Unit 2: Revision: Protectionism

From economics student comes this handy summary of methods of protectionism. You don't need this tariff diagram for the AS exam; a simple S&D diagram showing S shifting to the left witht the resulting increase in price and fall in quantity demanded is sufficient

http://rapidrevision.co.uk/economics-student/2009/03/26/tariff-and-non-tariff-methods-of-protection/

Unit 2: Inflation up (CPI)....and down (RPI)

From a question of economics comes this useful summary of the CPI/RPI distinction and a link to the BBC

http://aquestionofeconomics.blogspot.com/2009/03/inflation-up-and-down.html
The questions associated with the post are excellent

http://news.bbc.co.uk/1/hi/uk/7961122.stm BBC video

......and this on a similar tack from economics help

http://www.economicshelp.org/blog/inflation/which-measure-of-inflation-to-use/

...plus this powerpoint on various aspects of inflation from tutor2u

http://www.tutor2u.net/blog/files/Inflation_March_2009.doc

Unit 2: Japan's fall in exports

An interesting article from the BBC describing a catastrophic decline in Japan's exports

http://news.bbc.co.uk/1/hi/business/7962656.stm

a) What would you expect the effect of this decline to be on the Japanese economy?
b) Given that imports fell by even more, explain the effect on the current account of the BoP

Unit 2: What We Have Tried to Boost Economic Growth

From economics help comes this great summary. Take particular note of the evaluative comments about why the policies may not have worked

http://www.economicshelp.org/2009/03/what-we-have-tried-to-boost-economic.html

Unit 1: Tradable permits: Carbon trading videos

From tutor2u come these 2 videos on carbon trading

http://www.tutor2u.net/blog/index.php/economics/comments/video-on-carbon-trading/

Unit 2: Inflation: Changes in the basket of goods

The BBC reports the annual changes in the basket of goods used to measure the CPI

http://news.bbc.co.uk/1/hi/business/7958785.stm

a) What is the CPI?
b) Why do the articles in the basket of goods alter?
c) Would you have expected the weights allocated to the various items in the basket to have changed this year? Explain your answer

Unit 2: Costs and benefits of economic growth

Economics student has this useful summary of the costs and benefits of economic growth

http://rapidrevision.co.uk/economics-student/2009/03/20/benefits-and-costs-of-economic-growth/

Unit 2:Budget deficits and national debt

Economics student has this good summary of the topic

http://rapidrevision.co.uk/economics-student/2009/03/20/government-budget-deficits-and-the-national-debt/

Unit 2: Regional Unemployment in the UK

From economics help comes this useful post on Regional Unemployment in the UK

http://www.economicshelp.org/blog/unemployment/regional-unemployment-in-uk/

a) To what extent is regional unemployment a problem for the UK?
b) What actions can the govt take to reduce regional unemployment?

Unit 1: Air travel: A normal good?

From the BBC comes this article about falling numbers of air passengers in 2008

http://news.bbc.co.uk/1/hi/business/7945721.stm

a) What evidence is ther to suggest air travel is a normal good
b) If this is the case, would the income elasticity of demand for air travel be +ve or -ve? Explain your answer
c) The following passage lists has many statistics: What use would they be for firms planning their stratagy to deal with the downturn in passenger numbers?

UK airports handled 235 million passengers in total last year, the CAA found.
The 1.9 per cent decline is only the the fourth annual decrease in passenger numbers since the end of the Second World War, the authority said.
CAA figures revealed London's airports, including Heathrow, Gatwick, Stansted, Luton and London City, saw an overall annual fall of 2%.
Stansted was particularly badly hit, with 1.4 million fewer passengers in 2008 - a 6.0% decline on 2007.
Manchester, the biggest regional airport, also saw passenger numbers fall by 3.8%.
However, not all airports were hit by a decline in travellers.
London City airport saw a rise of a 12%, Luton showed a 2.6% increase and Birmingham's numbers rose by 4.8%.
Rail competition
The CAA also revealed charter airline numbers were down 9.3% on 2007, while scheduled airlines were down 0.8%.
There was also a fall in the overall number of passengers taking domestic flights - down 4.8% to 25 million.
The authority said this was partly due to increasing numbers of people opting to take the train.

