Unit 2: Investment in hotels in Dubai

The BBC reports more hotels being built in Dubai, despite overcapacity at the current time

http://news.bbc.co.uk/1/hi/business/8669651.stm

a) What is the motivation/reason for this investment in the present circumstances?

Unit 2: Revision: Balance of payments

Thanks to tutor2u for this concise revision sheet for BoP

http://www.tutor2u.net/blog/files/Revision_on_Balance_of_Payments.docx

Unit 2: Supply side policies: Revision

A really useful powerpoint presentation from tutor2u

http://www.tutor2u.net/economics/presentations/workshops2010/AS2/player.html

Unit 1: How to reduce market failure? Indirect (carbon) taxes, or tradable permits (cap and trade)

A good summary of both from economics help

http://www.economicshelp.org/blog/economics/carbon-tax-pros-and-cons/ tax

http://www.economicshelp.org/blog/economics/carbon-trading-schemes/ tradable permits

Unit 2: tutor2u macro revision presentations

One onwhy the economy is in a recession

http://www.tutor2u.net/blog/index.php/economics/comments/as-economics-revision-dissection-the-recession/

and a second one on managing the economy

http://www.tutor2u.net/economics/presentations/workshops2010/AS4/player.html

and a third one on prospects for the UK economy

http://www.tutor2u.net/economics/presentations/workshops2010/AS3/player.html

Unit 1: Actions by the Australian government to reduce smoking

This BBC clip gives the latest Australian proposals

http://news.bbc.co.uk/1/hi/world/asia-pacific/8650520.stm

a) How does the gigarette market fail?
b) What catagory of action would you put this proposal in?
c) To what extent do you believe such action will reduce the market failure?

Unit 2: Unemployment hits 20% in Spain

This brief BBC video and article has, amongst other information, the depressing news tht unemployment in Spain has hit 20%; one person in 5 who wants a job is now out of work

http://news.bbc.co.uk/1/hi/business/8655339.stm video
http://news.bbc.co.uk/1/hi/business/10093123.stm article

Unit 2: The effect of the exchange rate on imports and exports

A great little clip from the BBC showing the effect of the exchange rate on imports and exports

http://news.bbc.co.uk/1/hi/world/europe/7668400.stm

a) What is the effect of the appreciating euro on the Irish republic's BoP curerent account?
b) What is the effect of the appreciating euro on the Irish republic's home producers?
c) Using an AD/AS diagram, explain the effect of the appreciating euro on the Irish republic's macroeconomic performance

Unit 2: Supply side policies

From the defunct economics student blog comes this useful summary

Supply-side policy measures to increase aggregate supply include:
-Improve incentives for economic activity
-Reducing income tax encourages the unemployed to join the labour force and existing workers to undertake overtime and accept responsibility.
-Reducing benefit levels and tightening eligibility rules encourages/forces the unemployed to take paid work. In short overcome the unemployment trap.
-Improve incentives for entrepreneurs. Profit is the reward for risk taking; lowering corporation tax increase the reward from enterprise
-Encouraging small business start-up e.g. through tax breaks e.g. low corporation and capital gains tax
-Improve productivity
-Subsidise education & training.
-Improvements in the quantity and quality of capital. R&D innovation and new capital raises productivity. Recent UK budgets have featured tax breaks for R&D and investment to encourage firms to expand
-Encourage competition through:
Privatisation e.g. telecommunications, electricity, water, steel, gas, rail breaks up state monopolies and introduces competition. Or does privatisation replace a public with a private monopoly?
-Deregulation i.e. removing barriers to entry and opening up markets to greater competition.
Encouraging international trade as trade creates competition. Firms seek to become world class and adopt best international practice in their own organisation leading to lower unit costs
-Improve flexibility of labour markets through trade union reform

Unit 2: Issues and prospects for the UK economy

A great summary from Geoff Riley at tuor2u

http://www.tutor2u.net/blog/index.php/economics/comments/issues-and-prospects-for-the-uk-economy-in-2010/

Unit 2: What is GDP?

