Unit 2: Unemployment: September 2010

A nice summary from Anforme

http://www.anforme.co.uk/blog/?p=1584

a) In what way are these figures (i) good and (ii) bad news for the British economy?

Unit 1: Snowfall and the economic problem

Thanks to tutor2u for this post illustrating the economic problem

http://www.tutor2u.net/blog/index.php/economics/comments/bad-snow-fall-in-london/

Unit 1: The elasticity of demand for a University education

Thanks to tutor2u for this post

http://www.tutor2u.net/blog/index.php/economics/comments/lifting-the-cap-on-tuition-fees-a-question-of-price-elasticity/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:04:56:01Z

a) Discuss whether the demand for a University education is likely to be elastic or inelastic

Unit 1: Negative externalities: Hungary's toxic mud

These BBC clips shows the effect ot the breaching of a toxic sludge resevoir

http://www.bbc.co.uk/news/world-europe-11482313
http://www.bbc.co.uk/news/world-europe-11472785

a) Explain the negative externalities associated with this story

Unit 2: Consumption and savings

Thanks to tutor2u for this resource on what determines the level of consumption and savings

http://www.tutor2u.net/blog/index.php/economics/comments/video-resources-on-consumption-and-saving/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:07:00:00Z

Unit 1: Cuba moves towards a mixed economy

Thanks to tutor2u for this summary of the changes afoot in Cuba (Use the hyperlinks)

http://www.tutor2u.net/blog/index.php/economics/comments/castros-command-move-to-a-mixed-economy/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:15:16:00Z

a) Explain how the plans mean Cuba's economy will become more like the mixed model

Unit 1: The end of cheap cotton clothes?

An interesting article and video from Sky news suggesting the price of cotton clothes is set to rise

http://news.sky.com/skynews/Home/Business/Cotton-Price-Cost-Hike-Could-Mean-End-Of-Cheap-Clothing-As-Bargain-Chains-Raise-Shop-Prices/Article/201009415743868?f=rss

a) Using a S&D diagram, explain why the price of cotton clothes is due to rise
b) Comment on the staement that low price chains such as Primark may be hit disproportionatelt by this rise in the price of cotton

Unit 1: Increasing demand for pies in the UK

An interesting article from Sky news

http://news.sky.com/skynews/Home/Sales-Of-Pies-And-Pasties-Rise-In-Recession-Says-Mintel-Research/Article/201009315732750?f=rss

a) What type of good would pies and pastries appear to be? Explain your answer

Unit 2: How to alter your exchange rate

This BBC clip explains how the Japanese cental bank intervened in the market to force down the value of the Yen

http://www.bbc.co.uk/news/business-11310620

a) Why did the central bank intervene?
b) Using a S&D diagram, explain how they manipulated the value of the Yen downwards (ie a depreciation)

Unit 2: UK inflation in Sept 2010 at 3.1%

The BBC explains why inflation remains above target

http://www.bbc.co.uk/news/business-11299602 video
http://www.bbc.co.uk/news/business-11294957 article

....as does anforme (with a graph)

http://www.anforme.co.uk/blog/?p=1533

Unit 1: Litter

An ITV documentary: It may only be available for 7 days; we'll see

http://video.stv.tv/bc/catchup-tonight-20100909-part1/

Unit 1: The price of coffee

Thanks to tutor2u for directing me to this article

http://www.dailymail.co.uk/news/article-1311303/Cost-morning-latte-set-soar-devastating-crop-shortages.html

a) Using a S&D diagram, explain why the price of coffee is set to rise

Unit 1: House Prices Down Again As Supply Rises

An article from Sky news

http://news.sky.com/skynews/Home/Business/House-Prices-In-August-Suffer-Most-Widepread-Falls-Since-May-2009-As-Supply-Increases/Article/201009215727490?f=rss

a) Using the information in the first paragraph, draw a S&D diagram to show why house prices have fallen

Unit 2: UK's worst ever trade deficit

Tales of woe fron Sky news

http://news.sky.com/skynews/Home/Business/UK-Trade-Deficit-Surge-In-Oil-And-Chemical-Imports-Widens-Gap-To-New-Record/Article/201009215723952?f=rss

a) What is meant by a trade deficit?
b) Why has it worsened?