Unit 2: Revision: Economic growth

From economics student comes this useful introduction to economic growth

http://rapidrevision.co.uk/economics-student/2009/03/16/an-introduction-to-economic-growth/

..and this linking economic growth to AD and AS

http://rapidrevision.co.uk/economics-student/2009/03/17/aggregate-demand-supply-and-economic-growth/

...and this on the causes of actual and potential economic growth

http://rapidrevision.co.uk/economics-student/2009/03/18/causes-of-economic-growth/

...and this on potential output and output gaps

http://rapidrevision.co.uk/economics-student/2009/03/19/measuring-potential-output-and-output-gaps/

Unit 1: Taxation as an approach to reducing the negative externalities associated with chocolate consumption

Tutor2u has an interesting post about the BMA proposal to tax chocolate and there is a BBC vieo and article as well

http://www.tutor2u.net/blog/index.php/economics/comments/chocolate-tax-they-wouldnt-would-they/
http://news.bbc.co.uk/1/hi/scotland/glasgow_and_west/7938282.stm video

a) How does the free market for chocolate fail?
b) What are the private costs and external costs associated with consuming chocolate?
c) What are the private benefits and external benefits associated with consuming chocolate?
d) Using a S&D diagram, discuss the extent to which a tax on chocolate would reduce the market failure

Unit 1: Uses of Elasticity estimates

From economics student comes this useful summary of how price, income and cross elasticity can be used in the transport sector

http://rapidrevision.co.uk/economics-student/2009/03/13/the-use-of-elasticity-of-demand-in-transport/

Unit 2: Appreciating/depreciating exchange rates

An interesting article from economics student on exchange rates

http://rapidrevision.co.uk/economics-student/2009/03/14/currency-wars-competitive-depreciations/

a) Why is a depreciating £ good for British exporters?
b) What effect would the depreciation have on those businesses who import goods in to the UK?
c) Using a S&D diagram, explain why the Swiss Franc has appreciated
d) Using a S&D diagram, explain the effect of the Swiss authorities policy “to purchase foreign currency on the foreign exchange market to prevent any further appreciation of the Swiss franc against the euro”

Unit 2: Revision: Unemployment

Economics student has this series on revising unemployment

http://rapidrevision.co.uk/economics-student/2009/03/09/defining-unemployment/ defining unemployment

http://rapidrevision.co.uk/economics-student/2009/03/10/measuring-unemployment/ measuring unemployment

http://rapidrevision.co.uk/economics-student/2009/03/19/latest-uk-unemployment-data/ unemployment data for March 2009

Unit 2: Monetary policy: Quantitative easing - How it works and why it's needed

This BBC clip uses a car analogy to explain the process of quantitative easing

http://news.bbc.co.uk/1/hi/programmes/the_daily_politics/7925669.stm

This article also explains it

http://news.bbc.co.uk/1/hi/business/7924506.stm

This clip explains its role in conjunction with interest rate cuts

http://news.bbc.co.uk/1/hi/business/7926255.stm

But, if it all goes wrong, here's what could happen

http://news.bbc.co.uk/1/hi/business/7925981.stm

Unit 1: Alcohol abuse and govt action to reduce market failure

These BBC clips outline Scottish proposals to reduce alcohol consumption

http://news.bbc.co.uk/1/hi/uk/7918184.stm
http://news.bbc.co.uk/1/hi/programmes/the_daily_politics/7918975.stm

A summary is in this post from A question of economics

http://aquestionofeconomics.blogspot.com/2009/03/scotland-to-impose-minimum-price-on.html

This BBC post has the proposals from the Chief Medical Officer Of England

http://news.bbc.co.uk/1/hi/uk/7944334.stm article
http://news.bbc.co.uk/1/hi/uk/7944463.stm video

The government response is here

http://news.bbc.co.uk/1/hi/uk/7946351.stm video

a) What evidence is there of market failure?
b) What actions are the Scottish govt/Chief Medical Officer proposing?
c) Using a S&D diagram, discuss the likelyhood of this intervention being successful in reducing the market failure

Unit 2: Recession and unemployment

A big thanks to Geoff Riley at tutor2u for posting this BBC Newsnight video on how the UK economy is coping with the recession

http://news.bbc.co.uk/1/hi/programmes/newsnight/7892620.stm

a) Explain how the negative multiplier effect resulting from unemployment is deepening the recession
b) How does the video indicate the inequality often associated with unemployment?

Unit 2: The declining Japanese economy

This depressing report from the BBC has one analyst saying the Japanese economy is in terminal decline!

http://news.bbc.co.uk/1/hi/world/7914937.stm

a) Using the AD formula, explain what is happening in the Japanese economy
b) Using an AS/AD diagram and the multiplier concept, explain why Japan could be in terminal dacline

Unit 2: Inflation revision

From economics student blog comes this introduction to inflation with all the key definitions

http://rapidrevision.co.uk/economics-student/2009/02/28/inflation-an-introduction/

Next, a description of how to measure inflation

http://rapidrevision.co.uk/economics-student/2009/03/01/measuring-inflation/

From economics help, a brief post on the possible benefits of a low, stable rate of inflation

http://www.economicshelp.org/blog/

Then, how to interpret inflation data

http://rapidrevision.co.uk/economics-student/2009/03/02/interpreting-the-cpi/

Not forgetting, the consequences of inflation

http://rapidrevision.co.uk/economics-student/2009/03/03/consequences-of-inflation/

...and the causes of inflation

http://rapidrevision.co.uk/economics-student/2009/03/04/causes-of-inflation/

Unit 2: GDP revision

From the new economics student blog comes this revision post on GDP

http://rapidrevision.co.uk/economics-student/2009/02/27/measuring-economic-performance-gdp/

Unit 2: What can the government do to correct a large current account deficit ?

