Unit 3: Supply side policies: Migration into the UK

This article from Geoff Riley explains the macroeconomic effects of inward migration to the UK

http://www.tutor2u.net/newsmanager/templates/?a=2145&z=1

a) Explain the supply side effects and draw an AD/AS diagram to show this change.
b) What is the likely effect of this increased immigration for the governments 4 macroeconomic objectives?

Unit 1: Barriers to entry: India's pharmacutical industry

This clip shows a good example of a barrier to entry
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6300000/newsid_6309400?redirect=6309453.stm&news=1&amp;bbram=1&nbwm=1&bbwm=1&nbram=1 >

To what extent do you think the barrier to entry is justified?

Unit 3: The costs of China's economic growth

China may be powering ahead with 10% annual growth, but at what price? This clip shows some of the negative externalities generated

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6300000/newsid_6307100?redirect=6307131.stm&news=1&bbwm=1&bbram=1&nbram=1&nbwm=1 >

Unit 3: Supply side policies

From Geoff Riley's blog comes this example of the Italian government using supply side policies

http://www.tutor2u.net/newsmanager/templates/?a=2143&z=1

a) Which type of supply side policies are being suggested?
b) Draw a diagram to show (and then use it to explain) the effects of these policies if they were to be succesful

Unit 2: Negative externalities; lung disease

Read the article below and watch the video clip

http://news.bbc.co.uk/1/hi/health/6297701.stm

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6300000/newsid_6301000?redirect=6301027.stm&news=1&bbwm=1&nbwm=1&bbram=1&nbram=1 >

a) Why is this lung damage an example of a negative externality?
b) Suggest 3 possible actions the government could take to correct this market failure
c) Suggest one drawback to each method you suggest

Unit 2: Reducing the negative externalities associated with consumption

Geoff Riley has picked up on a campaign by the Independent to reduce waste such as unnecessary packaging

http://www.tutor2u.net/newsmanager/templates/?a=2130&z=1

a)Why is this packaging an example of a negative externality?
b) What action(s) could the government take to reduce this negative externality?

Unit 2: Market dominance: The supermarkets

Today sees the release of the interim findings of the Competition Commission's investigations into the major supermarkets.

Read the articles and watch the clips and then
a) Identify the possible causes of market dominance identified
b) Given the benefits of such large supermarket chains, evaluate whether the CC should take action against the major supermarkets

http://news.bbc.co.uk/1/hi/business/4785544.stm

http://news.bbc.co.uk/1/hi/business/6289479.stm

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6280000/newsid_6289600?redirect=6289649.stm&news=1&amp;amp;nbwm=1&nbram=1&bbram=1&bbwm=1 >


< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6280000/newsid_6289900?redirect=6289987.stm&news=1&amp;amp;bbwm=1&nbwm=1&nbram=1&bbram=1 >

Unit 3: Calculate your own inflation rate!

The ONS now allows you to calculate your personal inflation rate at

http://www.statistics.gov.uk/pic/

Unit 3: Infation: Updated OHP preentation

This is an updated presentation on Inflation from Geoff Riley's blog

http://www.tutor2u.net/newsmanager/templates/?a=2110&z=1

Unit 1: The price of corn

This BBC clip explains why the price of corn (and corn derived products) is rising and likely to continue rising


< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6270000/newsid_6277800?redirect=6277809.stm&news=1&nbwm=1&nbram=1&bbwm=1&bbram=1 >

a) How would you describe the SUPPLY of corn available this year?
b) What has happened to DEMAND and which of the factors that effect demand have changed?
c) Draw a S&D diagram to show this effect
d) What will happen to the market over the next few years?
d) Draw a diagram and explain why the price of bread will increase
e) Draw a diagram and explain the effect of a subsidy on the bio-fuel market

Unit 2: Negative externalities in Romania

This BBC clip shows many negative externalities which this romanian town suffers from

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6269225 >

a) What are the PRIVATE costs and benefits of the industry in the town?
b) What are the EXTERNAL costs and benefits of the industry in the town?
c) How is the government taking action to ensure the situation improves?
d) To what extent do you believe they will be successful?