A great little video from BBC answers this question

http://news.bbc.co.uk/1/hi/business/8637712.stm

Unit 2: Latest Inflation, unemployment and gdp data

The latest data provides a mixed picture of how the economy is doing

http://econ.economicshelp.org/2010/04/volatile-economy-and-inflation.html article explaining latest inflation figures and how much of an issue they are
http://www.anforme.co.uk/blog/?p=1305 inflation

http://www.anforme.co.uk/blog/?p=1309 unemployment
http://www.channel4.com/news/articles/business_money/unemployment+total+hits+25+million/3620972 h4 video on unemployment

http://news.sky.com/skynews/Home/Business/UK-Economy-Grew-By-02-In-First-Three-Months-Of-The-Year/Article/201004415614785?f=rss Sky news video and article on latest gdp
http://www.channel4.com/news/articles/business_money/weak+uk+growth+figures+ahead+of+election/3623287 Ch4 video and article on gdp
http://www.anforme.co.uk/blog/?feed=rss2 gdp article

Unit 2: Changes in AD and AS in action: The Irish economy

This great clip from Steph Flanders shows the effect of the recession on the Irish economy

http://news.bbc.co.uk/1/hi/business/8612688.stm

This article shows the response of some Irish citizens; the traditional route of Irish emigration to the rest of the world

http://news.bbc.co.uk/1/hi/world/europe/8616434.stm

a) Using an AD/AS diagram, explain the effect of the recession on the Irish economy and the government's macroeconomic objectives

Unit 2: Supply side policies in Cuba

A great clip from the BBC showing Cuba introducing a supply side policy in to their centrally planned economy

http://news.bbc.co.uk/1/hi/world/americas/8616858.stm

a) What supply side policy is being introduced?
b) In what ways should it make the hairdressing sector more efficient?
c) Explainn what should be the effect on the Cuban economy using an AD/AS diagram
d) What drawbacks might there be for the Cuban government in introducing such supply side policies as they try to modernise their economy?

Unit 2: China's BoP current acount deficit

The BBC reports China has, unusually, a current account deficit

http://news.bbc.co.uk/1/hi/business/8612809.stm

a) To what extent is this current account deficit a problem for the Chinese economy?

Unit 1: Rising petrol prices

This Ch4 video explains the recent rise in petrol prices

http://link.brightcove.com/services/player/bcpid62612474001?bctid=76739806001

a) Using S&D analysis, explain why the price of petrol,has risen

Unit 1: Government action to reduce market failure in the alcohol market

The BBC reports more regulations to reduce the market failure in the alcohol market

http://news.bbc.co.uk/1/hi/uk/8604571.stm

a) Using a diagram, explain how the free market for alcohol leads to market failure
b) Comment on the extent to which these measures will reduce the market failure asociated with excessive "binge" alcohol consumption

Unit 1: PED in action: Who else but Ryanair!

The BBC reports a new pricing strategy from Ryanair

http://news.bbc.co.uk/1/hi/northern_ireland/8605600.stm

a) Using your knowledge of PED, comment on whether you agree with the Ryanair statement that the purpose of the increase is to "incentivise all of its passengers to travel light" during the peak summer months.

Unit 2: Monetary policy in action in Australia

A good clip and article from the BBC showing monetary policy in action

http://news.bbc.co.uk/1/hi/business/8604281.stm article
http://news.bbc.co.uk/1/hi/world/americas/8604224.stm video

a) Using information from the video and article and your economic knowledge, explain, using an AD/AS diagram, how increasing interest rates should reduce inflation in Australia

Unit 1: Supply and demand in the Qatar property market

A great video from The BBC showing S&D in action

http://news.bbc.co.uk/1/hi/business/8602951.stm

a) Using a S&D diagram, explain what has happened to both the supply of, and demand for, property in Qatar's property market
b) What do you think will happen to property prices in 2010, given the information in the video?

Unit 2: Distribution of income in the uk

Latest figures show a narrowing of the income gap in the UKbetween different regions says the BBC

http://news.bbc.co.uk/1/hi/business/8597384.stm

The Guardian sees the data differntly

http://www.guardian.co.uk/business/2010/mar/31/north-south-divide-widens-official

and it can be seen brilliantly in this Guardian graphic

http://www.guardian.co.uk/news/datablog/2010/mar/31/economy-economics#zoomed-picture

Unit 2: Inflation : Recent data/revision

From tutor2u comes this nice summsry of inflation in the UK over the past few years

http://www.tutor2u.net/blog/index.php/economics/comments/uk-economy-revision-inflation-in-the-last-few-years/

It icludes a link to this powerpoint containing several good data charts

http://www.tutor2u.net/blog/files/Inflation_in_the_UK_Economy.pptx

Unit 2: The Government budget 2010

A great interacive guide from the Guardian

http://www.guardian.co.uk/uk/interactive/2010/mar/24/budget-2010-state-britain-finances

This BBC guide has a graph to show govt deficits/supluses over recent times

http://news.bbc.co.uk/1/hi/business/8570775.stm

This Guardian chart shows how the deficit will be reduced over time

http://www.guardian.co.uk/news/datablog/2010/mar/25/budget-2010-deficit-visualisation#zoomed-picture

