Unit 2: Alcohol consumption; taxation and promotion bans

The British Medical Association says that increasing tax on alcohol would help tackle binge drinking, acccording to this BBC clip
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6980000/newsid_6985700?redirect=6985769.stm&news=1&nbwm=1&bbram=1&nbram=1&bbwm=1&asb=1 >

a) What are the negative externalities associated with excessive alcohol consumtion?
b) What are the private costs associated with excessive alcohol consumtion?
c) What 2 suggestions do the BMA propose to cut alcohol consumption?
d) Evaluate the likelyhood that these policies would be successful if implemented

Unit 2: Costs and benefits associated with dam building: Turkey

This excellent BBC clip outlines the costs and benefits of building a new dam on the Tigres river in South-Eastern Turkey. Protests have taken place over the plans to build a huge dam that will flood an ancient city.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6980000/newsid_6983200?redirect=6983243.stm&news=1&nbram=1&nbwm=1&bbwm=1&bbram=1&asb=1 >

a) Outline the private costs associated with the project
a) Outline the private benefits associated with the project
a) Outline the external costs associated with the project
a) Outline the external benefits associated with the project

Unit 1: Supply and Demand; the price of bread

The price of bread is due to rise due to the rise in the price of wheat according to this BBC article

http://news.bbc.co.uk/1/hi/business/6977360.stm

a) Using a S&D diagram, explain how this rise in the price of wheat will lead to a rise in the price of bread

Unit 1: Opportunity cost and production possibility curves: Maize

The Guardian has this great article explaining the effect on food supply (and so food prices) of the incresed use of maize grown in the USA for biofuels to power cars as a substitute for oil

http://www.guardian.co.uk/environment/2007/aug/29/food.g2

Unit 3: Tariffs: lightbulbs

This BBC article gives an example of a tariff inaction

http://news.bbc.co.uk/1/hi/business/6968809.stm

a) Why is the tariff imposed?
b) Draw a S&D diagram to show the effect of the tariff in the market
c) Discuss the positive and negative effects of the tarif on EU consumers, EU producers and overseas producers

Unit 2: Internalising externalities: Alcohol

This BBC article suggests that late night bars should pay for the policing in city centres

http://news.bbc.co.uk/1/hi/scotland/6968438.stm

a) What are the negative externalities associated with late night city centre drinking?
b) How would the proposal internalise the externality?
c) Draw a S&D diagram to show the effect on the market of internalising the externality and explain how it would reduce the market failure

Unit 1:The price of beef

British shoppers could pay more for meat because of the rising feed costs paid by farmers says this BBC clip.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6960000/newsid_6966100?redirect=6966171.stm&news=1&bbwm=1&nbwm=1&nbram=1&bbram=1&asb=1 >

a) Does the rising cost of feed effect the demand for, or the supply of beef?
b) Draw a S&D diagram to show this change and the resulting increase in the price of beef

Unit 2: Overcoming information failure with demerit goods: Cigarettes

This BBC clip and related article shows the latest govt policy initiatives to deal with information failure in the cigarette market. Under new regulations all UK tobacco products will have to carry picture health warnings

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6960000/newsid_6968000?redirect=6968013.stm&news=1&amp;nbwm=1&bbram=1&nbram=1&bbwm=1&asb=1 >

http://news.bbc.co.uk/1/hi/health/6967160.stm

a) What aspect of a demerit good is this picture campaign trying to counter?
b) What other method does the clip say the government is introducing to reduce cigarette consumption?
c) To what extent do you think these and other measures will overcome the market failure associated with cigarette consumption

Unit 1: Supply and Demand; the price of wheat

This BBC article says the price of wheat has risen

http://news.bbc.co.uk/1/hi/business/6962211.stm

a) Identify the supply reasons for the price rise
b) Identify the demand reasons for the price rise
c) Draw a S&D diagram to show both of these changes and explain the effect on the price of wheat

Unit 3: Hyperinflation: Zimbabwe

The BBC reports that Zimbabwe's economy continues to deteriorate and its inflation rate reach a new high of 7600% p.a.

http://news.bbc.co.uk/1/hi/business/6959164.stm

a) What sort of problems does such a rate of inflation lead to in the economy?

