Tuesday, December 31, 2013

Unit 1: Illegal rubbish dumps in Greece

Laws may be easy to pass, but enforcement can prove a problem as this clip from the BBC shows


Sunday, December 15, 2013

Unit 2: Why is saving high and consumtion low in China?

A nice clip with the answers from the BBC


Unit 1: Should e-cigarettes be more closely regulated?

Some believe they should


UNit 2: Should low inflation be the primary macro objective?

A nice evaluative post from economicshelp


Unit 2: What are the effects of a decrease in interest rates?

A nice evaluative post from economicshelp


Unit 2: Income and spending patterns in the UK

Great data from the ONS via a Guardian article, handy when looking at how weights in CPI/RPI are allocated


and this interactive one showing changes over time, including, clearly, the effects of the recession


Unit 1: Information failure in the fruit and veg market

An amazing story from Tesco. When I read it, I wondered if it was April Fools day!


Friday, December 06, 2013

Saturday, November 23, 2013

Unit 1: Negative externalities from a new proposed gold mine in Romania

Another great story from Aljazeera


Unit 1: Plastic bags in New Delhi

A great clip from Aljazeera illustrating not just the normal negative externalities associated with rubbish, but also a positive externality. Great stuff!


Unit 1: A disturbing example of negative externalities from China

Thanks to Aljazeera


Thursday, November 21, 2013

Unit 1: Are supermarket customers suffering information failure?

Yes, reports the BBC


Unit 1: A law is fine, but how is it enforced?

Standard theory suggests market failure can be reduced by regulation/legislation, but it has to be enforced

This BBC clip appears to show that isn't always the case and so breaking the law becomes less of an issue......and the negative externality remains!


Wednesday, November 20, 2013

Unit 1: NY introduces minimum age and minimum prices for cigarettes

....reports the BBC


a) To what extent are these measures likely to reduce the market failure caused by cigarettes?

Unit 1: The demise of Tie Rack: Allocative efficiency

As anyone who knows me will testify, I've never bothered the sales staff in Tie Rack. Now it appears, others are following my approach and not buying ties as Sky reports


a) How does this closure illustrate the idea of allocative efficiency

Sunday, November 17, 2013

Unit 1: Is breastfeeding a merit good?

It could well be, according to the government who are starting a trial to give vouchers (ie a subsidy) to mothers who breastfeed. This BBC video explains all


a) What are the 2 conditions needed for a merit good?
b) Does breastfeeding meet these criteria
a) Evaluate the likely success of this project

Unit 1: Allocative efficiency and the demise of Blockbuster

Sky reports


a) In what way does the disappearance of Blockbuster from high streets show allocative efficiency in the economy?

Unit 1: Shine on you crazy diamond

Classis S&D story in the auction house


Unit 2: November 2013: Inproved unemployment figures

Report from Sky news


and UK by region map from the Guardian


Sunday, November 10, 2013

Unit 1: Payday loans; a demerit good?

Ed Milliband appears to think so as he want regulations introduced to restrict when they can be shown, says Sky


a) Why might payday loans be characterised as a demerit good?
b) To what extent would the proposal reduce the market failure?
c) What other actions could the government take? Would they be more successful?

Saturday, November 09, 2013

Unit 2: ECB cuts interest rates

A really informative article from the BBC


a) Why has the ECB cut the rate? Explain your answer in terms of the 4 macro-economic objectives
b) Evaluate the likely success of this policy move

Unit 1: US Government bans transfats

Thanks to tutor2u for this post


a) What is the market failure this intervention is meant to correct?
b) Evaluate the likely success of the government action in correcting the market failure
c) Outline one other action the US government could have taken instead of the legislation and compare the likely success of the 2 policies

Friday, November 08, 2013

Unit 1: Why has demand for blockbusters products collapsed

This article from Sky explains


a) Using the theory of demand, explain the demise of Blockbusters, both in the US and the UK

Wednesday, November 06, 2013

Unit 1: What explains the rising demand for new cars?

An interesting article from Sky news


a) Given we are experiencing little or no growth in real incomes, which of the determinants of demand explains the increasing demand for new cars?

Tuesday, November 05, 2013

Sunday, November 03, 2013

Unit 1: Negative externalities from sand mining in India

A really good example of negative externalities from Al Jazeera


Unit 1: Cuba; a step back to central planning?