Unit 1: The price of fruit and veg in the UK

Thanks to tutor2u for this article

http://www.dailymail.co.uk/news/article-1259733/Fruit-veg-prices-UK-soar-record-rain-Spain.html

a) Using a S&D diagram, explain why the price of some UK fruit and veg has risen

Unit 2: Personal costs (and benefits?) of unemployment

An interesting perspective on being unemployed from the point of view of a few people

http://news.bbc.co.uk/1/hi/business/8569213.stm article

Unit 2: Fiscal policy, Budget Deficits and the National Debt

This from tutor2u is much too detailed for AS, but there are some useful slides in her, especially at the start

http://www.tutor2u.net/blog/images/uploads/FISCAL_POLICY_09-10_MTS.pdf

Unit 2: Feb 2010 unemployment figures

Some useful sources

http://news.sky.com/skynews/Home/Business/UK-Unemployment-Falls-By-33000-Some-245m-Brits-Remain-Out-Of-Work/Article/201003315575439?f=rss Sky news video
http://news.bbc.co.uk/1/hi/business/8571625.stm BBC article
http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2010/03/not_lagging_but_not_leading_ei.html Stephanie Flanders opion piece

a) What is the meaning of the term "economically inactive"?
b) If you are unemployed, are you economically active or inactive? Explain your answer
c) Comment on whether the UK unemployment rate is improving

Unit 1: The price of petrol

A short clip from Sky explaining the sharp rise in the price of petrol.....and why there is still more to come

http://news.sky.com/skynews/Home/UK-News/Petrol-Prices-Rise-And-AA-Warns-We-Could-Soon-Be-Paying-120p-A-Litre-To-Fill-Our-Cars/Article/201003315574490?f=rss

a) Using a S&D diagram, explain this rise (and the anticipated future rise) in the price of petrol

Unit 2: Changes to the basket of goods

The BBC and Guadian report the latest changes to the basket of goods that are used to measure changes in the CPI

http://news.bbc.co.uk/1/hi/business/8568131.stm
http://www.guardian.co.uk/business/2010/mar/15/uk-inflation-recession-new-goods

a) Why are these changes necessary
b) Despite these changes, why could it be argued that the CPI basket is already out of date?

Unit 2: Revision: Supply side policies

Tutor2u has this revision powerpoint, some of which would be really good for AS

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

NB Some of it is A2: If we haven't covered it, ignore it for AS

Unit 1: Taxing goods with negative externalities: Fizzy drinks

Thanks to tutor2u for pointing out this Telegraph article

http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/7400304/New-York-Citys-mayor-plans-soda-tax.html

a) What are the negative externalities associated with fizzy drinks?
b) Is there any other sort of market failure present here?
c) Using a S&D diagram, discuss how successful the proposed tax would be in reducing the market failure

Unit 2: What are the disadvantages of using interest rates to control the economy?

A useful summary from economicshelp

http://www.economicshelp.org/blog/interest-rates/interest-rates-and-economy/

Unit 2: UK trade deficit worsens

Several sources showing the worsening trade deficit

http://news.bbc.co.uk/1/hi/business/8558908.stm video
http://news.bbc.co.uk/1/hi/business/8557200.stm article
http://www.anforme.co.uk/blog/?p=1233 article

a) Explain how the trade deficit is calculated
b) Explain how a weaker pound should improve the trade deficit
c) Explain why this hasn't happened
d) To what extent should the UK economy worry about this trade deficit?

Unit 2: Budget deficits and the national debt

I like these from economicshelp

http://www.economicshelp.org/2010/03/national-debt-facts.html
http://www.economicshelp.org/blog/economics/why-do-countries-run-deficits/

and this ticking bomb of the UK national debt

http://www.debtbombshell.com/?utm_source=widget&utm_medium=embed&utm_campaign=dbw1

Unit 2: Revision: The Balance of Payments

Now that economics student has gone off line, I've brought together some posts to form this revision document for the Balance of Payments



The Balance of Payments

The Balance of Payments (BoP) records economic transactions between residents of a country and the rest of the world. There are two sections:
The Current Account records money flows between UK & overseas residents arising from trade in goods & services, flows of income from owning overseas assets and overseas transfers
The Capital & Financial Account records money flows between UK & overseas residents from the purchase of fixed or financial assets eg factories or shares or bank deposits/loans
Note that the two accounts are interlinked: Interest profits and dividends from owning overseas assets (ie income in the current account) result from investing overseas (which would appear in the capital and financial account)


At AS the focus is on the current account. Be careful to use the terms current account and balance of payments carefully – they have different meanings. The current account is just one section of the balance of payments covering international transactions which have no impact on the country beyond the current year; ie the next 12 months.
Next, be sure you understand each element in the current account. Hopefully you understand trade in goods and trade in services, but the other 2 items are not as straightforward.
Put simply, total income is the difference between income earned by UK residents from owning overseas assets ( in the form on interest, profits and dividends; IPD) and income paid out to overseas residents owning UK assets.
Current transfers are mainly transfer payments made by government (eg receipts from (and payments to) the European Union) and payments made by expatriate workers back to their home country.