Unit 2: Climate change negative externalities

This clip shows some of the negative externalities associated with CO2 emmissions

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6267649 >

a) What are these effects?
b) Why would an economist class them as examples of negative externalities/external costs?

Unit 3: Inflation at an 11 year high

This link is to the BBC's Evan Davies discussing the rise in inflation on the clip and an associated BBC article. here is also a more general BBC article

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6266449 >

http://news.bbc.co.uk/1/hi/business/6268819.stm

http://news.bbc.co.uk/1/hi/business/6266263.stm

a) What are the suggested causes of this inflation rise?
b) What are the likely effects suggested to be on the economy?
c) Why might this rise in inflation only be short-term?

Unit 3: Interest rates and inflation

On the day that UK interest rates rise to 5.25%, Evan Davies of BBC news has this great little summary

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6252225 >
In addition, background information from Geoff Riley's blog showing trends in interest rates at

http://www.tutor2u.net/newsmanager/templates/?a=2084&z=1

a) What reasons does he give for interest rates having to rise?
b) Show the effect on an AD/AS diagram
c) What should the positive effects be on the economy (use the diagram!)
d) Not all the effects will be positive. From the clip and the diagram explain the likely negative effects on the economy

Unit 2 Government intervention: OFT investigation into competition issues

The OFT has announced it is to investigate the puchase of 17.9% of ITV by BSkyB

http://news.bbc.co.uk/1/hi/business/6255727.stm

a) What is the potential worry here?
b) Under which of the 6 market failure headings would you classify this?
c) What action can the OFT take if they think there is a case to answer?

Unit 2: Government action; enforcing the minimum wage

Abrief item showing how enforcement of legislation can occur

http://news.bbc.co.uk/1/hi/uk/6243307.stm

Unit 1: Demand for smoothies

This article says sales of smoothies has rocketed.

http://news.bbc.co.uk/1/hi/business/6230461.stm

a) Why in general terms?
b) Why in economic terms?

Unit2: The polluter pays...or should he?

This article from the Times via Geoff Riley's blog argues that the polluter pays principle of internalising negative externalities may be unfair

Do you think he has a point?

http://www.tutor2u.net/newsmanager/templates/?a=2061&z=1

Unit 1: The housing market

From Geoff Riley comes this powerpoint slide analysis of the housing market in 2006. A lot of detail but very interesting

http://www.tutor2u.net/newsmanager/templates/?a=2051&z=1

Unit 1: The oil market

From Geoff Riley comes this powerpoint summary of the oil market in 2006. A lot of detail but very interesting

http://www.tutor2u.net/newsmanager/templates/?a=2049&z=1

Unit 1: The price of handbags

This BBC clip says that a handbag is now the most desirable and fastest growing accessory

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6217193 >

a) Why has demand increased?
b) Limited editions sell for considerably more than the "normal" version. Use supply and demand analysis to explain why this can be the case

Unit 1: S&D and market structure: The champagne market

This BBC clip helps explain changes in the champagne market

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6218353 >

a) What has happened to demand?
b) Which of the factors that influence demand account for this?
c) What determines the supply of champagne available today?
d) How would you therefore describe the current supply of champagne?
e) What market structure best represents the champagne market?
f) Which of the criteria for that structure are/are not present; ie to what extent does it reflect that market structure?

Unit 1: The Nigella effect on the demand for goose fat

What price the celbrity effect? This article from the Guardian shows the effect of an endorsement by celebrity Nigella Lawson on the sales of goose fat

http://www.guardian.co.uk/food/Story/0,,1970107,00.html

a) Which of the factors that influence demand has changed?
b) What has happened to the demand curve for goose fat?

Unit 1: The price of orange juice

A great article from the Guardian explaining all sorts of things about the orange industry but particularly explaining why the price will rise in the near future

http://business.guardian.co.uk/story/0,,1969053,00.html

a) What factors are identified as having reduced supply
b) Draw a diagram to show how these changes have caused the price to rise

Unit 2: Market dominance: BAA and air passenger travel

The OFT is likely to recommend a Competition Commission enquiry into BAA says this BBC article:

http://news.bbc.co.uk/1/hi/business/6171365.stm

a)On what grounds?
b) Given its market share, what term could you use to describe BAA's market position?