Unit 2: Interest rates: What are they and how do they work in the economy

A nice video from the BBC

http://www.bbc.co.uk/news/business-11238317

Unit 2: The shrinking Greek economy

A useful article from the BBC explaining the shrinking Greek economy

http://www.bbc.co.uk/news/business-11229042

a) Using the Aggregate demand formula, explain why the Greece's GDP is falling

Unit 1: The price of wheat

The drought continues in Russia according to this BBC video

http://www.bbc.co.uk/news/business-11202745

a) Using a S&D diagram, explain the likely effect on the world price of wheat by the reduced Russian harvest/Russian export ban
b) Using a S&D diagram, explain the likely effect of this on the price of products that have wheat as a major component (eg bread, cornflakes, beef etc)

Unit 2: Why have a spending review?

A nice summary from the BBC

http://www.bbc.co.uk/news/business-10810962

Unit 2: Macroeconomic introduction

A brilliant introduction to the UK macroeconomy from tutor2u

http://www.tutor2u.net/economics/presentations/ukeconsep2010/player.html

Unit 2: Australia's economic growth

The BBC reports strong economic growth in Australia

http://www.bbc.co.uk/news/business-11154030

a) Explain why interest rates might rise as a consequence of this strong growth in the Australian economy

Unit 1: Negative externalities associated with alcohol

Another clip from the BBC outlining some of the negative externalities associated with alcohol

http://www.bbc.co.uk/news/health-11155591

Unit 1: Demand for amour plated cars in Mexico

A nice clip from the BBC

http://news.bbc.co.uk/1/hi/programmes/world_news_america/8955232.stm

a) Using demand theory, explain the rise in demand for amour plated cars in Mexico
b) Show the effect of this on a demand diagram

Unit 1: Information failure in 3 markets

3 stories from the BBC that may indicate information failure for consumers

http://www.bbc.co.uk/news/health-10986625 chocolate
http://www.bbc.co.uk/news/health-10986617 beer for women
http://www.bbc.co.uk/news/health-10987937 sunbed use

a) What is the market failure that results from information failure?
b) How would an economically rational consumer change their behaviour if theyrecived this information?
c) What problem would a consumer face when deciding how to behave with this additional information?

Unit 1: Food price rises associated with Ramadan in Bangladesh

A BBC clip explaining the food price rises associated with Ramadan in Bangladesh

http://www.bbc.co.uk/news/business-10999186

a) Using a S&D diagram, explain why the food prices have risen in the run up to Ramadan
b) Using a S&D diagram, explain why the food prices might rise further in Bangaladesh in the future

Unit 1: How Sandwell is tackling street litter

A nice clip from the BBC highlighting one approach to reducing street litter

http://www.bbc.co.uk/news/uk-11009694

a) Why is street litter an example of a negative externality?
b) What approach is Sandwell council using to reduce the negative externality?
c) What other approaches could they use?
d) Discuss how effective the zero tolerance policy will be for the council

Unit 2: How inflation effects people differently

This BBC clip clearly shows how the inflation rate hits people differently

http://www.bbc.co.uk/news/business-11005976

Unit 2: Inflation in the UK

Two clips from the BBC explaining some of the reasons why inflation is above target

http://www.bbc.co.uk/news/10994997
http://www.bbc.co.uk/news/business-11001524

a) Why is inflation above target?
b) Why is it likely to remain above target in 2011?
c) Given the information in the clip, explain what is happening to peoples real incomes

Unit 2: The state of the Japanese and Chinese economies in August 2010

A brilliant clip from the BBC containing loads of macroeconomic facts about the Japanese economy

http://www.bbc.co.uk/news/business-10985496

a) How is GDP measured by the expenditure (ie Agg Demand) measure?
b) Using the formula, explain the likely effect of the appreciating Yen on the Japanese economy
c) Explain why consumption and Investment are not growing in japan
d) Why are the very low interest rates in Japan not leading to the anticipated economic growth?
e) Given that the Japanese economy has grown by only 5% in 8 years whilst the Chinese economy has grown by 261% and moved above Japan into second place in the GDP league table (after the USA), explain why (economically) it's still better to be a citizen in Japan rather than in China

Unit 2: Cyclical and structural unemployment in the USA

Economicshelp has this good post explaining cyclical and structural unemployment in the USA

http://econ.economicshelp.org/2010/08/structural-unemployment.html

Unit 2: Youth unemployment

A good graph in this tutor2u post showing the extent of the problem

http://www.tutor2u.net/blog/index.php/economics/comments/81-million-young-workers-unemployed-in-2009/

a) Describe the pattern of youth unemployment over the period shown

Unit 1: Increasing demand for fake grass

An interesting clip from the BBC

http://www.bbc.co.uk/news/business-10923523

a) Using demand theory, explain the rising demand for artifial grass

Unit 1: The demand for beer

The BBC reports the first rise in beer sales for many years

http://www.bbc.co.uk/news/business-10808820

a) Using demand analysis, explain the rise in beer sales in shops and the fall in beer sales in pubs

Unit 1: Ways of reducing the negative externalities associated with excessive alcohol consumption

This BBC clip explains how the tide has turned away fron deregulation in the market, to a more restrictive use of legislation

http://www.bbc.co.uk/news/uk-10785218

a) Take each proposal and discuss its likely success in reducing the negative externalities associated with excessive alcohol consumption

Unit 2: The effect of the recession on inflation

A nice post from econ0omicshelp on the effect of the recession on inflation

http://www.economicshelp.org/blog/inflation/inflation-and-the-recession/

Unit 2: What is GDP?