One potential area of confusion are the + and – signs. Any money entering the country will have a positive sign in the BoP accounts. Likewise, money flowing out of the country will have a negative sign


Task: Use the table below to assess the performance of the UK economy over the 4 years. Look at the trends in goods and services. Ask yourself whether the trade in services more than outweighs the deficit on trade in goods.

Trade in Goods
Trade in services
Balance of trade
Total income
Current transfers
Current balance
The causes of a current account deficit


The current account is one element of the balance of payments. The main cause of the deficit in the current account is a country’s trade in goods and services where the value of imports is higher than the value of exports.
In 2007, the UK ran a £89.2bn deficit on trade in goods and a £41.7bn surplus on trade in services giving an overall Balance of trade of -£47.5bn.


What factors cause the trade deficit? Put simply: a lack of international competitiveness. If UK made products are more expensive or of a lower quality than EU & USA rivals then UK imports rise and our exports fall
There are three main factors at work which can explain why UK products are relatively more expensive than their overseas rivals:
1 Lower productivity. Productivity is output per worker. If, on average, UK workers produce less than the international average then it follows that UK unit costs are higher. Price competitiveness is lost
2 The strength of sterling. Exchange rates affects the price of UK imports and the price of UK exports in terms of foreign currency. a sustained appreciation of the pound over time lowers the price of imports while raising the price of exports, causing the loss of price competitiveness
3 Relative inflation rates. where the UK has higher inflation rates than its overseas rivals, then UK prices are accelerating faster than their competitors, so reducing UK price competitiveness


The role of quality should not be underestimated. Price is just one factor determining the demand for imports and exports. Globalisation and the emergence of developing economies such as China with low labour costs and an advantage in the mass production of low-priced products, encourages the UK to specialise in high value added industries. UK goods compete on quality design and exclusive brand image.

Policies to improve a current account deficit

The current account is an element of the balance of payments. So how would you define a current account deficit? It occurs when exports revenue, income and current transfers from abroad are less than expenditure on imports, income and current transfers going abroad. More money is leaving the country than entering it.

The government can make use of various policy instruments to improve the current account position, focusing on the balance of trade in goods and services. This involves taking measures that increase the demand for exports or lower the demand for imports

Demand side measures
1 Lower the exchange rate; this will bring about an increase in the price of imports, and reduction in the price of exports in terms of foreign currency. The effectiveness of the depreciation of sterling depends upon the demand for exports and imports being price elastic and ceteris paribus. Bringing about a reduction in the exchange rate is rendered ineffectual if other countries follow suit and engineer a depreciation of their own currency or retaliate with import restrictions
2 Introduce import restrictions such is tariffs or quotas that increase the price of imports, lowers demand and so – given demand is price elastic - reduces spending on imports. Note import restrictions have an inflationary side effect and so conflict with the objective of stable prices (low inflation). More importantly scope for introducing tariffs and quotas is limited by UK membership of the EU and World Trade Organisation. Import restrictions may simply encourage retaliation lowering the volume and value of UK exports.
3 Reduce aggregate demand. The demand for imports depends on the level of national income reducing aggregate demand causes lower levels of imports. This reduction in AD could be achieved via fiscal or monetary policy. The effectiveness of this policy depends upon the value of the marginal propensity to import and the extent to which aggregate demand is reduced. Note the objectives of low unemployment and economic growth are compromised.

Supply side measures
A current account deficit is brought about by a lack of international competitiveness; ie UK products are either relatively more expensive or of poorer quality than items produced overseas. Improving the quality of UK products require supply side policies. For example, offering tax breaks and/or grants to firms that encourage research and development, enterprise and innovation. Many supply-side policies take a relatively long time to have an impact and can be expensive.

