Unit 1: Falling hotel prices

The BBC reports falling hotel prices across the UK

http://news.bbc.co.uk/1/hi/business/8256107.stm

a) Using a S&D diagram, explain why hotel prices have fallen in the UK during 2009
b) How would you account for the differing rates of decline in different parts of the UK

Unit 2: The limitations of using GDP to measure a nation's progresshappiness

Economics help reports on the new report from 2 Nobel economists once again oulining the limitations of GDP as a measure of an economy's progress

http://www.economicshelp.org/blog/economics/gdp-and-happiness/

Unit 2: Increasing govt expenditure in China

This BBC clip shows how an economic stimulus by the govt can influence the economy

http://news.bbc.co.uk/1/hi/world/asia-pacific/8256073.stm

a) Using the AD formula and an AD/AS diagram, explain the effect of major projects like this on the Chinese economy
b) What evidence is there in the video that this project will have a positive multiplier effect in the economy

Unit 2: Escalating trade dispute between the USA and China

The BBC reports an escalating trade dispute between the USA and China

http://news.bbc.co.uk/1/hi/business/8253365.stm

a) Define protectionism
b) What type of protectionist measure has the usa imposed?
c) Using a diagram, explain how this should restrict imports of chinese tyres in to the USA
d) Give 1 reason why imports of Chinese tyres may not fall
e) What word would you use to describe China's rsponse?
f) What is the danger of such tit for tat measures?

Unit 1: The problem of enforcing regulations

This BBC clip/article suggests that regulations by themselves may not reduce market failure

http://news.bbc.co.uk/1/hi/health/8253869.stm video
http://news.bbc.co.uk/1/hi/uk/8253676.stm article

a) What is the intention of the regulation?
b) Why is it not working as intended?
c) What disadvantages of using regulation does this illustrate?
d) What actions do you suggest could improve the effectiveness of the regulation?

Unit 1 : The rising price of second hand cars

An interesting clip and article from the BBC

http://news.bbc.co.uk/1/hi/uk/8251990.stm video
http://news.bbc.co.uk/1/hi/business/8251920.stm article

a) Using a S&D diagram, explain why the price of second hand cars is rising
b) Using a S&D diagram, explain why the price of second hand cars was falling a year ago as the recession took hold of the economy

Unit 1: The effect of the scrappage scheme on car sales

This BBC clip and article says car sales are rising, but from a low base

http://news.bbc.co.uk/1/hi/business/8238287.stm http://news.bbc.co.uk/1/hi/business/8237493.stm article

a) Using a S&D diagram, explain why more cars are being sold

Unit 1: Needs and wants

A clear distinction between needs and wants from economics help

http://rapidrevision.co.uk/economics-student/2009/09/03/faq-what-are-wants-and-needs/

Unit 1: Actions to reduce the market failure in the lightbulb market

A really helpful clip/articles from the BBC

http://news.bbc.co.uk/1/hi/uk/8230463.stm video
http://news.bbc.co.uk/1/hi/world/europe/8230961.stm article
http://news.bbc.co.uk/1/hi/uk/8229476.stm article

a) How does the market for traditional lightbulbs fail?
b) What type of action is the EU taking to reduce this failure?
c) Why are some customers unhappy at the EU decision?
d) To what extent do you think their actions will be successful?

Unit 1: Actions to reduce excessive alcohol negative externalities

According to the BBC, new laws are coming in to effect in Scotland to reduce excessive alcohol negative externalities

http://news.bbc.co.uk/1/hi/scotland/8229188.stm

and in England and Wales, alohol asbos

http://news.bbc.co.uk/1/hi/uk/8230052.stm

a) What are the negative externalities associated with excessive alcohol consumption?
b) How does the free market fail?
c) What laws/regulations are coming in to effect in Scotland to reduce excessive alcohol negative externalities?
d) What laws/regulations are coming in to effect in England and Wales to reduce excessive alcohol negative externalities?
e) To what extent do you think the new laws will be successful in reducing the market failure?

Unit 2: Macro data

A useful source of data graphs

http://www.volterra.co.uk/custompage/einsight-0809.php#Section1

a) Look at the GDP/Unemployment graph. What link is there between the 2 variables? How can you explain this?
b) The RPI graph clearly shows the deflation in this measure of unemployment that the UK is experiencing

Unit 2: Investment

A summary of investment from economics student

http://rapidrevision.co.uk/economics-student/2009/08/28/the-implications-of-low-investment/

Unit 1: Information failure: Drinking "by stealth"

An interesting article from the BBC re alcohol consumption

http://news.bbc.co.uk/1/hi/health/8223294.stm

a) How does this "stealth drinking" represent information failure?
b) What actions could the government take to reduce this information failure and so reach a more allocatively efficient consumption of alcohol?
c) What other examples of information failure are mentioned in the article?

