Wednesday, August 18, 2010

Unit 1: Information failure in 3 markets

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

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

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

Tuesday, August 17, 2010

Unit 2: Inflation in the UK

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

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

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

Thursday, August 12, 2010

Unit 2: Cyclical and structural unemployment in the USA

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

Unit 2: Youth unemployment

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

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

Tuesday, August 10, 2010

Unit 1: Increasing demand for fake grass

An interesting clip from the BBC

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

Sunday, August 01, 2010

Unit 1: The demand for beer

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

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

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