Unit 2: Tightening monetary policy at work in Australia

A great little clip from the BBC

http://news.bbc.co.uk/1/hi/business/8545561.stm

Anforme write on the same topic

http://www.anforme.co.uk/blog/?p=1215

a) Using an AD/AS diagram, explain the likely effects of raising interest rates on the Australian economy

Unit 2: International data sources

Many listed in this tutor2u blog post

http://www.tutor2u.net/blog/index.php/economics/comments/a-goldmine-of-development-data-sources/

Unit 2: Comparative international inflation rates

I like these graphics as they are so visual

http://bespokeinvest.typepad.com/bespoke/2009/06/country-inflation-rates.html
http://en.wikipedia.org/wiki/File:World_Inflation_rate_2007.PNG

A list can also provide data

http://en.wikipedia.org/wiki/List_of_countries_by_inflation_rate

....as can a table. This one allows tracking of inflation rates with EU countries over time

http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&language=en&pcode=tsieb060&tableSelection=1&footnotes=yes&labeling=labels&plugin=1
or the graph of the table (at the top of the post)

a) How does the UK's inflation rate compare to our major trading partners?
b) What effect might this have onfuture patterns of trade?

Unit 2: Balance of Payments data

From tutor2u comes this powerpoint presentation with a lot of BoP data

http://www.tutor2u.net/economics/presentations/aseconomics/macro/BOPData/player.html

Unit 1: Complements; flights and match tickets

A nice link fropm tutor2u

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/disappointing-ticket-sales-for-the-world-cup-complements/

a) Draw 2 S&D diagrams; one to show the effect on air travel and the second on match tickets and explain what is happening in each case in the market

Unit 2: Supply side policies in the UK

Tutor2u has an example of a UK supply side policy

http://www.tutor2u.net/blog/index.php/economics/comments/specific-supply-side-policies/

Unit 2: Where do we export to?

A great graphic from the Guardian answers this question

http://image.guardian.co.uk/sys-files/Guardian/documents/2010/02/24/UKExports.pdf

The BBC reports the demise of the Hummer

http://news.bbc.co.uk/1/hi/business/8536360.stm

a) Explain, using the theory of what determines demand, why demand for the Hummer has fallen to the extent that GM is stopping production

Unit 2: Decreasing investment in the UK

Anforme report decreasing investment in the UK

http://www.anforme.co.uk/blog/?p=1203

a) To what extent will this 24% decrease in investment effect the level of aggregate demand in the economy?

Unit 2: Unemployment rates in various countries

Tutor2u has this "play your cards right" unemployment game

http://www.tutor2u.net/blog/images/uploads/Unemployment_-_Play_your_cards_right.ppt

Unit 1: Revision: Positive externalities

Tutor2u provide this useful powerpoint presentation

http://www.tutor2u.net/economics/presentations/aseconomics/marketfailure/PositiveExternalities/player.html

Unit 1: Revision: Public goods

Tutor2u provide this revision powerpoint

http://www.tutor2u.net/economics/presentations/aseconomics/marketfailure/PublicGoods/player.html

Unit 2: An unclear picture on UK unemployment

The BBC and anforme report differing signals from the latest figures

http://news.bbc.co.uk/1/hi/business/8520256.stm video
http://news.bbc.co.uk/1/hi/business/8519647.stm article
http://www.anforme.co.uk/blog/?feed=rss2

a) Why might the LFS figures underestimate the real unemployment figures?

Unit 2: Supply side policies in China; encouaraging entreprenneurs

A post from tutor2u , with an audio clip on Supply side policies in China

http://www.tutor2u.net/blog/index.php/economics/comments/supply-side-stimulus-for-the-chinese-economy/

Unit 2: Rising inflation in the UK

A good summary from the BBC and anforme

http://news.bbc.co.uk/1/hi/business/8519194.stm video
http://news.bbc.co.uk/1/hi/business/8517156.stm article
http://www.anforme.co.uk/blog/?p=1110

a) What type of inflation is the economy currently suffering?
b) Who wins and who loses in the UK economy when there is inflation?
c) To what extent is inflation at 3.5% a problem for the UK economy?

Unit 2: How does the government finance a budget deficit?

The answer can be found in this great little video from the BBC

http://news.bbc.co.uk/1/hi/programmes/the_daily_politics/8498299.stm

Unit 2: The effects of a fall in the value of the £

A good 2-sided article from tutor2u looking at the positive and negative effects of a fall in the value of the £; this is how to evaluate!

http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-sterling-and-the-uk-economy/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:18:53:00Z

Unit 2: UK inflation data

A chart from Volterra showing UK inflation over the last 7 years. Note when it goes outside the limits (2%+ or- 1%)

http://www.volterra.co.uk/custompage/einsight-0210.php#einsight0210_3

Unit 2: GDP growth in the UK over the past secade

A useful chart from Volterra

http://www.volterra.co.uk/custompage/einsight-0210.php#einsight0210_1

a) describe the pattern of growth in the UK over the period shown
b) In which quate of which year would the UK have had the highest GDP figure