A neat video from the BBC; not very technical, but i like it!

http://www.bbc.co.uk/news/business-10730689

Unit 2: The effect of taxation on inequality

Some really good figures and analysis from economicshelp on the effect of taxes on different income groups

http://www.economicshelp.org/blog/economics/effect-of-tax-on-inequality/

Unit 2: The real rate of unemployment

A nice explanation of what the figures mean from economicshelp

http://econ.economicshelp.org/2010/07/real-rate-of-unemployment.html

Unit 2: How unemployment is calculated

A nice summary from economicshelp

http://www.economicshelp.org/blog/unemployment/how-unemployment-is-calculated/

Unit 2: Australian interest rates on hold

The BBC reports no change in Australian interest rates, but with pressures to both increase and decrease them

http://news.bbc.co.uk/1/hi/business/10519027.stm video

a) What are the pressures to raise Australian interest rates?
b) What are the pressures to lower Australian interest rates?

Unit 1: Rising demand for vuvuzelas

This BBC clip explains the rising demand for the buzz producing vuvuzela

http://news.bbc.co.uk/1/hi/business/10383014.stm

a) Explain, using economic theory, the cause of the increse in demand
b) Show this effect on a demand diagram

Unit 2: Deflationary fiscal policy

A nice summary of how this should work.......but might not from economicshelp

http://econ.economicshelp.org/2010/06/deflationary-fiscal-policy.html

Unit 2: June 2010 unemployment and inflation data

Anforme, and other sources, explain the latest data. As you will read, the unemployment figures look bleak for the future

http://www.anforme.co.uk/blog/?p=1415 Unemployment
http://news.sky.com/skynews/Home/Business/Unemployment-Rises-By-23000-To-247-Million-But-Number-Of-Jobseeker-Allowance-Claimants-Falls/Article/201006315650035?f=rss Sky news unemployment
http://news.bbc.co.uk/1/hi/business/10327101.stm BBC unemployment

http://www.anforme.co.uk/blog/?p=1411 Inflation
http://news.bbc.co.uk/1/hi/business/10316495.stm BBC inflation

Unit 1: China's trade surplus increases

This BBC clip rports a rising trade surplus in China

http://news.bbc.co.uk/1/hi/business/10285591.stm

a) Why has the trade surplus increased?
b) Discuss the likely effect on the surplus if the Chinese currency appreciated
c) Discuss the likely effect on the surplus of a rise in Chinese labour costs

Unit 2: Government income and spending

A nice graphic from the BBC showing income and spending

http://news.bbc.co.uk/1/hi/politics/10263711.stm

a) Given the need for £60bn cuts, what would you cut? Which taxes do you raise? Who'd be a politician in power?

Unit 1: How govt action can successfully reduce market failure

This BBC video shows the reduction in negative externalities that the smoking ban had led to

http://news.bbc.co.uk/1/hi/health/10271620.stm

a) What are the negative externalities that have been reduced?
b) Why are these negative externalities?

Unit 2: Why deflation is bad

A clear explanation from economicshelp

http://econ.economicshelp.org/2010/06/why-deflation-is-bad.html

Unit 2: Monetary policy or Fiscal policy; which is the best to use?

Economicshelp has this great summary. Note especially the evaluative aspect of the post

http://www.economicshelp.org/blog/economics/monetary-policy-vs-fiscal-policy/

Unit 2: Unemployment: Revision

From economicshelp comes this handy revision post on some aspects of unemployment

http://www.economicshelp.org/blog/unemployment/definition-of-unemployment/

Unit 2: The effect of changing interest rates on the Balance of Payments

A nice evaluative summary of the effects from economics blog

http://www.economicshelp.org/blog/economics/interest-rates-and-balance-of-payments/

Unit 2: India's growth and the danger of inflation

The BBC reports that the Indian economy continues to power ahead

http://news.bbc.co.uk/1/hi/business/10198839.stm

a) Using AD/AS analysis, explain why inflation may be occuring in the Indian economy