Unit 1: Tory plans to reduce the negative externalities from excessive drinking in city centres

From the Cambridge Evening News comes this interesting article on Tory proposals to reduce the negative externalities from excessive drinking in city centres

http://www.cambridge-news.co.uk/cn_news_home/DisplayArticle.asp?ID=443452

a) What are the PRIVATE benefits of many people flocking to city centres to drink?
b) What are the EXTERNAL benefits of many people flocking to city centres to drink?
c) What are the PRIVATE costs of many people flocking to city centres to drink?
d) a) What are the EXTERNAL costs of many people flocking to city centres to drink?
e) To what extent do you belive each of the proposals would reduce the market failure?

Unit 1: Negative externalities associated with lead smeltering in China

A great BBC article and video explaing the negative externalities associated with lead smeltering in China

http://news.bbc.co.uk/1/hi/world/asia-pacific/8211081.stm

a) Explain what a negative externality is
b) Use the article and video to explain the negative externalities associated with lead smeltering in this particular plant in China
c) Why does lead smeltering not always produce this sort of market failure? (Hint: Think of the actions the govt can take)

Unit 2: Consumer spending and saving data

A powerpoint from tutor2u packed with relevant data

http://www.tutor2u.net/economics/chartrooms/consumerspendingsaving/player.html

Unit 2: Economic growth in Japan

This BBC video explains why the Japanese economy has returned to growth

http://news.bbc.co.uk/1/hi/business/8204723.stm

a) How is economic growth measured?
b) State the formula for aggregate demand
c) According to the video, which components of AD are fuelling the growth in Japan?

Unit 1: Information failure in the food and drink industry

Three video stories that may/may not make you alter your lifestyle

http://news.bbc.co.uk/1/hi/health/8194584.stm Alcohol and oral cancer
http://news.bbc.co.uk/1/hi/health/8194584.stm Alcohol and teenage liver disease
http://news.bbc.co.uk/1/hi/health/8194584.stm Processed meat and bowelcancer risk

a) How would the market fail as a result of this information failure?
b) Outline 2 policies the govt could take to reduce these sorts of market failure
c) To what extent do you think any govt action is likely to be successful in reducing the market failure

Unit 2: Economic growth/Aggregate demand/Unempoyment data August 2009

From tutor2u a powerpoint on Economic growth/Aggregate demand/Unempoyment data August 2009

http://www.tutor2u.net/economics/chartrooms/aggregatedemand/player.html

Unit 2: Unemployment data August 2009

A powerpoint from tutor2u on the latest figures

http://www.tutor2u.net/blog/index.php/economics/comments/unemployment-in-the-uk-labour-market/#When:09:15:00Z

This BBC clip explains the problem

http://news.bbc.co.uk/1/hi/business/8197057.stm

Unit 1: The price of sugar

Tutor2u has this useful post explaining the rise in the price of sugar

http://www.tutor2u.net/blog/index.php/economics/comments/imbalance-between-supply-and-demand-drives-sugar-prices-to-28-year-high/#When:06:17:00Z

a) Explain, using a diagram, what has happened to the demand for, and supply of, sugar and why the price has risen

Unit 1: Economic systems: How different countries supply health care

This BBC article shows how differnt coutries provide health care

http://news.bbc.co.uk/1/hi/health/8201711.stm

a) Explain how the idea of economic systems can be used to explain how the various countries allocate their scarce resources to answer the 3 basic economic questions any society has to answer

Unit 1: Negative externalities associated with drunkeness

Two sobering videos from the BBC

http://news.bbc.co.uk/panorama/hi/front_page/newsid_8190000/8190335.stm
http://news.bbc.co.uk/1/hi/uk/8192652.stm

a) Who were the 2 parties involved in the economic transaction that resulted in this injury?
b) What is a negative externality/external cost?
c) List all the negative externalities resulting from that transaction that you see in the clip
d) Why are these things negative externalities?
e) What other negative externalities would arise from this assault/injury that are not mentioned in the clip?
f) To what extent do you think the solutions suggested in the second video are likely to be successful in reducing the market failure?

