Sunday, July 31, 2011

Unit 2: The effect of the depreciating pound on holidaymakers

An interesting post from anforme

a) Using the information provided, explain why more foreign tourists are coming to the UK, and fewer British citizens holidaying overseas
b) Explain why a recession in the UK leads to fewer UK citizens holidaying overseas
c) What, in general terms, can you say about the income elasicity of demand for overseas holidays? What type of good would you therefore classsify foreign holidays as?

Tuesday, July 19, 2011

Unit 1: Hungary's plan to impose a tax on unheathy food

The BBC reports the plan

a) What is the economic reason for this proposal?
b) To what extent do you think this action will reduce the market failure?
c) What other policies could the Hungarian government introduce to achieve its objective?

Sunday, July 17, 2011

Unit 1: Restrictions on smoking in Iceland

What about if you needed a prescription to aquire cigarettes? Thats the proposal in Iceland

Unit 2: Inflation; what is it and who wins loses?

A great summary from the BBC's Declan Murphy

Unit 1: Taxing negative externalities in Australia

A big step by the Australian government to internalise external costs

a) Comment on the likely succes of this policy in reducing the market failure associated with CO2 emissions