A clear Q&A post from tutor2u

http://www.tutor2u.net/blog/index.php/economics/qa-to-correct-a-large-current-account-deficit-what-can-the-government-do/#When:18:59:00Z

a) Explain what is meant by a current account deficit
b) Is a current account deficit always a problem for an economy?
c) To what extent can the government be successful in reducing a current account deficit?

Unit 1: Market failure:Tradable permits or taxation?

This tutor2u presentation looks at the arguments for tradable permits or carbon taxes. A really good revision aid

http://www.tutor2u.net/economics/presentations/Europe-Carbon-Emissions-Trading.ppt#256,1,Carbon

Unit 1: Opportunity cost

From the BBC via Economics teacher comes this graphic showing the cost to the government of the UK bank rescue packages....so far

a) Define opportunity cost
b) How can this graphic be used to illustrate the concept of opportunity cost?

Unit 2: The effect of the recession on the govenment's budget

The BBC reports a sharp deterioration in government income fron tax revenues

http://news.bbc.co.uk/1/hi/uk_politics/7900483.stm video
http://news.bbc.co.uk/1/hi/business/7898871.stm article

More detail from this tutor2u powerpoint presentation

http://www.tutor2u.net/economics/presentations/recession-tax.ppt#256,1,Recession

a) Why has government revenue from taxation decreased?
b) What will happen to govt expenditure during the recession?
c) What then is you prediction for the govt's finances as the economy experiences the worse of the recession?

Unit 2: Why macro policies might not work

You know how economic theory says an expansionary fiscal or monetary stimulus to the economy should work, but...........

http://business-studies.typepad.com/economics_teacher/2009/02/smart-consumerism-and-economic-theory.html

a) Why does this Economics teacher post suggest the policy makers might not be successful?

PS If you have time, read the whole article via the link

Unit 2: Revision: Potential v actual growth

Are you clear on the difference? If not, this Economics teacher post should help

http://business-studies.typepad.com/economics_teacher/2009/02/actual-and-potential-economic-growth.html

Unit 1: Packaging: A case for internalising the externality?

The BBC reports that campaigners are suggesting that supermarkets should pay for the cost of disposing of the packaging on their products

http://news.bbc.co.uk/1/hi/business/7893403.stm

a) How is excessive packaging an example of market failure?
b) How would this proposal be an example of internalising the externality and making the polluter pay?
c) Using a S&D diagram discuss the extent to which such a policy would reduce the market failure

Unit 2: Declining inflation in the UK

The UK inflation rate (CPI) is now back within limits (2% +/-1%) at 3% reports the BBC, but RPI has fallen dramtically to just 0.1%

http://news.bbc.co.uk/1/hi/business/7893873.stm article
http://link.brightcove.com/services/link/bcpid1184614595/bctid13289662001 Ch4 video

a) Explain why CPI is now below the RPI as shown by the chart in the text having been above it in the recent past

Stuck? These post from Economics teacher and Economicshelp might help; click on the graphic in the top one

http://business-studies.typepad.com/economics_teacher/2009/02/measuring-inflation.html
http://feeds.feedburner.com/EconomicsBlog?format=xml

Unit 2: The Obama stimulus package

AP summarises the Obama stimulus package's major areas as

$240bn in tax breaks for individuals and businesses
$140bn for health care
$100bn for education
$48bn for transportation projects

a) What sort of policy would you catagorise this package as? Explain your answer

b) Explain, using an AD/AS diagram, how this package should effect the US economy in both the short and the long run

c) To what extent do you believe this package is likely to achieve its objectives?

Unit 2: Negative multiplier effects from UK car layoffs

Ch4 has this updated list of all the UK car producers layoffs

http://www.channel4.com/news/articles/business_money/downturn+hits+uk+car+makers/2902212

a) Using the information, explain, using a diagram, the negative multiplier effects on the local and national economies of these layoffs

Unit 1: Cannabis consumption as an example of market failure

The BBC has the latest govt advert to try and reduce cannabis consumption

http://news.bbc.co.uk/1/hi/uk_politics/7891857.stm

a) In what catagory of market failure would you place cannabis consumption? Explain your answer
b) To what extent do you think adverts such as these will reduce the market failure

Unit 1: The price of oil and petrol

From A question of economics comes this interesting post on the rising price of petrol; the question to anser is part of the post (Hint: Think both supply and demand)

http://aquestionofeconomics.blogspot.com/2009/02/is-higher-price-of-petrol-justified.html

Unit 2: Japan in deep recession

Japan's economy contracted by over 3% in the last quater of 2008 according to the BBC

http://news.bbc.co.uk/1/hi/business/7891939.stm video
http://news.bbc.co.uk/1/hi/business/7891849.stm article

a) Using the AD formula and an AD/AS diagram, , explain the decline in the Japanese economy
b) What role would the multiplier effect have on explaining this sharp decline?

