Unit 2: Government intervention with maximum prices regulations

The BBC reports that the Government in Zimbabwe is to cut the price of basics in half to counter their rampant runaway inflation

http://news.bbc.co.uk/1/hi/business/6240636.stm

A video report can be seen at

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6240000/newsid_6243600?redirect=6243694.stm&news=1&nbwm=1&nbram=1&bbram=1&bbwm=1 >

a) Draw a S&D diagram to show the effect of this maximum price on one of the listed items
b) Explain the likely consequences in this product market: How will consumers react? What will producers do? What will be the consequences for consumers in the market?

Unit 1: Demand for high priced wines

Majestic report rising sales and profits

http://news.bbc.co.uk/1/hi/business/6237170.stm

a) Use demand theory to explain the rise in demand for £20 bottles of wine
b) Draw a demand diagram to show this effect

Unit 3: Rising exchange rates

A good little BBC article about rising exchange rates

http://news.bbc.co.uk/1/hi/business/6236598.stm

a) What is causing the £ to rise?
b) Draw a S&D diagram to show this rise
c) What drawbacks are identified to this rising value of the £

Unit 3: Economic growth in Brazil

A good article from the BBC explaining the potential for growth in Brazil, but also explaining what is holding it back

http://news.bbc.co.uk/1/hi/business/6763275.stm

a) What factors are stated in the article that form the basis for Brazil's economic growth
b) What is preventing Brazil growing at a faster rate?

Unit 2: Externalities associated with driving

This article from the freakonomics site explains the externalities associated with driving and tries to put a price on them (in the American context)

http://www.freakonomics.com/blog/2007/06/18/hurray-for-high-gas-prices/

a) What are the negative externalities identified?
b) Why are they negative externalities?
c) To what extent would you support the conclusion that gas (ie petrol) taxes need to more than double?

Unit 1: The price of oil; price elasticity of supply

These two BBC articles try and explain the latest rise in the price of crude oil

http://news.bbc.co.uk/1/hi/business/6758891.stm

http://news.bbc.co.uk/1/hi/business/6755077.stm

a) Is supply elastic or inelastic? What reasons are given to explain this ?
b) What is happening to demand?
c) Draw a S&D diagram (using these 2 answers) to show why the price has been rising

Unit 1: Price Elasticity of Demand in the newspaper market

A great article from the Guardian that shows how the concept of PED can be applied in the real world

http://business.guardian.co.uk/story/0,,2103615,00.html

a)What will happen to demand for the FT ans WSJ following the price rise?
b) Why then are the 2 firms raising the selling price?
c) What do the firms believe will happen to their toal revenue from newspaper sales?
d) Is demand for these newspapers therefore elastic or inelastic?
e) Which of the factors that effects elasticity are applicable in this case?

Unit 3: Latest unemployment/inflation figures and an explanation of food inflation

Two BBC articles with the latest statistics

http://news.bbc.co.uk/1/hi/business/6743693.stm

http://news.bbc.co.uk/1/hi/business/6747659.stm

a) What are the trends in each case?
b) What reasons are given for each change?

This BBC clip explains why food prices are rising at almost double the inflation rate

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6740000/newsid_6748000?redirect=6748005.stm&news=1&nbwm=1&nbram=1&bbwm=1&bbram=1 >

a) Why, if food prices are rising so fast, is the inflation rate not rising as well?

Unit 2: Tradable permits; EU carbon trading failings

This bbc aricle suggests the EU carbon trading system is not reducing CO2 emissions

http://news.bbc.co.uk/1/hi/business/6748031.stm

a) State the reasons from the article why is the system seen to be failing
b) Suggest ways in which the system could be improved so that it achieved the objective

Unit 2: Are plastic bags demerit goods?

This BBC clip says Belgium will follow the example of Eire and tax plastic bags

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6730000/newsid_6739700?redirect=6739771.stm&news=1&nbram=1&nbwm=1&bbram=1&bbwm=1 >

a) Would you agree that plastic bags are demerit goods? Are both conditions present?
b) How does the free market fail if plastic bags are given away?
c) Draw a diagram to show the effect of the tax on the bags
d) Explain the effect and how it overcomes the market failure
e) Evaluate how likely is it that the tax will reduce the market failure
f) Explain one other method the government could have used to reduce the market failure and suggest two drawbacks to using this method

Unit 2: Restrictions on advertising a demerit good

When the market fails, a government can step in and use regulation to try and correct the market failure

This BBC story highlights such a case

http://news.bbc.co.uk/1/hi/health/6732805.stm

a) How would the market fail if the advertising was allowed to take place?
b) Why have the government (in the form of the ASA) intervened here?
c) Why is whole fat milk a demerit good? Make sure you cover both aspects of what makes a demerit good

Unit 2: Waste as a demerit good

A good summary of why waste is a demerit good and what the options are for government to reduce this market failure, from Geoff Riley

http://www.tutor2u.net/newsmanager/templates/?a=2433&z=1

Unit 2: Alcohol consumption; another example of alcohol as a demerit good

A BBC article on excessive alcohol consumption in Australia



http://news.bbc.co.uk/2/hi/asia-pacific/6708533.stm

(a) Identify some of the external costs of rising alcohol consumption among young people
(b) With the aid of a diagram, show how alcohol misuse may lead to market failure
(c) Which government policies do you think might be most effective in the long run in combating some of the social costs of alcohol dependency?

