Unit 1: Market structure; The package holiday market

The Guardian reports a proposed merger between the second and third largest package holiday firms in Europe

http://business.guardian.co.uk/story/0,,2011685,00.html

a) Why do the firms want this merger?
b) What is the implication for the market structure?
c) Why is it unlikely that the Competition Commission will investigate this propsed merger even though the combined group will have a third of the short haul holiday market?

Unit 2: Externalities arising from growing roses in Kenya

On Valentines day, The Guardian had this article on the impact of growing roses around Lake Naivasha in Kenya

http://environment.guardian.co.uk/conservation/story/0,,2012105,00.html

Identify:
a) The private costs and benefits to the producers and consumers of growing these flowers in Kenya
b) The external costs and benefits which arise from this activity

Unit 1: The market for red roses

A brief BBC clip about the effect of Valentines day on the market for roses

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6350000/newsid_6357900?redirect=6357959.stm&news=1&nbwm=1&bbram=1&nbram=1&bbwm=1 >

a) Draw a diagram to show the effect of Valentines day on the market for red roses
b) A bouquet of red roses appears not to be a homegenous product; why not?
c) What type of market structure best represents the rose market? Explain your answer

Unit 3: How good a measure of inflation are the official rates?

This clip from BBC Nesnight is quite long, but gives a good overview of the measures of inflation and the weaknesses of any measure

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6350000/newsid_6355900?redirect=6355991.stm&news=1&bbram=1&bbwm=1&nbwm=1&nbram=1 >

Unit 3: Macroeconomic websites

From Geoff Riley comes this list of the best websites for gaining economic data for Unit 3. Note at the bottom the links to the tutor2u revision guides

http://www.tutor2u.net/newsmanager/templates/?a=2188&z=1

Unit 3: The balance of trade: Worst ever figures

Today sees the release of the worst ever balance of trade figures

What reasons are given in the BBC article below?

http://news.bbc.co.uk/1/hi/business/6345759.stm

Unit 2: The use of legislation

The EU is moving from a voluntary agreement with car makers to legislation to enforce maximumCO2 emission levels

a) Why do you think the EU has made this move?

b) Watch the clip and then argue a case against the use of legislation

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6330000/newsid_6339800?redirect=6339833.stm&news=1&bbram=1&bbwm=1&nbwm=1&nbram=1 >

Unit 1: The effect on demand on an outbreak of bird flu

Two interesting contrasting views of the effect on poutry products of an outbreak of bird flu.

What do you think?
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6330000/newsid_6332100?redirect=6332153.stm&news=1&bbram=1&nbwm=1&nbram=1&bbwm=1 >

http://news.bbc.co.uk/1/hi/business/6330849.stm

Unit 3: Macro data for the UK

Here is the link to Geoff Rileys latest look at the UK Economy via a powerpoint presentation

Look at it!!!

http://www.tutor2u.net/newsmanager/templates/?a=2147&z=1

Unit 2: Market dominance: Wrigleys chewing gum

From the BBC comes this clip of Cadbury's attempt to break the dominant position Of Wrigleys in the British chewing gum market

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

It leads to many economic questions such as

· The monopoly power of Wrigleys in the UK – can it be broken?
· Is the market moving towards a duopoly / oligopoly – it is certainly becoming more contestable
· Barriers to entry – the costs and difficulties of breaking into a market and making a commercial return from new products
· The importance of product innovation when threatening the monopoly power of existing firms
· Cadbury’s marketing strategies when launching Trident in the UK
· Pricing issues – possibility of penetration pricing to take away some of Wrigley’s market share
· Externalities issues surrounding the waste created by increasing consumption of chewing gum
· Brand loyalty and consumer preferences
· The income elasticity of chewing gum – low but positive? Or perhaps an inferior good?

Unit 2: Labour Market failure: Rover

Almost 2 years after Rover went bust, 23% of the workforce is stiull unemployed says an article in todays Guardian

http://business.guardian.co.uk/story/0,,2005863,00.html

This is a case of market failure due to the OCCUPATIONAL immobility of labour. It is an example of STRUCTURAL unemployment

Unit 2: Market Failure: Light bulbs

This item says a Californian politician is trying to ban the sale of "normal" lightbulbs

http://news.bbc.co.uk/1/hi/business/6316635.stm

a) Why? What sort of market failure is ther in the free market for lightbulbs?
b) What form of government intervention is he suggesting?
c) Suggest TWO other ways the government could intervene to overcome this market failure and EVALUATE the likely success of the 3 different approaches

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/