Unit 1: Demand for Magners cider

An interesting article from the BBC explaining how demand for cider has changed

http://news.bbc.co.uk/1/hi/business/7501136.stm

a) What reasons does the article suggest for the rise and fall in the demand for Magners cider?

Unit 2: Government legislation to reduce negative externalities: Rubbish in Japan

A great BBC video clip and article about a zero waste town in Japan

http://news.bbc.co.uk/1/hi/sci/tech/7499954.stm video
http://news.bbc.co.uk/1/hi/sci/tech/7502071.stm article

a) How does the council legislation reduce the negative externalities associated with waste?
b) What benefits are there to the town citizens of this system?
c) Comment on the likely success of such a scheme if it was introduced to your town/village/city

Unit 1: Demand for bullet proof cars in Brazil

An interesting video from the BBC

http://news.bbc.co.uk/1/hi/world/americas/7503139.stm

a) Using demand theory, explain why there has been a rise in the demand for bullet proof cars in Brazil

Unit 3: The effect of an appreciating exchange rate on China

An interesting report from thee BBC on the efect of the rising Yuan

http://news.bbc.co.uk/1/hi/business/7499267.stm

a) Why will an appreciating yuan reduce exports?
b) What will be the effect on imports?
c) What will the effect be on aggregate demand?
d) Using an AD/AS diagram, explain the likely effect on the Chinese economy of this appreciation
e) Comment on why the effects might not be as you suggest

Unit 3: The housing slump and negative multiplier effects

This article from Geoff Riley explains why the decline in the housing market may have far more wide ranging effects on the economy.

http://www.tutor2u.net/blog/index.php/economics/comments/housing-slump-and-negative-multiplier-effects/

Then watch the BBC video clip

http://news.bbc.co.uk/1/hi/business/7499432.stm

a) Explain how the multiplier effect can be applied to this decline in the housing sector and why it will lead to a further unemployment rise in the UK.

Unit 3: Carbon trading expands to involve aviation in the EU

A clip from the BBC and two articles from the Guardian about the expansion of the Carbon trading scheme with the inclusion of aviation

http://news.bbc.co.uk/1/hi/business/7496668.stm video
http://www.guardian.co.uk/travel/2008/jul/09/travelnews.theairlineindustry
http://www.guardian.co.uk/environment/2008/jul/09/carbonemissions.carboncapturestorage

a) Assess the likely success of using tradable permits as a means of reducing aviation CO2 emissions

Unit 3: Is the UK heading for recession?

This BBC clip questions whether the UK is heading for a recession

http://news.bbc.co.uk/1/hi/business/7495183.stm

a) What is a recession?
b) What happens to aggregate demand in a recession?
c) Why does unemployment rise in a recession?
d) What effect does rising unemployment have in the economy?
e) What actions could the government take to break this downward spiral?

Unit 2: Reducing negative externalities associated with rubbish and landfill

This BBC article reports an imaginative scheme to reduce landfill

http://news.bbc.co.uk/1/hi/uk/7497398.stm

a) How would this system work to reduce the market failure?
b) What is the difference between this system and taxing people by the amount of rubbish they produce?
c) Evaluate the extent to which either scheme would be likely to succeed

Unit 1: Cross elasticity of demand: The impact of rising petrol prices in India

A great little video clip from the BBC

http://news.bbc.co.uk/1/hi/business/7492855.stm

a) Calculate the XED for gas conversions as petrol prices rise

Unit 3: Fiscal Drag

From Geoff Riley comes this example of fiscall drag in action in the UK economy

http://www.tutor2u.net/blog/index.php/economics/comments/fiscal-drag/

Unit 1: A market in disequilibrium: Allotments

From Geoff Rileys blog comes this interesting tale of allotments in the UK

http://www.tutor2u.net/blog/index.php/economics/comments/cross-elasticity-demand-for-allotments/

a) Using a S&D diagram, show how the market for allotments is in disequilibrium
b) Which factors have caused the demand for allotments to increase and shift the D curve to the right?
c) Using a S&D diagram, explain the effect on the market of this increased demand