Unit 2: Externalities associated with alcohol consumption

This BBC Wales article argues that overconsumption of alcohol is a growing problem

http://news.bbc.co.uk/1/hi/wales/6955616.stm

a) What are the negative externalities associated with excessive alcohol consumption?
b) Evaluate how successful the 4 point BMA proposals are likely to be in reducing the problem
c) Evaluate how successful the banning of drinking on the streets is likely to be in reducing the problem

Unit 1: Price Elasicity of Demand: Car parking charges in Cardiff

This BBC article reports a sharp rise in car parking charges in Cardiff

http://news.bbc.co.uk/1/hi/wales/south_east/6957302.stm

a) Why do you believe NCP has put up prices?
b) What is likely to happen to demand for spaces in the car parks?
c) Does NCP believe the the demand for these spaces to be elastic or inelastic?
d) Why do you believe this to be the case?
e) Based on your answer to c), draw a diagram to show the effect on NCP's total revenue of this price rise

Unit 2: Internalising externalities: Rubbish collection

This BBC article seems to suggest households would be willing to pay for the rubbish they put out to be collected

http://news.bbc.co.uk/1/hi/uk/6957814.stm

a) What are the externalities associated with the production of household rubbish?
b) How would this scheme internalise the externalities?
c) Draw a S&D diagram to show the effect of this pay as you throw policy and explain the effect on the market
d) Evaluate how successful you believe such a scheme would be if implemented

Unit 1: Substitute goods: Telephones

This BBC article shows how demand for 2 substitute products has changed over time

http://news.bbc.co.uk/1/hi/business/6959049.stm

a) How close are landlines and mobiles as substitute products?
b) Why if they are substitutes do most people have both?

Unit 1: The demand for cigarettes

This Guardian article says the demand for cigarettes in the UK has dropped

http://business.guardian.co.uk/story/0,,2153163,00.html

a) Explain why is this the case using demand theory
b) Explain why, using economics ideas, why this fall in demand might be temporary

Unit 1: The price of chocolate

This Guardian article says the price of chocolate is set to rise

http://business.guardian.co.uk/story/0,,2153285,00.html

a) Why is the price set to rise?
b) Draw a S&D diagram to show how this price rise will occur and explain what your diagram shows

Unit 3: Inflation falls in the UK

July saw a surprise drop in UK inflation. THis BBC clip explains why the UK's rate of inflation fell below analysts' forecasts to 1.9% in July.
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6940000/newsid_6947000?redirect=6947089.stm&news=1&amp;bbram=1&bbwm=1&nbwm=1&nbram=1&asb=1 >

a) What are suggested as the reasons for the unexpected fall in inflation?
b) How do falls in the prices of these items lead to inflation (as measured by the CPI) decreasing?

Unit 1: Demand for Microsoft's Xbox

Microsoft intend to decrease the price of the Xbox in Europe following a similar decrease in the USA

http://news.bbc.co.uk/1/hi/business/6954718.stm

a) Why are Microsoft decreasing the price?
b) What view do you believe does Microsoft has regarding the Price elasticity of demand for the Xbox?
c) What is the economic link between the Xbox, the PS3 and the Wii?

Unit 2: Market dominance and the Competition Commission: Supermarkets and their suppliers

The CC announces it will investigate possible abuse by Tesco and Asda of their dominant market position in their dealings with their suppliers says this BBC clip and article

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6950000/newsid_6954400?redirect=6954485.stm&news=1&amp;nbram=1&nbwm=1&bbram=1&bbwm=1&asb=1 >

http://news.bbc.co.uk/1/hi/business/6953474.stm

a) What is the alleged abuse of market dominance that will be investigated?

Unit 2: Negative externalities: The ski resort with no snow

As global warming accelerates, low level ski resorts are feeling the consequences says this BBC clip

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6920000/newsid_6922700?redirect=6922777.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&asb=1 >

a) Why is global warming a negative externality for this ski resort?

Unit 1: Demand for Polish products

The rise in the Polish population in the Uk has seen a rise inh demand for Polish products in the UK

This BBC clip shows how UK retailers have reacted to this change in demand
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6920000/newsid_6929800?redirect=6929868.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&asb=1 >

Unit 2: Brocolli, a merit good!

This BBC article suggests that brocolli might be termed a merit good

http://news.bbc.co.uk/1/hi/health/6927359.stm

a) Why is brocolli a merit good?
b) What could the government do to increase consumption of brocolli?

