Unit 3: Inflation - why the UK figures are rising

Geoff Riley has this interesting summary of why the UK inflation figure has gone outside it's desired limits

http://www.tutor2u.net/newsmanager/templates/?a=2317&z=1

Unit 3: Inflation - new powerpoint presentation

From tutor2u comes a new powerpoint presentation on inflation

http://www.tutor2u.net/newsmanager/templates/?a=2318&z=1

Unit 3: Zimbabwe; acase of hyperinflation

The BBC reports the potential of 5000% annual inflation in Zimbabwe!

http://news.bbc.co.uk/1/hi/business/6561433.stm

Unit 3: Why the rise in UK inflation?

This article from Evan Davis's BBC blog has an intersting view of why UK inflation is rising

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6570000/newsid_6573800?redirect=6573817.stm&news=1&nbwm=1&bbram=1&nbram=1&bbwm=1 >

a) What are his main arguments
b) Do you agree with him?

Unit 3: Rapid economic growth in China

Watch the BBC clip and then answer the questions

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6570000/newsid_6573800?redirect=6573817.stm&news=1&nbwm=1&bbram=1&nbram=1&bbwm=1 >

a) What component of Aggregate Demand appears to be fuelling the rapid economic growth in China?
b) What policy has the government used to try to slow the growth?
c) Why has this rapid growth not resulted in a high rate of inflation in China? Draw a diagram to show this
d) What major cost is China experiencing fro this rapid growth?

Unit 3: Free trade verses protectionism

An articl from the Telegraph summarised on Geoff Riley's blog

http://www.tutor2u.net/newsmanager/templates/?a=2300&z=1

a) What form of protectionism is being used?
b) How does this distort the pattern of world trade?
c) Discuss the likely consequences of the cotton market being opened up to free trade

All units : Revision material

Tutor2u have set up a series of revision tutorials.

Sign up for them at

http://www.tutor2u.net/newsmanager/templates/?a=2299&z=1

Unit 3: The UK's trade deficit

February saw a worsening of the UK trade deficit

http://news.bbc.co.uk/1/hi/business/6547937.stm

a)What reasons for this worsening are suggested?
b) Should the government be worried by this piece of data?

Unit 2: Market dominance by Apple's i-tunes

This article from Geoff Riley explains the action being taken by the EU to investigate whether Apple is abusing its dominant market position in the download market

http://www.tutor2u.net/newsmanager/templates/?a=2292&z=1

Unit 2: Market failure; road congestion

From Geoff Riley's blog comes this idea of setting up a tradable permits system to reduce road congestion

http://www.tutor2u.net/newsmanager/templates/?a=2303&z=1

a) What sort of market failure is road congestion?
b) Do you think this suggested scheme could work? What its potential drawbacks?
c) What alternative measures could government use to reduce this example of market failure?
d) Would this tradable permits scheme be more or less popular with the average motorist than the alternatives suggested by government?

Unit 3: Inflation: Some common Q&A's

This BBC article is good at explaining the difference between the RPI and the CPI, and other common questions regarding inflation

http://news.bbc.co.uk/1/hi/business/6356475.stm

Unit 3: Measuring inflation; what goes in the CPI's basket of goods

The annual changes to what is included in the basket of goods on which the CPI is calculated have been announced and can be found in these 2 articles

http://news.bbc.co.uk/1/hi/business/6466083.stm

http://news.bbc.co.uk/1/hi/business/6466083.stm

a) Why do these changes in the basket of goods occur annually?
b) Why, despite these annual changes, is the basket of goods (and the weights used) already out of date?

Unit 3: Supply side policies: Welfare reform

The government wishes to get more people off long term benefits and back in to work according to this BBC article and video clip

http://news.bbc.co.uk/1/hi/uk_politics/6418305.stm
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6410000/newsid_6416600?redirect=6416647.stm&news=1&nbwm=1&nbram=1&bbwm=1&bbram=1 >

a) List all the supply side measures proposed
b) How likely are such measures to reduce the numbers on long term benefits?

Unit 2: Government information to overcome the problem of de-merit goods

This BBC clip explains the latest government public information campaign on passive smoking
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6410000/newsid_6414400?redirect=6414479.stm&news=1&bbwm=1&bbram=1&nbwm=1&nbram=1 >

a) What aspect of market failure is the government trying to combat?
b) Draw a diagram to show the effect if this campaign is successful
c) To what extent do you believe the campaign will be successful?