Unit 2: Inflation: Revision

Three posts from tutor2u on the causes of inflation and policies to reduce it

http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-revision-demand-pull-inflation/ Demand pull

http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-revision-cost-push-inflation/ Cost push

http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-revision-policies-to-control-inflation/ Policies to reduce inflation

Unit 2: Revision on consumption

A revision briefing from tutor2u

http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-revision-the-importance-of-consumption/

nit 2: The UK ouput gap

A good article from tutor2u summarising the issue

http://www.tutor2u.net/blog/index.php/economics/comments/qa-what-do-we-need-to-know-about-output-gaps/

Unit 1: Market failure in the alcohol market

A great video from the BBC

http://news.bbc.co.uk/1/hi/business/10167936.stm
a) Why is demand for alcohol rising?
b) What negative externalities are there associated with excessive alcohol consumption?
c) Using a diagram, explain how the free market fails
d) How successful do you think imposing a minimum proce on alcohol would be in reducing the market failure?

Unit 2: The state of the Indian economy

A set of data from tutor2u analysing the state of the Indian economy

http://www.tutor2u.net/economics/presentations/indiachartroom/player.html

a) Using the data, comment on the state of the Indian macroeconomy

Unit 2: Externalities: Australian mining

A nice report by the BBC on open cast mining in Australia

http://news.bbc.co.uk/1/hi/world/asia-pacific/8688820.stm

a) What are the private benefits of the mining operation?
b) What are the private costs of the mining operation?
c) What are the external costs of the mining operation?
d) What actions could the Australian government take to reduce the negative externalities to the social optimum output?

Unit 2: Rising inflation:in the UK and India May 2009

Sky news has a brief report, article and graph explaining the latest rise in UK inflation

http://news.sky.com/skynews/Home/Business/Inflation-Rate-Rises-Food-Clothing-And-Alcohol-Costs-Push-CPI-To-37-In-April-While-RPI-Tops-53/Article/201005315634107?lpos=Business_First_Buisness_Article_Teaser_Region_3&lid=ARTICLE_15634107_Inflation_Rate_Rises%3A_Food%2C_Clothing_And_Alcohol_Costs_Push_CPI_To_3.7%25_In_April_While_RPI_Tops_5.3%25

as does the BBC

http://news.bbc.co.uk/1/hi/business/10121176.stm

Mind you, our rate is low compared to India's

http://news.bbc.co.uk/1/hi/business/8689937.stm

a) What is the cause of this inflation?

Unit 2: Indian businessmen buying Durham cricket club

The BBC reports that Indian businessmen are buying Durham cricket club

http://news.bbc.co.uk/1/hi/business/10096909.stm

a) Where would this purchase appear in the UK balance of payments?
b) Is it "good" or "bad" for the UK's balance of payments?

Unit 2: Investment in hotels in Dubai

The BBC reports more hotels being built in Dubai, despite overcapacity at the current time

http://news.bbc.co.uk/1/hi/business/8669651.stm

a) What is the motivation/reason for this investment in the present circumstances?

Unit 2: Revision: Balance of payments

Thanks to tutor2u for this concise revision sheet for BoP

http://www.tutor2u.net/blog/files/Revision_on_Balance_of_Payments.docx

Unit 2: Supply side policies: Revision

A really useful powerpoint presentation from tutor2u

http://www.tutor2u.net/economics/presentations/workshops2010/AS2/player.html

Unit 1: How to reduce market failure? Indirect (carbon) taxes, or tradable permits (cap and trade)

A good summary of both from economics help

http://www.economicshelp.org/blog/economics/carbon-tax-pros-and-cons/ tax

http://www.economicshelp.org/blog/economics/carbon-trading-schemes/ tradable permits

Unit 2: tutor2u macro revision presentations

One onwhy the economy is in a recession

http://www.tutor2u.net/blog/index.php/economics/comments/as-economics-revision-dissection-the-recession/

and a second one on managing the economy

http://www.tutor2u.net/economics/presentations/workshops2010/AS4/player.html

and a third one on prospects for the UK economy

http://www.tutor2u.net/economics/presentations/workshops2010/AS3/player.html

Unit 1: Actions by the Australian government to reduce smoking

This BBC clip gives the latest Australian proposals

http://news.bbc.co.uk/1/hi/world/asia-pacific/8650520.stm

a) How does the gigarette market fail?
b) What catagory of action would you put this proposal in?
c) To what extent do you believe such action will reduce the market failure?

