Mark Austen writes on this essay title: Evaluate the impact that the micro-finance and Fair
Trade movements can have in supporting development in some of the world’s
Bill Morrison examines whether proposals for a minimum price for alcohol will work in the UK. The UK Government is looking to introduce a minimum price per unit for alcoholic drinks. The price muted is 45p which would make a relatively strong can of lager approximately £0.95. Currently a local supermarket is retailing a brand of lager containing 2.1 units per can at the equivalent of £0.75. Under the new legislation, should it come into force, the equivalent box of ten cans would have to be sold at a minimum of £9.46. More of which later. However, why do we need to introduce a minimum price for alcohol?read more...»
This has to be my new favourite story, and it will work particularly well for A2 but for AS too, with elements of micro as well as macro.......
Did you know that China produces 80% of the world's supply of garlic?
Did you know that police in Britain, Ireland, Austria and Poland arrested smugglers for illegally importing at least €3m worth of garlic into the EU last year alone?
Grabs have become an important and controversial issue
in development economics in recent years.
The Fair Trade movement now covers over 650 producer organisations in more than 60 countries
Flooding has been consistently in the news in recent years and examiners have already started to set questions about the costs and benefits of flood defence projects and the public good nature of flood defences. These investment projects invariably invite an evaluative cost-benefit approach. Here is a look at a controversial defence scheme for Venice - one that raises many environmental and economic issues.read more...»
Hard sell and low standard - a new report on the UK cosmetic industry has found deep-rooted problems in the selling of plastic surgery services and highlights class market failure issues of miss-selling and information failures. Many vulnerable consumers complain of being pressured into surgery and the report argues that some providers use cut-price and time-limited deals to sell cosmetic treatments in a similar way to the flogging of double-glazing. Free consultations also seen to cause consumers to feel pressurized into having surgery. The review, led by the medical director of the NHS, Sir Bruce Keogh, was set up because of the safety scare involving breast implants made by the French firm, PIP.
Here are some news videos on this controversial issue - it is a fast growing market but one with huge risks for those with cosmetic needs and wants.read more...»
Given that the increasing concern over obesity (and it's knock-on issues) are fairly prevalent in the news at the moment I thought this article from the Independent may be of interest. The reporter is linking the causes of obesity and debt together - suggesting that our big problem as an animal is that we don't like to think about the future. I thought that it was an interesting link, not least because we probably all know that its true! It further illustrates the problem of imperfect information and our inability to consume products that benefit us in the long-run (e.g. pensions) and over-consume those products that we know are not good for us (e.g. 90% of what you have consumed over the last two weeks).
Happy New Year to all Tutor2u blog readers.
An updated glossary of key terms for the Unit 1 Economics paperread more...»
Apologies for the reference in this Blog’s title to the Human League’s 1981 Christmas number one single – it betrays my age. I’m sure if you come to use this example of competition regulation and contestability you will use something much more contemporary.
The back catalogue of all of the Human League songs of that era, along with many thousand more recent songs (such as those of Take That and Duffy) have just been bought by BMG – one of the world’s largest music publishing groups. BMG have purchased these rights from Universal who have been forced to sell them as part of their own takeover of EMI earlier in 2012.
OK, as it seems the markscheme to go with my recent blog post is in popular demand, I've made it available online.read more...»
The other day I asked my year 13 Economists, which topics they wanted to revise before heading off for the Christmas holidays. Monopsony came up as being something they'd found particularly difficult recently, and so I've created some example exam questions to hopefully improve their understanding of this topic.read more...»
Here is a streamed revision presentation on rent controls in the housing market - designed for AS micro students.read more...»
An A-Z glossary for the Unit 1 Micro courseread more...»
If you are revising for your Unit 1 micro economics paper here are some revision resources to help you on your way:read more...»
|Employment Rate||Employment Rate||Unemployment Rate||Unemployment Rate||Inactivity Rate||Inactivity Rate|
|Mixed or Multiple||64.3%||55.3%||15.7%||15.8%||23.7%||34.3%|
|Chinese & Other||67.0%||51.8%||10.3%||10.6%||25.3%||42.1%|
If you have seen the news stories today showing how workplace discrimination towards ethnic minority women continues to cause the government concern, you may be interested to read the full report. It is available from the Runnymede Trust (it requires registration but it is free) and has been written for the All Party Parliamentary Group on Race and Community. There's a brief summary from the BBC, but the full report gives recommendations that you might like to present to students as possible government intervention strategies and get them to evaluate accordingly. The table above gives you a flavour of the statistics that can be used to discuss inequality of income and wealth.
Youth unemployment is higher than adult unemployment even in normal economic times. But in recessions, especially in countries with rigid labour markets, young people typically stay unemployed for too long. In these circumstances, urgent policy action is needed to avoid long-term unemployment, which destroys talent and creates social problems.
