/news/health-10986625 chocolate
http://www.bbc.co.uk/news/health-10986617 beer for women
http://www.bbc.co.uk/news/health-10987937 sunbed use

a) What is the market failure that results from information failure?
b) How would an economically rational consumer change their behaviour if theyrecived this information?
c) What problem would a consumer face when deciding how to behave with this additional information?

Unit 1: Food price rises associated with Ramadan in Bangladesh

A BBC clip explaining the food price rises associated with Ramadan in Bangladesh

http://www.bbc.co.uk/news/business-10999186

a) Using a S&D diagram, explain why the food prices have risen in the run up to Ramadan
b) Using a S&D diagram, explain why the food prices might rise further in Bangaladesh in the future

Unit 1: How Sandwell is tackling street litter

A nice clip from the BBC highlighting one approach to reducing street litter

http://www.bbc.co.uk/news/uk-11009694

a) Why is street litter an example of a negative externality?
b) What approach is Sandwell council using to reduce the negative externality?
c) What other approaches could they use?
d) Discuss how effective the zero tolerance policy will be for the council

Unit 2: How inflation effects people differently

This BBC clip clearly shows how the inflation rate hits people differently

http://www.bbc.co.uk/news/business-11005976

Unit 2: Inflation in the UK

Two clips from the BBC explaining some of the reasons why inflation is above target

http://www.bbc.co.uk/news/10994997
http://www.bbc.co.uk/news/business-11001524

a) Why is inflation above target?
b) Why is it likely to remain above target in 2011?
c) Given the information in the clip, explain what is happening to peoples real incomes

Unit 2: The state of the Japanese and Chinese economies in August 2010

A brilliant clip from the BBC containing loads of macroeconomic facts about the Japanese economy

http://www.bbc.co.uk/news/business-10985496

a) How is GDP measured by the expenditure (ie Agg Demand) measure?
b) Using the formula, explain the likely effect of the appreciating Yen on the Japanese economy
c) Explain why consumption and Investment are not growing in japan
d) Why are the very low interest rates in Japan not leading to the anticipated economic growth?
e) Given that the Japanese economy has grown by only 5% in 8 years whilst the Chinese economy has grown by 261% and moved above Japan into second place in the GDP league table (after the USA), explain why (economically) it's still better to be a citizen in Japan rather than in China

Unit 2: Cyclical and structural unemployment in the USA

Economicshelp has this good post explaining cyclical and structural unemployment in the USA

http://econ.economicshelp.org/2010/08/structural-unemployment.html

Unit 2: Youth unemployment

A good graph in this tutor2u post showing the extent of the problem

http://www.tutor2u.net/blog/index.php/economics/comments/81-million-young-workers-unemployed-in-2009/

a) Describe the pattern of youth unemployment over the period shown

Unit 1: Increasing demand for fake grass

An interesting clip from the BBC

http://www.bbc.co.uk/news/business-10923523

a) Using demand theory, explain the rising demand for artifial grass

Unit 1: The demand for beer

The BBC reports the first rise in beer sales for many years

http://www.bbc.co.uk/news/business-10808820

a) Using demand analysis, explain the rise in beer sales in shops and the fall in beer sales in pubs

Unit 1: Ways of reducing the negative externalities associated with excessive alcohol consumption

This BBC clip explains how the tide has turned away fron deregulation in the market, to a more restrictive use of legislation

http://www.bbc.co.uk/news/uk-10785218

a) Take each proposal and discuss its likely success in reducing the negative externalities associated with excessive alcohol consumption

Unit 2: The effect of the recession on inflation

A nice post from econ0omicshelp on the effect of the recession on inflation

http://www.economicshelp.org/blog/inflation/inflation-and-the-recession/

Unit 2: What is GDP?

A neat video from the BBC; not very technical, but i like it!

http://www.bbc.co.uk/news/business-10730689

Unit 2: The effect of taxation on inequality

Some really good figures and analysis from economicshelp on the effect of taxes on different income groups

http://www.economicshelp.org/blog/economics/effect-of-tax-on-inequality/

Unit 2: The real rate of unemployment

A nice explanation of what the figures mean from economicshelp

http://econ.economicshelp.org/2010/07/real-rate-of-unemployment.html

Unit 2: How unemployment is calculated

A nice summary from economicshelp

http://www.economicshelp.org/blog/unemployment/how-unemployment-is-calculated/

Unit 2: Australian interest rates on hold

The BBC reports no change in Australian interest rates, but with pressures to both increase and decrease them

http://news.bbc.co.uk/1/hi/business/10519027.stm video

a) What are the pressures to raise Australian interest rates?
b) What are the pressures to lower Australian interest rates?