Unit 2: Real v nominal data: All time best selling films

Thanks to tutor2u for this Wall St Journal analysis of all time USA box office success

http://s.wsj.net/public/resources/documents/st_TOP-BOX-OFFICE-1001_20100129.html

a) Explain what "nominal gross takings" means
b) Which is the best nominal grossing film ever?
c) Explain what "real gross takings" means?
d) Re-order the top five to show the best real grossing films ever?
e) Explain the difference between the 2 lists

Unit 2: International comparison of unemployment rates

Some useful data from anforme

http://www.anforme.co.uk/blog/?p=1089

Unit 2: Chinese tariffs on US chickens!

Tutor2u has the story

http://www.tutor2u.net/blog/index.php/gcse-economics/comments/the-world-on-wednesday-china-and-us-chicken-dispute/

Unit 2: Exchange rates and their effect on the BoP

Economics help offers this summary

http://www.economicshelp.org/blog/economics/exchange-rate-and-current-account/

NB: The bit on the J curve is not needed for AS

Unit 1: Video clips for externalities

Tutor2u has links to 5 video clips on externalities

http://www.tutor2u.net/blog/index.php/economics/comments/some-new-video-pieces-on-externalities/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+economics_news+%28tutor2u+Economics+Blog%29#When:22:40:00Z

Unit 2: The problems in Greece

From economics blog comes these summaries of the position Greece finds itself in
http://www.economicshelp.org/blog/economics/drastic-economic-measures/
http://www.economicshelp.org/2010/02/problem-with-greece-economy.html

The BBC has these videos on the same topic
http://news.bbc.co.uk/1/hi/world/europe/8494706.stm
http://news.bbc.co.uk/1/hi/world/europe/8494969.stm

.......and this one on the start of the problems the government may face with these proposals
http://news.bbc.co.uk/1/hi/world/europe/8497432.stm

a) Assess the current position of Greece in terms of the 4 macroeconomic objectives
b) Discuss how successful the measures taken by the Greek government are likely to be in improving the state of the Greek economy

Unit 2: The UK's national debt

A good summary video from the BBC on the national debt

http://news.bbc.co.uk/1/hi/programmes/the_daily_politics/8498299.stm

Unit 2: Revision: Unemployment

A great powerpoint from tutor2u filled with data and information

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

Unit 1: More proposals to control tobacco consumption

The BBC reports more proposals; I particularly like the chart showing the decline in smoking

http://news.bbc.co.uk/1/hi/uk/8490490.stm

Unit 2: Comparing UK unemployment to other European countries

A useful article from anform for comparing UK/EU unemployment rates

http://www.anforme.co.uk/blog/?p=1069

Unit 2: The financial cost of unemployment

This Telegraph article outlines the financial cost of unemployment in the UK; it also shows how it is unequally spread across the country

http://www.telegraph.co.uk/news/newstopics/politics/6094687/Workless-rate-jumps-as-Labour-benefit-bill-reaches-350-billion.html

Unit 2: How bad is unemployment in this recession

When evaluating how bad a problem unemployment is for the economy, it's useful to be able to make a comparison; these charts from the ONS are therefore very useful.

Unit 2: GDP and GDP per capita top 10

Helpful lists from economics help

http://www.economicshelp.org/country/largest-gdp-nominal.html nominal GDP $US
http://www.economicshelp.org/country/gdp-per-capita.html GDP per capita $US
http://www.economicshelp.org/country/economy-gdp-ppp.html GDP PPP $US

Unit 2: Causes of changes in consumer confidence

Two nice articles from economics help, putting the importance of consumer confidence in context

http://www.economicshelp.org/blog/economics/expectation/
http://www.economicshelp.org/2010/01/uk-consumer-confidence.html

Unit 2: Economic growth and environmental impacts

This from the Times (via tutor2u)

http://labs.timesonline.co.uk/blog/2010/01/21/environmental-performance-of-rich-and-poor-countries/

a) What might you consider the link to be between economic growth and the factors indicated?
b) Does the data back up your theory?

Unit 2: Economic growth in China

A really good article from anforme on economic growth in China

http://www.anforme.co.uk/blog/?p=1041

a) Using the AD equation, explain the reasons for economic growth in China
b) Using an AD/AS diagram, explain why the article arues this increased economic growth is unlikey to result in inflation in China
c) To what extent do you agree with this conclusion?

