Unit 1: The effect of the weather on demand: Cinema sales

This BBC article suggests the abysmal summer weather has boosted demand for cinema seats

http://business.guardian.co.uk/story/0,,2178043,00.html

a) Draw a diagram to show the effect on demand of the poor weather on the cinema seat market
b) Use demand theory to explain other reasons why the demand for cinema seats may have increased (one factor is mentioned in the article).

Unit 2: CBA and producing power on the Severn

This BBC article says the Government is going to re-examine the possibility of producing 5% of the UK's energy needs from the Severn tidal surge

http://news.bbc.co.uk/1/hi/sci/tech/7013068.stm

The actual report is summarised by the Guardian

http://www.guardian.co.uk/environment/2007/oct/02/renewableenergy

a) Explain how a CBA could be used to decide which, if either, of the 2 proposals should be put in place
b) Comment on how dependable the result of the CBA would be to decision makers
c) What else would decision makers take in to accout as well as the results of the CBA?

Unit 2: Costs and benefits associated with 3 gorges dam dam

This BBC article outlines clearly the costs and benefits to China of building the massive 3 gorges dam

http://news.bbc.co.uk/1/hi/world/asia-pacific/7013953.stm

a) Outline the private costs of building the dam
b) Outline the private benefits of building the dam
c) Outline the external costs of building the dam
d) Outline the external benefits of building the dam
e) Assuming a CBA had been conducted on the proposed dam before the start of the project, what other factors might the government have taken into consideration

Unit 2: Negative externalities: More on lightbulbs

The BBC reports that the UK is to follow Australia (see blog for 21st Feb 2007) in phasing out traditional lightbulbs

http://news.bbc.co.uk/1/hi/uk/7016020.stm

a) What is the main difference between the Uk and Australian proposals?
b) Comment on which approach is most likely to succeed in reducing the negative externalities quickest.

Unit 2: Market dominance in the milk market

This BBC clip explains the allegations that there has been price fixing in the milk market

http://news.bbc.co.uk/player/nol/newsid_7000000/newsid_7004100/7004112.stm?bw=bb&mp=rm&asb=1&news=1

a) Who are alleged to have colluded in this price fixing?
b) In what way is this an example of market failure?
c) How does the government intervene to protect the consumer?
d) What penalties do the firms face if the allegations are proved?

Unit 1: Demand for diamonds

China is the world's second fastest growing diamond market according to this BBC videoclip

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7000000/newsid_7004100?redirect=7004190.stm&news=1&bbram=1&nbwm=1&nbram=1&bbwm=1&asb=1 >

a) Use demand theory to explain this increase
b) Draw a diagram to show the effect on the demand for diamonds

Unit 1: Opprtunity cost and production possibility curves: Cornish waves

This Guardian article oulines the choices faced by the community off the Cornish coast

http://www.guardian.co.uk/uk_news/story/0,,2171301,00.html

a) What are the 2 things the article says the sea can produce for Cornwall?
b) Draw a PPC to show the possible outputs of the two
c) Show the current position on the PPC
d) Show the position if the wave farm is built

Unit 2: Climate change as market failure and potential policies to overcome the market failure

This Guardian article outlines the Tories plans to counter climate change

http://www.guardian.co.uk/guardianpolitics/story/0,,2168986,00.html

a) What 3 general actions can the government take to overcome market failure?
b) List the policies under the 3 headings
c) Take any one section and evaluate the likelyhood of the policies succeeding

Unit 1: The price of barley and whisky

The price of barley has fisen steeply according to this BBC article

http://news.bbc.co.uk/1/hi/scotland/highlands_and_islands/6987208.stm

a) Using a diagram, explain why the cost of barley has risen
b) Using a diagram, explain the likely effect of this price rise on the price of whisky

Unit I: The market for champagne

Vineyards in the Champagne region of France are struggling to keep up with global demand for their product according to this article from the BBC.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6990000/newsid_6992000?redirect=6992068.stm&news=1&nbram=1&bbwm=1&bbram=1&nbwm=1&asb=1 >

a) Use economic theory to explain why demand for champagne has risen so much
b) Use economic theory to explain why the supply of champagne will not be able to rise much further
c) If the situation continues, use a S&D diagram to explain what is likely to happen to the price of champagne
d) What solution to this problem is suggested?
e) Use a S&D diagram to explain how this would alter the champagne market and comment on the likely effect on its price

Unit 1: Increasing the supply of arable land and the effect on the price of wheat

This BBC article outlines the EU proposals to do away with set aside land, at least for one year

http://news.bbc.co.uk/1/hi/business/6993635.stm

a) What will be the effect on the supply of agricultural land?
b) What will be the effect on the supply wheat?
c) Draw a S&D diagram and explain the effect of this policy on the world price of wheat
d) What possible drawbacks are there to this policy?

Unit 3: Unemployment and the AS curve

This BBC article states that UK unemployment continues to fall

http://news.bbc.co.uk/1/hi/business/6990785.stm

a) Why do wages rise as the level of unemployment falls?
b) Draw an AS curve and use it to explain the effect of the fall in unemployment

Unit 1: The price of wheat

A great article from the BBC explaining why the price of wheat has reached an all time high

http://news.bbc.co.uk/1/hi/business/6990821.stm

a) Explain what has happened to the demand for wheat using economic reasons
b) Explain what has happened to the supply of wheat using economic reasons
c) Draw a S&D diagram to show the effect of these changes and explain the effects of these changes on the price of wheat

Unit 2: Alcohol consumption; taxation and promotion bans

The British Medical Association says that increasing tax on alcohol would help tackle binge drinking, acccording to this BBC clip
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6980000/newsid_6985700?redirect=6985769.stm&news=1&nbwm=1&bbram=1&nbram=1&bbwm=1&asb=1 >

a) What are the negative externalities associated with excessive alcohol consumtion?
b) What are the private costs associated with excessive alcohol consumtion?
c) What 2 suggestions do the BMA propose to cut alcohol consumption?
d) Evaluate the likelyhood that these policies would be successful if implemented

Unit 2: Costs and benefits associated with dam building: Turkey

This excellent BBC clip outlines the costs and benefits of building a new dam on the Tigres river in South-Eastern Turkey. Protests have taken place over the plans to build a huge dam that will flood an ancient city.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6980000/newsid_6983200?redirect=6983243.stm&news=1&nbram=1&nbwm=1&bbwm=1&bbram=1&asb=1 >

a) Outline the private costs associated with the project
a) Outline the private benefits associated with the project
a) Outline the external costs associated with the project
a) Outline the external benefits associated with the project

Unit 1: Supply and Demand; the price of bread

The price of bread is due to rise due to the rise in the price of wheat according to this BBC article

http://news.bbc.co.uk/1/hi/business/6977360.stm

a) Using a S&D diagram, explain how this rise in the price of wheat will lead to a rise in the price of bread

Unit 1: Opportunity cost and production possibility curves: Maize

The Guardian has this great article explaining the effect on food supply (and so food prices) of the incresed use of maize grown in the USA for biofuels to power cars as a substitute for oil

http://www.guardian.co.uk/environment/2007/aug/29/food.g2