Unit 1: The price of Australian wine

Watch this BBC clip

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6390000/newsid_6394700?redirect=6394705.stm&news=1&bbwm=1&bbram=1&nbram=1&nbwm=1 >

a) Why is the price of Australian wine expected to rise?
b) Use a S&D diagram to explain why this will occur

Unit 2: Demerit goods and government action: Junk food

Read the BBC article

http://news.bbc.co.uk/1/hi/health/6385345.stm

a) Why can junk food be classed as a demerit good?
b) What action does the government propose?
c) Why has it taken this action?
d) What alternative courses of action could the government have taken?
e) What are the arguments against having this ban?

Unit 2: Problems with carbon trading permits

BASF believe the EU carbon trading system to be flawed according to this BBC articl

http://hosted.ap.org/dynamic/stories/B/BAN_THE_BULB?SITE=1010WINS&SECTION=HOME&TEMPLATE=DEFAULT

a) How does the system work?
b) What critisisms does BASF have?
c) Do you believe they have a case, or are they just winging?

Unit 2: Government action: Australia to ban incandescent lightbulbs

These articles from AP (document) and the BBC (clip) explains the Australian government's action

http://hosted.ap.org/dynamic/stories/B/BAN_THE_BULB?SITE=1010WINS&SECTION=HOME&TEMPLATE=DEFAULT

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6380000/newsid_6383000?redirect=6383053.stm&news=1&nbwm=1&bbram=1&bbwm=1&nbram=1 >

a) What is the negative externality?
b) What type of action is the government taking to reduce the negative externality?
c) How significant an action is this by the government in terms of global warming?

Unit 3: Difficulties with supply side policies

This BBC article explains how the government is trying to improve the skills of the UK workforce; an example of supply side policies

http://news.bbc.co.uk/1/hi/programmes/file_on_4/6366523.stm

a) What problems with this supply side policy are identified?

Unit 2: Inheritance Tax and equality

There has been an increasing campaign conducted by papers such as the Mail and Express to abolish Inheritance tax which they regard as a tax on the middle classes.

This articl by the Labour peer David Lipsey argues that this is not the case and is actually a progressive tax that counters the inequality which arises in the free market

http://business.guardian.co.uk/story/0,,2011233,00.html

a) What do you think? Should it stay or should it go? The key thing is to remember what the downside would be of abolishing the tax as well as the advantages

Unit 3: UK's worst ever trade figures!

The UK's trade in 2006 was the worst ever in monetary terms. The details are in this Guardian article

http://business.guardian.co.uk/story/0,,2010058,00.html

a) Why does the UK have such a deficit?
b) Why might this not be a major issue to the UK

Unit 1: Market structure; The package holiday market

The Guardian reports a proposed merger between the second and third largest package holiday firms in Europe

http://business.guardian.co.uk/story/0,,2011685,00.html

a) Why do the firms want this merger?
b) What is the implication for the market structure?
c) Why is it unlikely that the Competition Commission will investigate this propsed merger even though the combined group will have a third of the short haul holiday market?

Unit 2: Externalities arising from growing roses in Kenya

On Valentines day, The Guardian had this article on the impact of growing roses around Lake Naivasha in Kenya

http://environment.guardian.co.uk/conservation/story/0,,2012105,00.html

Identify:
a) The private costs and benefits to the producers and consumers of growing these flowers in Kenya
b) The external costs and benefits which arise from this activity

Unit 1: The market for red roses

A brief BBC clip about the effect of Valentines day on the market for roses

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6350000/newsid_6357900?redirect=6357959.stm&news=1&nbwm=1&bbram=1&nbram=1&bbwm=1 >

a) Draw a diagram to show the effect of Valentines day on the market for red roses
b) A bouquet of red roses appears not to be a homegenous product; why not?
c) What type of market structure best represents the rose market? Explain your answer

Unit 3: How good a measure of inflation are the official rates?