Unit 2: Demerit goods: Patio heaters

This BBC article outlines the growth in the sales of outdoor patio heaters

http://news.bbc.co.uk/1/hi/uk/6914276.stm

a) Why could the heaters be considered as demerit goods?
b) What actions could governments take to attack both aspects of patio heaters being demerit goods?

Unit 2: Negative externalities associated with office printers

Working in an office may have external costs according to this BBC article

http://news.bbc.co.uk/1/hi/world/asia-pacific/6923915.stm

a) What are the external costs?
b) Why are they external costs?
c) What possible actions could governments take to reduce these negative externalities?

Unit 3: Economic growth, interest rates and inflation in China

This BBC article and video clip explain the conflicting macroeconomic objectives China appears to be facing

http://news.bbc.co.uk/1/hi/business/6915190.stm
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6900000/newsid_6907100?redirect=6907123.stm&news=1&nbram=1&bbram=1&bbwm=1&nbwm=1 >

a) What effect will the rising value of the Yuan have on China's exports and imports?
b) What effect should the rise in China's interst rates have on the value of the Yuan?

The economy is said to be overheating and as a result inflation is rising
c) Using an AD / AS diagram, explain the possible cause of this rise in inflation
d) What action should the cental bank take to reduce the rate of inflation?
e) Use an AD / AS diagram to show how this policy should reduce inflation

Unit 1: Demand for products at B&Q

This BBC article outlines reasons for sales at B&Q

http://news.bbc.co.uk/1/hi/business/6916876.stm

a) Explain the positive and negative effects the weather has had on B&Q sales
b) To what extent will increasing interest rates decrease demand for B&Q products?

Unit 1: Price elasticity of demand: Sony PS3

The effect of the price cut for the PS3 in the usa can now be seen

http://news.bbc.co.uk/1/hi/technology/6913090.stm

a) The original price was $600 and it was cut by $100. Using this information and the information in the story, calculate the PED for the last 2 weeks following the price cut.
b) Explai what happened to Sony's revenue from PS3 sales in these 2 weeks
c) Evaluate the success of Sony's stratagy given the other information in the article and your knowledge of the concept of PED

Unit 2: Consumption with private benefits but with external costs: Motorhomes

From Geoff Riley's blog comes this BBC video clip
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6900000/newsid_6900300?redirect=6900301.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&asb=1 >

a) What do you think has lead to the increasing demand for motorhomes in the UK in the last 10 years?
b) What are the private benefits and private costs of having a motorhome?
c) If you buy a motorhome, what can you say about your valuation of the private costs and benefits associated woth ownership?
d) What external costs are there asociated with motorhomes?
e) Analyse how the government could internalise the external costs for motorhome owners and evaluate how successful they would be in reducing the number of motorhomes on the road.

Unit 1: Price elasticity of demand: Car parking

The BBC reports rising car parking prices at some hospitals

http://news.bbc.co.uk/1/hi/england/nottinghamshire/6910692.stm

a) What do the hospitals believe demand for car parking to be?
b) What PED factors explain this?
c) What do you expect to happen to the revenue received from car parking by the hospital?
d) Draw a diagram to show this revenue change

Unit 2: Government intervention to overcome market failure: Raising the age for smoking

A BBC article explaining what the government intends to do to inform people about the forthcoming increase in the minimum age for legal smoking

http://news.bbc.co.uk/1/hi/health/6908966.stm

a) What type of free market failure is present in teenage smoking?
b) What measures are the government taking to try to reduce the market failure?
c) Why are they taking these measures?
d) To what extent do you believe they will be successful in reducing the market failure

Unit 2: Government intervention to overcome market failure : Air safety

The BBC reports an Iranian airline banned from flying in to the UK

http://news.bbc.co.uk/1/hi/business/6910585.stm

a) In what way is the free market failing?
b) Why has the government intervened in the free market?

Unit 1: Increasing demand for Domino's Pizza

A great, short BBC article packed with economics

http://news.bbc.co.uk/1/hi/business/6911516.stm

a) Explain all the factors mentioned in the article that have led to an increase in demand for Domino's pizza, making sure you tie in the factors clearly to the theory of demand

Unit 2: Alcohol consumption; Market failure and taxation

The Chief Medical Officer believes alcohol should be taxed more heavily

http://news.bbc.co.uk/1/hi/health/6909683.stm

a) In what way does the free market fail?
b) To what extent do you believe increasing tax on alcohol would overcome this market failure?