Unit 2: Unemployment hits 20% in Spain

This brief BBC video and article has, amongst other information, the depressing news tht unemployment in Spain has hit 20%; one person in 5 who wants a job is now out of work

http://news.bbc.co.uk/1/hi/business/8655339.stm video
http://news.bbc.co.uk/1/hi/business/10093123.stm article

Unit 2: The effect of the exchange rate on imports and exports

A great little clip from the BBC showing the effect of the exchange rate on imports and exports

http://news.bbc.co.uk/1/hi/world/europe/7668400.stm

a) What is the effect of the appreciating euro on the Irish republic's BoP curerent account?
b) What is the effect of the appreciating euro on the Irish republic's home producers?
c) Using an AD/AS diagram, explain the effect of the appreciating euro on the Irish republic's macroeconomic performance

Unit 2: Supply side policies

From the defunct economics student blog comes this useful summary

Supply-side policy measures to increase aggregate supply include:
-Improve incentives for economic activity
-Reducing income tax encourages the unemployed to join the labour force and existing workers to undertake overtime and accept responsibility.
-Reducing benefit levels and tightening eligibility rules encourages/forces the unemployed to take paid work. In short overcome the unemployment trap.
-Improve incentives for entrepreneurs. Profit is the reward for risk taking; lowering corporation tax increase the reward from enterprise
-Encouraging small business start-up e.g. through tax breaks e.g. low corporation and capital gains tax
-Improve productivity
-Subsidise education & training.
-Improvements in the quantity and quality of capital. R&D innovation and new capital raises productivity. Recent UK budgets have featured tax breaks for R&D and investment to encourage firms to expand
-Encourage competition through:
Privatisation e.g. telecommunications, electricity, water, steel, gas, rail breaks up state monopolies and introduces competition. Or does privatisation replace a public with a private monopoly?
-Deregulation i.e. removing barriers to entry and opening up markets to greater competition.
Encouraging international trade as trade creates competition. Firms seek to become world class and adopt best international practice in their own organisation leading to lower unit costs
-Improve flexibility of labour markets through trade union reform

Unit 2: Issues and prospects for the UK economy

A great summary from Geoff Riley at tuor2u

http://www.tutor2u.net/blog/index.php/economics/comments/issues-and-prospects-for-the-uk-economy-in-2010/

Unit 2: What is GDP?

A great little video from BBC answers this question

http://news.bbc.co.uk/1/hi/business/8637712.stm

Unit 2: Latest Inflation, unemployment and gdp data

The latest data provides a mixed picture of how the economy is doing

http://econ.economicshelp.org/2010/04/volatile-economy-and-inflation.html article explaining latest inflation figures and how much of an issue they are
http://www.anforme.co.uk/blog/?p=1305 inflation

http://www.anforme.co.uk/blog/?p=1309 unemployment
http://www.channel4.com/news/articles/business_money/unemployment+total+hits+25+million/3620972 h4 video on unemployment

http://news.sky.com/skynews/Home/Business/UK-Economy-Grew-By-02-In-First-Three-Months-Of-The-Year/Article/201004415614785?f=rss Sky news video and article on latest gdp
http://www.channel4.com/news/articles/business_money/weak+uk+growth+figures+ahead+of+election/3623287 Ch4 video and article on gdp
http://www.anforme.co.uk/blog/?feed=rss2 gdp article

Unit 2: Changes in AD and AS in action: The Irish economy

This great clip from Steph Flanders shows the effect of the recession on the Irish economy

http://news.bbc.co.uk/1/hi/business/8612688.stm

This article shows the response of some Irish citizens; the traditional route of Irish emigration to the rest of the world

http://news.bbc.co.uk/1/hi/world/europe/8616434.stm

a) Using an AD/AS diagram, explain the effect of the recession on the Irish economy and the government's macroeconomic objectives

Unit 2: Supply side policies in Cuba

A great clip from the BBC showing Cuba introducing a supply side policy in to their centrally planned economy

http://news.bbc.co.uk/1/hi/world/americas/8616858.stm

a) What supply side policy is being introduced?
b) In what ways should it make the hairdressing sector more efficient?
c) Explainn what should be the effect on the Cuban economy using an AD/AS diagram
d) What drawbacks might there be for the Cuban government in introducing such supply side policies as they try to modernise their economy?

Unit 2: China's BoP current acount deficit

The BBC reports China has, unusually, a current account deficit

http://news.bbc.co.uk/1/hi/business/8612809.stm

a) To what extent is this current account deficit a problem for the Chinese economy?