This clip from BBC Nesnight is quite long, but gives a good overview of the measures of inflation and the weaknesses of any measure

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6350000/newsid_6355900?redirect=6355991.stm&news=1&bbram=1&bbwm=1&nbwm=1&nbram=1 >

Unit 3: Macroeconomic websites

From Geoff Riley comes this list of the best websites for gaining economic data for Unit 3. Note at the bottom the links to the tutor2u revision guides

http://www.tutor2u.net/newsmanager/templates/?a=2188&z=1

Unit 3: The balance of trade: Worst ever figures

Today sees the release of the worst ever balance of trade figures

What reasons are given in the BBC article below?

http://news.bbc.co.uk/1/hi/business/6345759.stm

Unit 2: The use of legislation

The EU is moving from a voluntary agreement with car makers to legislation to enforce maximumCO2 emission levels

a) Why do you think the EU has made this move?

b) Watch the clip and then argue a case against the use of legislation

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6330000/newsid_6339800?redirect=6339833.stm&news=1&bbram=1&bbwm=1&nbwm=1&nbram=1 >

Unit 1: The effect on demand on an outbreak of bird flu

Two interesting contrasting views of the effect on poutry products of an outbreak of bird flu.

What do you think?
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6330000/newsid_6332100?redirect=6332153.stm&news=1&bbram=1&nbwm=1&nbram=1&bbwm=1 >

http://news.bbc.co.uk/1/hi/business/6330849.stm

Unit 3: Macro data for the UK

Here is the link to Geoff Rileys latest look at the UK Economy via a powerpoint presentation

Look at it!!!

http://www.tutor2u.net/newsmanager/templates/?a=2147&z=1

Unit 2: Market dominance: Wrigleys chewing gum

From the BBC comes this clip of Cadbury's attempt to break the dominant position Of Wrigleys in the British chewing gum market

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6310000/newsid_6319000?redirect=6319075.stm&news=1&amp;nbram=1&nbwm=1&bbwm=1&bbram=1 >

It leads to many economic questions such as

· The monopoly power of Wrigleys in the UK – can it be broken?
· Is the market moving towards a duopoly / oligopoly – it is certainly becoming more contestable
· Barriers to entry – the costs and difficulties of breaking into a market and making a commercial return from new products
· The importance of product innovation when threatening the monopoly power of existing firms
· Cadbury’s marketing strategies when launching Trident in the UK
· Pricing issues – possibility of penetration pricing to take away some of Wrigley’s market share
· Externalities issues surrounding the waste created by increasing consumption of chewing gum
· Brand loyalty and consumer preferences
· The income elasticity of chewing gum – low but positive? Or perhaps an inferior good?

Unit 2: Labour Market failure: Rover

Almost 2 years after Rover went bust, 23% of the workforce is stiull unemployed says an article in todays Guardian

http://business.guardian.co.uk/story/0,,2005863,00.html

This is a case of market failure due to the OCCUPATIONAL immobility of labour. It is an example of STRUCTURAL unemployment

Unit 2: Market Failure: Light bulbs

This item says a Californian politician is trying to ban the sale of "normal" lightbulbs

http://news.bbc.co.uk/1/hi/business/6316635.stm

a) Why? What sort of market failure is ther in the free market for lightbulbs?
b) What form of government intervention is he suggesting?
c) Suggest TWO other ways the government could intervene to overcome this market failure and EVALUATE the likely success of the 3 different approaches

Unit 3: Supply side policies: Migration into the UK

This article from Geoff Riley explains the macroeconomic effects of inward migration to the UK

http://www.tutor2u.net/newsmanager/templates/?a=2145&z=1

a) Explain the supply side effects and draw an AD/AS diagram to show this change.
b) What is the likely effect of this increased immigration for the governments 4 macroeconomic objectives?

Unit 1: Barriers to entry: India's pharmacutical industry

This clip shows a good example of a barrier to entry
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6300000/newsid_6309400?redirect=6309453.stm&news=1&amp;bbram=1&nbwm=1&bbwm=1&nbram=1 >

To what extent do you think the barrier to entry is justified?