Interesting development in Cuba that seems to buck the recent trend reports the BBC


...and Aljazeera


Saturday, November 02, 2013

Unit 1: The used car market; a case of information failure?

It would appear so from the point of view of the consumer, according to this BBC clip which clearly shows asymmetric information in the market


Thursday, October 31, 2013

Unit 1: Wine prices to rise?

Apparently so, according to this BBC clip full of demand and supply analysis


So why don't we just produce more wine? Think elasticity of supply!

Sunday, October 13, 2013

Unit 1: More restrictions proposed on cigarette sales in Europe

....according to the BBC


Unit 1: Increased demand for bulletproof cars in Pakistan

A classic case of increased demand due to changing taste and fashion in Pakistan


Unit 1: Post office shares: A disequilibrium price?

The launch price appears to be well below the equilibrium price if initial trading is any indication

Saucony ProGrid Ride 4 Running Shoes 280944

Monday, September 30, 2013

Sunday, September 29, 2013

Sunday, September 15, 2013

Unit 1: Changes at Currys

Is this revamp an example of allocative efficiency in the economy?


Unit 1: Giant turbines; productive efficiency in action

Great example from the BBC


Unit 2: Greek unemployment

A nice summary of the depressing position in Greece from tutor2u


Unit 2: The circular flow of income

Nice powerpoint from tutor2u that builds the model step by step


Unit 1: Privatisations in the UK

A nice time line from the Guardian


Unit 1: Charging for plastic bags

If you believe that free plastic bags lead to negative externalities, then this initiative by the UK government to allow England to follow Wales makes sense

http://news.sky.com/story/1141528/plastic-bags-shoppers-to-be-charged-5p Sky
http://www.bbc.co.uk/news/uk-24090133# BBC

a) What other approach could the government take to reduce the negative externality problem?

Sunday, September 08, 2013

Sunday, August 25, 2013

Tuesday, August 20, 2013

Unit 2: Why the rupee is depreciating

Nice explanation from the BBC


Unit 2: The effect of a changing exchange rate on Japan's BoP

Nice article from the BBC


Wednesday, August 14, 2013

Monday, August 12, 2013

Unit 2: Government spending on capital infrastructure: Cycle networks

Nice example (said the cyclist) from the BBC, possibly leading to positive externalities for the ecponomy


Unit 1: Payday loans: A demerit good?

It appears some people think so as councils move to limit advertising of these loans and access to payday loan sites from council computers


Friday, August 09, 2013

Thursday, August 08, 2013

Unit 2: YTA training: A supply side policy

Thanks to the BBC


a) Why is this an example of a supply side policy?
b) To what extent do you think such training schemes are likely to help the government meet its macroeconomic objectives for the economy?

Unit 1: The effect of GM crops on an agricultural PPC

An interesting article from tutor2u


a) Assuming the argument and figures to be correct (and there are strong opposition arguments), draw a PPC diagram to show the effect on output of introducing these GM crops. Label one axis "GM crops" and the other axis "traditional crops"
b) Explain why you have drawn the change as you have

Sunday, August 04, 2013

Unit 1: Sun beds; an example of a market with information failure?

Nice clip from the BBC


a) Is more regulation required?
b) What other approaches to reducing the market failure could be used?

Thursday, August 01, 2013

Unit 2: Latest UK macro data

Thanks to tutor2u for this slideshow jam packed with up to date data


Unit 1: How much of the cigarette price is tax?

Some great data from the Guardian showing the $ cost per pack across various countries and the % of that price that is tax


This analysis shows prices relative to incomes as it shows how many minutes the average worker has to  work to buy a packet of cigarettes


Sunday, July 28, 2013

Unit 1: The falling cost of car insurance

....is due to less legal claims for whiplash, apparently


a) Using a S&D diagram, explain why the price of car insurance has decreased

Unit 1: The opportunity cost of the Meningitis B vaccine

The rejection of the meningitis B vaccine  for the UK highlights many basic issues in economics, scarce resources, unlimited wants, choices, opportunity cost, the validity of data.........

http://www.bbc.co.uk/news/uk-23437251# video
http://www.bbc.co.uk/news/health-23422973# article

Unit 1: How much does the weather effects the supply of English wine?

A lot, according to this Ch4 video


Thursday, July 25, 2013

Unit 2: UK growth in GDP

Is this the start of a recovery?