Unit 2: Tradable permits: The EU Carbon Trading and fines on firms for non-compliance

Geoff Riley's blog has this story about 2 firms fined for non-compliance with the scheme and a link to more details on the scheme

http://www.tutor2u.net/newsmanager/templates/?a=2028&z=1

Unit 3: Exchange rates and the BOP: More on the fall of the dollar

This article from the Independent is great!

a) If the dollar is falling in value, what is happening to the value of the pound?
b)What does the article suggest are the advantages and disadvantages TO THE UK ECONOMY of this change
c) To what extent will the current account of the BOP be effected by the fall in value of the dollar?

http://news.independent.co.uk/business/news/article2032660.ece

Unit 2: Overcoming negative externalities: Road pricing; the Eddington report

The Eddingon report on on the future of UK transport suggests a role for road pricing. This video clip suggests why

Drivers should be charged according to how much they use the roads, says a report on the future of transport in Britain.< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6197498 >

More on the report can be found at

http://news.bbc.co.uk/1/hi/uk_politics/6160877.stm

and other links are listed with a summary at Geoff Riley's blog

http://www.tutor2u.net/newsmanager/templates/?a=2018&z=1


As the prospect of green taxes loom, this BBC Midlands Today video clip examines what road pricing might cost some of the region's commuters.

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6099642 >

Unit 2: Market dominance and Government action: Fines in the rubber industry

A brief article in the Guardian illustrating action the European Community will take if they believe firms are colluding to abuse their market power

http://business.guardian.co.uk/story/0,,1959891,00.html

...and a link to more on this on Geoff Riley's blog where there is more on the context of the decision

http://www.tutor2u.net/newsmanager/templates/?a=2015&z=1

Unit 2: Social costs and social benefits: Donald Trump and golf course developments

Here are 2 stories from the Guardian about the American developer Donald Trump's plan for a golf development in Scotland. Read both articles and then

a) Identify private costs associated with the project
b) Identify external costs associated with the project
c) Identify private benefits associated with the project
d) Identify external benefits associated with the project
e) How might decision makers use cost-benefit analysis to help decide whether this proposed project be allowed to go ahead

http://business.guardian.co.uk/story/0,,1957686,00.html

http://sport.guardian.co.uk/golf/story/0,,1959410,00.html

Unit 3: Exchange rates and the Balance of Payments: The decline in the value of the dollar

Here's an article from the Guardian and a BBC news clip from Evan Davies explaining the impact of the decline in the value of the dollar

a) If the dollar is falling, what is happening to the value of the pound?
b) What is the effect of this on UK import prices costed in dollars?
c) What is the effect of this on UK export prices to the USA?
d) What does economic theory tell us shoul happen to the current account of the Balance of Payments as a result?
e) Will this actually happen? It depends on which economic concept?

http://business.guardian.co.uk/story/0,,1958016,00.html

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6190094 >

Anothe article describing the effects on the UK economy both positve and negative

http://news.bbc.co.uk/1/hi/business/5250250.stm

Unit 1: The price of wine

This article explains the effect of the recent drought on the Australian wine market

a) Draw a D&S diagram to show the effect of this on the wine market
b) Describe what your diagram shows

http://news.bbc.co.uk/1/hi/business/6180072.stm

Unit 1: Opportunity cost and the PPC: Drugs choices

This articl clearly shows the choices that have to be made by hospitals

a) Draw a PPC to show the choices faced by the doctors
b) What does the PPC show?
c) How does it illustrate the idea of opportunity cost?

http://news.bbc.co.uk/1/hi/health/6176008.stm

Unit 2: Competition policy; control of monopoly

From Geoff Riley's blog comes this excellent presentation explaining the actions governments can take if they believe there to be a market failure through market dominance

It has many links in it which can illustrate numerous points of economic theory

http://www.tutor2u.net/economics/presentations/competition-policy/default.html

Unit 2:Negative externalities and taxation of packaging

From Geoff Riley comes information on the idea of using taxation to discourage excess packaging.