Unit 3: The costs of China's economic growth

China may be powering ahead with 10% annual growth, but at what price? This clip shows some of the negative externalities generated

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6300000/newsid_6307100?redirect=6307131.stm&news=1&bbwm=1&bbram=1&nbram=1&nbwm=1 >

Unit 3: Supply side policies

From Geoff Riley's blog comes this example of the Italian government using supply side policies

http://www.tutor2u.net/newsmanager/templates/?a=2143&z=1

a) Which type of supply side policies are being suggested?
b) Draw a diagram to show (and then use it to explain) the effects of these policies if they were to be succesful

Unit 2: Negative externalities; lung disease

Read the article below and watch the video clip

http://news.bbc.co.uk/1/hi/health/6297701.stm

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6300000/newsid_6301000?redirect=6301027.stm&news=1&bbwm=1&nbwm=1&bbram=1&nbram=1 >

a) Why is this lung damage an example of a negative externality?
b) Suggest 3 possible actions the government could take to correct this market failure
c) Suggest one drawback to each method you suggest

Unit 2: Reducing the negative externalities associated with consumption

Geoff Riley has picked up on a campaign by the Independent to reduce waste such as unnecessary packaging

http://www.tutor2u.net/newsmanager/templates/?a=2130&z=1

a)Why is this packaging an example of a negative externality?
b) What action(s) could the government take to reduce this negative externality?

Unit 2: Market dominance: The supermarkets

Today sees the release of the interim findings of the Competition Commission's investigations into the major supermarkets.

Read the articles and watch the clips and then
a) Identify the possible causes of market dominance identified
b) Given the benefits of such large supermarket chains, evaluate whether the CC should take action against the major supermarkets

http://news.bbc.co.uk/1/hi/business/4785544.stm

http://news.bbc.co.uk/1/hi/business/6289479.stm

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6280000/newsid_6289600?redirect=6289649.stm&news=1&amp;amp;nbwm=1&nbram=1&bbram=1&bbwm=1 >


< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6280000/newsid_6289900?redirect=6289987.stm&news=1&amp;amp;bbwm=1&nbwm=1&nbram=1&bbram=1 >

Unit 3: Calculate your own inflation rate!

The ONS now allows you to calculate your personal inflation rate at

http://www.statistics.gov.uk/pic/

Unit 3: Infation: Updated OHP preentation

This is an updated presentation on Inflation from Geoff Riley's blog

http://www.tutor2u.net/newsmanager/templates/?a=2110&z=1

Unit 1: The price of corn

This BBC clip explains why the price of corn (and corn derived products) is rising and likely to continue rising


< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6270000/newsid_6277800?redirect=6277809.stm&news=1&nbwm=1&nbram=1&bbwm=1&bbram=1 >

a) How would you describe the SUPPLY of corn available this year?
b) What has happened to DEMAND and which of the factors that effect demand have changed?
c) Draw a S&D diagram to show this effect
d) What will happen to the market over the next few years?
d) Draw a diagram and explain why the price of bread will increase
e) Draw a diagram and explain the effect of a subsidy on the bio-fuel market

Unit 2: Negative externalities in Romania

This BBC clip shows many negative externalities which this romanian town suffers from

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6269225 >

a) What are the PRIVATE costs and benefits of the industry in the town?
b) What are the EXTERNAL costs and benefits of the industry in the town?
c) How is the government taking action to ensure the situation improves?
d) To what extent do you believe they will be successful?

Unit 2: Climate change negative externalities

This clip shows some of the negative externalities associated with CO2 emmissions

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6267649 >

a) What are these effects?
b) Why would an economist class them as examples of negative externalities/external costs?

Unit 3: Inflation at an 11 year high

This link is to the BBC's Evan Davies discussing the rise in inflation on the clip and an associated BBC article. here is also a more general BBC article

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6266449 >

http://news.bbc.co.uk/1/hi/business/6268819.stm

http://news.bbc.co.uk/1/hi/business/6266263.stm

a) What are the suggested causes of this inflation rise?
b) What are the likely effects suggested to be on the economy?
c) Why might this rise in inflation only be short-term?

Unit 3: Interest rates and inflation

On the day that UK interest rates rise to 5.25%, Evan Davies of BBC news has this great little summary

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6252225 >
In addition, background information from Geoff Riley's blog showing trends in interest rates at

http://www.tutor2u.net/newsmanager/templates/?a=2084&z=1

a) What reasons does he give for interest rates having to rise?
b) Show the effect on an AD/AS diagram
c) What should the positive effects be on the economy (use the diagram!)
d) Not all the effects will be positive. From the clip and the diagram explain the likely negative effects on the economy

Unit 2 Government intervention: OFT investigation into competition issues

The OFT has announced it is to investigate the puchase of 17.9% of ITV by BSkyB

http://news.bbc.co.uk/1/hi/business/6255727.stm

a) What is the potential worry here?
b) Under which of the 6 market failure headings would you classify this?
c) What action can the OFT take if they think there is a case to answer?