Unit 1: Income elasticity of demand and technology products

An interesting BBC report on an OFCOM survey

http://news.bbc.co.uk/1/hi/sci/tech/8186846.stm

a) Using evidence from the clip, explain what can you say about the income elasicity of demand for techn ology products compared to foreign holidays, eating out, CD's etc

Unit 2: The effects of the rise in value of the £

The BBC reports the value of the £ rising to a 10 month high

http://news.bbc.co.uk/1/hi/business/8183144.stm

a) What has to have happened in the market for the value of the £ to have risen?
b) What sections of the UK economy would benefit from this rise in the value of the £?
c) What sections of the UK economy might be adversely effected by this rise in the value of the £?

Unit 1: Negative externalities resulting from the Norwegian oil spill

The BBC has a video of the effect of an oil spill on the Norwegian coast

http://news.bbc.co.uk/1/hi/world/europe/8182789.stm

a) Define negative externality/external cost
b) Using evidence for the video, explain the negative externalities that may arise from this oil spill
c) What additional private costs will arise for the shipping firm from this oil spill?
d) Are there any private or external benefits/positive externalities that may arise from this oil spill?

Unit 2: Positive effects of unemployment?

Tutor2u have this Sky video/article on possible advantages for those made unemployed in the current recession

http://news.sky.com/skynews/Home/video/Funemployment-Is-The-Solution-To-Unemployment-For-Some-Recession-Victims/Video/200908115351529?lpos=video_Article_Related_Content_Region_1&lid=VIDEO_15351529_Funemployment_Is_The_Solution_To_Unemployment_For_Some_Recession_Victims

a) To what extent do you believe this is an accurate reflection of the effect of unemployment on individuals?
b) Do these possible positive effects outweigh the negative effects on the economy as a whole?

Unit 1: Negative externalities associated with clearing the Corby steelworks

These BBC videos report the sad case of children born with birth defects in Corby as a result of negligence by the local authority when cleaning the site of toxic materials

http://news.bbc.co.uk/1/hi/uk/8174316.stm
http://news.bbc.co.uk/1/hi/uk/8173192.stm
http://news.bbc.co.uk/1/hi/health/8174508.stm

a) Why would such birth defects be regarded as negative externalities by economists?

Unit 1: Positive externalities in Greenland arising from global warming

The BBC reports on possible positive externalities in Greenland arising from global warming

http://news.bbc.co.uk/1/hi/sci/tech/8173781.stm

a) Define a positive externality
b) Describe the potential positive externalities for Greenland arising from global warming and explain why are they positive externalities.

nit 1: Negative externalities assiciated with excess alcohol

This BBC clip has news of complaining Newquay residents

http://news.bbc.co.uk/1/hi/uk/8173145.stm

a) Define a negative externality
b) List the negative externalities the residents complain about and in each case identify the 3rd party effected by the excessive alcohol consumption

Unit 1: Information failure: Sunbeds and tanning

The BBC reports the latest on sunbeds and the potential danger associated with their overuse

http://news.bbc.co.uk/1/hi/health/8172690.stm article
http://news.bbc.co.uk/1/hi/health/8174136.stm video

a) How is this market subject to information failure (watch the video as well as reading the article)?
b) What is the result of this information failure in the market?
c) Explain 2 approaches the govt could take to reduce the market failure
d) To what extent do you believe such intervention would reduce the market failure?

Unit 1: Shift of the UK PPC

From tutor2u comes this great article about the UK PPC

http://www.tutor2u.net/blog/index.php/economics/comments/did-you-feel-the-shift/

a) Define a PPC
b) Why has the UK PPC shifted outwards?
c) Does this represent an increase in actual or potential output? Explain your answer
d) Draw a diagram to show the effect of this change in legislation

Unit 2: Is the UK coming out of the recession?

Three videos from the BBC putting 2 sided arguments forward as to whether the UK is recovering from a recession or not. These are ideal for gathering information to practice your evaluation technique

http://news.bbc.co.uk/1/hi/business/8150834.stm Hugh Pym
http://news.bbc.co.uk/1/hi/business/8150625.stm Steph Flanders
http://news.bbc.co.uk/1/hi/uk/8151111.stm Richard Scott

a) To what extent might it be said the UK economy is coming out of the recession?

Unit 1: The price mechanism at work: The coffee market

From economics student comes this clear summary of channges to supply and demand and their effect on the coffee market

http://rapidrevision.co.uk/economics-student/2009/07/08/coffee-republic-the-price-mechanism-at-work/

Unit 1: The effect of a VAT cut on restaurant meal sales

France is reducing the VAT on retaurant meals in France according to this BBC clip

http://news.bbc.co.uk/1/hi/uk/8125696.stm

a) Using a S&D diagram, explain the anticipated effect on the market for restaurant meals on the reduction in VAT
b) To what extent will such a VAT cut effect the market?

