Monday, May 31, 2010

Unit 2: Inflation: Revision

Three posts from tutor2u on the causes of inflation and policies to reduce it Demand pull Cost push Policies to reduce inflation

Thursday, May 27, 2010

Unit 1: Market failure in the alcohol market

A great video from the BBC
a) Why is demand for alcohol rising?
b) What negative externalities are there associated with excessive alcohol consumption?
c) Using a diagram, explain how the free market fails
d) How successful do you think imposing a minimum proce on alcohol would be in reducing the market failure?

Friday, May 21, 2010

Unit 2: The state of the Indian economy

A set of data from tutor2u analysing the state of the Indian economy

a) Using the data, comment on the state of the Indian macroeconomy

Tuesday, May 18, 2010

Unit 2: Externalities: Australian mining

A nice report by the BBC on open cast mining in Australia

a) What are the private benefits of the mining operation?
b) What are the private costs of the mining operation?
c) What are the external costs of the mining operation?
d) What actions could the Australian government take to reduce the negative externalities to the social optimum output?

Unit 2: Rising inflation:in the UK and India May 2009

Sky news has a brief report, article and graph explaining the latest rise in UK inflation

as does the BBC

Mind you, our rate is low compared to India's

a) What is the cause of this inflation?

Sunday, May 09, 2010

Unit 2: Indian businessmen buying Durham cricket club

The BBC reports that Indian businessmen are buying Durham cricket club

a) Where would this purchase appear in the UK balance of payments?
b) Is it "good" or "bad" for the UK's balance of payments?

Unit 2: Investment in hotels in Dubai

The BBC reports more hotels being built in Dubai, despite overcapacity at the current time

a) What is the motivation/reason for this investment in the present circumstances?

Unit 2: Revision: Balance of payments

Thanks to tutor2u for this concise revision sheet for BoP