Unit 2: Government action; enforcing the minimum wage

Abrief item showing how enforcement of legislation can occur

http://news.bbc.co.uk/1/hi/uk/6243307.stm

Unit 1: Demand for smoothies

This article says sales of smoothies has rocketed.

http://news.bbc.co.uk/1/hi/business/6230461.stm

a) Why in general terms?
b) Why in economic terms?

Unit2: The polluter pays...or should he?

This article from the Times via Geoff Riley's blog argues that the polluter pays principle of internalising negative externalities may be unfair

Do you think he has a point?

http://www.tutor2u.net/newsmanager/templates/?a=2061&z=1

Unit 1: The housing market

From Geoff Riley comes this powerpoint slide analysis of the housing market in 2006. A lot of detail but very interesting

http://www.tutor2u.net/newsmanager/templates/?a=2051&z=1

Unit 1: The oil market

From Geoff Riley comes this powerpoint summary of the oil market in 2006. A lot of detail but very interesting

http://www.tutor2u.net/newsmanager/templates/?a=2049&z=1

Unit 1: The price of handbags

This BBC clip says that a handbag is now the most desirable and fastest growing accessory

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6217193 >

a) Why has demand increased?
b) Limited editions sell for considerably more than the "normal" version. Use supply and demand analysis to explain why this can be the case

Unit 1: S&D and market structure: The champagne market

This BBC clip helps explain changes in the champagne market

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6218353 >

a) What has happened to demand?
b) Which of the factors that influence demand account for this?
c) What determines the supply of champagne available today?
d) How would you therefore describe the current supply of champagne?
e) What market structure best represents the champagne market?
f) Which of the criteria for that structure are/are not present; ie to what extent does it reflect that market structure?

Unit 1: The Nigella effect on the demand for goose fat

What price the celbrity effect? This article from the Guardian shows the effect of an endorsement by celebrity Nigella Lawson on the sales of goose fat

http://www.guardian.co.uk/food/Story/0,,1970107,00.html

a) Which of the factors that influence demand has changed?
b) What has happened to the demand curve for goose fat?

Unit 1: The price of orange juice

A great article from the Guardian explaining all sorts of things about the orange industry but particularly explaining why the price will rise in the near future

http://business.guardian.co.uk/story/0,,1969053,00.html

a) What factors are identified as having reduced supply
b) Draw a diagram to show how these changes have caused the price to rise

Unit 2: Market dominance: BAA and air passenger travel

The OFT is likely to recommend a Competition Commission enquiry into BAA says this BBC article:

http://news.bbc.co.uk/1/hi/business/6171365.stm

a)On what grounds?
b) Given its market share, what term could you use to describe BAA's market position?

Unit 2: Tradable permits: The EU Carbon Trading and fines on firms for non-compliance

Geoff Riley's blog has this story about 2 firms fined for non-compliance with the scheme and a link to more details on the scheme

http://www.tutor2u.net/newsmanager/templates/?a=2028&z=1

Unit 3: Exchange rates and the BOP: More on the fall of the dollar

This article from the Independent is great!

a) If the dollar is falling in value, what is happening to the value of the pound?
b)What does the article suggest are the advantages and disadvantages TO THE UK ECONOMY of this change
c) To what extent will the current account of the BOP be effected by the fall in value of the dollar?

http://news.independent.co.uk/business/news/article2032660.ece

Unit 2: Overcoming negative externalities: Road pricing; the Eddington report

The Eddingon report on on the future of UK transport suggests a role for road pricing. This video clip suggests why

Drivers should be charged according to how much they use the roads, says a report on the future of transport in Britain.< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6197498 >

More on the report can be found at

http://news.bbc.co.uk/1/hi/uk_politics/6160877.stm

and other links are listed with a summary at Geoff Riley's blog

http://www.tutor2u.net/newsmanager/templates/?a=2018&z=1


As the prospect of green taxes loom, this BBC Midlands Today video clip examines what road pricing might cost some of the region's commuters.