Unit 1: Rising demand for vuvuzelas

This BBC clip explains the rising demand for the buzz producing vuvuzela

http://news.bbc.co.uk/1/hi/business/10383014.stm

a) Explain, using economic theory, the cause of the increse in demand
b) Show this effect on a demand diagram

Unit 2: Deflationary fiscal policy

A nice summary of how this should work.......but might not from economicshelp

http://econ.economicshelp.org/2010/06/deflationary-fiscal-policy.html

Unit 2: June 2010 unemployment and inflation data

Anforme, and other sources, explain the latest data. As you will read, the unemployment figures look bleak for the future

http://www.anforme.co.uk/blog/?p=1415 Unemployment
http://news.sky.com/skynews/Home/Business/Unemployment-Rises-By-23000-To-247-Million-But-Number-Of-Jobseeker-Allowance-Claimants-Falls/Article/201006315650035?f=rss Sky news unemployment
http://news.bbc.co.uk/1/hi/business/10327101.stm BBC unemployment

http://www.anforme.co.uk/blog/?p=1411 Inflation
http://news.bbc.co.uk/1/hi/business/10316495.stm BBC inflation

Unit 1: China's trade surplus increases

This BBC clip rports a rising trade surplus in China

http://news.bbc.co.uk/1/hi/business/10285591.stm

a) Why has the trade surplus increased?
b) Discuss the likely effect on the surplus if the Chinese currency appreciated
c) Discuss the likely effect on the surplus of a rise in Chinese labour costs

Unit 2: Government income and spending

A nice graphic from the BBC showing income and spending

http://news.bbc.co.uk/1/hi/politics/10263711.stm

a) Given the need for £60bn cuts, what would you cut? Which taxes do you raise? Who'd be a politician in power?

Unit 1: How govt action can successfully reduce market failure

This BBC video shows the reduction in negative externalities that the smoking ban had led to

http://news.bbc.co.uk/1/hi/health/10271620.stm

a) What are the negative externalities that have been reduced?
b) Why are these negative externalities?

Unit 2: Why deflation is bad

A clear explanation from economicshelp

http://econ.economicshelp.org/2010/06/why-deflation-is-bad.html

Unit 2: Monetary policy or Fiscal policy; which is the best to use?

Economicshelp has this great summary. Note especially the evaluative aspect of the post

http://www.economicshelp.org/blog/economics/monetary-policy-vs-fiscal-policy/

Unit 2: Unemployment: Revision

From economicshelp comes this handy revision post on some aspects of unemployment

http://www.economicshelp.org/blog/unemployment/definition-of-unemployment/

Unit 2: The effect of changing interest rates on the Balance of Payments

A nice evaluative summary of the effects from economics blog

http://www.economicshelp.org/blog/economics/interest-rates-and-balance-of-payments/

Unit 2: India's growth and the danger of inflation

The BBC reports that the Indian economy continues to power ahead

http://news.bbc.co.uk/1/hi/business/10198839.stm

a) Using AD/AS analysis, explain why inflation may be occuring in the Indian economy

Unit 2: Inflation: Revision

Three posts from tutor2u on the causes of inflation and policies to reduce it

http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-revision-demand-pull-inflation/ Demand pull

http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-revision-cost-push-inflation/ Cost push

http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-revision-policies-to-control-inflation/ Policies to reduce inflation

Unit 2: Revision on consumption

A revision briefing from tutor2u

http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-revision-the-importance-of-consumption/

nit 2: The UK ouput gap

A good article from tutor2u summarising the issue

http://www.tutor2u.net/blog/index.php/economics/comments/qa-what-do-we-need-to-know-about-output-gaps/

Unit 1: Market failure in the alcohol market

A great video from the BBC

http://news.bbc.co.uk/1/hi/business/10167936.stm
a) Why is demand for alcohol rising?
b) What negative externalities are there associated with excessive alcohol consumption?
c) Using a diagram, explain how the free market fails
d) How successful do you think imposing a minimum proce on alcohol would be in reducing the market failure?

Unit 2: The state of the Indian economy

A set of data from tutor2u analysing the state of the Indian economy

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

a) Using the data, comment on the state of the Indian macroeconomy

Unit 2: Externalities: Australian mining

A nice report by the BBC on open cast mining in Australia

http://news.bbc.co.uk/1/hi/world/asia-pacific/8688820.stm

a) What are the private benefits of the mining operation?
b) What are the private costs of the mining operation?
c) What are the external costs of the mining operation?
d) What actions could the Australian government take to reduce the negative externalities to the social optimum output?

Unit 2: Rising inflation:in the UK and India May 2009

Sky news has a brief report, article and graph explaining the latest rise in UK inflation

http://news.sky.com/skynews/Home/Business/Inflation-Rate-Rises-Food-Clothing-And-Alcohol-Costs-Push-CPI-To-37-In-April-While-RPI-Tops-53/Article/201005315634107?lpos=Business_First_Buisness_Article_Teaser_Region_3&lid=ARTICLE_15634107_Inflation_Rate_Rises%3A_Food%2C_Clothing_And_Alcohol_Costs_Push_CPI_To_3.7%25_In_April_While_RPI_Tops_5.3%25

as does the BBC

http://news.bbc.co.uk/1/hi/business/10121176.stm

Mind you, our rate is low compared to India's

http://news.bbc.co.uk/1/hi/business/8689937.stm

a) What is the cause of this inflation?

Unit 2: Indian businessmen buying Durham cricket club

The BBC reports that Indian businessmen are buying Durham cricket club

http://news.bbc.co.uk/1/hi/business/10096909.stm

a) Where would this purchase appear in the UK balance of payments?
b) Is it "good" or "bad" for the UK's balance of payments?