Interesting video from Ch4 with a great graph at around 4.25 showing how different sectors of the economy have done since the downturn in 2008


and the BBC


Wednesday, July 24, 2013

Saturday, July 20, 2013

Unit 1: Actions to reduce the negative externalities from excessive alcohol consumption

For women born in the 70's the private costs appear to be high


a) Evaluate the alternative measures government could take to reduce the death rate in this age group

Thursday, July 18, 2013

Un it 1: What will the level of demand be for a hydrogen fuelled car?

Hyundai intend to launch one in 2015 according to the BBC


a) Using demand theory, explain what will determine the level of demand for these hydrogen fuelled cars

Unit 2: A mixed picture re UK unemployment

Overall, the UK number is down


...but in Scotland it's rising


...and long term unemployment is at its highest rate since 1996


Unit 1: Rubbish on the beach: Negative externalities

Depressing behaviour leading to negative externalities


a) What could the government do to reduce the negative externalities?

Unit 2: The benefits cap: A supply side policy

Details from the BBC

http://www.bbc.co.uk/news/business-23311578# video
http://www.bbc.co.uk/news/business-23306092 article

...but how successful will it be? Some really good evaluation in the report

Unit 2: Smog eating pavements

....which appear to have positive externalities associated with them


Tuesday, July 16, 2013

Sunday, July 14, 2013

Unit 1: Demerit goods: The government drops plans for a minimum unit alcolol pricing scheme

Thanks to the BBC for this summary


Unit 2: If you thought Greece's unemployment couldn't get any worse...

....you'd be wrong: The latest data shows U at 27.4% and this video shows one of the consequences; the exodus of the young and skilled


Unit 2: Economic growth in the EU: Data

Thanks to economics help for this


Unit 1: Demerit goods: The government steps back from further regulation of the tobacco industry

Thanks to Sky news


and the BBC


Unit 1: Falling demand for PC's

....due to better substitutes becoming available. A nice summary from tutor2u


Unit 1: Negative externalities in China

Thanks to tutor2u for this post covering air pollution and pork production


and this from the BBC on air pollution


Sunday, July 07, 2013

Thursday, July 04, 2013

Unit 1: Extracting iron ore

Great short clip from the BBC showing the fop in action


Unit 1: Legislation in Wales to supply more organs

As ever, Wales leads the world to increase the supply of donor organs......an example of merit goods?


Wednesday, June 26, 2013

Monday, June 24, 2013

Unit 1: Externalities from wind turbines

This Sky report indicates negative externalities arising from wind turbines


...but it fails to mention the positive externalities: Any idea what they are?

Wednesday, May 22, 2013

Unit 1: The supply curve for sugar

Great clip from the BBC explaining how Cuban sugar mills are being restarted as the world price of sugar has risen


Tuesday, May 07, 2013

Unit 2: Australia cuts interest rates

Interesting BBC article explaining why Australia's central bank has cut interest rates


Sunday, April 28, 2013

Unit 1: Scotland bans cigarette displays

....and so comes in to line with the rest of the Uk according to this BBC clip. It also highlights the problem of introducing laws and regulations, namely that their has to be sufficien enforcement


Friday, April 12, 2013

Unit 1: Negative externalities from illegal gold mining in Nigeria

I've highlighted this problem in an earlier post from Aljazeera. Unfortunately, it appears that things have got no better since then, according to the BBC


Unit 1: Shale gas developments in China

Nice clip from the BBC


a) What positive and negative externalities would be associtaed with exploiting these shale gas reserves?

Saturday, April 06, 2013

Sunday, March 17, 2013

Saturday, March 09, 2013

Unit 1: Changing demand for eating in France

....reports the BBC


a) Using demand theory, explain the possible reasons for the changing pattern of demand for eating in France

Unit 1: Is there market failure in the processed meat market?

The evidence seems to be indicating there is......but how valid is the evidence? The BBC reports


a) What type of market failure might be present in processed meat markets such as those for bacon and sausages?
b) Comment on the likely success of 2 policies the government could implement to reduce the market failure

Saturday, February 23, 2013

Unit 1: The rising price of petrol and diesel

Nice article from the BBC


a) Explain the 3 reasons given for the rise in prices
b) Draw a S&D diagram to show these effects
c) Describe the pattern of petrol and diesel price changes shown in the diagram

Unit 2: Welfare to work: A failing supply side policy?

It's early days, but the initial gigns aren't encouraging if you pick out the numbers from this interview with Margaret Hodge


Unit 2: Who does India trade with?

