Friday, June 29, 2012

Unit 1: Negative externalities from diesel use

Pretty bad, according to the BBC

but maybe there's hope for the future, according to Aljazeera (in this tutor2u post)

Sunday, June 10, 2012

Unit 2: Cutting interest rates in China to stimulate economic growth

A great clip from the BBC

a) Using the AD formula, explain the slowdown in economic growth in China
b) Explain how decreasing interest rates should stimulate economic growth
c) Why might additional growth not occur?

Wednesday, June 06, 2012

Unit 2: Australia cuts interest rates

....reports the BBC

a) Explain why this action has been taken and comment on the likely success of this policy

Tuesday, June 05, 2012

Unit 1: Legislation to reduce the negative externalities from soda consumption

Great article from the Guardian about the plan of NY mayor Michael Bloomberg to ban the selling of supersize drinks

a) What negative externalities could arise from the free market sale of supersize drinks?
b) What alternative policies could the Mayor have used instead of an outright ban?
c) Comment on the likely success of the ban in reducing the market failure

Sunday, June 03, 2012