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6099642 >

Unit 2: Market dominance and Government action: Fines in the rubber industry

A brief article in the Guardian illustrating action the European Community will take if they believe firms are colluding to abuse their market power

http://business.guardian.co.uk/story/0,,1959891,00.html

...and a link to more on this on Geoff Riley's blog where there is more on the context of the decision

http://www.tutor2u.net/newsmanager/templates/?a=2015&z=1

Unit 2: Social costs and social benefits: Donald Trump and golf course developments

Here are 2 stories from the Guardian about the American developer Donald Trump's plan for a golf development in Scotland. Read both articles and then

a) Identify private costs associated with the project
b) Identify external costs associated with the project
c) Identify private benefits associated with the project
d) Identify external benefits associated with the project
e) How might decision makers use cost-benefit analysis to help decide whether this proposed project be allowed to go ahead

http://business.guardian.co.uk/story/0,,1957686,00.html

http://sport.guardian.co.uk/golf/story/0,,1959410,00.html

Unit 3: Exchange rates and the Balance of Payments: The decline in the value of the dollar

Here's an article from the Guardian and a BBC news clip from Evan Davies explaining the impact of the decline in the value of the dollar

a) If the dollar is falling, what is happening to the value of the pound?
b) What is the effect of this on UK import prices costed in dollars?
c) What is the effect of this on UK export prices to the USA?
d) What does economic theory tell us shoul happen to the current account of the Balance of Payments as a result?
e) Will this actually happen? It depends on which economic concept?

http://business.guardian.co.uk/story/0,,1958016,00.html

< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6190094 >

Anothe article describing the effects on the UK economy both positve and negative

http://news.bbc.co.uk/1/hi/business/5250250.stm

Unit 1: The price of wine

This article explains the effect of the recent drought on the Australian wine market

a) Draw a D&S diagram to show the effect of this on the wine market
b) Describe what your diagram shows

http://news.bbc.co.uk/1/hi/business/6180072.stm

Unit 1: Opportunity cost and the PPC: Drugs choices

This articl clearly shows the choices that have to be made by hospitals

a) Draw a PPC to show the choices faced by the doctors
b) What does the PPC show?
c) How does it illustrate the idea of opportunity cost?

http://news.bbc.co.uk/1/hi/health/6176008.stm

Unit 2: Competition policy; control of monopoly

From Geoff Riley's blog comes this excellent presentation explaining the actions governments can take if they believe there to be a market failure through market dominance

It has many links in it which can illustrate numerous points of economic theory

http://www.tutor2u.net/economics/presentations/competition-policy/default.html

Unit 2:Negative externalities and taxation of packaging

From Geoff Riley comes information on the idea of using taxation to discourage excess packaging.

a) In what way is excess packaging a negative externality?
b) Evaluate how successful you think a scheme such as this would be

http://www.tutor2u.net/newsmanager/templates/?a=1970&z=1

Unit 1: Market structure: Games consoles

From Geoff Riley's blog comes this page with plenty of links so you can explore the market for games consoles

a) What type of market structure do you think the games console market is?
b) Are all the criteria of that market structure present? If not, TO WHAT EXTENT does any model explain the games console market?

http://www.tutor2u.net/newsmanager/templates/?a=1967&z=1

Unit 1: Economies of scale: Pubs

What economies of scale might arise from increasing the size of your pub chain as in the article below?

http://news.bbc.co.uk/1/hi/business/6165278.stm

Unit 2: Government response to demerit goods: Junk food advertising ban

Ofcom is planning to restrict the advertising of junk food

http://news.bbc.co.uk/1/hi/health/6154600.stm

a)Who is the ban aimed at?
b) Why is junk food regarded as a demerit good in this case ? You need to cover both criteria
c) Why is the ban on advertising these products aimed at children and not total?