Unit 2: Investment in hotels in Dubai

The BBC reports more hotels being built in Dubai, despite overcapacity at the current time

http://news.bbc.co.uk/1/hi/business/8669651.stm

a) What is the motivation/reason for this investment in the present circumstances?

Unit 2: Revision: Balance of payments

Thanks to tutor2u for this concise revision sheet for BoP

http://www.tutor2u.net/blog/files/Revision_on_Balance_of_Payments.docx

Unit 2: Supply side policies: Revision

A really useful powerpoint presentation from tutor2u

http://www.tutor2u.net/economics/presentations/workshops2010/AS2/player.html

Unit 1: How to reduce market failure? Indirect (carbon) taxes, or tradable permits (cap and trade)

A good summary of both from economics help

http://www.economicshelp.org/blog/economics/carbon-tax-pros-and-cons/ tax

http://www.economicshelp.org/blog/economics/carbon-trading-schemes/ tradable permits

Unit 2: tutor2u macro revision presentations

One onwhy the economy is in a recession

http://www.tutor2u.net/blog/index.php/economics/comments/as-economics-revision-dissection-the-recession/

and a second one on managing the economy

http://www.tutor2u.net/economics/presentations/workshops2010/AS4/player.html

and a third one on prospects for the UK economy

http://www.tutor2u.net/economics/presentations/workshops2010/AS3/player.html

Unit 1: Actions by the Australian government to reduce smoking

This BBC clip gives the latest Australian proposals

http://news.bbc.co.uk/1/hi/world/asia-pacific/8650520.stm

a) How does the gigarette market fail?
b) What catagory of action would you put this proposal in?
c) To what extent do you believe such action will reduce the market failure?

Unit 2: Unemployment hits 20% in Spain

This brief BBC video and article has, amongst other information, the depressing news tht unemployment in Spain has hit 20%; one person in 5 who wants a job is now out of work

http://news.bbc.co.uk/1/hi/business/8655339.stm video
http://news.bbc.co.uk/1/hi/business/10093123.stm article

Unit 2: The effect of the exchange rate on imports and exports

A great little clip from the BBC showing the effect of the exchange rate on imports and exports

http://news.bbc.co.uk/1/hi/world/europe/7668400.stm

a) What is the effect of the appreciating euro on the Irish republic's BoP curerent account?
b) What is the effect of the appreciating euro on the Irish republic's home producers?
c) Using an AD/AS diagram, explain the effect of the appreciating euro on the Irish republic's macroeconomic performance

Unit 2: Supply side policies

From the defunct economics student blog comes this useful summary

Supply-side policy measures to increase aggregate supply include:
-Improve incentives for economic activity
-Reducing income tax encourages the unemployed to join the labour force and existing workers to undertake overtime and accept responsibility.
-Reducing benefit levels and tightening eligibility rules encourages/forces the unemployed to take paid work. In short overcome the unemployment trap.
-Improve incentives for entrepreneurs. Profit is the reward for risk taking; lowering corporation tax increase the reward from enterprise
-Encouraging small business start-up e.g. through tax breaks e.g. low corporation and capital gains tax
-Improve productivity
-Subsidise education & training.
-Improvements in the quantity and quality of capital. R&D innovation and new capital raises productivity. Recent UK budgets have featured tax breaks for R&D and investment to encourage firms to expand
-Encourage competition through:
Privatisation e.g. telecommunications, electricity, water, steel, gas, rail breaks up state monopolies and introduces competition. Or does privatisation replace a public with a private monopoly?
-Deregulation i.e. removing barriers to entry and opening up markets to greater competition.
Encouraging international trade as trade creates competition. Firms seek to become world class and adopt best international practice in their own organisation leading to lower unit costs
-Improve flexibility of labour markets through trade union reform

Unit 2: Issues and prospects for the UK economy

A great summary from Geoff Riley at tuor2u

http://www.tutor2u.net/blog/index.php/economics/comments/issues-and-prospects-for-the-uk-economy-in-2010/

Unit 2: What is GDP?

A great little video from BBC answers this question

http://news.bbc.co.uk/1/hi/business/8637712.stm

Unit 2: Latest Inflation, unemployment and gdp data

The latest data provides a mixed picture of how the economy is doing

http://econ.economicshelp.org/2010/04/volatile-economy-and-inflation.html article explaining latest inflation figures and how much of an issue they are
http://www.anforme.co.uk/blog/?p=1305 inflation

http://www.anforme.co.uk/blog/?p=1309 unemployment
http://www.channel4.com/news/articles/business_money/unemployment+total+hits+25+million/3620972 h4 video on unemployment

http://news.sky.com/skynews/Home/Business/UK-Economy-Grew-By-02-In-First-Three-Months-Of-The-Year/Article/201004415614785?f=rss Sky news video and article on latest gdp
http://www.channel4.com/news/articles/business_money/weak+uk+growth+figures+ahead+of+election/3623287 Ch4 video and article on gdp
http://www.anforme.co.uk/blog/?feed=rss2 gdp article

