http://www.tutor2u.net/blog/index.php/economics/ en tutor2u.net Copyright 2012 2012-02-11T19:04:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-public-goods-news-clips http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-public-goods-news-clips#When:19:04:45Z A selection of recent news clips linked to the concept of public goods Flood defence Lighthouse protection Speed cameras Private prisons Fireworks in Oban AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Government Intervention, Market Failure, Public Goods, 2012-02-11T19:04:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-story-of-adam-sugar-aka-aggregate-supply http://www.tutor2u.net/blog/index.php/economics/comments/the-story-of-adam-sugar-aka-aggregate-supply#When:16:05:29Z This is a great activity my HoD Luke McIlvenna did today with our mutual Lower Sixth Economics Class, which helped them to develop and demonstrate their understanding of aggregate supply. AS Macro, Cycles and Shocks, Aggregate Supply, 2012-02-10T16:05:29+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-chinas-trade-engine-is-spluttering http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-chinas-trade-engine-is-spluttering#When:15:57:56Z New data suggests that the rapid growth of exports from China is once again slowing down. This Reuters business news video (2 minutes) provides some useful background information on the recent downturn in export and import volumes and mentions that rising imports and a shrinking trade surplus may help the Chinese to rebalance their economy and perhaps provide a demand stimulus for exporters from struggling European countries. That said the continued weakness of many EU countries will make it difficult for Chinese exporters to maintain sales and employment. During the global recession of 2008-09 millions of workers in Chinese manufacturing industry lost their jobs prompting many to return to their rural homelands in search of work and income. * Which industries in China are likely to be most affected by a reduction in the growth of exports? AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Balance of Payments, Emerging Economies, China Economy, Cycles and Shocks, Aggregate Demand, Global Economy, International Trade, 2012-02-10T15:57:56+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-working-poor http://www.tutor2u.net/blog/index.php/economics/comments/the-working-poor#When:09:17:38Z Superb Newsnight last night that covers: - the working poor - the market failure of income inequality - the abuse of monopsony power by supermarkets - the government failure of the National Minimum Wage vs the Living Wage - the burden on the tax payer of the working poor Watch it here… 2012-02-10T09:17:38+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/martin-wolf-on-global-shocks http://www.tutor2u.net/blog/index.php/economics/comments/martin-wolf-on-global-shocks#When:09:13:47Z Some notes from the recent BBC analysis programme on the global crisis presented by Martin Wolf in which spoke to a number of 2012-02-10T09:13:47+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/stephanie-flanders-explains-quantitative-easing-in-60-seconds http://www.tutor2u.net/blog/index.php/economics/comments/stephanie-flanders-explains-quantitative-easing-in-60-seconds#When:22:22:21Z This has to be amongst the best 60 seconds of Economics you’ll ever see on television.  The superb Stephanie Flanders takes a leaf out of the RSA playbook to explain the basic theory behind quantitative easing.  Wonderful!! A2 Macro, AS Macro, Financial Markets, Global Economy, Credit Crunch, Government Intervention, Macroeconomic Policies, Monetary Policy, UK Economy, 2012-02-09T22:22:21+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economax-latest-edition-now-available http://www.tutor2u.net/blog/index.php/economics/comments/economax-latest-edition-now-available#When:12:27:31Z The latest edition of econoMAX, our digital magazine for A Level Economics students and teachers, is now available to subscribers on the econoMAX website.  Details of the latest articles below. School / college subscriptions to econoMAX remain at just £50 per year (for the 7th year running!) - your subscription allows whole-school access and distribution of econoMAX articles, including the entire archive dating back to 2004. You can order your subscription to econoMAX here. Teaching of Economics, 2012-02-09T12:27:31+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a-backward-step-on-the-maldives-road-to-democracy http://www.tutor2u.net/blog/index.php/economics/comments/a-backward-step-on-the-maldives-road-to-democracy#When:21:39:34Z In development economics one of the issues that can often be a barrier to a country’s development is political instability, and it looks like the Maldives will be my case study this year. Read on to find out why AS and A2 Specifications, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Development Economics, 2012-02-08T21:39:34+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/competitiveness http://www.tutor2u.net/blog/index.php/economics/comments/competitiveness#When:19:24:22Z A useful entry on the Bond Vigilantes blog on competiveness. 2012-02-08T19:24:22+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-economics-a-perspective-from-the-classroom http://www.tutor2u.net/blog/index.php/economics/comments/teaching-economics-a-perspective-from-the-classroom#When:19:51:33Z I headed to the Bank of England today to a conference organised by Diane Coyle (Enlightenment Economics) and supported by the Bank and the Government Economic Service. All of the sessions were full of interest and I will blog on some of the themes a little later on. For colleagues who would like to see the slides from my short talk please click on the link below 2012-02-07T19:51:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/recommended-reading-for-economics-february-2012 http://www.tutor2u.net/blog/index.php/economics/comments/recommended-reading-for-economics-february-2012#When:22:53:03Z Here is my regularly revised and updated selection of thirty books designed to enhance and enrich your understanding and enjoyment of Economics perhaps as part of an application process for university. I try to ensure that no author appears more than once; some books are due for publication later this spring and summer. Inevitably I have had to leave out many very good books but I stick to my thirty limit! I hope that you enjoy some of them! Teaching of Economics, UCAS and Oxbridge Advice, 2012-02-06T22:53:03+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/china-bans-its-airlines-from-paying-eu-carbon-tax http://www.tutor2u.net/blog/index.php/economics/comments/china-bans-its-airlines-from-paying-eu-carbon-tax#When:05:52:33Z On 1st January this year, the EU introduced an Emissions Trading Scheme (ETS) which levies a charge on flights in EU airspace based on carbon emissions. They estimate that this will add between 2 and 12 euros to flight tickets. Airlines are required to purchase emissions permits, like utilities and heavy industry in the EU, and airlines that do not comply face fines of 100 euros for each tonne of carbon dioxide emitted for which they have not surrendered allowances. In the case of persistent offenders, the EU has the right to ban airlines from its airports. A2 Micro, Emerging Economies, China Economy, Business Economics, Environmental Economics, European Economy, Government Intervention, Indirect Taxes, Market Failure, Externalities, Transport Economics, 2012-02-06T05:52:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-part-time-at-john-lyon-school-harrow http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-part-time-at-john-lyon-school-harrow#When:20:48:36Z Many thanks to Stuart Foster for pointing out this nice part-time opportunity for a tutor2u economics teacher to join the thriving Economics department at John Lyon School. Need to move quickly on this one folks! Teaching of Economics, Teaching Opportunities, 2012-02-05T20:48:36+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-hod-economics-and-business-studies-city-of-london-freemens http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-hod-economics-and-business-studies-city-of-london-freemens#When:20:16:27Z Many thanks to Penny Brooks for letting us have news of this terrific HOD role for Economics/Business Studies in the beautiful Surrey countryside… Teaching of Economics, Teaching Opportunities, 2012-02-05T20:16:27+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-and-business-news-quiz-6-february http://www.tutor2u.net/blog/index.php/economics/comments/economics-and-business-news-quiz-6-february#When:19:37:40Z Here is our weekly ten question quiz on economics and business in the news powered by Zondle. See who can get the highest score on the Space Destroyer game. Just register for free to try the quiz Economics in News Quiz, Teaching of Economics, 2012-02-05T19:37:40+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/daniel-kahneman-on-decision-making http://www.tutor2u.net/blog/index.php/economics/comments/daniel-kahneman-on-decision-making#When:18:49:37Z Here is a quick link to a guest blog on the Economist