a) In what way is excess packaging a negative externality?
b) Evaluate how successful you think a scheme such as this would be

http://www.tutor2u.net/newsmanager/templates/?a=1970&z=1

Unit 1: Market structure: Games consoles

From Geoff Riley's blog comes this page with plenty of links so you can explore the market for games consoles

a) What type of market structure do you think the games console market is?
b) Are all the criteria of that market structure present? If not, TO WHAT EXTENT does any model explain the games console market?

http://www.tutor2u.net/newsmanager/templates/?a=1967&z=1

Unit 1: Economies of scale: Pubs

What economies of scale might arise from increasing the size of your pub chain as in the article below?

http://news.bbc.co.uk/1/hi/business/6165278.stm

Unit 2: Government response to demerit goods: Junk food advertising ban

Ofcom is planning to restrict the advertising of junk food

http://news.bbc.co.uk/1/hi/health/6154600.stm

a)Who is the ban aimed at?
b) Why is junk food regarded as a demerit good in this case ? You need to cover both criteria
c) Why is the ban on advertising these products aimed at children and not total?

Here is the response of the manufactures

http://news.bbc.co.uk/1/hi/business/6157708.stm

d) Evalute the validity of their response

Unit 1: Economies of scale: Easyjet

This article says that easyjet plans to continue to expand and grow its fleet of aircraft

From the content of the article and your knowledge of the airline industry, suggest economies of scale the easyjet may gain from expansion. Will they get economies in the 5 catagories on the syllabus?

http://news.bbc.co.uk/1/hi/business/6145872.stm?ls

Unit 1: The demand for eggs

To what extent do you think this report will influence the demand for eggs in the UK?

http://news.bbc.co.uk/1/hi/uk/6153362.stm

Unit 1: Objectives of firms: Social entreprenneurs

This article highlights the fact that not all firms have the objective of maximising profits.

a) What are the objectives of these entreprenneurs?
b) What about profit? How does this fit into our syllbus content?

http://news.bbc.co.uk/1/hi/business/6151628.stm

Geoff Riley adds some more detail to this story at

http://www.tutor2u.net/newsmanager/templates/?a=1959&z=1

Unit 3: How good a measure of inlation is the CPI?

From Geoff Riley's blog comes this really useful article summarising how the CPI is created and its failings as a true measure of inflation

http://www.tutor2u.net/newsmanager/templates/?a=1952&z=1

Unit 2: Private benefits and external costs from the Russian heavy metal industry

This article highlights the issue of private benefits and external costs

a) What is a private benefit?
b) What private benefits to the workers and people of the town are identified?
c) What is an external cost?
d) What examples of external costs are identified and in each case explain why are they an external cost

http://news.bbc.co.uk/1/hi/business/6103382.stm

Unit 1: Opportunity cost and the PPC: Hong Kong harbour

Read the article about Hong Kong

a) Draw aPPC to show the 2 choices Hong Kong has
b)Show where Hong Kong was on the PPc 10 year ago, now and in the future
c) Explain the opportunity cost of the proposed development using your diagram

http://www.guardian.co.uk/china/story/0,,1946219,00.html

Unit 1: Market structure; search engines

In May 2005, the global market share of total search was:

Google 51%
Yahoo 24%
MSN 13%
AOL 5%
Ask Jeeves 5%
Others 2%

a) How would you describe the market?
b) Using your knowledge of the firms and their products, give examples of the features of the market structure for these firms

Unit 1: The demand for housing

Abbey have announced that they will provide a mortgage up to 5 times the applicants salary in some circumstances

http://politics.guardian.co.uk/economics/story/0,,1937195,00.html

a) What will happen to the demand for houses as a result of this policy?
b) Why? Which factor that influences demand has altered?
c) Draw a diagram to show this change

Unit 1: Market structure; more on the broadband market

From my post the other day, the current broadband market is broken down as follows:

Market share June 2006
NTL 27% BT 24% AOL/Carphone Wharehouse 13% Tiscali 11% Wanadoo 9% All other providers 16%