Unit 1: Changes in the Chinese aircraft market

An interesting clip from the BBC on changes in the Chinese aircraft market

http://news.bbc.co.uk/1/hi/uk/8114516.stm

a) Explain what has happened to demand in the market and why
b) Explain what has happened to supply in the market and why
c) Use a S&D diagram to show these changes and explain what has happened in the market

Unit 1: The web: A public good?

The death of Michael Jackson lead to turmoil at some internet sites reports the BBC

http://news.bbc.co.uk/1/hi/technology/8120324.stm

a) What are the 2 charecteristics of a public good?
b) To what extent are web sites such as Google and Twitter public goods if the article is correct?

Unit 1: Non-toxic fire retardent as a merit good?

From tutor2u comes this brilliant clip on a new, non-toxic fire retardent

http://www.tutor2u.net/blog/index.php/economics/comments/preventing-bush-fires-are-toxin-free-retardents-merit-goods/

a) What are the 2 conditions necessary for a good to be clasified as a merit good?
b) Does this good meet both criteria and so fall in to the catagory of a merit good?
c) How does the market for this fire retardent currently fail?
d) What actions could the Australian/Greek.....governments take to reduce the market failure?

Unit 2: Progressive income tax; an example

From economics help comes this useful numerical example of how income tax can be progressive

http://www.economicshelp.org/blog/economics/income-tax-rates-explained/

Unit 1: Porsche: A superior good?

The BBC reports rapidly declining Porsche sales

Porsche has been hit hard by the global recession. Porsche has seen its nine-month unit sales slump by more than a quarter after demand for its cars was hit by the worldwide recession.
Global sales at the German carmaker declined 28% to 53,635 vehicles between August 2008 and the end of April, compared with a year earlier.

Given the world recession has seen average incomes fall by no more than 5%,

a) Calculate the income elasticity of demand for Porsche cars and then explain why they might be considered a superior good
b) Explain 3 possible reasons why demand for Porshe cars (other than falling incomes) may hasve fallen
c) Using a S&D diagram, explain why this may be a good time to buy a Porsche (assuming you are still in a well paid job and can afford to buy one)

Unit 1: Negative externalities associated motoring

This BBC clip outlines one negative externality associated with motoring

http://news.bbc.co.uk/1/hi/sci/tech/8092182.stm

a) Define a negative externality
b) Explain the negative externality outlined by the clip and article
c) Using a diagram, explain how the market fails in this case
d) Suggest 2 possible actions the govt could take to reduce the negative externality, and give 2 disadvantages of each action

Unit 2: The current account of the Balance of payments

This BBC article reports a continuing decline in the current account surplus in Japan

http://news.bbc.co.uk/1/hi/business/8089477.stm

a) What are the components of the current account of the BoP?
b) What is the effect on the Japanese economy of a declining surplus on its current account?
c) What reason is suggested for the decline in the surplus and why might this have come about?

Unit 1: Negative externalities associated with smoking

This Daily Mail article which was quoted in a tutor2u post highlights some of the negative externalities associated with smoking

http://www.dailymail.co.uk/news/article-1190911/Smokers-cost-businesses-2-1bn-year-fag-breaks-sickness.html

This BBC article suggests the costs to the NHS are much higher than previously thought

http://news.bbc.co.uk/1/hi/health/8086142.stm

a) Define a negative externality
b) Explain why the costs stated in the articles are examples of negative externalities
c) Using a diagram, explain why the negative externalities stated in the articles represent market failure
d) Comment on 2 policies the government could introduce to reduce these specific negative externalities

Unit 2: Unemployment in the USA

A great little exercise based on a BBC clip from tutor2u

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/unemployment-in-the-usa-revision/

Unit 2: How much is consumption effected by changes in disposable income?

An interesting article from the BBC on the link between disposable income and consumption

http://news.bbc.co.uk/1/hi/business/8077598.stm

a) What is the expected link between disposable income and consumption?
b) Why does it not appear to be the case in the US at the moment?