Unit 1: Food: Normal, inferior and superior goods

A nice clip from the BBC explaining food changes

http://news.bbc.co.uk/1/hi/world/americas/7885312.stm

Another from Ch4 (and BBC articles) explaining the expansion of KFC/Domino pizza in the UK in the recession

http://link.brightcove.com/services/link/bcpid1184614595/bctid13040103001 Ch4
http://news.bbc.co.uk/1/hi/business/7892240.stm KFC article
http://news.bbc.co.uk/1/hi/business/7894033.stm Domino pizza

a) Making sure you clearly explain your reasoning, to what extent can you catagorise any of the foods as
(i) Normal goods
(ii) Inferior goods
(iii) Superior goods

Unit 2: Supply side policies powerpoint

From tutor2u comes this powerpoint on supply side policies with a printable version.

http://www.tutor2u.net/blog/files/Supply_Side_Indicators_UK.ppt p/point
http://www.tutor2u.net/economics/supply-side-policies-uk-indicators.pdf printable

Geoff Riley outlines the aim of supply side policies to be:

Increase the productive potential of the economy (ie shift AS to the right)
Improve incentives for people to work
Improve the skill level of workers
Increase the productivity of labour and capital inputs
Increase the occupational and geographical mobility of labour to reduce unemployment
Increase the level of capital investment and research and development spending by firms
Stimulate inflows of overseas capital investment
Increase business efficiency by promoting more competition within and between markets
Stimulate a faster pace of invention and innovation throughout the economy
Provide a platform for sustained non-inflationary growth of an economy

a) Do supply side policies have any other objectives? Hint: Think quantity and quality of the factors of production

Unit 2: The costs of Unemployment and a supply side approach to long term unemployment

Ch4 has this good video clip

http://link.brightcove.com/services/link/bcpid1184614595/bctid12412743001

a) What are the costs to the government of rising unemployment
b) What supply side policy to reduce long term unemployment does the video explain?
c) How likely is such a scheme to be successful?

Unit 2: Unemployment in the UK almost at 2m

Latest figures show a continued rise in both measures of unemployment in the UK. There is a useful graph at the bottom of the article and a video as well

http://news.bbc.co.uk/1/hi/business/7882745.stm#table

Unit 2: How the recession is hitting the exporting economies

A series of articles explaining how the global recession is hitting the major exporting countries

http://news.bbc.co.uk/1/hi/business/davos/7882816.stm China exports
http://news.bbc.co.uk/1/hi/business/7883783.stm USA imports
http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/ Stephanomics

a) Using an AD/AS diagram, explain the likely effect of declining exports on the economies ofmajor exporting nations
b) Why might the effects not be as bad as the model suggests?

Unit 1: Negative externalities associated motorcycling

BBC Newsbeat has this interesting clip about airbag jackets for motorcyclists

http://news.bbc.co.uk/newsbeat/hi/technology/newsid_7886000/7886427.stm

a) What are the negative externalities asociated with motorcycling?

b) To what extent do you think legislation to make the wearing of airbag jackets by all motorcyclists would be successful?

Unit 2: Quantitative easing as a form of monetary policy

Want to understand quantitative easing and how it might ease the credit crunch when interest rates reach 0%?

Watch this

http://marketplace.publicradio.org/videos/whiteboard/quantitative_easing.shtml

The Guardian also has this article

http://www.guardian.co.uk/business/2009/jan/29/question-and-answer-quantitative-easing

Unit 2: A fall in the UK balance of trade deficit

The BBC repors a fall in the UK balance of trade deficit

http://news.bbc.co.uk/1/hi/business/7880829.stm

a) Define the balance of trade
b) To what extent do you think the fall in the value of the £ is responsible for this fall in the deficit as the UK heads in to recession?

nit 1: Saturated fats; an example of market failure?

The food standards agency has just launched a new campaign viewable via the bbc at

http://news.bbc.co.uk/1/hi/health/7878680.stm

a) In what way might the consumption of saturated fats represent market failure in the form of a demerit good?
b) Using a diagram explain how this campaign might reduce the market failure

Unit 2: Pros and cons of devaluation

From Economicshelp comes this useful summary of some of the main pros and cons of devaluation

http://feeds.feedburner.com/EconomicsBlog?format=xml

a) Using the article as a starting point: Discuss the extent to which a devaluation can help the government meet its macroeconomic objectives

Unit 1: The price elasticity of demand for business/first class flights

Geoff Riley has this interesting article on price cutting by airlines hard hit by the recession

http://www.tutor2u.net/blog/index.php/economics/comments/premum-flyers-go-awol/

a) Identify 3 economic reasons why demand for these flights may have fallen (Remember they are business flights mainly)
b) On the basis of the article, do you think the airlines believe demand for these flights is price elastic or inelastic? Explain your answer

Unit 2: Can quantitative easing work when traditional interest rate policy fails?