Today comes news that Vodafone is to enter this crowded market

http://business.guardian.co.uk/story/0,,1945365,00.html

a) Which market structure does the broadband market best represent?
b) What barriers to entry are there to the market?
c) How will Vodafone be able to overcome these barriers?
d) Evaluate the impact Vodafone's entry is likely to have on the market

Unit 1: Production Possibility Curves

This link will take you to the short run wbsite

Click on the PPC link for an excellent stage by stage explation of PPC's with moving images. A great revision aid

http://www.theshortrun.com/classroom/classroom.html#econgraphs

The supply and demand pwerpoints are much weaker and I would not bother with them......but you might think differently!

Unit 3: Changes in interest rates

These 3 clips help explain the role of interest rates in our economy

a) Why do rates have to rise?
b) How will the rise help achieve this objective?


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6130984


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6131348


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=4778263

Unit 1: Market structure; Nike v Adidas

A great little clip from the BBC

a) What market structure do you believe the trainer market to be?
b) What evidence is there in the clip to back up your assertion?


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6131312

Unit 1: The price of champagne

The most expensive champagne in the world!

a) How can Supply and Demand theory explain the price of this champagne?
b) What will happen if the manufacturers have got it all wrong and have set the price too high?

http://news.bbc.co.uk/1/hi/business/6125612.stm

Unit 2: Alcohol and market failure

An outstanding powerpoint presentation from tutor2u on this topic

http://www.tutor2u.net/economics/presentations/aseconomics/marketfailure/MarketFailureAlcohol/default.html

Unit 1: Substitutes, Elasicity of Supply and the aircraft industry

This article tells us that Fedex has swiched its order from Airbus to Boeing.

a) What does it tell us about the cross elasticity of demand for the 777 and A380?
B0 Given the delays in delivering the A380, what can you say about the pelaticity of supply for the aircraft?
c) Why might this be the case?

http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=414462&in_page_id=3

Unit1: Competition; Nike v Adidas

A news clip from the BBC highlighting the tactics used by these 2 trainer giants

a) What type of market structure is the trainer market?
b) How do their actions support your choice of market structure?


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6131312

Unit 2: Reducing climate change effects

This article by the environmentalist George Monbiot in the Guardian is written from a left-ish liberal conservationist perspective....but is he right?

Practice your evaluation skills by trying to counter the arguments he puts forward

http://environment.guardian.co.uk/climatechange/story/0,,1935560,00.html

Unit 1: Opportunity cost: Trident missiles or decreased CO2 emissions?

This article is quite long but you'll get the idea fairly quickly

a) What is the opportunity cost of replacing trident?
b) Draw a PPC to show this trade-off

http://environment.guardian.co.uk/climatechange/story/0,,1939422,00.html

Unit 1: The price of gas

This Guardian article shows how both supply and demand determine the price of a product

a) What does it say is happening to supply?
b) How does the demand for gas change?
c) Taking the 2 sides, why does the article argue that prices will remain high?

http://business.guardian.co.uk/story/0,,1938259,00.html

Unit 1: Demand for Burger King products

Half way down this article are the reasons given for Burger King sales

a) Which factors that influence demand are these
b) What has happened to the demand curve?
c) How do you think Burger King will react?
d) What effect will this have on the demand curve?

http://business.guardian.co.uk/story/0,,1937038,00.html

Unit 2: Demerit goods: Light bulbs

This article suggests the UK is wasting energy and producing more CO2 than it should as we still use old fashion lightbulbs

a) Why are these lightbulbs an example of a demerit good?
b) What methods could the government use to try and overcome this market failure?
c) Which approach(es) would you recommend they use, and why?

http://environment.guardian.co.uk/energy/story/0,,1938668,00.html

Unit 2: Government action; the higher cost of motoring

If the government is serious about decreasing CO2 from cars, it will have to make motoring less attractive. This article sets out possible government actions

a) What sort of action is it in each case
b) Suggest 2 possible drawbacks in each case to pracice your evauation technique

http://environment.guardian.co.uk/travel/story/0,,1935027,00.html

Unit 2: Carbon Trading

This short section from the Guardian should clarify what carbo trading is and how successful it has been so far

http://environment.guardian.co.uk/climatechange/story/0,,1934988,00.html

Unit 1: Demand for Digital Televisions

THis article shows the change in consumer purchases of TV's from analogue to digital continues to grow