Unit 2: The consequences of unemployment

This BBC article shows how the pain of unemployment may not be spread evenly around the economy; good for evaluation comments

http://news.bbc.co.uk/1/hi/wales/8079769.stm

Unit 2: Revision: The Balance of Payments

A clear revision of the structure of the BoP from tutor2u

http://www.tutor2u.net/blog/index.php/economics/comments/qa-current-and-capital-account/

Unit 2: Revision: Supply side policies

A useful revision post from economics student on supply side policies

http://rapidrevision.co.uk/economics-student/2009/05/31/supply-side-policy-measures/

Unit 2: Revision: Potential output, actual output and the output gap

A useful revision post from economics student

http://rapidrevision.co.uk/economics-student/2009/06/02/how-can-actual-gdp-be-above-productive-potential-explaining-positive-output-gaps/

Unit 1: The price of strawberries

From tutor2u comes this exercise on S&D in the strawberry market

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/qa-demand-and-supply-in-action/

Unit 1: The price of oil: Worksheet and article

From tutor2u's GCSE blog comes this post about S&D and the price of oil. Read the article and do the worksheet; it's as good for AS as it is for GCSE!

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/q-and-a-oil-prices-rise/

Unit 2: Govt income and expenditure 2009

This graphic from the Guardian sows the areas of govt expenditure and income from the 2009 budget

http://www.guardian.co.uk/uk/interactive/2009/apr/22/budget-2009-public-sector-borrowing

Unit 2: Revision: Macroeconomic objectives

From economics student comes this handy grid to fill in on the macroecoonomic objectives

http://rapidrevision.co.uk/economics-student/2009/05/26/as-revision-checklist-of-macroeconomic-essentials/

.......and, once you've had a go, a suggested answer if you need to check it

http://rapidrevision.co.uk/economics-student/2009/05/28/answer-to-macroeconomic-essentials/

Unit 1: Cut flowers, a normal good?

This BBC article explains falling demand for cut flowers from Kenya

http://news.bbc.co.uk/1/hi/business/8065913.stm

a) Define "normal good"
b) To what extent does this article support the idea that cut flowers are a normal good?

Unit 2 Australian tax rebates as a fiscal stimulus

This BBC article explains the Australian govt's latest attempt to stimulate the economy, a $700 handout to all citizens

http://news.bbc.co.uk/1/hi/world/asia-pacific/8065525.stm

a) Explain the intended effect on the Australian economy of this action
b) To what extent is the effect on the Australian economy likely to be successful?

Unit 1: Pollution permits as a method of reducing negative externalities: Cap and trade

From Marketplace whiteboard comes this great explanation of how the cap and trade in pollution permits should work

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

They have many other videos explaining aspects of the financial system in innovative ways....and he always ends with the same throw away line

Unit 1: The problem of free riders

From economicshelp comes this nice summary of the free rider problem and posible solutions

http://www.economicshelp.org/blog/economics/free-rider-problem/

Unit 1: The price mechanism

A good summary of what is meant by the price mechanism from economics student

http://rapidrevision.co.uk/economics-student/2009/05/21/what-is-the-price-mechanism/

Unit 2: Is Inflation Really So Bad?

From economics help comes this summary of the problems associated with inflation

http://www.economicshelp.org/2009/05/is-inflation-really-so-bad.html

Unit 2: Japan in recession

A great tutor2u post on the worsening Japanese economy

http://www.tutor2u.net/blog/index.php/economics/comments/japans-worst-ever-post-war-slump/

Unit 1: Government intervention to overcome market failure: Regulation in the US car industry

This BBC post is a good example of Government intervention to overcome market failure using regulation

http://news.bbc.co.uk/1/hi/world/americas/8056908.stm

a) What is the market failure that the government is trying to reduce?
b) How effective do you believe this policy is likely to be in reducing the market failure?

Unit 2: Revision: Consumption

A useful summary of consumption from economics student; click on the spider diagram to get a bigger image

http://rapidrevision.co.uk/economics-student/2009/05/16/consumption/

Unit 2: Economic stability

Economics student has this nice summary of what is meant by economic stability

http://rapidrevision.co.uk/economics-student/2009/05/10/economic-stability-as-a-macroeconomic-objective/

Unit 2: The effect of a change in the exchange rate on inflation

From tutor2u comes this useful post explaining how a change in the exchange rate can have an effect on inflation

http://www.tutor2u.net/blog/index.php/economics/comments/revision-the-exchange-rate-and-inflation/

Unit 2: Revision: Unemployment:

Three nice revision posts fron tutor2u

http://www.tutor2u.net/blog/index.php/economics/comments/revision-frictional-and-structural-unemployment/#extended Frictional and structural explanations

http://www.tutor2u.net/blog/index.php/economics/comments/revision-consequences-of-unemployment/ consequences of unemployment

http://www.tutor2u.net/blog/index.php/economics/comments/revision-measuring-unemployment/ How to measure unemployment