Unit 1: The price of bread

This BBC video clip and associated article says the price of bread is due to rise in the autumn
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6900000/newsid_6908500?redirect=6908523.stm&news=1&nbram=1&nbwm=1&bbwm=1&bbram=1 >

http://news.bbc.co.uk/1/hi/uk/6909469.stm

a) Use both supply and demand reasons to explain why the price of bread will rise
b) Draw a S&D diagram to show the S and D changes and the resulting price rise

Unit 2: The rising inequality of income and wealth in the UK

The gap between rich and poor is at its highest level for 40 years, according to research by the Joseph Rowntree Foundation. This BBC clip explains the problem
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6900000/newsid_6902700?redirect=6902737.stm&news=1&bbram=1&nbwm=1&bbwm=1&nbram=1 >

The main conclusions of the report are

1. Deep poverty has declined: Over the last 15 years, more households have become poor, but fewer are very poor.

2. Relative poverty has increased: The overall number of ‘breadline poor’ households increased – households where people live below the standard poverty line (defined as household income below 60 per cent of median income adjusted for household size). This number has consistently been above 17 per cent, peaking at 27 per cent in 2001.

3. Wealth breeds wealth: Already-wealthy areas have tended to become disproportionately wealthier. There is evidence of increasing polarisation, where rich and poor now live further apart. In areas of some cities over half of all households are now breadline poor. Personal wealth held by the richest 1% of the population grew as a proportion of national share, rising from 17% in 1991 to 24% in 2002.

4. The housing boom has impacted on wealth: 23 per cent of households are now wealthy in terms of housing assets.

5. Pockets of deep poverty in urban areas: Urban clustering of poverty has increased, while wealthy households have concentrated in the outskirts and surrounds of major cities, especially those classified as ‘exclusive wealthy’, which have been steadily concentrating around London.

Unit 1: The rising price of farm crops

This BBC clip explains why farm crop prices are rising
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6290000/newsid_6290500?redirect=6290510.stm&news=1&bbwm=1&nbram=1&bbram=1&nbwm=1 >

a) Explain the 2 demand side effects on price described
b) Explain the 1 supply side effect on price described
c) Draw a D&S diagram to show these effects on farm prices

Unit 2: Public goods: Flood defences

This BBC article says that after the recent floods, much more needs to be spent on flood defences

http://news.bbc.co.uk/1/hi/uk/6283660.stm

a) What are the 2 conditions needed for a public good?
b) Do either or both of these conditions apply to flood defences?
c) How could the problem of free riders be applied to flood defences if they were provided privately?
d) Evaluate the extent to which flood defences are a public good

Unit 1: Demand and the weather: Magners cider

Retailers and producers often complain that demand for their products is effected by the weather. Last week, Magners said the same thing

http://business.guardian.co.uk/story/0,,2125583,00.html

Unit 1: Changes in the market structure of the broadband market

These 2 articles from theBBC and Guardian describe a recent takeover in the broadband market
http://news.bbc.co.uk/1/hi/business/6897687.stm

http://business.guardian.co.uk/story/0,,2126269,00.html

a) From the Guardian article, list the major firms in the industry with the number of customers each has
b) From the information, describe what has happened to the market in terms of competition over the last few years?
c) Explain and justify which market structure model now best fits the broadband market

Unit 2: Negative externalities associated with meat eating

This BBC clip makes you think of the true cost of meat eating
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6280000/newsid_6289500?redirect=6289542.stm&news=1&amp;nbram=1&nbwm=1&bbwm=1&bbram=1 >

a) What is the private cost of eating meat?
b) What, according to the clip, are the external costs associated with meat eating?
c) How does the meat market therefore fail?
d) Draw a diagram to show this market failure
e) Evaluate the different actions the government could take to reduce this market failure

Unit 2: A cost benefit analysis associated with the UK gas supply

As the UK becomes more dependant upon imported LPG a pipline is needed to connect it to the national gas grid
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6280000/newsid_6284600?redirect=6284684.stm&news=1&nbwm=1&bbwm=1&bbram=1&nbram=1 >

a) Identify the private costs and benefits of the pipeline and who they will effect
b) Identify the external costs and benefits of the project and who they will effect
c) What problems would you encounter doing a CBA on this project?