Lots of data regarding India's imports and exports


Unit 2: Investment: Dyson's new production line in Singapore

High tech to produce a quality product


Friday, February 15, 2013

Unit 1: Falling world demand for diamonds

...reports Sky


a) Using demand theory, explain the fall in demand for diamonds
b) Using demand theory, explain why De Beers believes demand will rise in the future

Unit 1: Is there market failure in the teeth whitening business?

Possibly, if this clip is correct


a) What market failure, if any, do you believe exists in the teeth whitening market?

Tuesday, February 12, 2013

Unit 1: What is the equilibrium price for a US College basketball ticket?

We'll soon find out at Northwestwern University, according to Planet Money


Unit 2: CPI unchanged, but RPI increases

...according to the ONS


Unit 2: The potential problem of a strong Euro

....is outlined in this BBC clip


A) What costs and benefits could there be for the UK from a strong Euro

Unit 1: Is the e-cigarette market suffering from market failure?

This BBC clip raises the issue

http://www.bbc.co.uk/news/health-21408502# video
http://www.bbc.co.uk/news/uk-21406540# article

a) What sort of market failure might be present in the e-cigarrette market
b) What government action, if any, could be aken to reduce this potential market failure?
c) To what extent would such policies be successful?

Unit 2: The circular flow of income

Thanks to tutor2u for finding this from the ONS


The interactive version, with data links to each section, is at


Unit 1: Public goods: Revision

Thanks to tutor2u for this updated revision slideshow


Saturday, February 09, 2013

Unit 1: How regulation can reduce market failure: Paracetamol

Great clip from the BBC

http://www.bbc.co.uk/news/health-21378624# video
http://www.bbc.co.uk/news/health-21370910# article

a) In what respect would the free market for paracetamol appear to fail?
b) To what extent does this legislation appear to have reduced the market failure?
c) Suggest one other action the government could take to further reduce the market failure

Unit 2: Where does UK government spending go?

Great post from economicshelp with all the data you need


Tuesday, February 05, 2013

Unit 1: Rising onion prices in India

....could be critical, report the BBC


a) Using a S&D diagram, explain why onion prices have risen

Unit 2: The rising demand for meat in India

The BBC reports that the traditionally vegetarian diet is changing


a) Explain the rising demand for meat usingdemand theory

Sunday, February 03, 2013

Unit 2: The effect of Polish migration on the UK economy

...appears to have been significant, according to this BBC clip


a) Using an AD and AS diagram, comment on the effect of Polish migration on the UK economy

Unit 2: Free trade returns to US Beef exported to Japan and Taiwan

Both countries are lfting restrictions on imprts of US produced beef

http://www.bbc.co.uk/news/world-middle-east-21288750# Japan
http://www.bbc.co.uk/news/business-19008147 Taiwan

Wednesday, January 30, 2013

Unit 1: Olive oil prices to rise?

Likely, according to this BBC clip


a) Using a S&D diagram, explain why the price of olive oil is likely to rise

Unit 1: Should we tax sugary drinks?

An interesting clip from the BBC


and Aljazeera


a) How does the market for sugar based drinks fail?
b) Using a S&D diagram, explain how the tax would help correct the market failure
c) Comment on the likely success of such a tax policy to reduce the market failure

Sunday, January 27, 2013

F582 scoop it boards




F581 scoop it boards








Scoop it resources from Geoff Riley

http://www.scoop.it/u/geoff-riley#curatedTopicsTabSelected all boards. For AS, the 2 most useful are:

http://www.scoop.it/t/developments-in-the-uk-economy/p/3977417844/mclaren-formula-one-engineers-set-to-cash-in-on-winning-formula?sc_source=http%3A%2F%2Fwww.tutor2u.net%2Fblog%2Findex.php%2Feconomics%2Fcomments%2Fdevelopments-in-the-uk-economy2%3Futm_source%3Dfeedburner%26utm_medium%3Dfeed%26utm_campaign%3DFeed%253A%2Beconomics_news%2B%2528tutor2u%2BEconomics%2BBlog%2529%23When%3A17%3A59%3A03Z developments in the UK economy

http://www.scoop.it/t/as-macro-inflation-and-unemployment inflation and unemployment

Unit 1: The internet: A public good?

