Unit 1: The price of road haulage

This BBC clip says that the increase in diesel prices is having a significant effect on road haulage firms

http://news.bbc.co.uk/player/nol/newsid_7160000/newsid_7161100/7161145.stm?bw=bb&mp=rm&asb=1&news=1&bbcws=1

a) Using a S&D diagram, explain the effect on the price of road haulage of the increase in diesel fuel prices for road haulage firms
b) What effect is this fuel price increase likely to have on the competitive position of any single firm

Unit 3: Balance of Payments: The UK's trade deficit is at its highest level since the late 1980s

The UK trade deficit is at its highest level since the late 1980s, official figures have shown according to this BBC clip.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7150000/newsid_7155000?redirect=7155040.stm&news=1&bbwm=1&nbram=1&nbwm=1&bbram=1&asb=1 >

a)What does a balance of payments deficit mean?
b)What does the economy need to do to reduce the deficit?
c)How would a decrease in the value of the pound help this process?

Unit 2: Failure of government intervention to overcome the market failure : Minimum wage

This BBC article shows that Government actions to overcome market failure do not always succeed

http://news.bbc.co.uk/1/hi/uk/7157056.stm

a) What is the market failure?
b) What action has the government taken to alleviate the market failure?
c) Why is this action failing?
d) How could the government ensure that its policy was more successful?

Unit 2: Externalities and Government actions to reduce them: Motor manufacturers and CO2 limits

This BBC clip says the EU is proposing fines on car makers who fail to meet targets for cutting emissions of CO2 from new vehicles they produce

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7150000/newsid_7151300?redirect=7151316.stm&news=1&bbwm=1&nbwm=1&bbram=1&nbram=1&asb=1 >

a) What are the negative externalities the EU is trying to reduce with these proposals?
b) What 2 methods of correcting the market failure is the EU proposing to use?
c) To what extent do you think the measures will succeed?

Unit 2: Market dominance and government action: Christmas trees

The Danish government is taking action against Christmas tree growers who appear to be trying to abuse their market position by acting as a cartel

http://news.bbc.co.uk/1/hi/business/7151651.stm

a) In what way does the market fail and why has the Danish government taken this action?

Unit 2: Externalities associated with global warming: Penguins

Climate change and the resulting melting ice caps in Antarctica are affecting the breeding patterns of penguins, according to this BBC video clip
.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7130000/newsid_7137800?redirect=7137853.stm&news=1&bbram=1&bbwm=1&nbwm=1&nbram=1&asb=1 >

a) In what way is the efect on the penguins an example of a negative externality?

Unit 2: Alcohol consumption; Market failure through negative externalities

This BBC clip says that drunken violence is costing the NHS in Scotland millions of pounds every year, according to new figures.

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7140000/newsid_7148200?redirect=7148288.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1 >

a) Define negative externalities
b) Explain the negative externalities associated with excessive alcohol consumption shown in the clip

Unit 1: The price of corn, food and biofuels

This BBC clip says that increasing demand for biofuels is pushing up food prices.

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7140000/newsid_7148100?redirect=7148126.stm&news=1&nbram=1&nbwm=1&bbram=1&bbwm=1&asb=1 >

a) Using a S&D diagram, explain why the price of corn has risen
b) Using a S&D diagram, explain why the prices of products which use corn as an ingredient have risen
c) Using a S&D diagram, explain the effect on the biofuel market of the government giving corn producers a subsidy if corn is grown for biofuels

Unit 1: Changing patterns of demand; internet shopping

This BBC clip suggests that festive shopping habits are changing with many consumers turning to the internet for their Christmas shopping.

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7140000/newsid_7148200?redirect=7148239.stm&news=1&nbwm=1&bbwm=1&bbram=1&nbram=1&asb=1 >

a) Which of the factors that effects demand has altered?
b) Using a demand diagram, explain what has happened to the demand for internet shopping

Unit 2: Efficiency and competition: Elecctrolux relocate production to Poland

This Guardian article explains why the Swedish firm Electrolux has decided to relocate production to Poland from the UK

http://www.guardian.co.uk/business/2007/dec/14/manufacturing.ireland

a) State which type of efficiency will be improved by this move
b) Explain why this will be the case and the role of competiton in leading to this improved efficiency
c) What drawbacks does this aticle show there may be to making more efficient use of scarce resources

Unit 3 Unemployment figures at 32 year low

This BBC article reports unemployment as measured by the claimant count at a 32 year low

http://news.bbc.co.uk/1/hi/business/7140069.stm

Unit 2: Negative externalities associated with diesel vehicles

This BBC article highlights a negative externality that results for vehicles which use diesel

http://news.bbc.co.uk/1/hi/health/7129024.stm

a) What is the negative externality?
b) Why is it a negative externality?
c) What options does the government have to try and overcome/reduce the negative externality?

Unit 2: Market dominance and government action: Government fines on supermarkets for price fixing on dairy products

These BBC clip and aticle explains why the major supermarkets, excluding so far Tesco, have been fined a collective £116m

http://news.bbc.co.uk/player/nol/newsid_7130000/newsid_7132100/7132165.stm?bw=bb&mp=rm&asb=1&news=1&bbcws=1

http://news.bbc.co.uk/1/hi/business/7132108.stm

a) What market structure is the supermarket industry?
b) Why are firms in this industry tempted into collusion?
c) To what extent do you think such fines will limit this sort of illegal behavior?

Unit 2: Negative externalities associated with oil spills

A state of emergency has been declared along South Korea's coastline after the nation's biggest oil spill according to this BBC clip
.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7130000/newsid_7135100?redirect=7135117.stm&news=1&nbwm=1&nbram=1&bbram=1&bbwm=1&asb=1 >

a) Define a negative externality
b) Explain the negative externalities which arise from this oil spill

Unit 2: Market dominance and government action: EU fines on rubber manufacturers

From the BBC comes news of fines on 5 firms involved in a price fixing cartel

http://news.bbc.co.uk/1/hi/business/7129480.stm

Unit 2: Negative externalities from river pollution

** River contaminates Greek town **
This BBC clip explains how toxic waste pollution in a river in Greece has been blamed for a high death rate in the town of Oinofyta.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7130000/newsid_7130200?redirect=7130228.stm&news=1&nbwm=1&bbram=1&bbwm=1&nbram=1&asb=1 >

a) What is the negative externality in this example?
b) Who are the third parties?
c) What is the spillover effect?
d) What action has the government taken to reduce/eliminate the negative externality?
e) To what extent has the government action been successful?