Look at the list of factors that influence demand and work out which have caused this change in behaviour

http://business.guardian.co.uk/story/0,,1940301,00.html

Unit 1: Market structure; the broadband market

Read the article and using that and the data below,

a) explain what sort of market you believe the broadband market in the UK to be
b) say which of the criteria for that market are/are not present

Market share June 2006

NTL 27%
BT 24%
AOL/Carphone Wharehouse 13%
Tiscali 11%
Wanadoo 9%
All other providers 16%

http://business.guardian.co.uk/story/0,,1939399,00.html

Unit 1: Objectives of Firms

From Geoff Riley's blog comes this story of a change of objective for Cadbury's

What would you say is their objective now?

http://www.tutor2u.net/newsmanager/templates/?a=1878&z=1

Unit 1: The price and PES of Uranium

A great little story from Geoff Rileys blog

a) What has happened to supply?
b) What does the article tell you about the Price Elasticity of Supply for uranium?

http://www.tutor2u.net/newsmanager/templates/?a=1885&z=1

Unit 3: Supply side policies

This from Geoff Rileys blog explains how decreasing taxes may lead to economic growth......but it's not only the result of tax decreases

http://www.tutor2u.net/newsmanager/templates/?a=1892&z=1

Unit 2: Inequality of income

This BBC article shows the inequality of income that can arise in a free maket

a) Do you think this inequality is fair or should the Government intervene?
b) If so, how could they intervene?
c) If not, what purpose does this large inequality serve?

http://news.bbc.co.uk/1/hi/business/6118572.stm

Unit 1: Substitutes and demand: Cadburys chewing gum

Read the article and then ask yourself

a) What will happen to the demand for Wrigleys?
b) What will happen to the demand curve for Wrigleys?
c) What are Cadburys and Wrigleys gum in economic terms?
d) Which elasticity figure could you use to measure the relationship between the 2 gums?
e) What can you tell me about what you think this figure will be? Explain yoiur reasoning.

http://news.bbc.co.uk/1/hi/business/6098484.stm

A video clip on the same story is at

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6310000/newsid_6319000?redirect=6319075.stm&news=1&nbram=1&nbwm=1&bbwm=1&bbram=1 >

Unit 2: Climate change and the Stern report

Here is a summary of the Stern report

http://news.bbc.co.uk/1/hi/business/6098362.stm

and 2 clips from BBC news


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6099316 >


< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6097362 >

a) What negative externalities associated with climate change does he identify?
b) What measures does he suggest the UK Government should undertake to alleviate the market failure
c) Evaluate the likely success of such policies if implemented by the UK government

One other source of opinions on the climate change debate is You Tube; put "Climate change" in the search box and you can find plenty of varying opinions!

Unit 1: Demand for Polish beer

When looking at which factors influence demand, amongst the "other" catagory items is "a change in population"

This article explains how the growth of the Polish community in the UK has led to an increase in Polish products, especially beer.

http://news.bbc.co.uk/1/hi/business/6099066.stm

Unit 1: Economies of scale; container tankers

A great article from the Guardian which shows both the globalisation of trade and a good example of economies of scale in action.

Which sort of economies of scale are experienced by the tanker owners and how do they come about?

http://www.guardian.co.uk/china/story/0,,1934889,00.html

Unit 2: Climate change and market failure

This 2 minute BBC clip is excellent

a) How is climate change an example of market failure?
b) Who will bear the worst consequences of climate change?
c) What 3 solutions are proposed?