It appears not as this article illustrates


a) Given the choice of public, private or quasi-public good, explain which you would choose for an internet connecton

Unit 2: The costs of economic growth in China

....are all too evident from these BBC  videos and article

http://www.bbc.co.uk/news/world-asia-21271656# video
http://www.bbc.co.uk/news/world-asia-21016180# video
http://www.bbc.co.uk/news/magazine-21198265# article

Unit 1: Positive and negative externalities in Beijing

Great article from the BBC


a) Explain both the positive and negative externalities associated with China's rapid economic growth from the article

Tuesday, January 22, 2013

Unit 1: A flaw in the EU tradable permits scheme

The recession has reduced demand for the permits and so the price of pollution has fallen, according to the BBC


a) Why is this price fall a problem?

Unit 2: A cost of unemployment

....to a country can be the loss of it's workers as they emigrate in search of work. The higher the unemployment rate, the more likely this is to happen

This BBC clip shows Spanish workers in Germany


Unit 1: Information failure in the ecstacy market

Given that the market is illegal and therefore unregulated, there is no knowing what an ecstacy pill might contain. This clip from the BBC illustrates the extreme outcome of information failure in buying ecstacy


Sunday, January 13, 2013

Unit1: Negative externalities: Severe smog in Beijing

...according to Aljazeera. It looks grim


and the BBC


Unit 2: Comparative EU unemployment data

....from this BBC video


and Greece's latest data makes it worse than Spain


Unit Assymetric information failure in the football pie market

Don't you love it when you find a really different example? Thanks to tutor2u for a post that combines meat pies and the esteemed Joe Stiglitz


Unit 2: Benefit spending in the UK

Nice graphic from the Guardian


Unit 2: How much of a problem is a balance of payments current account deficit?

I like the evaluative component (near the end) of this post from economicshelp


Sunday, January 06, 2013

Unit 1: Allocative efficiency in the magazine market; bye-bye Newsweek

So farewell to the print edition of Newsweek


....and readers Digest appears to be following the same path

a) How does this story reflect the idea of allocative efficiency?

Unit 1: Revision help

I've just come across these youtube videos from Enhance Tuition where they go through exam technique and answer past questions.


BUT!!!!!!! Remember this is one teacher's interpretation of the questions and the examiner's published markscheme, it is not the holy grail!

Unit 1: Reducing the negative externalities associated with food waste

A fascinating story from South Korea courtesy of Aljazeera


a) Comment on how successful this policy appears to be (Make sure your answer is 2 sided!)

Unit 1: The importance of substitutes on demand: The video games industry

Console sales are down, reports Sky news


a) Explain why, using the theory of demand
b) Draw 2 demand diagrams, one showing the new demand for consoles, and the other showing demand for mobile games

Saturday, January 05, 2013

Unit 1: Are flood defences a public good?

They are often cited as an example. This clip from Aljazeera allos you to judge for yourself


a) Are these flood defences non-excluable?
b) Are these flood defences non-rival?
c) So, are these flood defences a pubic, quasi-public or private good?

Unit 2: Key terms glossary

........from tutor2u


Friday, January 04, 2013

Unit 1: Allocative efficiency in the music market

It seems the relentless rise of digital music is not only effecting the UK, according to the BBC


a) In what way does this story illustrate the concept of allocative efficiency ?

Thursday, January 03, 2013

Unit 2: Entreprenneur loan scheme: A supply side imitiative

...according to Ch4 and the BBC

http://www.channel4.com/news/government-loan-scheme-to-encourage-entrepreneurs Ch4
http://www.bbc.co.uk/news/business-20898978# BBC

a) Comment on the success of the policy so far and its likely future success in th efuture

Unit 1: Allocative efficiency in Cambridge

As the popularity of going to the pub continues to decline and pubs close, it's intersting to see the new uses they are put to. Examples in Cambridge include pubs demolished and conversions to restaurants and estate agents. This latest proposal is for conversion to student flats


a) Why is this an example of allocative efficiency in the market?

Unit 2: The multiplier effect of Swansea being in the premier league

You can work it out from the data in this report from the BBC


Unit 1: Information failure in the cosmetic surgery market?

It appears so from this Ch4 report


a) In what way is there information failure in the market?
b) Comment on the likelyhood that the suggested regulations would reduce the market failure
c) Comment on the likely success of an alternative strategy that the government could implement

Unit 2: Macroeconomic data

Thanks to tutor2u for these charts


and these on the key macro indicators