Unit 2: Rising UK inflation data

A good summary of the latest position, including a diagram, from anforme

http://www.anforme.co.uk/blog/?p=1029

Unit 1: The price of rubber

A video from the BBC explaining the changing price of rubber

http://news.bbc.co.uk/1/hi/business/8470319.stm

a) Using a S&D diagram, explain why the price of rubber has risen. Make sure you cover both supply and demand factors

Unit 2: UK unemployment January 2010: Total numbers and the inequity of the burden of unemployment in the UK

The latest unemployment figues

http://news.bbc.co.uk/1/hi/uk/8470450.stm BBC video
http://news.bbc.co.uk/1/hi/business/8469648.stm BBC article
http://www.channel4.com/news/articles/business_money/unemployment+drops+for+first+time+in+18+months/3509152 Ch4 video and analysis. The article has some good hyperlinks in it
http://www.anforme.co.uk/blog/?p=1033 anforme analysis

a) Why has the unemployment total not risen as fast as anticipated?

The personal stories of some of the young unemployed in the UK

http://news.bbc.co.uk/1/hi/uk/8469526.stm

A minister explaining the latest data and how different groups are hit differently

http://news.bbc.co.uk/1/hi/business/8470017.stm

b)To what extent is unemployment a significant economic problem in the UK?

Unit 1 The price of garlic

Thanks to tutor2u for this article from the China Daily on the surging price of garlic

http://www.chinadaily.com.cn/bizchina/2009-11/30/content_9076838.htm

a) What factors that effect demand have changed?
b) What factors that effect supply have changed?
c) Use a S&D diagram to show why the price has risen so sharply

Unit 2: Revision: Inflation

A great summary from the BBC

http://news.bbc.co.uk/1/hi/business/7607930.stm

Unit 1: More proposals to control alcohol consumption

The BBC reports the latest government proposals to control alcohol consumption

http://news.bbc.co.uk/1/hi/uk/8466982.stm

a) What is the market failure the government is trying to tackle?
b) Tq what extent do you believe these new proposals are likely to succeed in reducing the market failure?

Unit 2: Falling consumer confidence

Anforme reprt falling UK consumer confidence

http://www.anforme.co.uk/blog/?p=1010

a) Why might this result in a fall in consumption spending in the UK?
b) Why might it not?

Unit 1: Information failure with alcohol: Is this the answer

A proposal to change the way information on alcohol is given

http://news.bbc.co.uk/1/hi/health/8455783.stm

a) To what extent do you believe this proposal would reduce the market failure associated with alcohol production?

Revision: What are the benefits and drawbacks of regulations for correcting market failure

A 2-sided summary fron economics student

http://rapidrevision.co.uk/economics-student/2010/01/09/all-9-jan-games-home-and-away-are-cancelled/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+EconomicsStudent+%28Economics+Student%29

Unit 1: A minimum price for alcohol; a way of reducing market failure?

Anforme/BBC have these informative articles on the proposal to have a minimum price for alcohol

http://www.anforme.co.uk/blog/?p=992
http://news.bbc.co.uk/1/hi/health/8447587.stm BBC video

a) Discuss whether there should be a minimum price on alcohol to reduce the market failure associate with its excessive consumption

Unit 1: Taxes on alcohol and tobacco

The BBC reports that Greece is to increase its taxes on alcohol and tobacco

http://news.bbc.co.uk/1/hi/business/8449252.stm

a) What type of taxes are these?
b) Draw a S&D diagram to show the effect of increasing the taxes
c) Given the government think that increasing the taxes will increase its revenues, what can you say about demand for these products?
d) Why is this the case?

Unit 1: The cost of the negative externalities associated with excessive alcohol consumption

Some sobering numbers in this BBC clip

http://news.bbc.co.uk/1/hi/health/8436888.stm

Unit 1: The price of copper

A clip from the BBC on an impending strike at Chile's major copper mine

http://news.bbc.co.uk/1/hi/business/8434330.stm

a) Using a S&D diagram, explain the effect of the strike on the world price of copper
b) Given the mine supplies 4% of total world copper, comment on the actual likely effect on the world price of copper

Unit 1: Absence from school: An example of information failure?

This BBC clip shows a wide discrepancy between truancy rates between social classes/income groups

http://news.bbc.co.uk/1/hi/uk/8432128.stm

a) What type of market failure is education normally classed as?
b) What are the 2 conditiond associated with such goods?
c) Does this video indicate information failure on the part of poorer households?
d) Why might this be the case? What else could account for the vastly different absence rates between income groups?

Unit 1: Government action to reduce smoking

The BBC reports a new campaign to encourage people to quit smoking

http://news.bbc.co.uk/1/hi/uk/8430702.stm

a) What is the market failure associated with smoking?
b) To what extent do you believe such a campaign is likely to reduce the market failure associated with smoking?