Unit 1: Supply and the price of farm products

This article explains the effect of all the recent flooding on farmers

http://news.bbc.co.uk/1/hi/business/6283810.stm

a) Explain what is likely to happen to the price of many crops as a result of the floods
b) Draw a diagram to show this effect

Unit 1: Quantity demanded and price: Banking

This BBC article clearly shows the link between price and quantity demanded

http://news.bbc.co.uk/1/hi/business/6284342.stm

a) Explain the relationship between price and quantity demanded
b) Link it to this example
c) Draw a diagram to show the change explained in the article

Unit 1: Economies of scale Baby food

This BBC article talks about a proposed merger. The result would be a decrease in the average cost of output for the combined group; ie they will experience economies of scale

http://news.bbc.co.uk/1/hi/business/6286830.stm

a) Give examples of the economies of scale that may arise

b) Can you think of any diseconomies that may arise?

c) Draw a diagram to shot the LRATC of production before and after the merger

Unit 1: The demand for music

This BBC clip shows the changing pattern of how the UK buys its music
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6280000/newsid_6284500?redirect=6284584.stm&news=1&amp;bbram=1&bbwm=1&nbwm=1&nbram=1 >

a) What economic term would you use to describe CDs and music downloads?
b) Using demand theory, explain the decrease in CD sales
c) Draw 2 diagrams to show the effect on the CD and singles download market
d) It is suggested that the record companies could generate more money from their artists via live gigs and merchandising. In economic terms, what is this relationship?

Unit 2: Food as a demerit good

This clip suggests consumers have imperfect knowledge when the choose what to eat and so sandwiches may be an example of a demerit good

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6270000/newsid_6272100?redirect=6272196.stm&news=1&amp;amp;amp;nbram=1&bbwm=1&nbwm=1&bbram=1 >

a) How doea the sandwhich market fail?
b) How could this market failure be overcome

Unit 3: Supply side policy: Information on skills

This BBC article shows the government promoting its supply side policies

http://news.bbc.co.uk/1/hi/education/6278652.stm

Unit 1: Price,quantity demanded and Price elasticity of demand: Playstation 3

This BBC article clearly shows the link between price and quantity demanded for the PS3 in the USA

http://news.bbc.co.uk/1/hi/business/6283170.stm

a) Why are Sony cuting the price?
b) What do they think will happen as a result of the price cut?
c) Draw a diagram to show the effect of the price cut
d) Why might demand for the Playstatioin 3 not rise as Sony expect?

A few days later, Sony announced it would not cut the price of the PS3 in Europe

http://news.bbc.co.uk/1/hi/technology/6896261.stm

e) What reasons do Sony give for not decreasing the price in Europe
f) What do the different prices suggest to you about the price elasticity of demand for the PS3 in Europe and the USA?

Unit 3: The effect of a rise in interest rates

This BBC clip explains the effects of a rise in interest rates
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6270000/newsid_6272100?redirect=6272166.stm&news=1&bbwm=1&nbwm=1&nbram=1&bbram=1 >

a) Draw an AD/AS diagram to show the position of the economy as the MPC of the BoE see it
b) Show on the diagram and explain what the BoE believe will happen as a result of the rise in interest rates
c) The interst rate rise produces both winners and losers. Give examples of people in both catagories
d) Interest rate rises particularly hit those with large mortgages. How would the increase in monthly payments from £391 to £477 effect the economy if reflected across the economy?
e) One problem often cited with using interest rates to control the economy is there is a time lag before the full effect is seen in the economy. What evidence is there to support this view in the clip?

Unit 1: Maximum prices and disequilibrium: Zimbabwe

This BBC article clearly shows what happens if the government steps in and sets a maximum price below the free market equilibrium

http://www.guardian.co.uk/frontpage/story/0,,2119003,00.html

a) Draw a diagram to show what is happening with the introduction of maximum prices
b) Using the diagram and the article, explain what is happening in Zimbabwe

Unit 1: The demand for wellies!

Summer in the UK sees demand for wellies rise according to this BBC article

http://news.bbc.co.uk/1/hi/scotland/south_of_scotland/6277224.stm

a) Use demand theory to identify the 2 factors in the article and use them to explain why demand for wellies has increased
b) Draw a diagram to show the effect of this increase in demand on the market for wellies

Unit 3: Why interest rates have risen

This BBC article and clip explains why interest rates have risen to 5.75%

http://news.bbc.co.uk/1/hi/business/6272776.stm

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6270000/newsid_6272100?redirect=6272166.stm&news=1&nbwm=1&bbram=1&bbwm=1&nbram=1 >

a) What sort of policy is raising interst rates?
b) How is the increase meant to decrease aggregate demand?
c) Draw a digram to show and explain how this increase in interest rates is meant todecrease inflation
d) How do time lags confuse the decision the MPC has to take on setting interest rates?