A gfreat video clip from the FT explaining what quantitative easing is and how it should work

http://www.ft.com/cms/s/0/8ada2ad4-f3b9-11dd-9c4b-0000779fd2ac.html?nclick_check=1

Unit 2: Interest rates cut to 1%: What effect will this have on the UK economy?

Economics help has this brief article explaining why the latest interest rate cut might have little effect on the economy

http://www.economicshelp.org/2009/02/pointless-interest-rate-cut.html

In contrast, this BBC clip has evidence that it might work

http://news.bbc.co.uk/1/hi/uk/7872451.stm

These clips show how borrowers and savers are effected differently by the interest rate cut

http://news.bbc.co.uk/1/hi/uk/7872864.stm
http://news.bbc.co.uk/1/hi/business/7873595.stm

a) To what extent do you believe the rate cut may stimulate the economy (Hint: Think about the components of AD and the evidence regarding the effect on each component in the articles
b) Explain how Quantitative Easing might help stimulate the economy

Unit 2: The effect of the high Yen on Japenese exports

This BBC clip reports that the high value of theYen is having a detrimental effect on Japenese
exports

http://news.bbc.co.uk/1/hi/world/7870689.stm

a) What is meant by "the high value of the yen?"
b) How would this have a negative effect on the export of Panasonic products?
c) Assuming the Balance of trade/net exports worsens, explain using an AD/AS diagram what the effect will be on the Japanese economy
d) To what extent can the high value of the yen be blamed for the poor performance of Japanese exports?

Unit 1: The private and external costs of smoking

A clear summary of a favourite exam question on the private and external costs of smoking from economicshelp

http://www.economicshelp.org/blog/economics/costs-of-smoking/

Unit 2: The slowing Australian economy and the governments reponse

This brilliant clip (and article) from the BBC are jam packed full of economics

http://news.bbc.co.uk/1/hi/world/asia-pacific/7866335.stm video
http://news.bbc.co.uk/1/hi/business/7866303.stm article

a)What is the AD formula?
b) Identify from the clip and article the elements of AD which are decreasing and explain why this is the case
c) What is meant by a government stimulus package and what sort of policy is this that the government is using?
d) What evidence is there of the Australian government using monetary policy as well?
e) Using an AD/AS diagram, discuss the likely success of the latest stimulus package and interest rate cuts in stopping the Australian economy going in to a recesion

Unit 2: What determines the level of consumer expenditure?

Economics help has this good revision summary of what determines the level of consumer expenditure

http://www.economicshelp.org/blog/economics/consumer-expenditure-uk/

Unit 1: British holidays; are they inferior goods?

From A Question of Economics comes this article about rising demand for UK holidays in 2009

http://aquestionofeconomics.blogspot.com/2009/02/british-tourism-bucks-trend.html

a) Are self-catering holidays in the UK and the other holidays referred to in the article examples of inferior goods? Think about the income elasticity of demand for such holidays.

Unit 2: Understanding Aggregate Supply

From Economics teacher comes this great summary of Aggregate Supply which could be very useful for revision

http://business-studies.typepad.com/economics_teacher/2009/02/teaching-aggregate-supply-for-as-economics.html

Unit 2: Time lags in monetary policy

Econmics help has this good article on the impact of time lags on the effectiveness of monetary policy

http://www.economicshelp.org/2008/12/time-lags-in-economics.html

Unit 1: Information failure in the fast food industry

From Economics teacher comes this good summary of why fast food represents market failure

http://business-studies.typepad.com/economics_teacher/2009/01/fast-food-information-failure.html

Unit 2: Deflation; causes and consequences

This great post from tutor2u covers deflation

http://www.tutor2u.net/blog/index.php/economics/comments/bootle-on-deflation/

Unit 2: The UK Budget Deficit

This Economics help article shows the dismal state of the government finances

http://www.economicshelp.org/2009/01/uk-budget-deficit.html

a) Define a budget deficit
b) Describe the pattern fo budget surplus/deficits shown by the graph
c) Explain why the UK government has so consistently had budget deficits