BBC NEWS Business Climate change fight 'can't wait'

This summary of the Stern report gives a broader background to the story

http://news.bbc.co.uk/1/hi/business/6096594.stm

Unit 1 Barriers to entry

A BBC video clip showing how Tesco has erected a barrier to entry for other Supermarkets by their building up of a land bank of potential sites


< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6093730 >

Unit 3: Macroeconomic data

Geoff Riley's latest update on UK economic data; very useful for spotting trends

http://www.tutor2u.net/newsmanager/templates/?a=1800&z=1

Unit 3: The effect of exchange rates on the BoP

Read the article and then think about the following:

a) What is the effect on the change in the value of the yen on exports?
b) Is it all good news for Japan?
c) Evaluate what will happen to the current account of Japan's BoP

http://news.bbc.co.uk/1/hi/business/5403716.stm

Unit 1: The price of gas

Good news for households as this article predicts gas prices will fall

a) Explain why in terms of S&D and draw a diagram to show the predicted effect.
b) Consider whether, in terms of global warming, this might not be such a good thing.

http://news.bbc.co.uk/1/hi/business/5403716.stm

Unit 1: The price of houses

These article looks at the staggering rise in house prices over the past decade.

a)Use the articles and your list of factors that influence both supply and demand to explain how this price rise has occured; ie which factors have altered and what would these effects be on a S&D diagram
b) Why might the price rise not be uniform across the country?

http://business.guardian.co.uk/story/0,,1932737,00.html

http://news.bbc.co.uk/1/hi/business/6087062.stm you can also watch the video link to a 1 minute BBC news story. The link is on the right hand side of the page

Unit 1: Maximum output and PPC's

This report explains that net immigration into the UK helped raise the rate of Economic Growth in the UK by 3%.
a)Why would this be the case?
b) Show the effect on the UK's PPC

http://business.guardian.co.uk/story/0,,1932737,00.html

Unit 2: Government intervention to overcome market failure

Free markets don't always work efficiently. These articles highlights mis-selling and the government's response

a) Which of the 6 catagories is this an example of market failure?
b) What has the government done to overcome this sort of market failure (ie which of the possible methods of intervention has it used)
c) Are there drawbacks to this method of intervention? Would alternative methods be better?

http://business.guardian.co.uk/story/0,,1932598,00.html

http://news.bbc.co.uk/1/hi/business/6087062.stm

Unit 2: Demerit goods: Binge drinking

The first article suggests a method for overcoming the problem of teenage binge drinking. In economic terms this is a problem of binge drinking being a demerit good.
The second article is Geoff Riley's overview of the issue

a) What are the 2 conditions needed for a good to be catagorised as a demerit good?
b) How are these present with teenage binge drinking?
c) What is the proposed solution?
d) How would this reduce the demerit good problem? Include a diagram in your answer

http://www.guardian.co.uk/frontpage/story/0,,1932728,00.html

http://www.tutor2u.net/newsmanager/templates/?a=1861&z=1

Unit 1: Market Structure: The casino industry

This article is about the casino market in the UK which appears to be on the verge of significant growth.
Read the article and then look at the list at the bottom of who currently owns what
a) How would you currently describe the market in terms of market structure? Are all/some of the criteria for any structure met?
b) What barriers to entry are there for the casino industry?
c) What change in market structure do you see happening?

http://business.guardian.co.uk/story/0,,1930573,00.html

Unit 2: Overcoming negative externalities: Parking fees

This article proposes parking fees related to the CO2 emissions of your car; ie the "polluter pays" idea.

Evaluate the effectiveness of such a scheme to reduce CO2 emissions

http://environment.guardian.co.uk/travel/story/0,,1930729,00.html

Unit 3: UK unemployment

This article updates the UK Unemployment position and explains why the rising unemployment figures may indicate that the UK economy is doing well! Perverse I know, but read the article

http://www.deloitte.com/dtt/article/0,1002,sid=5399&cid=82694,00.html

Unit 2: Inequality of income

A good article from the Guardian about inequality of pay in the UK and how the National Minimum Wage appears to have done little to close the gap.

