Thursday, August 30, 2012

Unit 1: Increasing demand for private jets in China

...according to the BBC

a) Explain, using the determinants of demand, why the demand for private jets has grown so rapidly in China

Wednesday, August 29, 2012

Unit 1: Cannabis; a demerit good?

Interesting clip from the BBC based on long term research

a) Define the term "merit good"
b) To what extent is cannabis a demerit good?
c) Comment on the likely success of government policies to reduce the market failure associated with cannabis consumption

Wednesday, August 22, 2012

Unit 1: Positive externalities from the V festival

....according to this BBC clip

a) State the positive externality in the video and explain why it is a positive externality

Monday, August 20, 2012

Unit 1: Does the Russian space programme have negative externalities?

Some locals in remote areas of Russia think the answer might be "yes" according to the BBC

Tuesday, August 14, 2012

Unit 1: Positive externalities from solar lights

An interesting video from Aljazeera

a) What would be the private costs and benefits to a firm of fitting this system?
b) What would be the positive externalities/external benefits of this system?
c) What actions, if any, should the government take in this market?