Unit 2: Revision: Productivity and Supply side policies

From economics student comes this great post on productivity and supply side policies

http://rapidrevision.co.uk/economics-student/2009/05/07/meeting-the-productivity-challenge/

Unit 2: Revision: Trend growth and the output gap

A nice revision summary from tutor2u on trend growth

http://www.tutor2u.net/blog/index.php/economics/comments/revision-trend-growth/

....and the output gap

http://www.tutor2u.net/blog/index.php/economics/comments/revision-the-output-gap/#extended

Unit 2: Unemployment in Elkhart, Indiana

An interesting post from Paul Mason in the USA

http://news.bbc.co.uk/1/hi/programmes/world_news_america/8028156.stm

a) What type(s) of unemployment are the citizens of Elkhart, Indiana experiencing
b) Explain how the negative multiplier effect will effect Elkhart

Unit 2: A different type of economic growth

This interesting post from tutor2u suggests future economic growth in the UK may be based on a different basis to that of the past years

http://www.tutor2u.net/blog/index.php/economics/comments/after-the-storm/

a) Using the AD function, explain the basis of recent UK growth
b) Why is future growth unlikely to follow the same pattern?
c) Explain the likely sources of growth explained in the article

Unit 2: Revision: Aggregate demand and Investment

Two great revision posts from tutor2u

http://www.tutor2u.net/blog/index.php/economics/comments/revision-aggregate-demand/ Aggregate demand

http://www.tutor2u.net/blog/index.php/economics/comments/revision-business-investment/ Investment

Unit 2: The UK economy in 2009

Tutor2u has this summary of the outlook for the UK economy in 2009.............it makes bleak reading

http://www.tutor2u.net/blog/index.php/economics/comments/fallout-from-the-recession/

a) Using the AD formula as you starting point, explain what is happening in the economy. Try and link the various pieces of data. Drawing an AD/AS diagram may help your thinking

Unit 1: Revision: Production possibility curves

Tutor2u has this good little summary of what you need to know about PPC's

http://www.tutor2u.net/blog/index.php/economics/comments/qa-how-the-pff-might-be-used-in-assessing-a-countrys-economic-performance/#extended

Unit 2: Revision: Balance of payments

Fron economics student comes this clear revision post for the structure of the BoP

http://rapidrevision.co.uk/economics-student/2009/04/30/balance-of-payments/

...and the causes of a current account deficit

http://rapidrevision.co.uk/economics-student/2009/05/05/the-causes-of-a-current-account-deficit/

...and what can be done to overcome a current account deficit

http://rapidrevision.co.uk/economics-student/2009/05/06/policies-to-improve-a-current-account-deficit/

Unit 2: The US recession continues

This BBC report says the US recession is continuing

http://news.bbc.co.uk/1/hi/business/8024839.stm

a) Write out the AD formula and explain what is happening to each component
b) Using an AD/AS diagram, explain the effect on the US economy
c) Using an AD/AS diagram, explain the effect the fiscal stimulus package should have on the economy
d) Why does the package not appear to be having the desired effect?

Unit 2: Revision: Government spending and budget deficits

From economic student comes this great little revision post

http://rapidrevision.co.uk/economics-student/2009/04/29/tackling-structural-budget-deficits/

Unit 2: Supply side policies in the USA: R&D

The BBC reports Obama pledging an increase in US spending on R&D

http://news.bbc.co.uk/1/hi/sci/tech/8020930.stm

a) Why is this an example of a supply side policy?
b) Using an AD/AS diagram, show the effect of this policy i(f it were to be succesful) on the US economy
c) Evaluate how successful such a policy is likely to be

Unit 1: Is renting an inferior good?