Unit 1: Government intervention to overcome the market failure asociated with "legal highs"

The BBC reports new laws banning chemical compounds which get you, allegedly, high

http://news.bbc.co.uk/1/hi/uk/8427439.stm

a) How does the free market for these compounds fail; ie why has the government banned these drugs?
b) Comment on how effective this ban will be in reducing the market failure

Unit 2: Import tarifffs on Chinese/Vietnamese shoes

This BBC clip (and article) explains the reasons for import tarifffs on Chinese/Vietnamese shoes

http://news.bbc.co.uk/1/hi/business/8426315.stm video
http://news.bbc.co.uk/1/hi/business/8426432.stm article

a) Why have the tariffs been imposed?
b) Using a diagram, show the effect of the tariff on imported Chinese/Vietnamese shoes
c) Given the tariff is 1.5 Euro on a 50 Euro pair os shoes, comment on the likely effectiveness of the tariff
d) How likely do you think the tariff has been in helping the survival of the European shoe industry?

Unit 2: Why the UK current account deficit persists

A nice summary from economics help

http://www.economicshelp.org/2009/12/why-current-accound-deficit-persists.html

Unit 2: How interest rates effect economic growth

A nice analogy from marketplace; its a little simple, but it will get you thinking

http://marketplace.publicradio.org/display/web/2009/12/15/whiteboard-interest-rates/

a) Apart from less saving, why else does the consumption expand as interest rates fall?
b) Use the AD formula to explain why this will lead to the economy expanding
c) Show the effect of this increase in AD on an AD/AS diagram and comment on the beneficial and detrimental effects this may have on the governments macroeconomic objectives

Unit 2: Recession and government finances

Economics help has this great summary explaining why government finances deteriorate in a recession

http://www.economicshelp.org/blog/economics/recession-and-government-finances/

Unit 2: Unemployment data December 2009

A summary of the latest changes from Ch4 and anforme

http://www.channel4.com/news/articles/business_money/jobless+benefit+claimant+count+down/3464992

http://www.anforme.co.uk/blog/?feed=rss2

Unit 1: Actions to reduce market failure: Volume limits on mp3 players

An interesting article/video from the BBC

http://news.bbc.co.uk/1/hi/uk_politics/8410302.stm

a) What is the apparent market failure?
b) What type of corrective action is the EU proposing?
c) Comment on the likely success of the measure in reducing the market failure
d) Suggest alternative measures the EU could take

Unit 2: Macroeconomic stability

A useful post from tutor2u on macroeconomic stability

http://www.tutor2u.net/blog/index.php/economics/comments/macroeconomic-stability/

Unit 1: Markets in action

A great liile BBC clip showing the workings of a Tanzanian fish market

http://news.bbc.co.uk/1/hi/business/8408895.stm

a) Who supplies fish to the maket
b) Who buys fish in the market?
c) How is the market price determined for any fish?
d) Does this fish market meet the economic definition of a market?

Unit 1: Problems with government actions to reduce tobacco use

This Ch4 article and video show one consequence of the government actions to reduce tobacco consumption

http://www.channel4.com/news/articles/business_money/counterfeit+tobacco+8216kills+4000+a+year8217/3457737

a) Why are the twin government policies of high indirect axation and regulation not reducing the market failure?
b) What further market failures arise from this "free" black market?
c) Suggest actions the government could take to reduce/eliminiate this black market
d) To what extent do you believe such policies would be successful?

Unit 1: Hand held mobile use while driving: A demerit good?

A great clip from the BBC

http://news.bbc.co.uk/1/hi/uk/8407404.stm

a) Define a merit good
b) Does driving while holding a hand held mobile represent an example of a demerit good? Explain your answer
c) Discuss how successful different government stratagies may be in reducing the market failure

Unit 1: The price of christmas trees

The BBC has this clip on the price of christmas trees

http://news.bbc.co.uk/1/hi/uk/8407885.stm

a) Using a S&D diagram, explain what is likely to happen to the price of nordmann fir christmas trees this year

Unit 2: The UK budget deficit

A great graphic from thre guardian

http://www.guardian.co.uk/business/interactive/2009/dec/09/pre-budget-report

Unit 2: Revision: Aggregate demand

An updated powerpoint presentation from tutor2u with good data

http://www.tutor2u.net/economics/presentations/aseconomics/macro/AggregateDemand/player.html

Unit 2: Revision: Demand deficient unemployment

A really good summary of demand deficient unemployment from economics blog

http://www.economicshelp.org/blog/economics/demand-deficient-unemployment/