Here are some revision quizzes for students to check their understanding of market failureread more...»
Demand is the quantity of a good or service that consumers are willing and able to buy at a given price in a given time periodread more...»
A production possibility frontier (PPF) shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employedread more...»
Revision blog on factor rewards / factor incomes together with a revision quiz to check your understandingread more...»
There are only a finite number of workers, machines, acres of land and reserves of oil and other natural resources on the earth. Because most resources are finite, we cannot produce an unlimited number of different goods and services. Indeed by supplying more for an ever-growing and richer population we are in danger of destroying the natural resources of the planet.read more...»
An economic system is a network of organisations used by a society to resolve the basic problem of what, how much, how and for whom to produce.read more...»
In economics, “there is no such thing as a free lunch!” Even if we are not asked to pay money for something, scarce resources are used up in production and there is an opportunity cost involved.read more...»
Here at tutor2u, we like our acronyms to help students remember key phrases. We're particular fond of any acronym that helps students remember how to structure paragraphs for more complex, evaluative answers that they have to give as part of their examination answers (search this site for WEESTEPS, BEESHATECOD and TWEEP).
Here's another such acronym (hat-tip to Paul Hoang, from Sha Tin College in Hong Kong for showing us this acronym), called 'SLAP the examiner' aimed at evaluation. I guess that this one has the advantage of containing only 4 letters(!).
The acronym stands for:
|L||Long term vs short term implications|
|A||Advantage and disadvantages of policy recommendations|
|P||Priorities of the government or economy.|
Click on this link to download a nice single sheet reminder of the acronym which has been applied to a couple of economics questions.
Our normal laws of demand suggest that as prices increase demand decreases whilst firms attempt to supply more (with the opposite happening as prices decrease). The concept of elasticity extends this understanding by asking the question ‘by how much does demand and supply change?’read more...»
Revision notes from our workshop session 1 covering introductory concepts in Economics. Test yourself with some zondle quizzes embedded below!read more...»
Anti-smoking measures, such as taxes and bans, eventually lead people to eat better and lose weight. That is the central conclusion of research by Luca Savorelli, Francesco Manaresi and Davide Dragone, to be presented at the Royal Economic Society’s 2014 annual conference. The three economists overturn the conventional wisdom that kicking the smoking habit is healthy but results in weight gain.
The introduction of a national minimum wage does not lead to job losses. That is the central finding of research by Peter Dolton and
Michael Stops, to be presented at the Royal Economic Society’s 2014 conference.
Here is an example of reverse capital-labour substitution! A hat tip to Dave Sowden for spotting this one! Read through the article and consider the motivations, opportunities and challenges facing Toyota with this change of approach.
I'm sure that introducing the concept of normative statements is something that most Economics' teachers introduce early in the curriculum to show the dangers of expressing opinions without evidence. It's a tricky balancing act that we have to play - as students start to write longer, evaluative pieces we are keen for them to make reasoned arguments that don't sit on the fence but warn them of the dangers of starting to rant.
I thought that the two reports included on the document here might prove an interesting activity. The file contains two reports into a possible plan from the Welsh Assembly to introduce a ban on the smoking of E-cigarettes in public places (akin to the current ban on smoking of 'traditional' cigarettes) in Wales. The articles are interesting in their own right in explaining the reasons behind such a plan and as an example of Government intervention to solve a possible market failure (although one of the articles clearly identifies E Cigarettes as a solution to a market failure itself).
You could also ask students to read through the two articles and answer the following questions:
- Which of the two articles appears to offer more opinion-based evidence than the other?
- Highlight any words or phrases that indicate a value judgement rather than evidence-based reporting.
- Based upon your own reading and picking up on journalistic styles, have a guess which newspaper each article was published in.
The answer to this final question is in the 'read more...' section of this blog.read more...»
The Premier League season draws to an exciting close. It is by no means clear who will be champions, or who will gain the coveted top five European qualifying spots. There could even be a surprise. If Liverpool win, for the first time since 1995 a team from outside Manchester and North London will be crowned. Even then it was Blackburn. In the previous 21 seasons of the Premier League, all the winners have come from either the North West or London. So a Scouse victory would not alter this.read more...»
How should a public service broadcaster be funded? This excellent article from the BBC looks at the financing of state broadcasters across a range of countries. The BBC is largely funded by the licence fee but as the article makes clear, there are many other options. The funding links back to the nature of broadcasting and the public good characteristics of much of the BBC's output.
Have a read of the article and then test your understanding of public and private goods using our Zondle quiz!read more...»
In 2007 a ban on smoking in enclosed public places was introduced in England - Scotland had introduced a similar measure a year earlier. Fresh evidence published in the medical journal The Lancet finds that enforced bans on smoking are now having a discernible effect on measures of public health.read more...»