This BBC clip reports a rise in renting items rather than buying them as the recession bites

http://news.bbc.co.uk/1/hi/business/8019993.stm

a) Define inferior good
b) Discuss whether renting is an example of an inferior good

Unit 2: The depth of the UK recession

These BBC and Ch4 clips explain the worsening UK recession

http://news.bbc.co.uk/1/hi/uk/8016724.stm BBC
http://link.brightcove.com/services/player/bcpid1184614595?bctid=20970547001 Ch4

A good graphic showing the decline is in this post from the Stephanomics blog

http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2009/04/reversion_to_the_extreme.html

This clip illustrates one industry; the 50% fall in car output compared to the same month last year

http://news.bbc.co.uk/1/hi/business/8016758.stm

Unit 1: Opportunity cost of increased government debt

This graphic from the times gives a vivid example of the idea of opportunity cost

http://extras.timesonline.co.uk/pdfs/economy_250409.pdf

Economics student also has this related article

http://rapidrevision.co.uk/economics-student/2009/04/27/opportunity-cost-of-servicing-the-national-debt/

a) Define opportunity cost
b) Exlain how the graphic can be used to explain the opportunity cost of increased government debt
c) Using a PPC diagram, explain how increased government debtleads to a movement along the PPC

Unit 2: UK unemployment rises to 6.7%

The BBC reports the latest depressing unemployment figures; note also the decline in the number of vacancies available for those unemployed

http://news.bbc.co.uk/1/hi/business/8011732.stm

a) What does an unemployment rate of 6.7% mean?
b) Explain how can there be 2.1m people unemployed when there are 462,000 job vacancies

Unit 2: Deflation in the UK

Deflation (as measured by the RPI) has arrived in the UK economy. A nice chart from economics student

http://feeds2.feedburner.com/EconomicsStudent?format=xml

This BBC clip is useful

http://news.bbc.co.uk/1/hi/uk/8010442.stm

Unit 2: The effect of a depreciating £ on the Balance of Payments

An excellent summary from a question of economics on the effect of a depreciating £ on the Balance of Payments

http://aquestionofeconomics.blogspot.com/feeds/posts/default?alt=rss

Unit 2: Problems with unemployment

From economics help comes this nice summary of the problems for an economy of high/rising unemployment

http://www.economicshelp.org/2009/04/problems-of-unemployment.html

Unit 1: Revision: Price elasticity of demand

From economics student come these useful summaries of PED, its uses and its limitations

http://rapidrevision.co.uk/economics-student/2009/04/17/elasticity-of-demand-and-those-minus-signs/

http://rapidrevision.co.uk/economics-student/2009/04/18/business-uses-of-price-elasticity/

http://rapidrevision.co.uk/economics-student/2009/04/19/estimating-and-relying-on-elasticity/

Unit 1: Subsidies for electric cars

The BBC reports government plans to subsidise the purchase of electric cars from 2011

http://news.bbc.co.uk/1/hi/uk/8001509.stm

a) Using a S&D diagram, explain the likely effect on the electric car markeet of the introduction of this subsidy
b) Explain why the outcome may not be as the government intends

More on the BYD electric car at
http://news.bbc.co.uk/1/hi/world/7992180.stm
...and the GM car
http://news.bbc.co.uk/1/hi/programmes/newsnight/8000964.stm
...and the Toyota plug in hybrid
http://news.bbc.co.uk/1/hi/business/7609495.stm

Unit 1: External benefits from TB drugs

A great freakonomics article

http://freakonomics.blogs.nytimes.com/2009/04/01/an-ingenious-approach-to-drug-compliance/

a) What are the private benefits of taking the TB drugs?
b) What are the external benefits of taking the drugs?
c) Explain why the external benefits are greater than the private benefits
d) How successful do you think the suggested "pay per pee" a[[roach will be in maximising the external benefit?

Unit 1: The price of chocolate

This Ch4 video suggests that the price of chocolate is due to rise

http://link.brightcove.com/services/player/bcpid1184614595?bctid=19088159001

a) Using a S&D diagram, explain why the price of chocolate is likely to rise
b) Using economic analysis, explain why firms are getting their chocolate products certified by Fairtrade or other agencies

Unit 1: The price of chocolate

Unit 1: Subsidies: Car scrappage

Tutor2u has this excellent post looking at the pros and cons of introducing a car scrappage subsidy to help the ailing car industry

http://www.tutor2u.net/blog/index.php/economics/comments/qa-what-is-a-scrappage-subsidy-and-will-it-work-in-the-uk/

Unit 2: Supply side consequences of Government expenditure

The BBC reports that Australia's government is to spend billions setting up a super fast fibre optic network across the country

http://news.bbc.co.uk/1/hi/world/asia-pacific/7986918.stm

a) Why could this be described as a fiscal policy action by the Australian government?
b) Why could this be described supply side consequence?