Unit 2: Changes in AD and AS in action: The Irish economy

This great clip from Steph Flanders shows the effect of the recession on the Irish economy

http://news.bbc.co.uk/1/hi/business/8612688.stm

This article shows the response of some Irish citizens; the traditional route of Irish emigration to the rest of the world

http://news.bbc.co.uk/1/hi/world/europe/8616434.stm

a) Using an AD/AS diagram, explain the effect of the recession on the Irish economy and the government's macroeconomic objectives

Unit 2: Supply side policies in Cuba

A great clip from the BBC showing Cuba introducing a supply side policy in to their centrally planned economy

http://news.bbc.co.uk/1/hi/world/americas/8616858.stm

a) What supply side policy is being introduced?
b) In what ways should it make the hairdressing sector more efficient?
c) Explainn what should be the effect on the Cuban economy using an AD/AS diagram
d) What drawbacks might there be for the Cuban government in introducing such supply side policies as they try to modernise their economy?

Unit 2: China's BoP current acount deficit

The BBC reports China has, unusually, a current account deficit

http://news.bbc.co.uk/1/hi/business/8612809.stm

a) To what extent is this current account deficit a problem for the Chinese economy?

Unit 1: Rising petrol prices

This Ch4 video explains the recent rise in petrol prices

http://link.brightcove.com/services/player/bcpid62612474001?bctid=76739806001

a) Using S&D analysis, explain why the price of petrol,has risen

Unit 1: Government action to reduce market failure in the alcohol market

The BBC reports more regulations to reduce the market failure in the alcohol market

http://news.bbc.co.uk/1/hi/uk/8604571.stm

a) Using a diagram, explain how the free market for alcohol leads to market failure
b) Comment on the extent to which these measures will reduce the market failure asociated with excessive "binge" alcohol consumption

Unit 1: PED in action: Who else but Ryanair!

The BBC reports a new pricing strategy from Ryanair

http://news.bbc.co.uk/1/hi/northern_ireland/8605600.stm

a) Using your knowledge of PED, comment on whether you agree with the Ryanair statement that the purpose of the increase is to "incentivise all of its passengers to travel light" during the peak summer months.

Unit 2: Monetary policy in action in Australia

A good clip and article from the BBC showing monetary policy in action

http://news.bbc.co.uk/1/hi/business/8604281.stm article
http://news.bbc.co.uk/1/hi/world/americas/8604224.stm video

a) Using information from the video and article and your economic knowledge, explain, using an AD/AS diagram, how increasing interest rates should reduce inflation in Australia

Unit 1: Supply and demand in the Qatar property market

A great video from The BBC showing S&D in action

http://news.bbc.co.uk/1/hi/business/8602951.stm

a) Using a S&D diagram, explain what has happened to both the supply of, and demand for, property in Qatar's property market
b) What do you think will happen to property prices in 2010, given the information in the video?

Unit 2: Distribution of income in the uk

Latest figures show a narrowing of the income gap in the UKbetween different regions says the BBC

http://news.bbc.co.uk/1/hi/business/8597384.stm

The Guardian sees the data differntly

http://www.guardian.co.uk/business/2010/mar/31/north-south-divide-widens-official

and it can be seen brilliantly in this Guardian graphic

http://www.guardian.co.uk/news/datablog/2010/mar/31/economy-economics#zoomed-picture

Unit 2: Inflation : Recent data/revision

From tutor2u comes this nice summsry of inflation in the UK over the past few years

http://www.tutor2u.net/blog/index.php/economics/comments/uk-economy-revision-inflation-in-the-last-few-years/

It icludes a link to this powerpoint containing several good data charts

http://www.tutor2u.net/blog/files/Inflation_in_the_UK_Economy.pptx

Unit 2: The Government budget 2010

A great interacive guide from the Guardian

http://www.guardian.co.uk/uk/interactive/2010/mar/24/budget-2010-state-britain-finances

This BBC guide has a graph to show govt deficits/supluses over recent times

http://news.bbc.co.uk/1/hi/business/8570775.stm

This Guardian chart shows how the deficit will be reduced over time

http://www.guardian.co.uk/news/datablog/2010/mar/25/budget-2010-deficit-visualisation#zoomed-picture

Unit 1: The price of fruit and veg in the UK

Thanks to tutor2u for this article

http://www.dailymail.co.uk/news/article-1259733/Fruit-veg-prices-UK-soar-record-rain-Spain.html

a) Using a S&D diagram, explain why the price of some UK fruit and veg has risen

Unit 2: Personal costs (and benefits?) of unemployment

An interesting perspective on being unemployed from the point of view of a few people

http://news.bbc.co.uk/1/hi/business/8569213.stm article

Unit 2: Fiscal policy, Budget Deficits and the National Debt

This from tutor2u is much too detailed for AS, but there are some useful slides in her, especially at the start

http://www.tutor2u.net/blog/images/uploads/FISCAL_POLICY_09-10_MTS.pdf

Unit 2: Feb 2010 unemployment figures

Some useful sources

http://news.sky.com/skynews/Home/Business/UK-Unemployment-Falls-By-33000-Some-245m-Brits-Remain-Out-Of-Work/Article/201003315575439?f=rss Sky news video
http://news.bbc.co.uk/1/hi/business/8571625.stm BBC article
http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2010/03/not_lagging_but_not_leading_ei.html Stephanie Flanders opion piece

a) What is the meaning of the term "economically inactive"?
b) If you are unemployed, are you economically active or inactive? Explain your answer
c) Comment on whether the UK unemployment rate is improving