It was an industrial dispute that reshaped not just the British coal industry but also many other sectors. In 1984 a national strike broke out pitting Arthur Scargill against Margaret Thatcher. Channel 4 news looks back at the 30th anniversary of the start of a year-long bitter battle whose scars are still apparent.read more...»
In this memorable Newsnight interview, Jeremy Paxman quizzes / interrogates a senior Coca Cola executive about the amount of sugar in Coca Cola drinks. Coca Cola wants to "make sure that the information is available" but if they did would students, cinema goers and millions of other consumers change their preferences?read more...»
Incomplete notes? Unsure of exactly what you need to know? Only a few weeks left before the exam?. Don't worry - you've come to the right place. Tutor2u's Q&A format is the rapid revision route to success.
Tutor2u Q&A's focus on the essentials of each subject covered. A comprehensive glossary summaries key terms and concepts. Test your understanding against 100's of questions designed to cover all aspects of the syllabus.
You can cover the syllabus in rapid time, knowing that you are focusing your effort on the essentials for success. No wonder, tutor2u's Q&As are the best-selling online rapid revision guides available for AS and A2 economics.
Details can be found here
Despite public calls for shareholders to get tough on executive pay, a new study of the UK’s highest paid company directors reveals that shareholders are overwhelmingly inclined to approve the pay packets of top directors, just as they were before the crisisread more...»
These slides are from our January 2014 revision workshops for unit 3 microeconomics. They focus on some of the arguments surrounding the possible introduction of a £7 per hour national minimum wage in the UKread more...»
This blog brings together some of our resources on information failures in markets.
Click below for:
Mo Tanweer's superb revision notes on aspects of information economics
Try our short Zondle revision quiz on information failureread more...»
Boris Johnson, The Mayor of London, has been happy to extend the use of bicycles in London; and the pattern of use has thrown up some interesting points. There were 7.4 million cycle hire trips last year but an estimated 71% of cycling use was by men. Most of these journeys would have been made on foot (31%) or by public transport (47%). Coverage of the study published in the BMJ looked at the health effects is found here.. The notes in the article, provide good examples of the strengths and weaknesses of cost benefit analysis.read more...»
According to a report published by the Parliamentary Public Accounts Committee, the Government are currently underestimating how many students will actually pay back their university loans over the coming decades. Currently, the Government estimates that between 35 and 40% of loans to Higher Education students are never paid back - the Committee believes that the rate on non-repayment is much higher and reflects a weakness in the loan collection method. The primary reason for non-repayment is that student details get lost over a period of time particularly if the graduate moves and works abroad or was an EU citizen who has returned to their own country. The method of using the income tax registration process as a way of locating former students has been criticized for not being an effective method of collecting information. It is estimated that the shortfall could be as much as £80 million by 2042.read more...»
A great case study on the BBC about what has been driving up the price of almonds. Plenty of topics to explore in here: agricultural supply, determinants of demand, derived demand (almond milk), monopoly power, capital intensive production and maybe more.
This will be an excellent case study to use when you're discussing the issues around minimum prices to solve the problem of externalities.read more...»
If you attended the recent tutor2u revision conferences for up-coming micro-economic exams (look out for the macro workshops and combined micro and macro to come in March) you will have seen how fuel-pricing was used as an example of market failure, government intervention strategies and government failure.
Fortunately, the energy market is a gift that keeps giving to us in the economics world (every cloud has a silver lining) as a report out today (see this link for the BBC version of the story) indicates that Parliament is about to intervene to try and stop the energy companies charging more to customers who pay by cash rather than by direct debit (£114 per year, according to the report).read more...»
Here are ten revision questions covering income elasticity and cross price elasticity of demandread more...»
Here are ten multiple choice revision questions covering the topic market demand and market supplyread more...»
Here are ten questions for students wanting to check their understanding on markets in actionread more...»
It was announced yesterday that the Government is planning to abandon its use of expensive software such as Microsoft Office (see article in the Guardian here) partly as a way of reducing costs but also as a means of breaking some of the software company's 'oligopolistic' stranglehold on the market.
As well as offering an example of Government policy to combat market failure, this story gives us a little insight into the issue of contestability in the software industry.read more...»
Here is a short video on the challenges and opportunities facing cocoa producers across the world but especially in sub Saharan Africa which accounts for 70% of global production. Supply is struggling to keep pace with rising world demand and there have been some structural declines in production in several countries.
The FT's Emiko Terazono reports from Ghana on how chocolate manufacturers and traders are striving to boost cocoa supplies, which are coming under pressure from climate change and urbanisation amid growing demand for confectionery in emerging markets. Farmers are being encouraged to develop supplementary incomes and invest in sustainable production methods.read more...»
Here are ten questions for students wanting to check their understanding on government intervention in marketsread more...»
Saudi Arabia’s position as one of the largest players in the global oil market, producing more than a tenth of the world’s output and owning a quarter of the world’s proven reserves, has negative effects on other market participants. Writing in the Economic Journal, Anton Nakov and Galo Nuño document two features that have made the Kingdom different from other oil producers:read more...»