Unit 2: An improvement in the UK's current account

Tutor2u has this great post on why the UK's current account is likely to further improve in 2009. Particularly good are the figures for the 4 sections of the current account and therelative importance of the surplus/deficit on each section in 2008.

http://www.tutor2u.net/blog/index.php/economics/comments/trade-adjustment/

Unit 1: Actions to overcome market failure: Calorie counts on menus

Tutor2u has this summary of voluntary action to be taken by a few large chains to list the calrie count of menu items

http://www.tutor2u.net/blog/index.php/economics/comments/calories-you-can-believe-in/

This BBC and Ch4 video clips covers the story

http://news.bbc.co.uk/1/hi/health/7985006.stm BBC video
http://link.brightcove.com/services/player/bcpid1184614595?bctid=18752147001 Ch4 video

a) What information failure is ther in eating a restaurant meal?
b) What external costs are there to obesity?
c) To what extent do you think a schemr such as this would reduce the market failure?

Unit 2: How to reduce unemployment

A useful summary from economicshelp

http://www.economicshelp.org/2009/04/dealing-with-unemployment.html

Exam technique: Evaluation skills

From tutor2u comes this powerpoint on how to improve your evaluation answers in exams

http://www.tutor2u.net/economics/presentations/ImprovingEvaluationSkills/player.html

Read it, take on board the main points and use them as you go through past papers

Unit 1: The price of tea

These 2 BBC reports suggest that tea is set to rise in price in the shops

http://news.bbc.co.uk/1/hi/business/7973857.stm
http://news.bbc.co.uk/1/hi/world/africa/8213597.stm

a) In each case, using a S&D diagram, explain why the world price of tea is set to rise
b) Using a S&D diagram, explain why this will lead to an increase in the price of tea in UK shops

You may also find this post from economicshelp useful

http://www.economicshelp.org/blog/economics/price-of-tea/

Unit 1: Tax on cigarettes

The BBC reports a large increase in the tax on cigarettes in the USA

http://news.bbc.co.uk/1/hi/world/americas/7976225.stm

a) Using a diagram, explain the likely effect on sales of cigarettes in the USA
b) The article states
"The cigarette companies have not been standing idly by. They raised prices on cigarettes a few weeks ago to start making up for the money they expect to lose in sales."
What does this statement tell you about the price elasticity of demand for cigarettes?
c) What is the market failure associated with cigarette consumption?
d) How likely is the tax to reduce the market failure associated with cigarette consumption?

Unit 2: Unemployment data

The Guardian this week had a breakdown of the latest employment data: As of Feb 2009

26.94m people were in full time employment
2.41m people were in part time employment
2.03m people were unemployed (LFS measure)
7.8m people were economically inactive (2.05m students,2.22m looking after home/family, 2m long term sick, 0.17m temporary sick, 0.59m early retired, 0.77m others)

a) How many people were economically active?
b) What % of the workforce is economically active?

Unit 2: Revision: Exchange rates

From economics student comes this handy summary of what determines exchange rates

http://rapidrevision.co.uk/economics-student/2009/03/29/how-exchange-rates-are-determined/

....and why exchange rates change

http://rapidrevision.co.uk/economics-student/2009/03/30/why-exchange-rates-change/

.....and what determines exchange rates

http://rapidrevision.co.uk/economics-student/2009/03/31/factors-influencing-exchange-rates/

.....and the implications of changes in the exchange rate

http://rapidrevision.co.uk/economics-student/2009/04/01/why-exchange-rates-matter/

Unit 2: The worldwide nature of the current recession

Various reports of shrinking economies all over the world

Ireland http://news.bbc.co.uk/1/hi/business/7965664.stm
and http://news.bbc.co.uk/1/hi/business/7976734.stm
Japan http://news.bbc.co.uk/1/hi/business/7967315.stm
and http://news.bbc.co.uk/1/hi/business/7973409.stm
New Zealand http://news.bbc.co.uk/1/hi/world/asia-pacific/7967326.stm
USA http://news.bbc.co.uk/1/hi/business/7965791.stm
Germany http://news.bbc.co.uk/1/hi/business/7973708.stm

a) Are the factors causing the recession the same in each country the same? Think in terms of the components of aggregate demand

Unit 2: A shrinking economy and rising savings ratio

The BBC reports that the UK economy shrunk by 1.6% in the last 3 months of 2008. In addition, it appears that the recession is leading people to save more

http://news.bbc.co.uk/1/hi/business/7967597.stm

a) Define the savings ratio
b) With savings interest rates at close to zero, why would peeople be saving more?
c) Using an AD/AS diagram, explain the likely consequences on the UK economy of an increase in the savings ratio
d) Following on.......explain why in the long term an increase in the savings ratio might be desiarable but why in the short run it is not