Friday, April 30, 2010

Unit 1: Actions by the Australian government to reduce smoking

This BBC clip gives the latest Australian proposals

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 video 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

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

Saturday, April 24, 2010

Unit 2: What is GDP?

A great little video from BBC answers this question

Wednesday, April 14, 2010

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

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

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

Tuesday, April 13, 2010

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

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?

Sunday, April 11, 2010

Unit 2: China's BoP current acount deficit

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

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

Saturday, April 10, 2010

Unit 1: Rising petrol prices

This Ch4 video explains the recent rise in petrol prices

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

Wednesday, April 07, 2010

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

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

Tuesday, April 06, 2010

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

The BBC reports a new pricing strategy from Ryanair

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 article 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

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?

Friday, April 02, 2010

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

The Guardian sees the data differntly

and it can be seen brilliantly in this Guardian graphic

Unit 2: Inflation : Recent data/revision

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

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