Thursday, December 29, 2011

Unit 1: Cuba moves towards the market system

.....according to the BBC

Unit 1: The end of tobacco displays on its way, says the BBC video article

A) To what extent do you believe this measure will reduce the market failure in the tobacco market?

Unit 1: The price of peanuts

I love peanuts and so I've noticed the rising price in pubs and supermarkets. This post from tutor2u explains why

Unit 1: Examples of negative externalities

.....from tutor2u

Friday, December 23, 2011

Unit 1: Negative externalities from pop concerts

A few clear examples in this BBC news story

a) What are the negative externalities arising from the Hyde Park concerts listed in the article?
b) Explain why these are negative externalities
c) What form of action is the government suggesting to reduce the market failure?
d) How likely is such a course of action to reduce the market failure and lead to a more socially optimum output?

Thursday, December 15, 2011

Sunday, December 11, 2011

Unit 1: The external cost of excessive alcohol

The Guardian has some unbelievable stats in this article

a) Why is this an external cost of alcohol consumption?
b) State 3 other external costs of alcohol consumption
c) What actions could the government take to internalise these external costs of alcohol?

Friday, December 09, 2011

Unit 1: Does legislation work to curb alcohol consumption?

The answer would appear to be "yes" from early evidence in Scotland

Unit 2: How to boost growth

This BBC aricle contains a mix of remedies

a) Seperate the policies in to supply side and demand side policies
b) To what extent are such policies likely to be successful in boosting the rate of economic growth?

Thursday, December 08, 2011

Unit 1: Migrant labour and the PPC

Qatar has more migrants than Quatari's reports the BBC

a) Using a diagram, explain the effect of this migration on Qatar's production posibility curve

Unit 2: How to increase economic growth

Thanks to economicshelp for this summary

Wednesday, December 07, 2011

Unit 2: Economic growth in Australia

....reports the BBC video article

...and a cut in interest rates

Unit 1: Negative externalities: Smog in Beijing

A fantastic clip from the BBC

a) Why is the smog an example of a negative externality?
b) What actions could the government take to reduce the negative externality?
c) To what extent is each policy likely to be successful?

Unit 1: Information failure when shopping

A nice clip from the BBC

a) What is the information failure consumers are suffering?
b) What is the result in the free market?
c) What actions could the government take to eradicate this information failure for the consumer?

Saturday, December 03, 2011

Unit 1: The whisky market growing according to the BBC

a) Which of the factors that effect demand are causing the increasing demand for whisky?
b) Is supply elastic or inelastic? Explain your answer
c) Given your answers to a) and b) draw a S&D diagram to show the effect on the whisky market if demand continues to grow

Unit 1 : Alcohol; a demerit good

A sad story from the BBC

a) What evidence is there in the video of the 2 elements of demerit goods; ie information failure and negative externalities
b) Towhat extent do you believe higher taxes and better information to consumers would reduce alcohol consumption?

Friday, December 02, 2011

Unit 1: Elasticity of supply: Biscuits

A great video found by tutor2u

a) Would the supply of these biscuits likely be elastic or inelastic? Explain your answer?