Unit 2:The Current account of the Balance of Payments in a Recession

From Economics help, this nice summary of what happens to the Balance of Payments in a recession

http://www.economicshelp.org/blog/economics/balance-of-payments-in-recession/

Unit 2: Exchange Rates: A summary

A really good summary from Economics help on exchange rates

http://www.economicshelp.org/2009/01/should-government-protect-pound.html

a) Discuss the extent to which the govt can control the exchange rate
b) What does he mean by "Exchange Rates are Not the Problem but the Symptom."
c) Discuss whether "An Exchange Rate Decline the End of the World"

nit 2: Investment: Measuring business expectations

A nice, brief article from Economics teacher on the topic of the volatility of Investment due to changing business confidence

http://business-studies.typepad.com/economics_teacher/2009/01/measuring-business-expectations.html

Unit 2: The personal cost of Unemployment

This Ch4 clip shows the cost to the individual of being unemployed

http://link.brightcove.com/services/link/bcpid1184614595/bctid8702579001

a) What sre the costs to the individual of being unemployed?
b) What small benefit does the person see in his being made redundant?

Unit 3: Unemployment rises in the UK to 1.9m

This BBC clip (and linked article) explains the latest unemployment figures

http://news.bbc.co.uk/1/hi/uk/7841545.stm video
http://news.bbc.co.uk/1/hi/business/7841349.stm article

a) What is meant by the job rate?
b) Why do government finances suffer as the number unemployed rises
c) Using a S&D diagram, explain why it is suggested the £ will fall in value as the UK economy deterioates

Unit 2: Why National Debt Effects the Exchange Rate

A good little article from Economics help explaining the factors, including the national debt, that effect the exchange rate

http://www.economicshelp.org/2009/01/why-national-debt-effects-sterling.html

Unit 2: UK inflation fall: January 2009

The BBC reports a fall in the UK inflation rate

http://news.bbc.co.uk/1/hi/business/7839023.stm

a) Why have the CPI and RPI fallen?
b) What is happening to average prices in the UK?

Unit 2: BBC credit crunch glossary

A lot of technical terms are thrown around when commentators talk about the credit crunch. As a result, this BBC credit crunch glossary could prove useful

http://news.bbc.co.uk/1/hi/magazine/7642138.stm

Unit 1: What's an inferior good in 2009?

An interesting article from the BBC about rising sales of inferior goods as the recession starts to bite

http://news.bbc.co.uk/1/hi/business/7824072.stm

a) Define an inferior good
b) What examples of inferior goods are suggested in the article?
c) When deciding whether something is an inferior good, what assumption is made?
d) What examples are given that this might not always be the case?

Unit 2: China's exports in record decline

The BBC reports that China's exports are in record decline

http://news.bbc.co.uk/1/hi/business/7825573.stm

a) Explain, using an AD/AS diagram, the effect you would expect this decline to have on the Chinese economy
b) Explain why this may not be the outcome

Unit 2: UK's trade gap hits record level

The BBC reports that the UK's trade gap hits a record level

http://news.bbc.co.uk/1/hi/business/7826085.stm

a) What does the trade gap measure?
b) Why has it got worse?
c) How should the depreciating £ have helped UK trade to narrow the gap?
d) Why has this not happened?
e) Why might the overall BOP curreent account figure not be as bad as the trade figures indicate?

Unit 2: Investment spending declines in Japan

The BBC reports that Investment spending is declining in Japan

http://news.bbc.co.uk/1/hi/business/7830032.stm

a) Using an AS/AD diagram, discuss the short and long run effect on the Japanese economy of this decline in Investment spending

Unit 2: Hyperinflation in Zimbabwe: The Z$100tr note!

More depressing news on Zimbabwe from the BBC including the need to issue a Z$100tr note to deal with its hyperinflation

http://news.bbc.co.uk/1/hi/world/africa/7832601.stm

Unit 2: Fiscal policy in Germany

This BBC clip (and report) reports an expansionary fiscal policy in germany

http://news.bbc.co.uk/1/hi/business/7825609.stm video
http://news.bbc.co.uk/1/hi/business/7825513.stm

a) Using an AD/AS diagram, explain how the stimulus package should effect the German economy
b) Explain why this may not be the actual outcome

Unit 2: Decreasing Chinese Aggregate demand

A really interesting clip on the shrinking Chinese economy

http://news.bbc.co.uk/1/hi/world/7826768.stm

a) Why are Chinese exports decreasing?
b) What does it mean if China has a trade surplus?
c) If both consumption and exports are falling in China, explain the effect this would have on China's AD and show this on a diagram

Unit 2: Falling consumption and a shrinking economy

This BBC clip explains that a lot of the fall in aggregate demand in the UK is due to falling consumer confidence

http://news.bbc.co.uk/1/hi/business/7822334.stm

a) Explain how falling confidence effects consumption
b) Using the AD formula, explain how this leads to a fall in AD; explain any assumptions you are making
c) Show on an AD/AS diagram the effect on the AD curve and the resulting effect on output(real gdp)

Unit 2: Long term unemployment; a supply side problem

From Geoff Riley comes this interesting post on long term unemployment and how difficult it is to cure

http://www.tutor2u.net/blog/index.php/economics/comments/long-term-unemployment/

This BBC clip outlines the government plans

http://news.bbc.co.uk/1/hi/uk_politics/7822692.stm

a) Why is long term unemployment a supply side problem?
b) To what extent can government succeed in reducing long term unemployment using supply side measures?