Unit 1: The price of petrol

A short clip from Sky explaining the sharp rise in the price of petrol.....and why there is still more to come

http://news.sky.com/skynews/Home/UK-News/Petrol-Prices-Rise-And-AA-Warns-We-Could-Soon-Be-Paying-120p-A-Litre-To-Fill-Our-Cars/Article/201003315574490?f=rss

a) Using a S&D diagram, explain this rise (and the anticipated future rise) in the price of petrol

Unit 2: Changes to the basket of goods

The BBC and Guadian report the latest changes to the basket of goods that are used to measure changes in the CPI

http://news.bbc.co.uk/1/hi/business/8568131.stm
http://www.guardian.co.uk/business/2010/mar/15/uk-inflation-recession-new-goods

a) Why are these changes necessary
b) Despite these changes, why could it be argued that the CPI basket is already out of date?

Unit 2: Revision: Supply side policies

Tutor2u has this revision powerpoint, some of which would be really good for AS

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

NB Some of it is A2: If we haven't covered it, ignore it for AS

Unit 1: Taxing goods with negative externalities: Fizzy drinks

Thanks to tutor2u for pointing out this Telegraph article

http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/7400304/New-York-Citys-mayor-plans-soda-tax.html

a) What are the negative externalities associated with fizzy drinks?
b) Is there any other sort of market failure present here?
c) Using a S&D diagram, discuss how successful the proposed tax would be in reducing the market failure

Unit 2: What are the disadvantages of using interest rates to control the economy?

A useful summary from economicshelp

http://www.economicshelp.org/blog/interest-rates/interest-rates-and-economy/

Unit 2: UK trade deficit worsens

Several sources showing the worsening trade deficit

http://news.bbc.co.uk/1/hi/business/8558908.stm video
http://news.bbc.co.uk/1/hi/business/8557200.stm article
http://www.anforme.co.uk/blog/?p=1233 article

a) Explain how the trade deficit is calculated
b) Explain how a weaker pound should improve the trade deficit
c) Explain why this hasn't happened
d) To what extent should the UK economy worry about this trade deficit?

Unit 2: Budget deficits and the national debt

I like these from economicshelp

http://www.economicshelp.org/2010/03/national-debt-facts.html
http://www.economicshelp.org/blog/economics/why-do-countries-run-deficits/

and this ticking bomb of the UK national debt

http://www.debtbombshell.com/?utm_source=widget&utm_medium=embed&utm_campaign=dbw1

Unit 2: Revision: The Balance of Payments

Now that economics student has gone off line, I've brought together some posts to form this revision document for the Balance of Payments



The Balance of Payments

The Balance of Payments (BoP) records economic transactions between residents of a country and the rest of the world. There are two sections:
The Current Account records money flows between UK & overseas residents arising from trade in goods & services, flows of income from owning overseas assets and overseas transfers
The Capital & Financial Account records money flows between UK & overseas residents from the purchase of fixed or financial assets eg factories or shares or bank deposits/loans
Note that the two accounts are interlinked: Interest profits and dividends from owning overseas assets (ie income in the current account) result from investing overseas (which would appear in the capital and financial account)


At AS the focus is on the current account. Be careful to use the terms current account and balance of payments carefully – they have different meanings. The current account is just one section of the balance of payments covering international transactions which have no impact on the country beyond the current year; ie the next 12 months.
Next, be sure you understand each element in the current account. Hopefully you understand trade in goods and trade in services, but the other 2 items are not as straightforward.
Put simply, total income is the difference between income earned by UK residents from owning overseas assets ( in the form on interest, profits and dividends; IPD) and income paid out to overseas residents owning UK assets.
Current transfers are mainly transfer payments made by government (eg receipts from (and payments to) the European Union) and payments made by expatriate workers back to their home country.


One potential area of confusion are the + and – signs. Any money entering the country will have a positive sign in the BoP accounts. Likewise, money flowing out of the country will have a negative sign


Task: Use the table below to assess the performance of the UK economy over the 4 years. Look at the trends in goods and services. Ask yourself whether the trade in services more than outweighs the deficit on trade in goods.

Trade in Goods
Trade in services
Balance of trade
Total income
Current transfers
Current balance
The causes of a current account deficit


The current account is one element of the balance of payments. The main cause of the deficit in the current account is a country’s trade in goods and services where the value of imports is higher than the value of exports.
In 2007, the UK ran a £89.2bn deficit on trade in goods and a £41.7bn surplus on trade in services giving an overall Balance of trade of -£47.5bn.