Unit 1: Rising petrol prices

This Ch4 video explains the recent rise in petrol prices

http://link.brightcove.com/services/player/bcpid62612474001?bctid=76739806001

a) Using S&D analysis, explain why the price of petrol,has risen

Unit 1: Government action to reduce market failure in the alcohol market

The BBC reports more regulations to reduce the market failure in the alcohol market

http://news.bbc.co.uk/1/hi/uk/8604571.stm

a) Using a diagram, explain how the free market for alcohol leads to market failure
b) Comment on the extent to which these measures will reduce the market failure asociated with excessive "binge" alcohol consumption

Unit 1: PED in action: Who else but Ryanair!

The BBC reports a new pricing strategy from Ryanair

http://news.bbc.co.uk/1/hi/northern_ireland/8605600.stm

a) Using your knowledge of PED, comment on whether you agree with the Ryanair statement that the purpose of the increase is to "incentivise all of its passengers to travel light" during the peak summer months.

Unit 2: Monetary policy in action in Australia

A good clip and article from the BBC showing monetary policy in action

http://news.bbc.co.uk/1/hi/business/8604281.stm article
http://news.bbc.co.uk/1/hi/world/americas/8604224.stm video

a) Using information from the video and article and your economic knowledge, explain, using an AD/AS diagram, how increasing interest rates should reduce inflation in Australia

Unit 1: Supply and demand in the Qatar property market

A great video from The BBC showing S&D in action

http://news.bbc.co.uk/1/hi/business/8602951.stm

a) Using a S&D diagram, explain what has happened to both the supply of, and demand for, property in Qatar's property market
b) What do you think will happen to property prices in 2010, given the information in the video?

Unit 2: Distribution of income in the uk

Latest figures show a narrowing of the income gap in the UKbetween different regions says the BBC

http://news.bbc.co.uk/1/hi/business/8597384.stm

The Guardian sees the data differntly

http://www.guardian.co.uk/business/2010/mar/31/north-south-divide-widens-official

and it can be seen brilliantly in this Guardian graphic

http://www.guardian.co.uk/news/datablog/2010/mar/31/economy-economics#zoomed-picture

Unit 2: Inflation : Recent data/revision

From tutor2u comes this nice summsry of inflation in the UK over the past few years

http://www.tutor2u.net/blog/index.php/economics/comments/uk-economy-revision-inflation-in-the-last-few-years/

It icludes a link to this powerpoint containing several good data charts

http://www.tutor2u.net/blog/files/Inflation_in_the_UK_Economy.pptx

Unit 2: The Government budget 2010

A great interacive guide from the Guardian

http://www.guardian.co.uk/uk/interactive/2010/mar/24/budget-2010-state-britain-finances

This BBC guide has a graph to show govt deficits/supluses over recent times

http://news.bbc.co.uk/1/hi/business/8570775.stm

This Guardian chart shows how the deficit will be reduced over time

http://www.guardian.co.uk/news/datablog/2010/mar/25/budget-2010-deficit-visualisation#zoomed-picture

Unit 1: The price of fruit and veg in the UK

Thanks to tutor2u for this article

http://www.dailymail.co.uk/news/article-1259733/Fruit-veg-prices-UK-soar-record-rain-Spain.html

a) Using a S&D diagram, explain why the price of some UK fruit and veg has risen

Unit 2: Personal costs (and benefits?) of unemployment

An interesting perspective on being unemployed from the point of view of a few people

http://news.bbc.co.uk/1/hi/business/8569213.stm article

Unit 2: Fiscal policy, Budget Deficits and the National Debt

This from tutor2u is much too detailed for AS, but there are some useful slides in her, especially at the start

http://www.tutor2u.net/blog/images/uploads/FISCAL_POLICY_09-10_MTS.pdf

Unit 2: Feb 2010 unemployment figures

Some useful sources

http://news.sky.com/skynews/Home/Business/UK-Unemployment-Falls-By-33000-Some-245m-Brits-Remain-Out-Of-Work/Article/201003315575439?f=rss Sky news video
http://news.bbc.co.uk/1/hi/business/8571625.stm BBC article
http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2010/03/not_lagging_but_not_leading_ei.html Stephanie Flanders opion piece

a) What is the meaning of the term "economically inactive"?
b) If you are unemployed, are you economically active or inactive? Explain your answer
c) Comment on whether the UK unemployment rate is improving

Unit 1: The price of petrol

A short clip from Sky explaining the sharp rise in the price of petrol.....and why there is still more to come

http://news.sky.com/skynews/Home/UK-News/Petrol-Prices-Rise-And-AA-Warns-We-Could-Soon-Be-Paying-120p-A-Litre-To-Fill-Our-Cars/Article/201003315574490?f=rss

a) Using a S&D diagram, explain this rise (and the anticipated future rise) in the price of petrol

Unit 2: Changes to the basket of goods

The BBC and Guadian report the latest changes to the basket of goods that are used to measure changes in the CPI

http://news.bbc.co.uk/1/hi/business/8568131.stm
http://www.guardian.co.uk/business/2010/mar/15/uk-inflation-recession-new-goods

a) Why are these changes necessary
b) Despite these changes, why could it be argued that the CPI basket is already out of date?