Unit 2: Government failure in Ireland with rubbish charging

An interesting tale

http://www.freakonomics.com/blog/?p=1318&akst_action=share-this

a) What is the market failure the government is trying to correct?
b) How have they attempted to counter the market failure?
c) How is this an example of Govenment failure?

Unit 2: Tradable permits: How carbon trading works and possible drawbacks

A great clip from the BBC explaining carbon trading and its drawbacks

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6720000/newsid_6728800?redirect=6728863.stm&news=1&nbwm=1&nbram=1&bbwm=1&bbram=1 >

This aticle suggests the current scheme is not working properly

http://news.bbc.co.uk/1/hi/programmes/file_on_4/6720119.stm

Unit 3: Measuring inflation

Confused by the different measures of inflation? This Guardian article may make things clearer

http://business.guardian.co.uk/story/0,,2080394,00.html

Unit 2: Alcohol consumption; an example of a demerit good

A brief clip from the BBC outlining the new plans for drinks labelling

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6690000/newsid_6697300?redirect=6697379.stm&news=1&nbram=1&bbram=1&nbwm=1&bbwm=1 >

a) Why could alcoholic drinks currently de described as a demerit good?
b) How does the market fail in this case?
c) What sort of efficiency is not being achieved?
d) How should the new proposals reduce the market failure?
e) Discuss how effective you think these new measures will be in tackling the problem

This clip outlines another problem with midle aged people drinking at home and once again illustrates the negative externalities associated with alcohol

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6720000/newsid_6721800?redirect=6721825.stm&news=1&nbwm=1&bbram=1&nbram=1&bbwm=1 >

Unit 3: Revision mindmap for National and International economy

Geoff Riley has come up with this revision minmap for the macro module which you might find useful for some of the links it shows

http://www.tutor2u.net/newsmanager/articlefiles/2396-AS_Macro_Revision_Map.pdf

Unit 3: Latest UK economic data for the AS exams

From Geoff Riley comes this useful one page summary of UK economic data

http://www.tutor2u.net/newsmanager/templates/?a=2395&z=1

Unit 1: Market share of the world PC market

This data shows the share each of the major manufactures has in the world PC market

Hewlett Packard: 17.6%
Dell: 13.6%
Acer: 6.8%
Lenovo/IBM: 6.3%
Toshiba: 4.1%
Source: Gartner Dataquest, Q1, 2007

a) What share of the world market do these top 5 firms have?
b) Which market structure do you think best represents the PC manufacturing industry?
c) Which of the criteria for that market structure are/are not present?

The figures come from the following interesting BBC article on Chineses manufactures trying to break in to the world market for branded goods

http://news.bbc.co.uk/1/hi/business/6675739.stm

Unit 2: Rise in US minimum wage

The minimum wage in the USA is set to rise

http://news.bbc.co.uk/1/hi/business/6690253.stm

a) Draw a diagram to show the effect of this on the US labour markets
b) Explain what the diagram shows is likely to happen as a result
c) To what extent is this likely to actually happen?

Unit 1: Demand for on-line shopping

This BBC report shows that demand for on-line shopping is rising at an increasing rate

http://news.bbc.co.uk/1/hi/business/6690397.stm

a) Which of the factors that effect demand has/have altered?
b) Draw a demand diagram to show this effect

Unit 3: Costs and benefits of economic growth in Shanghai

A good BBC article on economic growth in China

http://news.bbc.co.uk/1/hi/business/6683103.stm

a) What are the economic benefits of this rapid economic growth for Shanghai and its citizens?
b) What have been thecosts of such rapid growth?
c) What plans have the authorities to reduce these drawbacks?
d) Evaluate how successful you believe such policies are likely to be

Unit 2: Government intervention to overcome the market failure associated with litter

This BBC clip shows what is happening in Scotland to try and alleviate the problem of people dropping litter

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6680000/newsid_6688400?redirect=6688463.stm&news=1&bbwm=1&nbwm=1&bbram=1&nbram=1 >

a) What is the market failure that litter dropping represents?
b) Which of the 3 approaches open to government to overcome market failure is being used here?
c) What drawbacks are there to using this method?
d) Evaluate how successful you believe this approach will be in tackling this specific example of street littering

Unit 2: Government action to increase recycling and reduce market failure

The BBC article and the video clip points the way forward for the government on the issue of rubbish disposal

http://news.bbc.co.uk/1/hi/uk_politics/6685409.stm

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6680000/newsid_6686300?redirect=6686357.stm&news=1&bbram=1&nbram=1&nbwm=1&bbwm=1 >

a) Why, in economic terms, is rubbish going to landfill a form of market failure?
b) Why don't people recycle more?
c) What does this make recyclable rubbish in terms of market failure?
d) What approach is the government proposing to increase recycling?
e) Evaluate how successful this policy will be

This clip raises some issues from the householders point of view

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6680000/newsid_6686300?redirect=6686357.stm&news=1&bbram=1&nbram=1&nbwm=1&bbwm=1 >

Has your view of how successful the new scheme might be now changed?