My AS macroeconomics students this week are researching the topical issue of a living wage and the possible macroeconomic effects. The title of the assignment is:
"The introduction of a living wage in Britain to supplement a minimum wage will improve the long term performance of the UK economy" Discuss. (20 marks)
I have put together some news articles and videos on this topic using a Pinterest Board. You can find it by clicking here
BBC Newsnight Report on Living Wages - July 2012 - click here
Those of you who felt angry or let down by the recent proposals for a Pasty Tax, or those that have been imposed on static caravans or toasties (turning the mighty Subway in to a new lobbying organisation) in the UK should spare a thought for the poor French citizens who are potentially about to have a new surcharge placed upon Nutella - that famous hazelnut and chocolate spread.
Unlike the previously mentioned British taxes, which were imposed or proposed to generate revenue or close apparent loopholes, this tax has been put forward for market failure reasons. The tax, of course, is not directly on the brand but upon one of its main ingredients - palm oil. The proposed increase by the French government is nearly 300%. The French are arguing that palm oil is a product with negative externalities - poor for the health of its consumers and a large burden on the health system. There is also a claim that the high production of palm oil in South East Asia has resulted in large-scale deforestation.
Read a short article on the issue at the Huffington Post. The cost of your morning crepe in Brittany may be about to increase!
I'm sure you don't have any problems convincing your students that education is a merit good/service. Every so often, however, it may be difficult for young people in the UK, aspirational and aiming high, to see how their own learning impacts so positively upon the wider society. Although we constantly debate the quality of education in the UK and strive to improve, many young people will take opportunities to access schools and colleges for granted - perhaps arguing about local differences and the cost of higher education but rarely about actual access to basic education. With such relatively high levels of literacy and numeracy amongst British youngsters it is difficult for them to imagine a society where this is not the norm. The Waseela-e-Taleem initiative in Pakistan, however, could prove a useful example of how government intervention into education is about more than just the structure of assessment and paying teachers - but a country's drive to improve access to basic education and shift its economic as well its political and sociological prospects.read more...»
Here are some links connected to the news that the United Kingdom is drawing to a close financial aid to India by the year 2015. The focus will shift from aid to trade. Bilateral trade between the countries in 2010 was worth £10 bn. The countries have set a target of £20 bn by 2015. We also link to a new Inside Story programme from Al Jaxzeerah on the continuing debate over the effectiveness of and future of overseas aid in the world economy.read more...»
Here is a terrific example from Matt Smith of how to use Scoop-It to curate lots of useful examples of market failures and associated interventions. Click here for Matt's Scoop-It on Market Failure
The Danish government has opted to bring to an end a policy intervention designed to curb consumption of high fat foods. The measure - introduced in the autumn of 2011 - added £1.50 per kilo of saturated fats in a product but the experiment will end because of fears over inflated food prices and domestic jobs being put at risk. Food manufacturers complained of increased compliance costs and there was some evidence of a rise in cross-border shopping to avoid the tax. A proposed new tax on sugar has also been cancelled.
Michael Heseltine’s report on economic growth came out last week. It contains 89 recommendations. A mere 57 varieties, to recall the famous Heinz slogan, might have connected it more with popular culture.
Now, tutor2U is an organisation dedicated to supporting and building communities for teachers and lecturers. So, if I post a blog that criticises the report released today by Ofqual which suggests that some teachers over-graded coursework (particularly in English) during this summer's GCSE assessments you might accuse me of bias. To paraphrase Jeremy Clarkson: "You would say that - you drive a Citroen Picasso." However, in my never-ending pursuit of trying to find examples that resonate with young students of economics, is it possible to draw parallels with what happened during the GCSE assessment this year, and the mistakes made within the banking industry that lead to the current recession?read more...»
Corporation tax is very much in the news. Starbucks is merely the latest to be in the spotlight, having paid no corporation tax on more than £1billion of sales in the past three years . This became noteworthy when the Prime Minister himself declared he was unhappy with the level of tax avoidance by big corporations working in Britain.
The plain fact is that if corporation tax did not exist, it would be madness to introduce it. The tax plays to the ignorance not only of the general public, but of almost all politicians. It encourages the fantasy that there is a free lunch, that someone else will pick up the bill for the welfare state and bloated state bureaucracy.read more...»
Here is a streamed revision presentation on aspects of micro finance and fair trade as part of a course on development economics.read more...»
Listen, I'm an old curmudgeon. I don't wear patches on my jacket elbows nor do I wear corduroy trousers but that's because I don't like newfangled things. So when I said to my students today that I think that tattoos may be an example of a demerit good they responded with "well, you would say that, wouldn't you!" read more...»
I have uploaded onto slide share a revised short classroom presentation on the economics of overseas aid as part of our study of economic development.
My A2 students have been researching and writing about the economics of natural resource curses - some of their perspectives are provided below.