Proposing Government intervention strategies for dealing with externality market failure is a common enough exam question. Many of my students will concentrate on the use of indirect taxation, subsidies, pollution permits or regulation as a method of reducing consumption - often forgetting that the Government can use good, old-fashioned advice as a way of altering purchasing patterns.read more...»
I put this together this morning, to help students understand where they need to revise for upcoming mocks, or for the real event in May. I hope some of you get some use out of it too.read more...»
Do consumers of carbonated soft drinks really know how much sugar is in their regular fix? This five minute Newsnight clip is ideal for showing when teaching aspects of the economics of information failure. Will "getting the information in people's hands" help them to adjust their lifestyles? What are the economic arguments for and against direct intervention in the market for carbonated drinks such as a tax on high sugar content products? What are the alternative options or should we simply let consumers make their own choices?read more...»
Most first year Economics students consider government intervention and government failure as key topics in their introductory microeconomics course. Finding compelling examples of state blunders is not that difficult but understanding how the complexity of the government apparatus lies behind failures of project and policy requires digging deeper.read more...»
The dates and locations for our popular exam technique coaching & revision workshops to prepare AS & A2 Economics students for exams in May & June 2014. The details are listed below together with important information about changes in way that bookings are processed.
Please note that for summer 2014 we are taking confirmed bookings only. Places are allocated on a strictly first-confirmed basis. Once each screen capacity is filled, the event is full and no further bookings can be accepted. Our overall capacity is lower than in previous years and we fully expect each workshop to be fully booked before the Christmas break - so please contact us early to ensure that your students can attend!read more...»
You may have seen news reports today about the Competition Commission announcing that it will continue its investigation into the car insurance market having decided that there are concerns to be addressed. The headlines concentrate on the market failure caused by the current system of non-fault claimants organising their own replacement vehicles (and then charging the at-fault insurers) but I thought it was just as interesting that the CC are looking at the relationship between the insurers and price comparison websites.read more...»
With London’s Victorian sewage system struggling to cope, the 25km Thames Tideway tunnel is intended to boost capacity. But the £4.2bn Super Sewer project has run into considerable and vocal opposition. London's main sewers are over 150 years old and built for a city for 2.5 million people. The population of London is now over 8 million and when heavy rainfall arrives, there are frequent and sizeable discharges of raw sewage into the river Thames. 39 million tonnes of untreated sewage flushes into the Thames in a typical year - that’s enough to fill the Royal Albert Hall 450 times. The sewage discharges puts the UK in breach of the EU Urban Wastewater Treatment Directive.
Critics of Thames Water argue that they have under spent on sewage system maintenance over the years despite recording persistently high profits. Thames Water announced £150 million profits in 2012.
Residents around the 21 proposed construction sites have protested about the externalities connected to the project. Other opponents argue that the money would be better spent on cheaper sustainable urban drainage techniques.
Future generations will benefit but today's water users will pay most of the construction cost with higher water bills imminent for a number of years to come. The Thames Water proposes adding £70 to £80 a year indefinitely to the average bill of Londoners to fund the 16-mile sewer from Acton in west London to Abbey Mills in east London. But a report by Bloomberg New Energy Finance calculates that the tunnel could be built for between £30 and £35 per household per yearread more...»
An eight page practice paper for the structured MC question section of EdExcel Unit 1 Economics - answers in the grid below. Download the practice paper as a pdf: Structured_AS_Micro_MC_Question_Practice.pdfread more...»
A streamed presentation on aspects of the price mechanism with links to three revision quizzesread more...»
Here is an updated revision glossary covering key terms on markets and government interventionread more...»
The cost of renting property in many parts of the UK continues to rise - would rent controls make any difference? Here is an updated Unit 1 economics revision presentation.read more...»
The Tutor2u slideshare channel has just notched up over a million hits and we continue to add new resources each week. Here is the link to the site.
Tim Harford explores the frustrations of using lifts. How much economics can you find in this BBC Newsnight report from November 2013?read more...»
Here is a revision presentation on the economics of producer and consumer subsidies as forms of government intervention in markets. There are a number of up to date examples highlighted together with an evaluation of the benefits and costs of subsidy payments. This is designed as a revision aid for unit 1 students taking their microeconomics papers.read more...»
"The market will define our future" - the words of an organic farmer growing produce in Mexico City's water farms and which - according to this excellent video report from the Financial Times - have the potential to feed huge numbers of people living in the metropolis. Careful husbandry of the canals and surrounding farm land creates the opportunity for farmers to complete between seven and nine harvests a year, an interesting link to the concept of price elasticity of supply. The video reinforces the importance of human capital - detailed, specific knowledge of the growing conditions and calendar of crops that is handed down from one generation to another.read more...»