website provided by Daniel Kahneman - a handy overview of some of his key insights concerning psychological explanations for departures from rationality. Follow this link Behavioural Economics, Teaching of Economics, 2012-02-05T18:49:37+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-video-resources-on-carbon-taxation http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-video-resources-on-carbon-taxation#When:08:49:45Z The crucial issue of how best to tackle climate change and make significant progress towards a low-carbon economy is one that gives students tremendous opportunities to hone their analysis and evaluation skills. A few weeks ago the Australian government was successful in getting through the Senate proposals for a new carbon tax and in this blog we link to some excellent video reports on the background to this decision. AS and A2 Specifications, AQA Economics Unit 3, A2 Micro, Cost Benefit Analysis, Environmental Economics, Government Intervention, Indirect Taxes, Market Failure, Externalities, Information Failure, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, 2012-02-05T08:49:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/russias-monopoly-power-over-gas-supplies http://www.tutor2u.net/blog/index.php/economics/comments/russias-monopoly-power-over-gas-supplies#When:08:47:23Z It has been a bit chilly in the UK for the last few days, but nothing compared to the temperatures as low as -35 which have hit parts of central and eastern Europe. Of course, they are used to far colder winters than us, and have different ways of dealing with the weather, but reliance on gas supplies from Russia for the majority of their heating fuel leaves countries including Bulgaria, Serbia and Bosnia vulnerable to disruption in that supply. AS Micro, Emerging Economies, Russia Economy, Business Economics, Monopoly, Market Failure, Externalities, 2012-02-05T08:47:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-winning-the-war-on-deforestation http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-winning-the-war-on-deforestation#When:08:18:52Z Justin Rowlatt from the BBC has been investigating some of the remarkable progress being made in controlling deforestation in Brazil. The battle focuses on an area known as the “arc of destruction” and the video reports here show the impact of a government making a clear commitment to tackling the issue and backing it up with force and with incentives. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Agriculture, Emerging Economies, Development Economics, Brazil Economy, Cost Benefit Analysis, Environmental Economics, Global Economy, Government Intervention, Regulation, Teaching of Economics, 2012-02-05T08:18:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-richard-wilkinson-on-inequality-and-economic-harm http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-richard-wilkinson-on-inequality-and-economic-harm#When:08:05:36Z I have been using this talk given at TED 2011 by Richard Wilkinson when teaching the topic of poverty and inequality and the risks that a growing chasm between low and high income groups can have for society and economic performance. Students and teachers familiar with the work of Pickett and Wilkinson and their recent book “The Spirit Level” will know well the approach that these authors take. They use published data on inequality and link to wide differences in a range of economic and social outcomes. Their work has been criticised by many on the right, not least because their argument is strong and clear - namely that we need to reduce inequality to tackle some of society’s deepest and most corrosive problems. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 2, A2 Micro, AS Macro, Poverty and Inequality, Standard of Living, Teaching of Economics, 2012-02-05T08:05:36+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-the-facebook-floation http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-the-facebook-floation#When:16:04:24Z Is the business truly worth the astounding estimated market value when Facebook finally completes an Initial Public Offering? Will profit be paramount or will Facebook have other key objectives beyond the bottom line? Can the explosive growth of the business be maintained or will concerns about online privacy act as a major drag on revenues and profits? The selection of news videos on proposals for Facebook provide some interesting background and asks whether Facebook can maintain their success once they become a public business. Ed Conway from Sky reflected on Twitter today that, in the last week, the Bank of England has spent more than $5 billion - more than enough to have bought the initial public offering for Facebook and kept some change into the bargain. 2012-02-03T16:04:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-hod-economics-business-studies-at-cheltenham-college http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-hod-economics-business-studies-at-cheltenham-college#When:11:27:32Z Many thanks to tutor2u’s Amy Chapman for letting us have first news of this teaching opportunity in the lovely spa town of Cheltenham. Teaching of Economics, Teaching Opportunities, 2012-02-03T11:27:32+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-principal-teacher-of-business-education-george-heriots-sch http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-principal-teacher-of-business-education-george-heriots-sch#When:11:23:13Z A wonderful opportunity to teach economics and business at George Heriot’s School in Edinburgh here… Teaching of Economics, Teaching Opportunities, 2012-02-03T11:23:13+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/u.s.a-vs.-china-a-visual-comparison-of-the-worlds-largest-economies http://www.tutor2u.net/blog/index.php/economics/comments/u.s.a-vs.-china-a-visual-comparison-of-the-worlds-largest-economies#When:08:50:57Z Another great infographic below, this time from mint.com, comparing all the important indicators (and the cost of a Big Mac) in an easy to digest graphic. 2012-02-03T08:50:57+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/richard-sennett-on-cooperation http://www.tutor2u.net/blog/index.php/economics/comments/richard-sennett-on-cooperation#When:18:05:26Z How many strangers have you met today? Did you meet your 5-a-day stranger target? In an orchestra or dance-troup made up of a team of egos, how do they eventually perform to a high standard night after night? Here are some notes from a talk given at the RSA tonight by the renowned sociologist Richard Sennett on complex cooperation. I took many ideas from this in terms of considering teaching techniques and the use of language in the classroom. Richard Sennett was talking about some of the themes in his new book “Together: The Rituals, Pleasures, and Politics of Cooperation.” Teaching of Economics, 2012-02-02T18:05:26+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/trucks-are-the-new-way-of-measuring-debt http://www.tutor2u.net/blog/index.php/economics/comments/trucks-are-the-new-way-of-measuring-debt#When:08:57:43Z This is another excellent visualisation to put the scale of Europe’s debt crisis into some sort of perspective. Ben has already blogged about this kind of visualisation in terms of the US Budget here and US debt here. 2012-02-01T08:57:43+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macrovideo-resources-on-human-development-data http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macrovideo-resources-on-human-development-data#When:22:10:37Z Here is a short collection of short video resources on measuring human development with specific reference to the annual human development report and to progress in improving welfare in countries such as Kenya and Brazil AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, Development Economics, Brazil Economy, Economic Growth, Poverty and Inequality, Standard of Living, Teaching of Economics, 2012-01-31T22:10:37+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-growth-and-development-some-indicators http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-growth-and-development-some-indicators#When:01:18:08Z The dictionary definition of ‘development’ is to improve, to progress, or to grow – but development is not just about growth! It is concerned with the improvement of human welfare within an economy, and so it encompasses concepts such as the standard of living, cultural identity and political freedom. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, Development Economics, 2012-01-31T01:18:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-business-at-canford-school http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-business-at-canford-school#When:08:43:20Z Many thanks to Stephen Grant for letting us have details of an opportunity to teach in a thriving Economics & Business department in a quite simply stunning part of the country - Canford School.  