Unit 2: Revision: Supply side policies

Tutor2u has this revision powerpoint, some of which would be really good for AS

http://www.tutor2u.net/economics/presentations/supplysideuk/player.html

NB Some of it is A2: If we haven't covered it, ignore it for AS

Unit 1: Taxing goods with negative externalities: Fizzy drinks

Thanks to tutor2u for pointing out this Telegraph article

http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/7400304/New-York-Citys-mayor-plans-soda-tax.html

a) What are the negative externalities associated with fizzy drinks?
b) Is there any other sort of market failure present here?
c) Using a S&D diagram, discuss how successful the proposed tax would be in reducing the market failure

Unit 2: What are the disadvantages of using interest rates to control the economy?

A useful summary from economicshelp

http://www.economicshelp.org/blog/interest-rates/interest-rates-and-economy/

Unit 2: UK trade deficit worsens

Several sources showing the worsening trade deficit

http://news.bbc.co.uk/1/hi/business/8558908.stm video
http://news.bbc.co.uk/1/hi/business/8557200.stm article
http://www.anforme.co.uk/blog/?p=1233 article

a) Explain how the trade deficit is calculated
b) Explain how a weaker pound should improve the trade deficit
c) Explain why this hasn't happened
d) To what extent should the UK economy worry about this trade deficit?

Unit 2: Budget deficits and the national debt

I like these from economicshelp

http://www.economicshelp.org/2010/03/national-debt-facts.html
http://www.economicshelp.org/blog/economics/why-do-countries-run-deficits/

and this ticking bomb of the UK national debt

http://www.debtbombshell.com/?utm_source=widget&utm_medium=embed&utm_campaign=dbw1

Unit 2: Revision: The Balance of Payments

Now that economics student has gone off line, I've brought together some posts to form this revision document for the Balance of Payments



The Balance of Payments

The Balance of Payments (BoP) records economic transactions between residents of a country and the rest of the world. There are two sections:
The Current Account records money flows between UK & overseas residents arising from trade in goods & services, flows of income from owning overseas assets and overseas transfers
The Capital & Financial Account records money flows between UK & overseas residents from the purchase of fixed or financial assets eg factories or shares or bank deposits/loans
Note that the two accounts are interlinked: Interest profits and dividends from owning overseas assets (ie income in the current account) result from investing overseas (which would appear in the capital and financial account)


At AS the focus is on the current account. Be careful to use the terms current account and balance of payments carefully – they have different meanings. The current account is just one section of the balance of payments covering international transactions which have no impact on the country beyond the current year; ie the next 12 months.
Next, be sure you understand each element in the current account. Hopefully you understand trade in goods and trade in services, but the other 2 items are not as straightforward.
Put simply, total income is the difference between income earned by UK residents from owning overseas assets ( in the form on interest, profits and dividends; IPD) and income paid out to overseas residents owning UK assets.
Current transfers are mainly transfer payments made by government (eg receipts from (and payments to) the European Union) and payments made by expatriate workers back to their home country.


One potential area of confusion are the + and – signs. Any money entering the country will have a positive sign in the BoP accounts. Likewise, money flowing out of the country will have a negative sign


Task: Use the table below to assess the performance of the UK economy over the 4 years. Look at the trends in goods and services. Ask yourself whether the trade in services more than outweighs the deficit on trade in goods.

Trade in Goods
Trade in services
Balance of trade
Total income
Current transfers
Current balance
The causes of a current account deficit


The current account is one element of the balance of payments. The main cause of the deficit in the current account is a country’s trade in goods and services where the value of imports is higher than the value of exports.
In 2007, the UK ran a £89.2bn deficit on trade in goods and a £41.7bn surplus on trade in services giving an overall Balance of trade of -£47.5bn.