What factors cause the trade deficit? Put simply: a lack of international competitiveness. If UK made products are more expensive or of a lower quality than EU & USA rivals then UK imports rise and our exports fall
There are three main factors at work which can explain why UK products are relatively more expensive than their overseas rivals:
1 Lower productivity. Productivity is output per worker. If, on average, UK workers produce less than the international average then it follows that UK unit costs are higher. Price competitiveness is lost
2 The strength of sterling. Exchange rates affects the price of UK imports and the price of UK exports in terms of foreign currency. a sustained appreciation of the pound over time lowers the price of imports while raising the price of exports, causing the loss of price competitiveness
3 Relative inflation rates. where the UK has higher inflation rates than its overseas rivals, then UK prices are accelerating faster than their competitors, so reducing UK price competitiveness


The role of quality should not be underestimated. Price is just one factor determining the demand for imports and exports. Globalisation and the emergence of developing economies such as China with low labour costs and an advantage in the mass production of low-priced products, encourages the UK to specialise in high value added industries. UK goods compete on quality design and exclusive brand image.

Policies to improve a current account deficit

The current account is an element of the balance of payments. So how would you define a current account deficit? It occurs when exports revenue, income and current transfers from abroad are less than expenditure on imports, income and current transfers going abroad. More money is leaving the country than entering it.

The government can make use of various policy instruments to improve the current account position, focusing on the balance of trade in goods and services. This involves taking measures that increase the demand for exports or lower the demand for imports

Demand side measures
1 Lower the exchange rate; this will bring about an increase in the price of imports, and reduction in the price of exports in terms of foreign currency. The effectiveness of the depreciation of sterling depends upon the demand for exports and imports being price elastic and ceteris paribus. Bringing about a reduction in the exchange rate is rendered ineffectual if other countries follow suit and engineer a depreciation of their own currency or retaliate with import restrictions
2 Introduce import restrictions such is tariffs or quotas that increase the price of imports, lowers demand and so – given demand is price elastic - reduces spending on imports. Note import restrictions have an inflationary side effect and so conflict with the objective of stable prices (low inflation). More importantly scope for introducing tariffs and quotas is limited by UK membership of the EU and World Trade Organisation. Import restrictions may simply encourage retaliation lowering the volume and value of UK exports.
3 Reduce aggregate demand. The demand for imports depends on the level of national income reducing aggregate demand causes lower levels of imports. This reduction in AD could be achieved via fiscal or monetary policy. The effectiveness of this policy depends upon the value of the marginal propensity to import and the extent to which aggregate demand is reduced. Note the objectives of low unemployment and economic growth are compromised.

Supply side measures
A current account deficit is brought about by a lack of international competitiveness; ie UK products are either relatively more expensive or of poorer quality than items produced overseas. Improving the quality of UK products require supply side policies. For example, offering tax breaks and/or grants to firms that encourage research and development, enterprise and innovation. Many supply-side policies take a relatively long time to have an impact and can be expensive.

Unit 2: Tightening monetary policy at work in Australia

A great little clip from the BBC

http://news.bbc.co.uk/1/hi/business/8545561.stm

Anforme write on the same topic

http://www.anforme.co.uk/blog/?p=1215

a) Using an AD/AS diagram, explain the likely effects of raising interest rates on the Australian economy

Unit 2: International data sources

Many listed in this tutor2u blog post

http://www.tutor2u.net/blog/index.php/economics/comments/a-goldmine-of-development-data-sources/

Unit 2: Comparative international inflation rates

I like these graphics as they are so visual

http://bespokeinvest.typepad.com/bespoke/2009/06/country-inflation-rates.html
http://en.wikipedia.org/wiki/File:World_Inflation_rate_2007.PNG

A list can also provide data

http://en.wikipedia.org/wiki/List_of_countries_by_inflation_rate

....as can a table. This one allows tracking of inflation rates with EU countries over time

http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&language=en&pcode=tsieb060&tableSelection=1&footnotes=yes&labeling=labels&plugin=1
or the graph of the table (at the top of the post)

a) How does the UK's inflation rate compare to our major trading partners?
b) What effect might this have onfuture patterns of trade?

Unit 2: Balance of Payments data

From tutor2u comes this powerpoint presentation with a lot of BoP data

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

Unit 1: Complements; flights and match tickets

A nice link fropm tutor2u

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/disappointing-ticket-sales-for-the-world-cup-complements/

a) Draw 2 S&D diagrams; one to show the effect on air travel and the second on match tickets and explain what is happening in each case in the market

Unit 2: Supply side policies in the UK

Tutor2u has an example of a UK supply side policy

http://www.tutor2u.net/blog/index.php/economics/comments/specific-supply-side-policies/

Unit 2: Where do we export to?

A great graphic from the Guardian answers this question

http://image.guardian.co.uk/sys-files/Guardian/documents/2010/02/24/UKExports.pdf

The BBC reports the demise of the Hummer

http://news.bbc.co.uk/1/hi/business/8536360.stm

a) Explain, using the theory of what determines demand, why demand for the Hummer has fallen to the extent that GM is stopping production

Unit 2: Decreasing investment in the UK

Anforme report decreasing investment in the UK

http://www.anforme.co.uk/blog/?p=1203

a) To what extent will this 24% decrease in investment effect the level of aggregate demand in the economy?