Unit 2: Action by the competition commission against BskyB

The CC will investigate the purchase in ITV by BskyB

http://news.bbc.co.uk/1/hi/business/6686945.stm

Why? What is Sky accused of?

Unit 2: Income inequality in the UK

A good revision aid from Geoff Riley on poverty, inequality of income and what the govt has done to reduce income inequality

http://www.tutor2u.net/newsmanager/templates/?a=2394&z=1

Unit 2: Government action to curb illegal behaviour: BA fines

BA seems likely to be heavily fined for engaging in price fixing

http://www.tutor2u.net/newsmanager/templates/?a=2381&z=1

Unit 3: International competitiveness of the UK

A good, brief summary of the UK position from Geoff Riley

http://www.tutor2u.net/newsmanager/templates/?a=2389&z=1

Ask yourself, What supply side policies could the government introduce to improve the UK's competitiveness?

Unit 1: Alternative objectives to profit maximisation

A great summary of other objectives from Geoff Riley

http://www.tutor2u.net/newsmanager/templates/?a=2369&z=1

Unit 2: Market failure: Make the polluter pay

The latest plan for motor vehicles in London is a clear example of the polluter pays principal

http://business.guardian.co.uk/story/0,,2074782,00.html

Unit 3: Investment

A good revision page from Geoff Riley's blog

http://www.tutor2u.net/newsmanager/templates/?a=2363&z=1

Unit 3: Balance of payments

A really good revision page for the BoP on Geoff Riley's blog

http://www.tutor2u.net/newsmanager/templates/?a=2354&z=1

Unit 3: Interest rates over the last 10 years

This link from Geoff Riley's blog has some good graphs showing links between interest rate changes over the last 10 years and other economic variables

http://www.tutor2u.net/newsmanager/templates/?a=2349&z=1

What link can you see between between changes in interest rates and
a) Economic growth?
b) Inflation?

Unit 3: Productivity

A great page from Geoff Riley on the importance to the economy of increases in productivity and its role in supply side policies

http://www.tutor2u.net/newsmanager/templates/?a=2351&z=1

Unit 3: The effect of China on the UK economy

A great revision aid from Geoff Riley covering many macroeconomic topics by looking at the influence of China on the UK economy

http://www.tutor2u.net/newsmanager/templates/?a=2341&z=1

Unit 1: Barriers to entry

A good revision page from Geoff Riley

http://www.tutor2u.net/newsmanager/templates/?a=2339&z=1

Unit 3: Supply side policies

Another great revision page on supply side policies from Geoff Riley

http://www.tutor2u.net/newsmanager/templates/?a=2340&z=1

Unit 3: Effect of the rise in the value of the £

A great, short article on Geoff Riley's blog

ESSENTIAL REVISION!

http://www.tutor2u.net/newsmanager/templates/?a=2336&z=1

Unit 3: The £:$ exchange rate and its consequences

A great article from the Guardian explaining why the £ has appreciated and why it may soon start to fall

http://business.guardian.co.uk/economicdispatch/story/0,,2063523,00.html

Unit 3: Economic growth in China and its consequences

A useful Independent article on the benefits and drawbacks of economic growth

http://www.tutor2u.net/newsmanager/templates/?a=2329&z=1

To what extent is growth in China desirable?

Unit 3: Supply side policies

An intersting article on IT take-up across different countries

http://www.tutor2u.net/newsmanager/templates/?a=2330&z=1

a) Why is this an example of a supply side policy?
b) What problems are there for Governments in using such policies?

Unit 3: Hyperinflation in Zimbabwe gets worse!

Latest figures show Zimbabwe's inflation rate has risen to 2200%!

http://news.bbc.co.uk/1/hi/business/6597993.stm

Unit 3 : Inflation and its effect on the purchasing power of money

This Geoff Riley article shows how the purchasing power of £1 has fallen over time. Scary!

http://www.tutor2u.net/newsmanager/templates/?a=2201&z=1

Unit 2: Market dominance in Dutch beer and EU reaction

The EU has discovered a cartel operating amongst Dutch beer producers

http://www.tutor2u.net/newsmanager/templates/?a=2319&z=1

a) What is a cartel?
b) Why was this cartel formed?
c) What type of market failure does this represent?
d) What action has the EU taken?
e) Do you think this action is sufficient? What other actions could they have taken?

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?