Monday, January 29, 2007

Unit 3: Supply side policies: Migration into the UK

This article from Geoff Riley explains the macroeconomic effects of inward migration to the UK

a) Explain the supply side effects and draw an AD/AS diagram to show this change.
b) What is the likely effect of this increased immigration for the governments 4 macroeconomic objectives?

Unit 1: Barriers to entry: India's pharmacutical industry

This clip shows a good example of a barrier to entry
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To what extent do you think the barrier to entry is justified?

Unit 3: The costs of China's economic growth

China may be powering ahead with 10% annual growth, but at what price? This clip shows some of the negative externalities generated

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Saturday, January 27, 2007

Unit 3: Supply side policies

From Geoff Riley's blog comes this example of the Italian government using supply side policies

a) Which type of supply side policies are being suggested?
b) Draw a diagram to show (and then use it to explain) the effects of these policies if they were to be succesful

Friday, January 26, 2007

Unit 2: Negative externalities; lung disease

Read the article below and watch the video clip

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a) Why is this lung damage an example of a negative externality?
b) Suggest 3 possible actions the government could take to correct this market failure
c) Suggest one drawback to each method you suggest

Wednesday, January 24, 2007

Unit 2: Reducing the negative externalities associated with consumption

Geoff Riley has picked up on a campaign by the Independent to reduce waste such as unnecessary packaging

a)Why is this packaging an example of a negative externality?
b) What action(s) could the government take to reduce this negative externality?

Tuesday, January 23, 2007

Unit 2: Market dominance: The supermarkets

Today sees the release of the interim findings of the Competition Commission's investigations into the major supermarkets.

Read the articles and watch the clips and then
a) Identify the possible causes of market dominance identified
b) Given the benefits of such large supermarket chains, evaluate whether the CC should take action against the major supermarkets

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Friday, January 19, 2007

Unit 3: Calculate your own inflation rate!

The ONS now allows you to calculate your personal inflation rate at

Unit 3: Infation: Updated OHP preentation

This is an updated presentation on Inflation from Geoff Riley's blog

Unit 1: The price of corn

This BBC clip explains why the price of corn (and corn derived products) is rising and likely to continue rising

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a) How would you describe the SUPPLY of corn available this year?
b) What has happened to DEMAND and which of the factors that effect demand have changed?
c) Draw a S&D diagram to show this effect
d) What will happen to the market over the next few years?
d) Draw a diagram and explain why the price of bread will increase
e) Draw a diagram and explain the effect of a subsidy on the bio-fuel market

Unit 2: Negative externalities in Romania

This BBC clip shows many negative externalities which this romanian town suffers from

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a) What are the PRIVATE costs and benefits of the industry in the town?
b) What are the EXTERNAL costs and benefits of the industry in the town?
c) How is the government taking action to ensure the situation improves?
d) To what extent do you believe they will be successful?

Unit 2: Climate change negative externalities

This clip shows some of the negative externalities associated with CO2 emmissions

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a) What are these effects?
b) Why would an economist class them as examples of negative externalities/external costs?

Unit 3: Inflation at an 11 year high

This link is to the BBC's Evan Davies discussing the rise in inflation on the clip and an associated BBC article. here is also a more general BBC article

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a) What are the suggested causes of this inflation rise?
b) What are the likely effects suggested to be on the economy?
c) Why might this rise in inflation only be short-term?

Saturday, January 13, 2007

Unit 3: Interest rates and inflation

On the day that UK interest rates rise to 5.25%, Evan Davies of BBC news has this great little summary

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In addition, background information from Geoff Riley's blog showing trends in interest rates at

a) What reasons does he give for interest rates having to rise?
b) Show the effect on an AD/AS diagram
c) What should the positive effects be on the economy (use the diagram!)
d) Not all the effects will be positive. From the clip and the diagram explain the likely negative effects on the economy

Unit 2 Government intervention: OFT investigation into competition issues

The OFT has announced it is to investigate the puchase of 17.9% of ITV by BSkyB

a) What is the potential worry here?
b) Under which of the 6 market failure headings would you classify this?
c) What action can the OFT take if they think there is a case to answer?

Tuesday, January 09, 2007

Sunday, January 07, 2007

Unit 1: Demand for smoothies

This article says sales of smoothies has rocketed.

a) Why in general terms?
b) Why in economic terms?

Wednesday, January 03, 2007

Unit2: The polluter pays...or should he?

This article from the Times via Geoff Riley's blog argues that the polluter pays principle of internalising negative externalities may be unfair

Do you think he has a point?

Monday, January 01, 2007

Unit 1: The housing market

From Geoff Riley comes this powerpoint slide analysis of the housing market in 2006. A lot of detail but very interesting

Unit 1: The oil market

From Geoff Riley comes this powerpoint summary of the oil market in 2006. A lot of detail but very interesting

Unit 1: The price of handbags

This BBC clip says that a handbag is now the most desirable and fastest growing accessory

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a) Why has demand increased?
b) Limited editions sell for considerably more than the "normal" version. Use supply and demand analysis to explain why this can be the case

Unit 1: S&D and market structure: The champagne market

This BBC clip helps explain changes in the champagne market

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a) What has happened to demand?
b) Which of the factors that influence demand account for this?
c) What determines the supply of champagne available today?
d) How would you therefore describe the current supply of champagne?
e) What market structure best represents the champagne market?
f) Which of the criteria for that structure are/are not present; ie to what extent does it reflect that market structure?