Unit 2: Unemployment rates in various countries

Tutor2u has this "play your cards right" unemployment game

http://www.tutor2u.net/blog/images/uploads/Unemployment_-_Play_your_cards_right.ppt

Unit 1: Revision: Positive externalities

Tutor2u provide this useful powerpoint presentation

http://www.tutor2u.net/economics/presentations/aseconomics/marketfailure/PositiveExternalities/player.html

Unit 1: Revision: Public goods

Tutor2u provide this revision powerpoint

http://www.tutor2u.net/economics/presentations/aseconomics/marketfailure/PublicGoods/player.html

Unit 2: An unclear picture on UK unemployment

The BBC and anforme report differing signals from the latest figures

http://news.bbc.co.uk/1/hi/business/8520256.stm video
http://news.bbc.co.uk/1/hi/business/8519647.stm article
http://www.anforme.co.uk/blog/?feed=rss2

a) Why might the LFS figures underestimate the real unemployment figures?

Unit 2: Supply side policies in China; encouaraging entreprenneurs

A post from tutor2u , with an audio clip on Supply side policies in China

http://www.tutor2u.net/blog/index.php/economics/comments/supply-side-stimulus-for-the-chinese-economy/

Unit 2: Rising inflation in the UK

A good summary from the BBC and anforme

http://news.bbc.co.uk/1/hi/business/8519194.stm video
http://news.bbc.co.uk/1/hi/business/8517156.stm article
http://www.anforme.co.uk/blog/?p=1110

a) What type of inflation is the economy currently suffering?
b) Who wins and who loses in the UK economy when there is inflation?
c) To what extent is inflation at 3.5% a problem for the UK economy?

Unit 2: How does the government finance a budget deficit?

The answer can be found in this great little video from the BBC

http://news.bbc.co.uk/1/hi/programmes/the_daily_politics/8498299.stm

Unit 2: The effects of a fall in the value of the £

A good 2-sided article from tutor2u looking at the positive and negative effects of a fall in the value of the £; this is how to evaluate!

http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-sterling-and-the-uk-economy/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:18:53:00Z

Unit 2: UK inflation data

A chart from Volterra showing UK inflation over the last 7 years. Note when it goes outside the limits (2%+ or- 1%)

http://www.volterra.co.uk/custompage/einsight-0210.php#einsight0210_3

Unit 2: GDP growth in the UK over the past secade

A useful chart from Volterra

http://www.volterra.co.uk/custompage/einsight-0210.php#einsight0210_1

a) describe the pattern of growth in the UK over the period shown
b) In which quate of which year would the UK have had the highest GDP figure

Unit 2: Real v nominal data: All time best selling films

Thanks to tutor2u for this Wall St Journal analysis of all time USA box office success

http://s.wsj.net/public/resources/documents/st_TOP-BOX-OFFICE-1001_20100129.html

a) Explain what "nominal gross takings" means
b) Which is the best nominal grossing film ever?
c) Explain what "real gross takings" means?
d) Re-order the top five to show the best real grossing films ever?
e) Explain the difference between the 2 lists

Unit 2: International comparison of unemployment rates

Some useful data from anforme

http://www.anforme.co.uk/blog/?p=1089

Unit 2: Chinese tariffs on US chickens!

Tutor2u has the story

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/the-world-on-wednesday-china-and-us-chicken-dispute/

Unit 2: Exchange rates and their effect on the BoP

Economics help offers this summary

http://www.economicshelp.org/blog/economics/exchange-rate-and-current-account/

NB: The bit on the J curve is not needed for AS

Unit 1: Video clips for externalities

Tutor2u has links to 5 video clips on externalities

http://www.tutor2u.net/blog/index.php/economics/comments/some-new-video-pieces-on-externalities/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:22:40:00Z

Unit 2: The problems in Greece

From economics blog comes these summaries of the position Greece finds itself in
http://www.economicshelp.org/blog/economics/drastic-economic-measures/
http://www.economicshelp.org/2010/02/problem-with-greece-economy.html

The BBC has these videos on the same topic
http://news.bbc.co.uk/1/hi/world/europe/8494706.stm
http://news.bbc.co.uk/1/hi/world/europe/8494969.stm

.......and this one on the start of the problems the government may face with these proposals
http://news.bbc.co.uk/1/hi/world/europe/8497432.stm

a) Assess the current position of Greece in terms of the 4 macroeconomic objectives
b) Discuss how successful the measures taken by the Greek government are likely to be in improving the state of the Greek economy

Unit 2: The UK's national debt

A good summary video from the BBC on the national debt

http://news.bbc.co.uk/1/hi/programmes/the_daily_politics/8498299.stm

Unit 2: Revision: Unemployment

A great powerpoint from tutor2u filled with data and information

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

Unit 1: More proposals to control tobacco consumption

The BBC reports more proposals; I particularly like the chart showing the decline in smoking

http://news.bbc.co.uk/1/hi/uk/8490490.stm

Unit 2: Comparing UK unemployment to other European countries

A useful article from anform for comparing UK/EU unemployment rates

http://www.anforme.co.uk/blog/?p=1069

Unit 2: The financial cost of unemployment

This Telegraph article outlines the financial cost of unemployment in the UK; it also shows how it is unequally spread across the country

http://www.telegraph.co.uk/news/newstopics/politics/6094687/Workless-rate-jumps-as-Labour-benefit-bill-reaches-350-billion.html

Unit 2: How bad is unemployment in this recession

When evaluating how bad a problem unemployment is for the economy, it's useful to be able to make a comparison; these charts from the ONS are therefore very useful.