What factors cause the trade deficit? Put simply: a lack of international competitiveness. If UK made products are more expensive or of a lower quality than EU & USA rivals then UK imports rise and our exports fall
There are three main factors at work which can explain why UK products are relatively more expensive than their overseas rivals:
1 Lower productivity. Productivity is output per worker. If, on average, UK workers produce less than the international average then it follows that UK unit costs are higher. Price competitiveness is lost
2 The strength of sterling. Exchange rates affects the price of UK imports and the price of UK exports in terms of foreign currency. a sustained appreciation of the pound over time lowers the price of imports while raising the price of exports, causing the loss of price competitiveness
3 Relative inflation rates. where the UK has higher inflation rates than its overseas rivals, then UK prices are accelerating faster than their competitors, so reducing UK price competitiveness


The role of quality should not be underestimated. Price is just one factor determining the demand for imports and exports. Globalisation and the emergence of developing economies such as China with low labour costs and an advantage in the mass production of low-priced products, encourages the UK to specialise in high value added industries. UK goods compete on quality design and exclusive brand image.

Policies to improve a current account deficit

The current account is an element of the balance of payments. So how would you define a current account deficit? It occurs when exports revenue, income and current transfers from abroad are less than expenditure on imports, income and current transfers going abroad. More money is leaving the country than entering it.

The government can make use of various policy instruments to improve the current account position, focusing on the balance of trade in goods and services. This involves taking measures that increase the demand for exports or lower the demand for imports

Demand side measures
1 Lower the exchange rate; this will bring about an increase in the price of imports, and reduction in the price of exports in terms of foreign currency. The effectiveness of the depreciation of sterling depends upon the demand for exports and imports being price elastic and ceteris paribus. Bringing about a reduction in the exchange rate is rendered ineffectual if other countries follow suit and engineer a depreciation of their own currency or retaliate with import restrictions
2 Introduce import restrictions such is tariffs or quotas that increase the price of imports, lowers demand and so – given demand is price elastic - reduces spending on imports. Note import restrictions have an inflationary side effect and so conflict with the objective of stable prices (low inflation). More importantly scope for introducing tariffs and quotas is limited by UK membership of the EU and World Trade Organisation. Import restrictions may simply encourage retaliation lowering the volume and value of UK exports.
3 Reduce aggregate demand. The demand for imports depends on the level of national income reducing aggregate demand causes lower levels of imports. This reduction in AD could be achieved via fiscal or monetary policy. The effectiveness of this policy depends upon the value of the marginal propensity to import and the extent to which aggregate demand is reduced. Note the objectives of low unemployment and economic growth are compromised.

Supply side measures
A current account deficit is brought about by a lack of international competitiveness; ie UK products are either relatively more expensive or of poorer quality than items produced overseas. Improving the quality of UK products require supply side policies. For example, offering tax breaks and/or grants to firms that encourage research and development, enterprise and innovation. Many supply-side policies take a relatively long time to have an impact and can be expensive.

Unit 2: Tightening monetary policy at work in Australia

A great little clip from the BBC

http://news.bbc.co.uk/1/hi/business/8545561.stm

Anforme write on the same topic

http://www.anforme.co.uk/blog/?p=1215

a) Using an AD/AS diagram, explain the likely effects of raising interest rates on the Australian economy

Unit 2: International data sources

Many listed in this tutor2u blog post

http://www.tutor2u.net/blog/index.php/economics/comments/a-goldmine-of-development-data-sources/

Unit 2: Comparative international inflation rates

I like these graphics as they are so visual

http://bespokeinvest.typepad.com/bespoke/2009/06/country-inflation-rates.html
http://en.wikipedia.org/wiki/File:World_Inflation_rate_2007.PNG

A list can also provide data

http://en.wikipedia.org/wiki/List_of_countries_by_inflation_rate

....as can a table. This one allows tracking of inflation rates with EU countries over time

http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&language=en&pcode=tsieb060&tableSelection=1&footnotes=yes&labeling=labels&plugin=1
or the graph of the table (at the top of the post)

a) How does the UK's inflation rate compare to our major trading partners?
b) What effect might this have onfuture patterns of trade?

Unit 2: Balance of Payments data

From tutor2u comes this powerpoint presentation with a lot of BoP data

http://www.tutor2u.net/economics/presentations/aseconomics/macro/BOPData/player.html

Unit 1: Complements; flights and match tickets

A nice link fropm tutor2u

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/disappointing-ticket-sales-for-the-world-cup-complements/

a) Draw 2 S&D diagrams; one to show the effect on air travel and the second on match tickets and explain what is happening in each case in the market

Unit 2: Supply side policies in the UK

Tutor2u has an example of a UK supply side policy

http://www.tutor2u.net/blog/index.php/economics/comments/specific-supply-side-policies/

Unit 2: Where do we export to?

A great graphic from the Guardian answers this question

http://image.guardian.co.uk/sys-files/Guardian/documents/2010/02/24/UKExports.pdf