Applications need to be in by 1 February 2012, so move quickly! Teaching of Economics, Teaching Opportunities, 2012-01-30T08:43:20+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-signs-of-progress-for-zimbabwe http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-signs-of-progress-for-zimbabwe#When:21:04:02Z Just a few years ago the Zimbabwean economy was in collapse and meltdown and the political system on the point of disintegration under the disastrous handling of the dictator Robert Mugabe. When hyperinflation ruled, a sign once appeared in the toilets of a hotel in Harare, “please do not flush Zimbabwean dollars down the toilets” Three years since the creation of a coalition government, there are some tentative but notable signs of improvement. Inflation has fallen and the use of the US dollar and other regional currencies as legal tender has helped to finance essential imports of basic products. Unemployment remains above 75% of the labour force and there is huge absolute poverty, but the glimmers of hope are there as shown by this recent news report from AlJazeerah English. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, African Economy, Standard of Living, 2012-01-29T21:04:02+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-why-making-stuff-creates-more-jobs-than-healthcare http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-why-making-stuff-creates-more-jobs-than-healthcare#When:20:00:22Z Last week my A2 students were asking what’s with all the fuss about manufacturing - services create jobs too! There’s a lot of talk about how the UK economy needs to focus more on its manufacturing industries as a means to get the economy out of its current predicament. We should be more competitive in what we produce, so that we can sell more overseas, boosting export revenues and creating jobs at the same time. Here’s a timely video from The New York Times, dissecting the iPhone and using it to help us understand the importance of manufacturing as a means of creating jobs. 2012-01-29T20:00:22+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-at-salesian-college http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-at-salesian-college#When:11:25:30Z Many thanks to David Good for alerting us to this Economics teaching vacancy with our friends in the department at Salesian College. Teaching of Economics, Teaching Opportunities, 2012-01-29T11:25:30+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-impact-of-interest-rates http://www.tutor2u.net/blog/index.php/economics/comments/the-impact-of-interest-rates#When:06:31:19Z The US economy may have grown at nearly 3% in the last quarter of 2011, but the Federal Reserve announced last week that they do not expect to raise interest rates until the end of 2014. It has cut its growth forecast for 2012 from 2.5-2.9%, to 2-2.7%, and says that the economy faced “significant downside risks” and that it “expects to maintain a highly accommodative stance for monetary policy” - which I take to mean expansionary. This article about that interest rate decision is useful for economics teachers and students as it highlights a couple of results of that announcement; firstly that the dollar’s exchange rate immediately lost value as the interest rate made the US a less attractive place to keep cash, and secondly that government benefited as the cost of its borrowing in markets for 10 years fell from 2.06% to 1.94%, as traders priced in the lower medium-term interest rate expectations. A2 Macro, AS Macro, Macroeconomic Policies, Monetary Policy, OECD Economies, US Economy, Teaching of Economics, 2012-01-29T06:31:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-gains-from-trade-liberalisation http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-gains-from-trade-liberalisation#When:20:32:48Z One way of expressing the gains from trade in goods and services between countries is to distinguish between the static gains from trade (i.e. improvements in allocative and productive efficiency) and the dynamic gains (the gains in welfare that occur over time from improved product quality, increased choice and a faster pace of innovative behaviour) Some of the broader gains from free trade are outlined below: 2012-01-28T20:32:48+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-and-business-news-quiz-29-january http://www.tutor2u.net/blog/index.php/economics/comments/economics-and-business-news-quiz-29-january#When:20:24:50Z Here is a ten question quiz covering the economics and business news this week - have a go and see who can get the biggest distance using the javelin challenge. To play the full quiz just register for free on the Zondle site! Good luck Economics in News Quiz, Teaching of Economics, Digital Learning, 2012-01-28T20:24:50+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-the-economic-disaster-of-youth-unemployment http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-the-economic-disaster-of-youth-unemployment#When:16:45:27Z The official figures show that there are now more than one million young people counted as unemployed in the UK although the precise scale of the jobless crisis is difficult to measure accurately. Nonetheless, it represents a fundamental economic, social and political problem and one that policy makers must address. In this video report from Al Jazeerah, Lawrence Lee visits Leeds to find a well qualified nineteen year old with good qualifications but who cannot afford to go to university and is finding it tough to win a place in the police force - his main ambition. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Market Failure, Factor Immobility, Poverty and Inequality, UK Economy, Unemployment, 2012-01-28T16:45:27+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/micro-music-video-featuring-the-little-mermaid http://www.tutor2u.net/blog/index.php/economics/comments/micro-music-video-featuring-the-little-mermaid#When:21:44:06Z We like this - in fact we like this a lot - virtually the whole of the micro course in three glorious minutes - enjoy Microeconomics Music Video- Econ World (featuring the Little Mermaid) Market Equilibrium and Price, Teaching of Economics, 2012-01-27T21:44:06+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-teaching-diane-coyle-on-economic-crises http://www.tutor2u.net/blog/index.php/economics/comments/economics-teaching-diane-coyle-on-economic-crises#When:20:32:19Z Diane Coyle gave a superb talk on the state of the economics profession and made a powerful case for curriculum reform in a talk in Germany earlier on this week. The transcript of the talk can be found here and this link takes you to the audio file. Excellent CPD for all of us in the school and college economics teaching community. It ends on a very positive note, not least the surge in student numbers and enthusiasm for our fantastic subject! Teaching of Economics, 2012-01-27T20:32:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-comparative-advantage http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-comparative-advantage#When:20:31:11Z The concept os comparative advantage was possibly first introduced by David Ricardo in 1817. Comparative advantage exists when a country has a ‘margin of superiority’ in production i.e. where the marginal cost of production is lower. • Countries will usually specialise in and export products, which use intensively the factors inputs, which they are most abundantly endowed. • If each country specializes where they have an advantage, then total output can be increased leading to an improvement in allocative efficiency and welfare. The dynamic Asian economies including China have focused their resources in exporting low-cost manufactured goods which take advantage of much lower unit labour costs. In most developed countries, the comparative advantage is shifting towards specialising in producing and exporting high-value and high-technology manufactured goods and high-knowledge services. Many developing countries are looking to do the same including India. 2012-01-27T20:31:11+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-trade-and-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-trade-and-growth#When:15:11:46Z Export demand can be an important driver of growth and development. For many years China has practiced export-led growth with exports accounting for over 40% of GDP. China ran a trade surplus with the rest of the world of around of $200 billion in 2009 – this looks huge, but is fairly modest as a share of GDP. The surplus on the balance of payment current account has diminished from over 10% of GDP in 2007 to less than 6% in each of 2010 and 2011. But China still has a structural trade / BoP surplus. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, China Economy, Cycles and Shocks, Aggregate Demand, Economic Growth, Global Economy, 2012-01-27T15:11:46+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-inflation http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-inflation#When:21:28:28Z The super-charged growth in China has brought about a rise in inflationary pressures and is a good example of the possible conflicts between rapid economic expansion and rising costs and prices. The Chinese government’s inflation target is 4% but inflation is a growing worry for the Chinese government – after some mild deflation in 2009 there has been acceleration in the consumer price index. Agricultural prices have been a key driver of inflation with food costs up 12% in the year to March 2011. For many commentators high inflation in China is a symptom of an over-heating economy with an unsustainable credit and property boom. Another factor behind high inflation is that Wages are rising fast in China – many economists believe that China has hit a point in its development at which demand for labour starts to grow faster than supply, creating labour shortages and pushing up salaries. This is known as a Lewis Turning Point. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, China Economy, Inflation and Deflation, 2012-01-26T21:28:28+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-carbon-emissions-and-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-carbon-emissions-and-growth#When:21:18:23Z Rapid economic growth in China has led to a sharp rise in C02 emissions per head of population and also electric power consumption per capita. Per capita emissions remain well below those of rich advanced nations but China is now committed to improving the sustainability of her economic growth and also in making big advances in researching, testing, developing and investing in clean energy technologies as a source of future exports. According to the 12th Five-year Plan (covering the years 2011-2015) China aims to reduce energy consumption per unit of GDP by 16 percent in the five years to 2015. Carbon dioxide emission will drop by 17 percent if the plans are met. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, China Economy, Environmental Economics, Global Economy, 2012-01-26T21:18:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-per-capita-incomes http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-per-capita-incomes#When:21:07:18Z Per capita incomes in China are rising though still low by advanced-nation levels. China ranks at 119 in terms of average incomes, according to World Bank data (per capita incomes, PPP adjusted). But China is now the biggest car market in the world and there has been a huge rise in the sales of luxury goods to China (these products have a strong income elasticity of demand).  China wants to achieve a re-balancing of her growth – towards domestic consumption and away from exports. Another key aim of the plans for the next 5 years is a surge in market-driven entrepreneurial activity. Plus a continued shift towards higher-value, high-knowledge manufactured products. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Cycles and Shocks, Aggregate Demand, Global Economy, International Trade, Poverty and Inequality, Standard of Living, 2012-01-26T21:07:18+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-changing-economic-structure http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-focus-on-china-changing-economic-structure#When:20:56:59Z China has experienced fast growth in the last twenty years, in the last decade; the increase in Chinese GDP has been seven times the rise in the GDP of Japan. China has a new growth target of 8% pa for the next five years – a downgrading of growth but still way in excess of normal trend growth for any of the advanced economies such as the UK, Germany and the United States. In 2000, China’s accounted for 7.1% of the world’s total GDP (in PPP terms). By 2015 China will have a 19% share of global GDP. This is higher than any of the other BRIC nations AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Emerging Economies, China Economy, Economic Growth, Global Economy, 2012-01-26T20:56:59+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/elasticity-of-demand-on-apples-app-store http://www.tutor2u.net/blog/index.php/economics/comments/elasticity-of-demand-on-apples-app-store#When:20:40:53Z As an Apple aficionado, I regularly visit the macrumors.com site to keep up to date with the latest news about my favourite computer company, so it was interesting to see this article today looking at the effect on revenue for app producers who put their apps ‘on sale’ AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Equilibrium and Price, Elasticity of Demand, 2012-01-26T20:40:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-worlds-cheapest-computer http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-worlds-cheapest-computer#When:20:29:20Z A few weeks ago came the announcement that an Indian business is finally set to launch the World’s cheapest tablet computer. This laptop device will sell for around 18 times less than the price of an iPad in London! How can a laptop be manufactured for less than $US 40? AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Emerging Economies, Indian economy, Business Economics, Economies of Scale, Cycles and Shocks, Aggregate Supply, Economic Growth, Economics of Technology, Global Economy, International Trade, Market Equilibrium and Price, Nature of Supply, 2012-01-26T20:29:20+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-supply-side-issues http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-supply-side-issues#When:19:15:32Z The rapid growth of the India economy has been helped by her economy enjoying a number of supply-side advantages. That said there remain structural supply-side weaknesses that will limit her continued competitiveness and development. This blog looks at the plusses and the minuses. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Indian economy, Cycles and Shocks, Aggregate Supply, Economic Growth, Global Economy, Health Economics, Macroeconomic Policies, Supply-side policies, Teaching of Economics, 2012-01-25T19:15:32+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-can-china-stay-competitive http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-can-china-stay-competitive#When:18:07:29Z This new five minute video report from the Financial Times is excellent on the competitive pressures facing many manufacturing businesses located in southern China. Wages are rising quickly and some manufacturing businesses have already moved either to lower-cost locations within the Chinese economy or to other countries such as Bangladesh and Indonesia. But there are alternative approaches and this video emphasises the decision that some manufacturers have made to stay put but instead to move up the value chain and produce higher-end, higher-priced products for advanced western markets. Businesses are reluctant to move factories and sacrifice the human capital that has been accumulated over in some cases over thirty years. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, China Economy, Business Economics, Management Issues, Economic Growth, Global Economy, Manufacturing Industry, Market Equilibrium and Price, Nature of Supply, 2012-01-25T18:07:29+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/res-annual-essay-competition-for-students-2012 http://www.tutor2u.net/blog/index.php/economics/comments/res-annual-essay-competition-for-students-2012#When:08:54:00Z The 2012 Royal Economic Society Essay Competition for students has been launched. Details below… RES Essay Competition 2012, A2 Macro, A2 Micro, AS Macro, AS Micro, Teaching of Economics, 2012-01-25T08:54:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-can-the-uk-computer-games-industry-grow http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-can-the-uk-computer-games-industry-grow#When:22:17:37Z Britain is one of the world’s biggest exporters of creative products - from live TV shows and music to books, arts, architecture and films the economy has built up an enviable global reputation for excellence and a growing trade surplus to aid our balance of payments. Computer games falls squarely into this category but, according to TIGA - the trade association representing the UK’s games industry - unless there is renewed government support, the future of this sector is at risk. TIGA claims that the British games industry is suffering a significant ‘brain drain’ as talented programmers and artists leave the country to work abroad. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, A2 Micro, AS Micro, Business Economics, Economic Growth, Economics of Technology, GCSE Economics, Government Intervention, Subsidies, Macroeconomic Policies, Supply-side policies, Market Failure, Factor Immobility, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2012-01-24T22:17:37+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-economic-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-focus-on-india-economic-growth#When:17:07:24Z This is the first of a short series of blogs focusing on economic growth and development in the Indian economy, Our first blog provides some background data and study videos on India. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Indian economy, Economic Growth, Global Economy, Standard of Living, 2012-01-24T17:07:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-at-st-olaves-orpington http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-at-st-olaves-orpington#When:22:40:42Z Five superb teaching opportunities in one night here on the Economics blog!  