Unit 3: The multiplier effect of increased Government spending: Aircraft carriers

The BBC reports that the purchase of 2 huge aircraft carriers will result in more money going to 7 firms in different locations around the UK

http://news.bbc.co.uk/1/hi/england/7490041.stm

a) What effect will this purchase by the Government have on aggregate demand?
b) How could the orders to the 7 firms result in multiplier effects in the regions identified on the map?
c) What would determine how large the multiplier effect would be in each region?

Unit 3: Defining a recession

This Guardian article summarises nicely what a recession is

http://www.guardian.co.uk/business/2008/jul/04/economicgrowth.economics

Unit 3: Falling discretionary income in the UK

An interesting post on Geoff Riley's tutor2u blog about falling discretionary income in the UK

http://www.tutor2u.net/blog/index.php/economics/comments/discretionary-income-takes-a-battering1/

a) Using an AD/AS diagram, explain the likely effect on the UK economy of this fall in discretionary income
b) Why might your predicted effects not actually occur?

This CH4 video shows the effect on companies as consumer incomes fall

http://link.brightcove.com/services/player/bcpid1184614595?bctid=1646218576

Unit 1: Falling disposable incomes and the efect on demandemand

Two stories showing how demand falls as disposable incomes fall

Cars in the UK http://news.bbc.co.uk/1/hi/uk/7489877.stm

a) Why do you think the sales of diesel cars may have increased if the overall demand as down?

Coffee in the USA http://news.bbc.co.uk/1/hi/business/7484646.stm

Unit 2: The external costs of crime

The BBC reports the external cost of crime

http://news.bbc.co.uk/1/hi/uk/7489877.stm

a) Why is this £15bn an external cost?
b) To what extent would you take this to be an acurate figure?

Unit 2: Australia's proposed emissions trading scheme

The BBC reports plans in Australia to start a carbon emissions trading scheme

http://news.bbc.co.uk/1/hi/world/asia-pacific/7489817.stm video
http://news.bbc.co.uk/1/hi/world/asia-pacific/7489411.stm article

a) How would such a scheme work?
b) What drawbacks would there be to the introduction of such a scheme?
c) Comment on the likely success of this scheme compared to other actions the Australian government could take

Unit 1: Rising costs and rising prices: Dry cleaners

This article from the BBC explains the hard times drycleaners in the USA are facing

http://news.bbc.co.uk/1/hi/business/7482554.stm

a) Using a S&D diagram, explain what has happened in the drycleaning market

Unit 2: The effect of the smoking ban in the UK

The BBC reports that many smokers have given up since the smoking ban

http://news.bbc.co.uk/1/hi/health/7481594.stm

a) How has this legislation reduced the market failure?
b) What unintended negative consequences have ther been on the UK economy as a result of the ban? This clip expands on the problems

http://news.bbc.co.uk/1/hi/uk/7482716.stm

Unit 1: Cross elasicity of demand: The price of oil and the demand for scooters

Another interesting post from Geoff Riley on XED ad from the BBC on American car sales

http://www.tutor2u.net/blog/index.php/economics/comments/oil-prices-and-demand-for-scooters-cross-elasticity/

http://news.bbc.co.uk/1/hi/business/7482963.stm

a) Define XED
b) Would the XED for scooters/small Honda cars in response to a rise in the price of oil be +ve or -ve?
c) What does this tell you about the relationship?
d) Would the XED for SUV's/pick up trucks in response to a rise in the price of oil be +ve or -ve?
e) What about the XED for the complements for scooters mentioned in the article?

For those of you who would like to follow up on these ideas there is this great article from the Guardian on how American consumer behaviour is changing as the result of soaring petrol prices in the USA

http://www.guardian.co.uk/environment/2008/jul/02/fossilfuels.travelandtransport