Unit 2: A supply side policy to combat graduate unemployment

It looks as though 2009 will be a bad year to graduate with fewer firms recruiting graduates due to the economic downturn. To help graduates gain the skills for employment when the upturn arrives, the BBC reports the government is proposing internships for graduates who can't find employment

http://news.bbc.co.uk/1/hi/uk/7822165.stm video
http://news.bbc.co.uk/1/hi/education/7821629.stm article

Ch4 has a video as well

http://link.brightcove.com/services/player/bcpid1184614595?bctid=6850877001

a) Why is this proposal an example of a supply side policy?
b) Evaluate how likely is it that it will reduce unemployment

Unit 2: Monetary policy: Alternatives to changing interest rates

A very topical post from the Economics Teacher blog explaining that monetary policy is potentially much more than merely changing interest rates

http://business-studies.typepad.com/economics_teacher/2009/01/from-from-interest-rate-cuts-to-quantitative-easing.html

The BBC has this clip on UK interest rates as they hit an all time low

http://news.bbc.co.uk/1/hi/uk/7818010.stm

a) Why might traditional monetary policy be losing its effectiveness in influencing aggregate demand?
b) How can quantitative easing help monetary policy become more effective?
c) What policies does the BBC clip suggest the UK gov has used to try and stimulate aggregate demand in the UK?

Unit 1: Govt action to overcome market failure: The fading out of traditional lightbulbs

The BBC reports the start of the demise of the traditional lightbulb. Some great footage of production

http://news.bbc.co.uk/1/hi/uk/7814502.stm

a) What are the negative externalities asociated with traditional lightbulbs?
b) What type of policy is the EU using to reduce the market failure?
c) To what extent do you believe the policy will succeed?
d) To what extent could the new energy efficient lightbulbs be considered to be merit goods?

Unit 2: How good are policies to combat unemployment?

From economics help comes this short article. I particularly like the final paragraph which would be a wonderful evaluative conclusion: Read it and learn!

http://www.economicshelp.org/2009/01/unemployment-benefits-and-costs.html

Unit 2: Impact of deflation

From Economics teacher comes this great summary of the effects of deflation

http://business-studies.typepad.com/economics_teacher/2009/01/impact-of-deflation.html

Unit 1: Cosmetic surgery; a normal good?

This BBC article says demand for cosmetic surgery is shrinking

http://news.bbc.co.uk/1/hi/england/cambridgeshire/7809614.stm

a) Explain why believe demand for cosmetic surgery is a normal good
b) Based on the artyicle, state 2 things would you expect to be the case if you calculated the income elasticity of demand for cosmetic surgery

Unit 2: Govt expenditure and lower unemployment

Ch4 has this great video on Govt expenditure and how it will lead to lower unemployment

http://link.brightcove.com/services/link/bcpid1184614595/bctid6339624001

a) What types of policies is he suggesting the govt use?
b) Explain how the increased govt expenditure will create jobs in both the short and the longer term
c) What problems may arise from creating jobs in this way?

Unit 2: Will the UK recover quickly from the recession ?

Fron Economics Teacher comes this excellent 2 sided summary

http://business-studies.typepad.com/economics_teacher/2009/01/arguments-for-and-against-a-recovery.html

a) What elements of fiscal policy and monetary policy does the article suggest are being used to aid the recovery?
b) Assuming they will be successful, using an AD/AS diagram, explain how these policies will see the economy grow out of the recession

Unit 2: The government tries to stimulate the Indian economy

This BBC article explains how the government is trying to stimulate the Indian economy

http://news.bbc.co.uk/1/hi/business/7808561.stm

a) Explain the monetary and fiscal policy measures the Indian government is taking
b) Using an AD/AS diagram, explain the intended consequences for the Indian economy
c) Why might this package fail to achieve its objectives?

Unit 1: The price of cocoa

This BBC article says the price of cocoa is at a 23 year high

http://news.bbc.co.uk/1/hi/business/7798696.stm

a) Using a S&D diagram, explain why the price of cocoa is rising

Unit 1: Externalities associated with Christmas lights

A BBC clip explaining why a group of French activists are switching off neon lights

http://news.bbc.co.uk/1/hi/world/7798669.stm

a) Explain the positive externalities associated with neon lights.
b) Explain the negative externalities associated with neon lights.

