Friday, November 29, 2013

Unit 1: Negative externalities from a US sauce factory

....reports the BBC

Unit 1: Food outlets forced to display hygiene ratings in Wales

A nice post from BBC Wales showing an attempt to reduce information failure in the fast food/café market

Unit 1: Packaging restrictions coming to UK cigarettes?

Very likely, it now seems, says Sky news

and the BBC

....and this BBC audio reports the effect of similar packaging changes in Australia video

Saturday, November 23, 2013

Unit 1: Negative externalities from a new proposed gold mine in Romania

Another great story from Aljazeera

Unit 1: Plastic bags in New Delhi

A great clip from Aljazeera illustrating not just the normal negative externalities associated with rubbish, but also a positive externality. Great stuff!

Unit 1: A disturbing example of negative externalities from China

Thanks to Aljazeera

Thursday, November 21, 2013

Unit 1: Are supermarket customers suffering information failure?

Yes, reports the BBC

Unit 1: A law is fine, but how is it enforced?

Standard theory suggests market failure can be reduced by regulation/legislation, but it has to be enforced

This BBC clip appears to show that isn't always the case and so breaking the law becomes less of an issue......and the negative externality remains!

Wednesday, November 20, 2013

Unit 1: NY introduces minimum age and minimum prices for cigarettes

....reports the BBC

a) To what extent are these measures likely to reduce the market failure caused by cigarettes?

Unit 1: The demise of Tie Rack: Allocative efficiency

As anyone who knows me will testify, I've never bothered the sales staff in Tie Rack. Now it appears, others are following my approach and not buying ties as Sky reports

a) How does this closure illustrate the idea of allocative efficiency

Sunday, November 17, 2013

Unit 1: Is breastfeeding a merit good?

It could well be, according to the government who are starting a trial to give vouchers (ie a subsidy) to mothers who breastfeed. This BBC video explains all

a) What are the 2 conditions needed for a merit good?
b) Does breastfeeding meet these criteria
a) Evaluate the likely success of this project

Unit 1: Allocative efficiency and the demise of Blockbuster

Sky reports

a) In what way does the disappearance of Blockbuster from high streets show allocative efficiency in the economy?

Unit 1: Shine on you crazy diamond

Classis S&D story in the auction house

Unit 2: November 2013: Inproved unemployment figures

Report from Sky news

and UK by region map from the Guardian

Sunday, November 10, 2013

Unit 1: Payday loans; a demerit good?

Ed Milliband appears to think so as he want regulations introduced to restrict when they can be shown, says Sky

a) Why might payday loans be characterised as a demerit good?
b) To what extent would the proposal reduce the market failure?
c) What other actions could the government take? Would they be more successful?

Saturday, November 09, 2013

Unit 2: ECB cuts interest rates

A really informative article from the BBC

a) Why has the ECB cut the rate? Explain your answer in terms of the 4 macro-economic objectives
b) Evaluate the likely success of this policy move

Unit 1: US Government bans transfats

Thanks to tutor2u for this post

a) What is the market failure this intervention is meant to correct?
b) Evaluate the likely success of the government action in correcting the market failure
c) Outline one other action the US government could have taken instead of the legislation and compare the likely success of the 2 policies

Friday, November 08, 2013

Unit 1: Why has demand for blockbusters products collapsed

This article from Sky explains

a) Using the theory of demand, explain the demise of Blockbusters, both in the US and the UK

Wednesday, November 06, 2013

Unit 1: What explains the rising demand for new cars?

An interesting article from Sky news

a) Given we are experiencing little or no growth in real incomes, which of the determinants of demand explains the increasing demand for new cars?

Tuesday, November 05, 2013

Sunday, November 03, 2013

Unit 1: Negative externalities from sand mining in India

A really good example of negative externalities from Al Jazeera

Unit 1: Cuba; a step back to central planning?

Interesting development in Cuba that seems to buck the recent trend reports the BBC

...and Aljazeera

Saturday, November 02, 2013

Unit 1: The used car market; a case of information failure?

It would appear so from the point of view of the consumer, according to this BBC clip which clearly shows asymmetric information in the market