http://business.guardian.co.uk/story/0,,1923184,00.html

Unit 3: Aggregate Demand

A post from Geoff Riley's blog showing the relative importance of the components of Aggregate Demand and how they have changed over time

http://www.tutor2u.net/newsmanager/templates/?a=1794&z=1

Unit 2: Market dominance

An article from the Guardian showing how pervasive the influence of Tesco is across the country

http://business.guardian.co.uk/story/0,,1892281,00.html

Unit1 Barriers to entry

A few stories showing how a brand name can act as a barrier to entry,

Don't think this only happens overseas; if you try opeing a tore with "r us" after it (eg shoes r us) you will be proecuted by toys r us!

http://news.bbc.co.uk/1/hi/business/6043832.stm

http://news.bbc.co.uk/1/hi/business/4574400.stm

Unit 1: The price of Cocoa

From the article below, draw a diagram to show (and explain) the effect on the world price of cocoa. How big will the effect be? What will the effect be on other products, and why?

http://news.bbc.co.uk/1/hi/business/6047064.stm

Unit 1: Demand

What effect would the following "scare story" have on demand for cereal from Sainsburys?

Who might benefit from this scare?

http://news.bbc.co.uk/1/hi/business/6046240.stm

Unit 1: S&D and pay rates

Read this article from Geoff Riley and then ask yourself "What will happen to the pay of insolvency practioners?"

Will it go up? If so, by how much? What will determine the size of the pay rise?

http://www.tutor2u.net/newsmanager/templates/?a=1755&z=1

Unit 1: Market structure

The market for Intrnet service providers is changing. This article is just one example of the market concentrating into fewer hands

http://news.bbc.co.uk/1/hi/business/6039740.stm

Having read the article, look at the features of different market strucures. Which structure do you think best describes this market and why?

Unit 2: Market dominance

THis article suggests that airlines may have acted together to raise prices to consumers.

Why is this an example of market failure? What can the government do to rectify this state of affairs

http://news.bbc.co.uk/1/hi/business/6032213.stm

Unit 1: The price of vanilla

Read this BBC article and then
a) Identify the demand side and supply side factors that have changed in the market for vanilla
b) Draw a S&D diagram to illustrate the change

http://news.bbc.co.uk/1/hi/business/5409708.stm

Unit 3: International Trade

The EU has decided to extend tariffs on shoe imports; Read the 3 brief articles and then explain why. What will be the effect on the EU shoe market? Do you think this is a fair decision to take? Should the eastern countries effected retaliate?

http://news.bbc.co.uk/1/hi/business/5408628.stm

http://news.bbc.co.uk/1/hi/business/5405898.stm

http://news.bbc.co.uk/1/hi/business/5412338.stm

Unit 1: Demand

A great article from the guardian which explains why there has been a demise in the market for ringtones

1. Read the article and identify the factors
2. Which of the "factors effecting demand" are these?
3. Show the effect of these changes on a demand diagram

http://arts.guardian.co.uk/news/story/0,,1887960,00.html

Unit 2: Market dominance: Tesco

Below are a series of articles relating to Tesco's half year results. Look at the arguments against allowing the free market to decide how dominant firms should become. What are you views, are Tesco now too dominant? If so, how could they be controlled?

http://business.guardian.co.uk/story/0,,1886884,00.html

http://business.guardian.co.uk/story/0,,1886898,00.html

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2006/10/04/ntesco04.xml

http://business.timesonline.co.uk/article/0,,9074-2385940.html

http://www.timesonline.co.uk/article/0,,630-2387996.html

Unit 2: Negative externalities

In this article BAA the airport operator argues against a flying tax to combat the negative externalities and have alternative proposals. Consider each. Which do you favour, AND WHY?

http://politics.guardian.co.uk/economics/story/0,,1886329,00.html

Unit 3: Interest rates and Inflation

This article from The Times explains how interest rates are used to control inflation

http://business.timesonline.co.uk/article/0,,16849-2384120,00.html

Unit 1: Supply and Demand; Oil Prices

Read the article and then draw a supply and demand diagam to show the price change described

http://news.bbc.co.uk/1/hi/business/5398826.stm

Unit 2: Reducing Negative Externalities

An interesting article proposing a way to reduce negative externalities associated with air travel. There is though a flaw in the scheme. What is it?

http://news.bbc.co.uk/1/hi/business/5400416.stm