Here is the response of the manufactures

http://news.bbc.co.uk/1/hi/business/6157708.stm

d) Evalute the validity of their response

Unit 1: Economies of scale: Easyjet

This article says that easyjet plans to continue to expand and grow its fleet of aircraft

From the content of the article and your knowledge of the airline industry, suggest economies of scale the easyjet may gain from expansion. Will they get economies in the 5 catagories on the syllabus?

http://news.bbc.co.uk/1/hi/business/6145872.stm?ls

Unit 1: The demand for eggs

To what extent do you think this report will influence the demand for eggs in the UK?

http://news.bbc.co.uk/1/hi/uk/6153362.stm

Unit 1: Objectives of firms: Social entreprenneurs

This article highlights the fact that not all firms have the objective of maximising profits.

a) What are the objectives of these entreprenneurs?
b) What about profit? How does this fit into our syllbus content?

http://news.bbc.co.uk/1/hi/business/6151628.stm

Geoff Riley adds some more detail to this story at

http://www.tutor2u.net/newsmanager/templates/?a=1959&z=1

Unit 3: How good a measure of inlation is the CPI?

From Geoff Riley's blog comes this really useful article summarising how the CPI is created and its failings as a true measure of inflation

http://www.tutor2u.net/newsmanager/templates/?a=1952&z=1

Unit 2: Private benefits and external costs from the Russian heavy metal industry

This article highlights the issue of private benefits and external costs

a) What is a private benefit?
b) What private benefits to the workers and people of the town are identified?
c) What is an external cost?
d) What examples of external costs are identified and in each case explain why are they an external cost

http://news.bbc.co.uk/1/hi/business/6103382.stm

Unit 1: Opportunity cost and the PPC: Hong Kong harbour

Read the article about Hong Kong

a) Draw aPPC to show the 2 choices Hong Kong has
b)Show where Hong Kong was on the PPc 10 year ago, now and in the future
c) Explain the opportunity cost of the proposed development using your diagram

http://www.guardian.co.uk/china/story/0,,1946219,00.html

Unit 1: Market structure; search engines

In May 2005, the global market share of total search was:

Google 51%
Yahoo 24%
MSN 13%
AOL 5%
Ask Jeeves 5%
Others 2%

a) How would you describe the market?
b) Using your knowledge of the firms and their products, give examples of the features of the market structure for these firms

Unit 1: The demand for housing

Abbey have announced that they will provide a mortgage up to 5 times the applicants salary in some circumstances

http://politics.guardian.co.uk/economics/story/0,,1937195,00.html

a) What will happen to the demand for houses as a result of this policy?
b) Why? Which factor that influences demand has altered?
c) Draw a diagram to show this change

Unit 1: Market structure; more on the broadband market

From my post the other day, the current broadband market is broken down as follows:

Market share June 2006
NTL 27% BT 24% AOL/Carphone Wharehouse 13% Tiscali 11% Wanadoo 9% All other providers 16%

Today comes news that Vodafone is to enter this crowded market

http://business.guardian.co.uk/story/0,,1945365,00.html

a) Which market structure does the broadband market best represent?
b) What barriers to entry are there to the market?
c) How will Vodafone be able to overcome these barriers?
d) Evaluate the impact Vodafone's entry is likely to have on the market

Unit 1: Production Possibility Curves

This link will take you to the short run wbsite

Click on the PPC link for an excellent stage by stage explation of PPC's with moving images. A great revision aid

http://www.theshortrun.com/classroom/classroom.html#econgraphs

The supply and demand pwerpoints are much weaker and I would not bother with them......but you might think differently!

Unit 3: Changes in interest rates

These 3 clips help explain the role of interest rates in our economy

a) Why do rates have to rise?
b) How will the rise help achieve this objective?


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6130984


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6131348


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=4778263

Unit 1: Market structure; Nike v Adidas

A great little clip from the BBC

a) What market structure do you believe the trainer market to be?
b) What evidence is there in the clip to back up your assertion?


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6131312

Unit 1: The price of champagne

The most expensive champagne in the world!

a) How can Supply and Demand theory explain the price of this champagne?
b) What will happen if the manufacturers have got it all wrong and have set the price too high?

http://news.bbc.co.uk/1/hi/business/6125612.stm

Unit 2: Alcohol and market failure

An outstanding powerpoint presentation from tutor2u on this topic

http://www.tutor2u.net/economics/presentations/aseconomics/marketfailure/MarketFailureAlcohol/default.html

Unit 1: Substitutes, Elasicity of Supply and the aircraft industry

This article tells us that Fedex has swiched its order from Airbus to Boeing.

a) What does it tell us about the cross elasticity of demand for the 777 and A380?
B0 Given the delays in delivering the A380, what can you say about the pelaticity of supply for the aircraft?
c) Why might this be the case?

http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=414462&in_page_id=3

Unit1: Competition; Nike v Adidas

A news clip from the BBC highlighting the tactics used by these 2 trainer giants

a) What type of market structure is the trainer market?
b) How do their actions support your choice of market structure?


http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&amp;amp;bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6131312

Unit 2: Reducing climate change effects

This article by the environmentalist George Monbiot in the Guardian is written from a left-ish liberal conservationist perspective....but is he right?

