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/