Unit 1: Supply and Demand: The rise in farm prices

This BBC video clip and article suggests farm prices will rise in the future due to various reasons

http://news.bbc.co.uk/1/hi/business/6270892.stm

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6290000/newsid_6290500?redirect=6290510.stm&news=1&bbwm=1&nbram=1&bbram=1&nbwm=1 >

a) Identify the demand factors likely to fuel the rise in prices
b) Identify the supply factors likely to fuel the rise in prices
c) Draw a S&D diagram to show these effects on farm prices

Unit 2: Market dominance and government action: Telefonica

The European Commission has fined Spain's Telefonica $207m [£102.5m) for stifling competition in the broadband internet market says this BBC article/clip

http://news.bbc.co.uk/1/hi/business/6269514.stm

a) How has Telefonica demonstrated market dominance and why is this an example of market failure?
b) How likely is the fine to overcome the market failure?
c) What alternative approach could the EU have taken to overcome the market failure?

Unit 1: The price of oil

The price of oil goes past $73, a 10 month high says this BBC article

http://news.bbc.co.uk/1/hi/business/6271724.stm

a) What is the main reason given for the price of oil rising?
b) What does the phrase "Ongoing anti-government violence in Nigeria has also put an upward pressure on global oil prices" mean in terms of the market
c) Draw a S&D diagram to show these 2 effects on the price of oil

Unit 3: The exchange rate of the £

The £ hits a 26 year high

http://business.guardian.co.uk/story/0,,2116977,00.html

a) Why has the value of the £ risen?
b) Draw a diagram to show how this rise has occured
c) What effect should this rise in the £ have on the current account of the BOP?

Unit 1: Producer surplus and the Apple iphone

The launch of the iphone by Apple is a good example of producer surplus

http://www.tutor2u.net/newsmanager/templates/?a=2473&z=1

a) Draw a diagram to show the producer surplus described in the article.
b) Explain why this is an example of producer surplus

Unit 3: The costs of economic growth in China

Thit item from Geoff Riley highlights the negative externalities associated with the rapid economic growth in China

http://www.tutor2u.net/newsmanager/templates/?a=2471&z=1

Unit 2: Using legislation to overcome market failure

This BBC article explains how manufacturers are now responsible for disposing of the electical items they produce

http://news.bbc.co.uk/1/hi/sci/tech/6250080.stm

a) Why has this legislation been introduced; ie in which way does the market fail?
b) How successful do you think this will be in reducing the market failure?

Unit 3: 10 years of UK macro data

This series of charts from the BBC shows some aspects of the UK economy during 10 years of Gordon Brown at the treasury

http://news.bbc.co.uk/1/shared/spl/hi/pop_ups/07/business_brown0s_britain/html/1.stm

Unit 1: Contrasting demand for alcohol: Guinness and Whisky

Two stories from the BBC. A clip about falling demand for Guinness in Ireland and the UK and an article about the rising world demand for whisky
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6240000/newsid_6248300?redirect=6248398.stm&news=1&bbwm=1&nbwm=1&bbram=1&nbram=1 >

http://news.bbc.co.uk/1/hi/business/6248304.stm

a) Using the factors that influence demand, explain why demand for Guinness may be falling in Ireland and the UK
b) Using the factors that influence demand, explain why world demand for whisky may be rising c) Use a diagram to show what happens to the demand for Guinness around St Patricks day

Unit 2: Government action to stop market dominance

The EU has blocked Ryanair from taking over Air Lingus

http://news.bbc.co.uk/1/hi/business/6244894.stm

The reaction of Michael O'Leary from Ryanair to this judgement can be seen at

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6240000/newsid_6243900?redirect=6243902.stm&news=1&nbram=1&bbram=1&bbwm=1&nbwm=1 >

A summary of the position comes from Geoff Riley's blog

http://www.tutor2u.net/newsmanager/templates/?a=2459&z=1

a) On what grounds has the merger been blocked?
b) What possible advantages to consumers might have arisen from the combined airline according to Michael O'Leary?
c) Explain whether you agree or disagree with the EU decision decision

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