Practice your evaluation skills by trying to counter the arguments he puts forward

http://environment.guardian.co.uk/climatechange/story/0,,1935560,00.html

Unit 1: Opportunity cost: Trident missiles or decreased CO2 emissions?

This article is quite long but you'll get the idea fairly quickly

a) What is the opportunity cost of replacing trident?
b) Draw a PPC to show this trade-off

http://environment.guardian.co.uk/climatechange/story/0,,1939422,00.html

Unit 1: The price of gas

This Guardian article shows how both supply and demand determine the price of a product

a) What does it say is happening to supply?
b) How does the demand for gas change?
c) Taking the 2 sides, why does the article argue that prices will remain high?

http://business.guardian.co.uk/story/0,,1938259,00.html

Unit 1: Demand for Burger King products

Half way down this article are the reasons given for Burger King sales

a) Which factors that influence demand are these
b) What has happened to the demand curve?
c) How do you think Burger King will react?
d) What effect will this have on the demand curve?

http://business.guardian.co.uk/story/0,,1937038,00.html

Unit 2: Demerit goods: Light bulbs

This article suggests the UK is wasting energy and producing more CO2 than it should as we still use old fashion lightbulbs

a) Why are these lightbulbs an example of a demerit good?
b) What methods could the government use to try and overcome this market failure?
c) Which approach(es) would you recommend they use, and why?

http://environment.guardian.co.uk/energy/story/0,,1938668,00.html

Unit 2: Government action; the higher cost of motoring

If the government is serious about decreasing CO2 from cars, it will have to make motoring less attractive. This article sets out possible government actions

a) What sort of action is it in each case
b) Suggest 2 possible drawbacks in each case to pracice your evauation technique

http://environment.guardian.co.uk/travel/story/0,,1935027,00.html

Unit 2: Carbon Trading

This short section from the Guardian should clarify what carbo trading is and how successful it has been so far

http://environment.guardian.co.uk/climatechange/story/0,,1934988,00.html

Unit 1: Demand for Digital Televisions

THis article shows the change in consumer purchases of TV's from analogue to digital continues to grow

Look at the list of factors that influence demand and work out which have caused this change in behaviour

http://business.guardian.co.uk/story/0,,1940301,00.html

Unit 1: Market structure; the broadband market

Read the article and using that and the data below,

a) explain what sort of market you believe the broadband market in the UK to be
b) say which of the criteria for that market are/are not present

Market share June 2006

NTL 27%
BT 24%
AOL/Carphone Wharehouse 13%
Tiscali 11%
Wanadoo 9%
All other providers 16%

http://business.guardian.co.uk/story/0,,1939399,00.html

Unit 1: Objectives of Firms

From Geoff Riley's blog comes this story of a change of objective for Cadbury's

What would you say is their objective now?

http://www.tutor2u.net/newsmanager/templates/?a=1878&z=1

Unit 1: The price and PES of Uranium

A great little story from Geoff Rileys blog

a) What has happened to supply?
b) What does the article tell you about the Price Elasticity of Supply for uranium?

http://www.tutor2u.net/newsmanager/templates/?a=1885&z=1

Unit 3: Supply side policies

This from Geoff Rileys blog explains how decreasing taxes may lead to economic growth......but it's not only the result of tax decreases

http://www.tutor2u.net/newsmanager/templates/?a=1892&z=1

Unit 2: Inequality of income

This BBC article shows the inequality of income that can arise in a free maket

a) Do you think this inequality is fair or should the Government intervene?
b) If so, how could they intervene?
c) If not, what purpose does this large inequality serve?

http://news.bbc.co.uk/1/hi/business/6118572.stm