Unit 1: Bolivia's alternative crops; opprotunity cost and the PPC

This BBC article explains that Bolivia's farmers are moving out of growing coca (the basis for cocaine) and in to growing rice

http://news.bbc.co.uk/1/hi/business/7760261.stm

a) Explain the reasons why this change in crops has occured
b) Using a PPC, explain the opportunity cost of growing more rice

Unit 2: Sharply rising unemployment in the uK

The BBC reports sharply rising unemployment

http://news.bbc.co.uk/1/hi/business/7787280.stm

This Ch4 article has a good video as well

http://www.channel4.com/news/articles/business_money/jobless+rise+amid+more+economy+fears/2886767

a) What are the new figures for the 2 measures of unemployment?
b) What is the difference in the 2 methods of recording unemployment?

Unit 2: The negative multiplier in action in Uttoxeter

This BBC clip shows how Uttoxeter has been effected by rising unemployment

http://news.bbc.co.uk/1/hi/england/7788858.stm

a) Explain how Uttoxeter is likely to suffer a negative multiplier effect in the near future
b) What will be the effect on the macroeconomic objectives of low inflation, economic growth, low unemployment and a balance of payments equilibrium in the local economy

Unit 2: The role of time lags in monetary policy

A really good little post on economics help explaining the role of time lags in monetary policy

http://www.economicshelp.org/2008/12/time-lags-in-economics.html

a) Given the information in the article, to what extent do you believe the BoE will be successful in using monetary policy to control inflation?

Unit 1: Poundland: An example of an inferior good?

This BBC clip reports the continued expansion of the Poundland chain

http://news.bbc.co.uk/1/hi/business/7783200.stm

a) Is Poundland an inferior good or can the growth of its sales be explained by the factors that effect demand?
b) What is likely to happen to Poundland sales when the UK comes out of recession

Draft

http://news.bbc.co.uk/1/hi/sci/tech/7777018.stm

Unit 2: Exchange rates: Costs and benefits of a low pound

Economics help has this good 2 sided summary of the costs and benefits of a low pound

http://www.economicshelp.org/blog/economics/costs-and-benefits-of-a-low-pound/

Unit 1: Demerit goods: Government action to decrease cigarette consumption

Today the govt announced plans to ban all point of sale displays of cigarettes, the latest in a long list of legislation aimed at decreasing consumption

http://news.bbc.co.uk/1/hi/uk/7774290.stm video
http://news.bbc.co.uk/1/hi/health/7771210.stm article

a) Why are cigarettes classed as demerit goods?
b) How does the free market fail in its provision of cigaretttes?
c) How will this govt proposal reduce the market failure?

Unit 1: Tradable permits and EU CO2 emissions

This BBC clip outlines opposition to the EU carbon trading scheme

http://news.bbc.co.uk/1/hi/world/europe/7772603.stm

a) Outline how the EU tradable permit scheme works
b) What is the main reason German heavy industry opposes the scheme?

Unit 2: Changes in the components of aggregate demand and their effect on economic growth in China

Economics help has this short explanation of what has driven China's recent economic growth and how things may change in the future

http://www.economicshelp.org/blog/china/chinese-exports-and-economic-growth/

Unit 1: Government action to overcome market failure: Cocaine use

The BBC reports the launch of a hard hitting campaign to reduce cocaine use

http://news.bbc.co.uk/1/hi/health/7762750.stm

a) Why type of market failure does cocaine use represent? Explain your reasoning
b) What are the private costs of cocaine use?
c) What are the external costs of cocaine use?
d) Using a diagram, explain how there is market failure in the cocaine market
e) To what extent do you believe this campaign will reduce the market failure associated with cocaine use?

Unit 1: Government action to overcome market failure: Excessive alcohol consumption

The BBC reports the govts latest plans to combat excessive alcohol consumption

http://news.bbc.co.uk/1/hi/uk_politics/7762594.stm

a) List the proposed alcohol reduction methods
b) To what extent do you think these measures will overcome the problems associated with excessive alcohol consumption

Unit 1: Roadworks and negative externalities

From the BBC comes this sorry tale of shops in severe difficulties due to roadworks

http://news.bbc.co.uk/1/hi/business/7755218.stm

a) Who are the 2 parties to the economic transaction?
b) Define what is meant by the term negative externalies
b) Explain why the shops are suffering negative externalities in this example

Unit 1: A van with reduced negative externalities

WE all know the negative externalities associated with road vehicles, but here from the BBC is something new

http://news.bbc.co.uk/1/hi/uk/7759400.stm

a) What are the reduced negative externalities associated with this van?
b) What negative externalities remain?
c) Using a diagram, explain how a subsidy from the govt will encourage consumption of these vans
d) Why might the govt be reluctant to subsidise such vans?

Unit 2: How does Inflation affect Firms?

From economics help comes this good summary of how inflation affects firms

http://www.economicshelp.org/blog/inflation/how-does-inflation-affect-firms/