Many thanks to John Greenwood for giving tutor2u first details of this vacancy at St Olave’s. Teaching of Economics, Teaching Opportunities, 2012-01-23T22:40:42+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-at-tiffin-school-pt http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-at-tiffin-school-pt#When:22:21:43Z A part-time vacancy here at a school with a terrific reputation for Economics. Many thanks to tutor2u blogger Rob Earl for letting us have the details. Teaching of Economics, Teaching Opportunities, 2012-01-23T22:21:43+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-hod-economics-business-at-culford-school http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-hod-economics-business-at-culford-school#When:22:16:31Z A HOD vacancy this time - many thanks to our colleagues at Culford School for letting us have first details of this opportunity: Teaching of Economics, Teaching Opportunities, 2012-01-23T22:16:31+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-at-malvern-college http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-at-malvern-college#When:22:12:51Z Another superb vacancy here - ideal for talented economics teachers who support T2U! Teaching of Economics, Teaching Opportunities, 2012-01-23T22:12:51+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-at-kings-college-school-wimbledon http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-at-kings-college-school-wimbledon#When:22:07:22Z These superb economics teaching opportunities keep on coming and here is another cracker - Kings College School in Wimbledon.  Don’t for get to mention that you heard about it here on T2U! Teaching of Economics, Teaching Opportunities, 2012-01-23T22:07:22+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/externalities-in-action-ted-talk http://www.tutor2u.net/blog/index.php/economics/comments/externalities-in-action-ted-talk#When:21:52:43Z I’ve just found this fascinating video from the amazing TED website which is an excellent example to show how ‘the market’ can can be used to solve an external cost AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Environmental Economics, Government Intervention, Government Failure, Market Failure, Externalities, 2012-01-23T21:52:43+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-3d-printing-and-a-manufacturing-revolution http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-3d-printing-and-a-manufacturing-revolution#When:16:56:38Z Additive manufacturing or 3D printing is an emerging technology that takes product design data which provides a geometric representation of a product such as a pen and that data is then sent over to a machine that allows products to be manufactured ‘on the spot’ typically using additive materials in liquid or powder format. This TED talk from Lisa Harouni (co-founder of Digital Forming) looks at examples of intricately designed products made using this new and increasingly affordable manufacturing technology. 3D machines can build structures, build replacement parts and parts within parts - the detailed resolution possible is incredible. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Economies of Scale, Management Issues, Cycles and Shocks, Aggregate Supply, Economic Growth, Economics of Technology, Environmental Economics, Manufacturing Industry, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2012-01-23T16:56:38+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-population-shift-in-china http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-population-shift-in-china#When:16:27:44Z What happened in the UK in 1851, the United States in 1920 and in the World in 2008? These three years mark the estimated year when the size of a given urban population overtook the size of the rural population. And now China has reached this significant landmark. The Chinese Bureau for National Statistics reported recently that in 2011, the proportion of urban population reached 51.27 percent (1.3% higher than in 2010) with the urban population standing at 690.79 million persons, an increase of 21 million persons in a year. China’s rural population stood at 656.56 million persons and for the first time her urban population was 34.23 million persons more than the rural population. Click below for some study / teaching resources: AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, Development Economics, China Economy, Cycles and Shocks, Aggregate Supply, Demography, Economic Growth, Global Economy, Poverty and Inequality, Standard of Living, 2012-01-23T16:27:44+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-exporting-to-the-booming-chinese-economy http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-exporting-to-the-booming-chinese-economy#When:14:47:32Z Before you read this blog please have a look at another blog written by our good friend Mark Johnston from New Zealand. Students of China and the US economy will find it fascinating! There are good grounds for no longer calling China an emerging economy - it has arrived! The multiple significance of the rapidly-growing Chinese economy is plain for all to see but for Britain, only a small percentage of our exports of goods and services go there and this must change if Britain is to fully engage with and benefit from the rising might of the Chinese consumer. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Balance of Payments, Emerging Economies, China Economy, Business Economics, Cycles and Shocks, Aggregate Demand, Economic Growth, Global Economy, International Trade, Macroeconomic Policies, Trade Policies, Manufacturing Industry, UK Economy, 2012-01-23T14:47:32+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/video-resources-on-rising-inequality http://www.tutor2u.net/blog/index.php/economics/comments/video-resources-on-rising-inequality#When:10:24:14Z In this blog entry we will be bringing together some short video resources that might be useful when teaching and studying the economics of inequality. Please do add some more resources using the comment box at the bottom and we can add them to the listing. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 2, A2 Micro, AS Micro, Government Intervention, Market Failure, Poverty and Inequality, Standard of Living, Teaching of Economics, UK Economy, Regional Economics, 2012-01-23T10:24:14+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-illegal-logging-and-the-human-cost http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-illegal-logging-and-the-human-cost#When:07:43:53Z This news report looks at the human cost of an example of the tragedy of the commons - illegal logging in the south Philippines which contributed to tens of deaths from the effects of flash flooding. Ecosystems and economic prospects are damaged at the same time because of failures in environmental management. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Agriculture, Emerging Economies, Development Economics, Environmental Economics, Market Failure, Externalities, Information Failure, Public Goods, Teaching of Economics, 2012-01-23T07:43:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/my-favourite-video-on-gdp http://www.tutor2u.net/blog/index.php/economics/comments/my-favourite-video-on-gdp#When:02:45:55Z Although it is focussed on the U.S economy, this five minute video is a cracker because it covers a number of issues about GDP that students find difficult to grasp, in an engaging way. 2012-01-23T02:45:55+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-money-debt-and-the-new-world-order http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-money-debt-and-the-new-world-order#When:18:40:23Z “All money these days is really a form of debt from somewhere else. We know now in 2012 that our debts cannot be repaid in full.” Philip Coggan from the Economist was on fine form at the LSE last week when he spoke to a packed audience in the new academic building on the subject of his latest book. When trust in the monetary system breaks down we are in a very difficult place and, in a wonderfully broad historical sweep Philip Coggan offered some revealing insights into what a reformed global monetary system might look like in the years ahead. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Emerging Economies, Cycles and Shocks, European Economy, The Euro, Financial Markets, Global Economy, Macroeconomic Policies, Monetary Policy, OECD Economies, Teaching of Economics, 2012-01-22T18:40:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/externalities-in-song http://www.tutor2u.net/blog/index.php/economics/comments/externalities-in-song#When:16:05:24Z I was listening to the radio this morning, and ‘Big Yellow Taxi’ was playing. This led me on to an interesting idea for thinking about externalities. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Failure, Externalities, 2012-01-22T16:05:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/externalities-cartoon http://www.tutor2u.net/blog/index.php/economics/comments/externalities-cartoon#When:15:43:39Z KAL, The Economist’s cartoonist, has produced an excellent cartoon in the latest issue perfect for a discussion of a very topical externalities issue in North America. And one that has also been ‘causing tremors’ in the news over here too! AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Environmental Economics, Government Intervention, Regulation, Market Failure, Externalities, Oil and Gas, 2012-01-22T15:43:39+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/france-and-flexible-employment http://www.tutor2u.net/blog/index.php/economics/comments/france-and-flexible-employment#When:10:03:05Z This article could be useful as an illustration of the EU context in relation to employment in general, and flexible employment in particular. Attracting inward FDI is arguably a significant benefit of UK membership of the EU, and one of the advantages which the UK can offer compared to, say, France is relatively flexible employment laws. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, Business Economics, Competitive Markets, European Economy, Labour Market, Macroeconomic Policies, Supply-side policies, OECD Economies, French Economy, Teaching of Economics, 2012-01-22T10:03:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-russia-joins-the-wto http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-russia-joins-the-wto#When:09:50:52Z I am using Russia’s entry to the World Trade Organisation in my teaching on international trade and development this term. It appear to be a significant moment for the global economy. Russia is the last member of the Group of 20 major economies to join, after China gained membership in 2001. Progress towards membership has been delayed by numerous geo-political issues not least the disputes with neighbouring Georgia. Joining the WTO involves making a commitment to the rules of the international trade system - for Russia as with other new members, this will mean reduced import tariffs, the staged elimination of industrial domestic and export subsidies, and better greater access to foreign companies. Russia will also have to improve adherence to international accounting standards. * Russia’s average bound tariff will be 7.3 percent for manufactured products (compared with 9.5 percent currently) * Farm tariffs will be 10.8 percent (compared with 13.2 percent currently) * Russia commits to zero export subsidies on agricultural products - to end by 2017 * Russia will privatise 100 pct of United Grain Company by 2012 * Russia will introduce duty-free and quota-free provisions for the least developed countries * Russia will eliminate preferential tariffs for carmakers making large investments in Russian-based production by July 1, 2018 * Russia plans to introduce International Accounting Standards How would you use a supply and demand diagram to show the impact of a fall in an import tariff? Russian exports as a share of her GDP has actually been on a declining trend in recent years. Will movements towards trade and foreign investment liberalisation reverse this through trade creation and FDI effects? How can a stronger commitment to becoming an open economy supprot higher living standards over time? What are the risks for Russia of WTO accession? AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Russia Economy, Cycles and Shocks, Economic Growth, European Economy, Global Economy, International Trade, Macroeconomic Policies, Trade Policies, Oil and Gas, OECD Economies, Standard of Living, Teaching of Economics, 2012-01-22T09:50:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-living-below-the-breadline http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-living-below-the-breadline#When:00:12:49Z This article on the appalling depth of workless households in Liverpool is a reminder of the multiple aspects of relative poverty and economic/social exclusion. The causes of unemployment are complex - many are structural - but it is hard to draw much if any optimism from reading this article. By some estimates over one third of households in Liverpool have no one in work and second and third generation unemployment is not uncommon. This is a must article for students to read if they want a better awareness of the human cost of non-employment. Read: Below the breadline on Liverpool’s workless estates AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Labour Market, Macroeconomic Policies, Supply-side policies, Market Failure, Factor Immobility, Poverty and Inequality, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2012-01-20T00:12:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/cross-curricular-themes-in-economics-business-studies http://www.tutor2u.net/blog/index.php/economics/comments/cross-curricular-themes-in-economics-business-studies#When:18:33:52Z Since I started teaching, I have been interested to observe links between the subjects I teach at A Level – Economics and Business Studies – and other subjects students have studied at GCSE or A Level. Students love being asked to share knowledge from their other subjects; it surely helps reinforce learning and helps avoid subject material being compartmentalised. For Oxbridge calibre candidates, it helps them see beyond the syllabus and how our work relates to other subject areas. Cross curricular links are important in earlier Key Stages but I’m not sure we give them nearly as much prominence at A Level. 2012-01-19T18:33:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-hod-economics-at-harrow-school http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-hod-economics-at-harrow-school#When:10:27:23Z Many thanks to our colleagues at Harrow School for alerting us to yet another top opportunity for tutor2u Economics teachers!  Details below.  Don’t forget to mention that you saw this on T2U! Teaching of Economics, Teaching Opportunities, 2012-01-19T10:27:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-business-studies-reeds-school-cobham-surrey http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-business-studies-reeds-school-cobham-surrey#When:10:17:08Z Due to growing numbers in both Economics & Business Studies at Reed’s School, we are looking for an additional teacher. 2012-01-19T10:17:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-hod-economics-business-at-bristol-gs http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-hod-economics-business-at-bristol-gs#When:10:00:52Z What an amazing week for top job opportunities on tutor2u for economics & business teachers. Don’t think we’ve ever had so many colleagues contacting us with superb teaching vacancies.  Why advertise in TES when you can reach over 13,000 Economics & Business teachers direct?  Here is the latest - a real belter - HOD of Econ & Business at Bristol Grammar School. Teaching of Economics, Teaching Opportunities, 2012-01-19T10:00:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/man-saves-life-by-decreasing-money-supply http://www.tutor2u.net/blog/index.php/economics/comments/man-saves-life-by-decreasing-money-supply#When:09:22:33Z This is a story that I will use next time I am teaching about the money supply. What do you do when you are lost on a freezing cold mountain and desperately need some warmth? 2012-01-19T09:22:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-business-studies-at-bloxham-school http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-business-studies-at-bloxham-school#When:07:19:19Z Details below of an economics & business teaching vacancy which is sure to interest many colleagues…. Teaching of Economics, Teaching Opportunities, 2012-01-19T07:19:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-the-economics-of-solar-subsidies http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-the-economics-of-solar-subsidies#When:22:15:53Z This blog provides a link to a new prezi presentation on the economics of solar subsidies - I have been using it as part of my teaching on aspects of environmental economics for Unit 3 AQA but it might also be useful for unit 1 market failure. I have kept theoretical diagrams out of it and plan to build up relevant analytical concepts such as economies of scale, consumer subsidies, economic and social welfare, government failure et al on a normal whiteboard rather than embed them into the Prezi. I hope it is useful. Follow the tags at the bottom of the blog entry for more recent articles on solar subsidies such as feed-in-tariffs and other environmental economic resources. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Cost Benefit Analysis, Environmental Economics, European Economy, Government Intervention, Subsidies, Market Failure, Merit & De-Merit Goods, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Price Mechanism in Action, Teaching of Economics, UK Economy, 2012-01-18T22:15:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/petrol-tax-and-the-downward-sloping-demand-curve http://www.tutor2u.net/blog/index.php/economics/comments/petrol-tax-and-the-downward-sloping-demand-curve#When:22:03:05Z Nearly every country has a tax on petrol, although the amount varies widely. And given that the landed price of petrol is quite similar (see the graph below), it can be seen what effect the tax has on quantity demanded. The results are very much in line what economic theory would predict and there are also clear implications for countries that want to reduce petrol consumption. Government Intervention, Indirect Taxes, Macroeconomic Policies, Fiscal Policy, Market Failure, Externalities, Market Equilibrium and Price, Elasticity of Demand, Price Mechanism in Action, 2012-01-17T22:03:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit1-micro-processed-meat-and-cancer-risk-information-failure http://www.tutor2u.net/blog/index.php/economics/comments/unit1-micro-processed-meat-and-cancer-risk-information-failure#When:21:55:28Z I do my level best to avoid the processed meat aisles in the supermarkets - or at least the lower end of what is on offer (I remember once the 5pence sausage that was a guaranteed 2 per cent pork!). But perhaps excessive consumption of processed meats - much of which finds a way into the traditional Full-English might be doing people much more harm than good? Follow this BBC news report for more details. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Cost Benefit Analysis, GCSE Economics, Health Economics, Market Failure, Information Failure, Merit & De-Merit Goods, Market Equilibrium and Price, Nature of Demand, 2012-01-17T21:55:28+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/inflation-whats-up-whats-down-and-whats-going-to-happen-next http://www.tutor2u.net/blog/index.php/economics/comments/inflation-whats-up-whats-down-and-whats-going-to-happen-next#When:21:04:00Z Just as the Monetary Policy Committee have been saying for a while, inflation is starting to fall back towards their target. The fall to 4.2% in December is rather sharper than expected, and is the biggest monthly fall since April 2009. With further falls almost certain in the next few months as the VAT rise and energy price hikes roll out of the 12-month figures, analysts have commented today that this will leave the opportunity for the MPC to inject further rounds of QE into the economy with less fear of triggering too much demand-pull inflation. A2 Macro, AS Macro, Inflation and Deflation, Macroeconomic Policies, UK Economy, 2012-01-17T21:04:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/indicators-of-financial-stability http://www.tutor2u.net/blog/index.php/economics/comments/indicators-of-financial-stability#When:20:52:45Z This mornng the Bank of England published a letter from the Governor to Andrew Tyrie MP, Chairman of the Treasury Select Committee which is discussing financial stability policy. The letter provides some simple indicators that might be used to help monitor financial stability. A2 Macro, Macroeconomic Policies, UK Economy, 2012-01-17T20:52:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-nano-technology-and-energy-efficiency http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-nano-technology-and-energy-efficiency#When:20:51:09Z Today’s research in the labs can be the harbinger of terrific innovations that change the landscape of consumer product markets in the years ahead. The iPod Nano is a brand but the research behind nano-technology itself might bring about eye-watering improvements in the energy efficiency of devices that are part and parcel of our daily lives. This brief news report from Al Jazeerah looks at innovation in nano technologies and what might be around the corner. Researchers at IBM have created the world’s smallest magnetic digital-storage device, using just 12 atoms to hold a single data bit of information. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Business Economics, Economic Growth, Economics of Technology, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2012-01-17T20:51:09+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a-faustian-bargain http://www.tutor2u.net/blog/index.php/economics/comments/a-faustian-bargain#When:17:16:59Z A hat-tip to Emily Gladstone for pointing me in the direction of this article…useful for both economists and geographers, and illustrates the inter-disciplinary nature of the subjects. 2012-01-17T17:16:59+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-politics-at-dulwich-college http://www.tutor2u.net/blog/index.php/economics/comments/teaching-vacancy-economics-politics-at-dulwich-college#When:10:09:05Z Another fantastic teaching opportunity here to join the team at Dulwich College.  Details below: Teaching of Economics, Teaching Opportunities, 2012-01-17T10:09:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-videos-on-productivity http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-videos-on-productivity#When:08:46:56Z Here is a selection of short video clips that might be useful when teaching the economics of productivity as part of the AS macro course. I often start with the “Fast Hands” video clip (one minute only) because it raises all kinds of issues about division of labour and the quality of life of people who do these tasks. And the short 25 second clip on the world’s fastest hand is guaranteed to make a mark! If you have some other videos on productivity to share please leave a link in our comment slot at the bottom of the blog. The Guardian business web site has this excellent photo stream on life inside the Nissan car factory. Follow them on Twitter AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Economic Growth, Macroeconomic Policies, Supply-side policies, UK Economy, 2012-01-17T08:46:56+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit1-micro-can-a-minimum-wage-create-jobs http://www.tutor2u.net/blog/index.php/economics/comments/unit1-micro-can-a-minimum-wage-create-jobs#When:00:02:34Z Tim Harford has a piece in his regular column in the Financial Times which discusses some of the issues surrounding the minimum wage and whether a legal pay floor can actually create jobs. Here is the link AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Government Intervention, Minimum Prices, Labour Market, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, Unemployment, 2012-01-17T00:02:34+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/cpd-using-twitter-a-session-at-tapton http://www.tutor2u.net/blog/index.php/economics/comments/cpd-using-twitter-a-session-at-tapton#When:17:06:23Z What a superb idea from Julia Wilkins at Tapton School near Sheffield to organise a CPD session for her colleagues on some of the ways in which Twitter can be used as a support for continuing professional development. She tweeted earlier in the day for people to join in and at the appointed hour (4.30pm) a stream of tweets became a torrent as colleagues from the twitterverse contributed ideas, views, links and resources. There were plenty of economics and business teachers providing an input but many from other subjects too and I discovered some great links to free programs that aggregate tweets and to some recent research on how can social media support teacher professional development. Here is a link to follow. If any other colleague is planning on running such a session just flag it up using our regular hashtag #ecbusteach and I am sure you will have a great crew on hand to offer warm support and ideas.  For the latest ecbusteach tweets click here   Teaching of Economics, 2012-01-16T17:06:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/post-easter-2012-revision-workshops-for-a-level-economics http://www.tutor2u.net/blog/index.php/economics/comments/post-easter-2012-revision-workshops-for-a-level-economics#When:10:30:33Z TUESDAY 23 APRIL 2012 We are running a series of repeat revision workshops after Easter 2012 for AS & A2 Economics.  Our venue is the stunning Vue Cinema at Westfield Stratford City - right at the heart of the London 2012 Olympics!  We’ve scheduled four workshops - one each for: AS Microeconomics (Unit 1) AS Macroeconomics (Unit 2) A2 Microeconomics (Unit 3) A2 Macroeconomics (Unit 4) Each workshop will feature the 2011/12 workshop materials specifically designed by tutor2u to support A Level Economics exams this year. To book places on these workshops, please use the following form: https://tutor2u.wufoo.com/forms/posteaster-2012-economics-revision-workshops/ 2012-01-16T10:30:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-revision-workshops-in-2011-12 http://www.tutor2u.net/blog/index.php/economics/comments/economics-revision-workshops-in-2011-12#When:07:35:24Z The dates for our popular Unit 2 & Unit 4 Economics revision workshops in Spring 2012 are now confirmed: Provisional bookings for these revision workshops can now be made using the following form: The dates and locations are shown below: A2 Macro, A2 Micro, AS Macro, AS Micro, Teaching of Economics, 2012-01-16T07:35:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-worlds-largest-solar-plant-opens http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-worlds-largest-solar-plant-opens#When:03:51:50Z This autumn the world’s biggest solar plant power station opened in Spain. Comprising 600,000 parabolic mirrors, the Andasol 3 CSP plant is the size of 70 soccer fields and has 88km of piping. The economies of scale are huge and if solar power is going to work and be viable anywhere it is probably here or in North Africa. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Cost Benefit Analysis, Economic Growth, Economics of Technology, Environmental Economics, Government Intervention, Subsidies, Market Failure, Externalities, Market Equilibrium and Price, Price Mechanism in Action, 2012-01-16T03:51:50+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-look-upwards-to-find-the-next-downturn http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-look-upwards-to-find-the-next-downturn#When:03:34:05Z Correlation does not necessarily imply causation but analysts at Barclays Capital are worried that a surge in skyscraper construction in China and India might be a forward indicator of another burst of financial and economic distress. This report in the Independent covers their findings: “Clusters of building activity usually coincide with periods of easy credit, excessive optimism and rising land prices, which often occur before market corrections.” * India is scheduled to complete 14 new skyscrapers taller than 240 meters (787 feet) over the next five years from the current two * China will increase the number of skyscrapers to 141, from the current 75, by 2017 * London’s Shard is expected to be completed in 2012 – at 1,017ft, it will be the tallest building in Western Europe News video from the BBC: Skyscrapers ‘linked with impending financial crashes’ Guardian news video: Huaxi: the village that towers above China   AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, Business Economics, Economies of Scale, Cycles and Shocks, Aggregate Demand, Capital Investment, Economic Growth, Global Economy, Teaching of Economics, 2012-01-16T03:34:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-at-the-movies-foods-that-make-billions-cereals http://www.tutor2u.net/blog/index.php/economics/comments/economics-at-the-movies-foods-that-make-billions-cereals#When:19:37:56Z Here is a link to a you tube video from the BBC looking at the modern food business and the huge profits to be made from the breakfast cereal industry. Part of the series The Foods that Make Billions (cereals, bottled water and yoghurt) The Foods That Make Billions - Cereals Yoghurt A2 Micro, AS Micro, Business Economics, Economies of Scale, Commodities Markets, Teaching of Economics, Economics at the Movies, 2012-01-15T19:37:56+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/using-infographics-in-the-classroom http://www.tutor2u.net/blog/index.php/economics/comments/using-infographics-in-the-classroom#When:18:17:08Z We frequently use infographics in class to help pupils digest certain tricky concepts and to add some colour and spice to otherwise dry theory.  1/ This one brought some life to the key term discretionary income and how it changes over a lifetime 2/ I’ve been using this one for years to help students get to grips with inflation, the concept of weights, expenditure survey categories, basket of goods etc. 3/ Here’s another my A2 Micro students found when researching innovation, patents and dynamic efficiency . 2012-01-15T18:17:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-france-loses-her-aaa-credit-rating http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-france-loses-her-aaa-credit-rating#When:14:36:24Z It is perhaps a moment of more political than economic significance, but on Friday 13th January 2012 Standard and Poors, a leading credit rating agency announced that France was losing her triple A (AAA) credit rating for sovereign debt. It was part of a larger downgrading of government bonds among a sizeable chunk of Euro Zone countries, the argument being that plans to achieve deficit reduction lacked credibility. France was downgraded, S&P also lowered the long-term ratings on Austria, Malta, Slovakia, and Slovenia, by one notch. The rating levels for Cyprus, Italy, Portugal and Spain were dropped two notches. Here is a brief Channel 4 report on the news and some other links to the story. Only four Euro Zone countries now have an AAA rating. Do you know who they are? AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, European Economy, The Euro, Global Economy, Credit Crunch, Teaching of Economics, UK Economy, 2012-01-15T14:36:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-frontier-markets-the-new-brics http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-frontier-markets-the-new-brics#When:11:30:20Z Emma Wall has a piece in the Telegraph today about Frontier Markets - 25 countries that have stock markets but because of their size, inexperience or political instability do not yet qualify for “emerging market” status. These are higher risk markets for investors but target countries that are gradually becoming more open to trade and investment and which have high grown potential. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, Emerging Economies, Teaching of Economics, 2012-01-15T11:30:20+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-piracy-and-econ-development-in-somalia http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-piracy-and-econ-development-in-somalia#When:10:23:28Z A new year hat tip to Richard Coulthard from Handsworth Grammar School in Birmingham for spotting this BBC news article on the economic impact of piracy in Somalia. Richard comments that this is just what economic theory would predict after large increases in the money supply but from a quirky angle. Read: Somali piracy ‘boosts Puntland economy’ To access the Chatham House report from this which this news report is drawn, please click here AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, African Economy, Development Economics, Teaching of Economics, 2012-01-15T10:23:28+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/beyond-the-bike-the-importance-of-remittances http://www.tutor2u.net/blog/index.php/economics/comments/beyond-the-bike-the-importance-of-remittances#When:09:58:22Z Joseph is 29 years old and makes a living selling vehicle parts in the dusty trucker town of Igawu in Southern Tanzania. When he approached me during my breakfast and flashed 2 fresh $100 bills, I was naturally interested to know where they came from. I offered him a ride north to find out… Beyond the Bike - the Economic Cycle, AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Balance of Payments, Emerging Economies, African Economy, Development Economics, Global Economy, Standard of Living, Teaching of Economics, 2012-01-15T09:58:22+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-time-to-re-boot-the-british-economy http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-time-to-re-boot-the-british-economy#When:21:52:49Z This special blog in the Guardian from Professor Danny Quah of the London School of Economics is superb for Unit 4 students taking their papers in June 2012. in “The UK and the eurozone in the shifting global economy” Professor Quah focuses on many of the underlying difficulties in the UK economy. Digging deeper inside the trade data he finds that, focusing on the UK’s 50 largest trading partners in 2009: 56% of our exports go to the 10 slowest-growing economies in that group. We are missing many opportunities to fully embrace trade and investment with faster-growth countries notably in Africa and Asia. A note for your diaries if you are within reach of London on Monday 23rd January. Martin Wolf from the FT is speaking on The State of the Global Economy in 2012 - an event not to be missed for fans of his writing and insight. He is speaking along with Jean Michel Severino, nspector general at the French Ministry of Finance. Here are the details. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Teaching of Economics, UK Economy, 2012-01-14T21:52:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-at-the-movies-the-joy-of-stats http://www.tutor2u.net/blog/index.php/economics/comments/economics-at-the-movies-the-joy-of-stats#When:19:31:02Z In this blog we provide links to official You Tube clips from the Joy of Stats programme made available by the Open University. Click below to view the selection Teaching of Economics, Economics at the Movies, 2012-01-14T19:31:02+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-revision-workshops-latest-availability http://www.tutor2u.net/blog/index.php/economics/comments/economics-revision-workshops-latest-availability#When:16:55:20Z The lovely tutor2u team often take calls in the office asking how many places are available on the various Economics revision workshops we run.  So we thought we create a widget which shows you the latest seat availability!  The details for the next series of revision workshops is shown below.  It is updated every 5 minutes, so is a pretty up-to-date overview of the remaining places. The total for “seats” shows the difference between the contracted cinema screen capacity for that workshop and the total bookings for both students and teachers.  In many cases we run more than one screen per workshop at each cinema location - so our analysis below adds those together. Please note that for Spring 2012 we’re planning two extra series of workshops (to be confirmed by the end of January): - Post-Easter dates at the stunning Westfield Shopping Centre at the London Olympics site (Stratford) - GCSE Business Studies (AQA Unit 2 and Edexcel Unit 3) at Stratford and Manchester (Salford Quays) 2012-01-14T16:55:20+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/margin-call http://www.tutor2u.net/blog/index.php/economics/comments/margin-call#When:09:19:49Z I’ve been looking forward to seeing this movie, which is finally released here in the UK… 2012-01-14T09:19:49+00:00