Unit 2: GDP and GDP per capita top 10

Helpful lists from economics help

http://www.economicshelp.org/country/largest-gdp-nominal.html nominal GDP $US
http://www.economicshelp.org/country/gdp-per-capita.html GDP per capita $US
http://www.economicshelp.org/country/economy-gdp-ppp.html GDP PPP $US

Unit 2: Causes of changes in consumer confidence

Two nice articles from economics help, putting the importance of consumer confidence in context

http://www.economicshelp.org/blog/economics/expectation/
http://www.economicshelp.org/2010/01/uk-consumer-confidence.html

Unit 2: Economic growth and environmental impacts

This from the Times (via tutor2u)

http://labs.timesonline.co.uk/blog/2010/01/21/environmental-performance-of-rich-and-poor-countries/

a) What might you consider the link to be between economic growth and the factors indicated?
b) Does the data back up your theory?

Unit 2: Economic growth in China

A really good article from anforme on economic growth in China

http://www.anforme.co.uk/blog/?p=1041

a) Using the AD equation, explain the reasons for economic growth in China
b) Using an AD/AS diagram, explain why the article arues this increased economic growth is unlikey to result in inflation in China
c) To what extent do you agree with this conclusion?

Unit 2: Rising UK inflation data

A good summary of the latest position, including a diagram, from anforme

http://www.anforme.co.uk/blog/?p=1029

Unit 1: The price of rubber

A video from the BBC explaining the changing price of rubber

http://news.bbc.co.uk/1/hi/business/8470319.stm

a) Using a S&D diagram, explain why the price of rubber has risen. Make sure you cover both supply and demand factors

Unit 2: UK unemployment January 2010: Total numbers and the inequity of the burden of unemployment in the UK

The latest unemployment figues

http://news.bbc.co.uk/1/hi/uk/8470450.stm BBC video
http://news.bbc.co.uk/1/hi/business/8469648.stm BBC article
http://www.channel4.com/news/articles/business_money/unemployment+drops+for+first+time+in+18+months/3509152 Ch4 video and analysis. The article has some good hyperlinks in it
http://www.anforme.co.uk/blog/?p=1033 anforme analysis

a) Why has the unemployment total not risen as fast as anticipated?

The personal stories of some of the young unemployed in the UK

http://news.bbc.co.uk/1/hi/uk/8469526.stm

A minister explaining the latest data and how different groups are hit differently

http://news.bbc.co.uk/1/hi/business/8470017.stm

b)To what extent is unemployment a significant economic problem in the UK?

Unit 1 The price of garlic

Thanks to tutor2u for this article from the China Daily on the surging price of garlic

http://www.chinadaily.com.cn/bizchina/2009-11/30/content_9076838.htm

a) What factors that effect demand have changed?
b) What factors that effect supply have changed?
c) Use a S&D diagram to show why the price has risen so sharply

Unit 2: Revision: Inflation

A great summary from the BBC

http://news.bbc.co.uk/1/hi/business/7607930.stm

Unit 1: More proposals to control alcohol consumption

The BBC reports the latest government proposals to control alcohol consumption

http://news.bbc.co.uk/1/hi/uk/8466982.stm

a) What is the market failure the government is trying to tackle?
b) Tq what extent do you believe these new proposals are likely to succeed in reducing the market failure?

Unit 2: Falling consumer confidence

Anforme reprt falling UK consumer confidence

http://www.anforme.co.uk/blog/?p=1010

a) Why might this result in a fall in consumption spending in the UK?
b) Why might it not?

Unit 1: Information failure with alcohol: Is this the answer

A proposal to change the way information on alcohol is given

http://news.bbc.co.uk/1/hi/health/8455783.stm

a) To what extent do you believe this proposal would reduce the market failure associated with alcohol production?

Revision: What are the benefits and drawbacks of regulations for correcting market failure

A 2-sided summary fron economics student

http://rapidrevision.co.uk/economics-student/2010/01/09/all-9-jan-games-home-and-away-are-cancelled/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+EconomicsStudent+%28Economics+Student%29

Unit 1: A minimum price for alcohol; a way of reducing market failure?

Anforme/BBC have these informative articles on the proposal to have a minimum price for alcohol

http://www.anforme.co.uk/blog/?p=992
http://news.bbc.co.uk/1/hi/health/8447587.stm BBC video

a) Discuss whether there should be a minimum price on alcohol to reduce the market failure associate with its excessive consumption

Unit 1: Taxes on alcohol and tobacco

The BBC reports that Greece is to increase its taxes on alcohol and tobacco

http://news.bbc.co.uk/1/hi/business/8449252.stm

a) What type of taxes are these?
b) Draw a S&D diagram to show the effect of increasing the taxes
c) Given the government think that increasing the taxes will increase its revenues, what can you say about demand for these products?
d) Why is this the case?

Unit 1: The cost of the negative externalities associated with excessive alcohol consumption

Some sobering numbers in this BBC clip

http://news.bbc.co.uk/1/hi/health/8436888.stm