http://www.tutor2u.net/blog/index.php/economics/ en tutor2u.net Copyright 2012 2012-02-12T07:41:03+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-explained-by-evan http://www.tutor2u.net/blog/index.php/economics/comments/economics-explained-by-evan#When:07:41:03Z Here is a great little article on the Today programme’s website by Evan Davis, looking at the relative merits of Plan A - Austerity - vs Plan B - government spending. He takes the arguments of Jonathan Portes, director of the National Institute of Economic and Social Research, who believes that what’s required at the moment is a short term, temporary fiscal stimulus to boost output and jobs and of Roger Bootle, managing director of Capital Economics, who thinks it would be dangerous for the government to divert from its Plan A of spending cuts. Economic Growth, Government Intervention, International Trade, Macroeconomic Policies, UK Economy, Recession Watch, 2012-02-12T07:41:03+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-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-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/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/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/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/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-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/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/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/newsnight-on-rebalancing-the-uk-economy http://www.tutor2u.net/blog/index.php/economics/comments/newsnight-on-rebalancing-the-uk-economy#When:05:11:19Z Last night’s edition of Newsnight should be required viewing for all AS and A level economists - and it is a huge shame that it is only available on i-player for another 7 days. Introduced on the shock news that even Tesco is vulnerable to the downturn, it included reports from Andrew Verity looking at whether the British economy will ever wean itself off shopping and the City, and an excellent (and all-female!) discussion including Deborah Meaden and the FT’s Gillian Tett. Try challenging your students to watch and listen to this while noting down every aspect of the syllabus which is mentioned or referred to - that will keep them busy! There was also a debate between Employment Minister Chris Grayling and disability campaigner Sue Marsh about the government’s welfare reforms, defeated in the House of Lords the night before, and finally Tokyo correspondent Roland Buerk looking at Japanese economic stagnation of the late 1980s and 90s, to consider whether it was a “lost decade” and what could be learnt from it. A2 Macro, AS Macro, Business Economics, Cycles and Shocks, Aggregate Demand, Economic History, Economic Growth, Global Economy, Government Intervention, Macroeconomic Policies, Manufacturing Industry, OECD Economies, Japan Economy, Poverty and Inequality, Standard of Living, Teaching of Economics, UK Economy, Unemployment, 2012-01-13T05:11:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-competitive-advantage-in-trade-some-videos http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-competitive-advantage-in-trade-some-videos#When:11:43:21Z Here is a selection of short video clips that I use when teaching competitive advantage in markets and when introducing the factors that determine the competitiveness of UK producers in global markets. The focus here is on the UK economy but I will add some more videos to the blog as I work my way through this teaching topic. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Balance of Payments, Emerging Economies, Business Economics, Cycles and Shocks, Aggregate Demand, Economic Growth, Economics of Technology, Global Economy, International Trade, Macroeconomic Policies, Supply-side policies, Teaching of Economics, UK Economy, Regional Economics, 2012-01-12T11:43:21+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-is-facebooks-social-network-dominance-eroding http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-is-facebooks-social-network-dominance-eroding#When:06:14:41Z There is a wealth of interesting market share data available from the latest edition of Experian Hitwise, the regular analysis of changing activity across different social networks. The big winner in the latest figures appears to be You Tube - which according to Experian had its biggest ever month of traffic as 606 million UK Internet visits went to the website in December 2011. YouTube now accounts for 1 in every 4 visits to a social network in the UK and 1 in every 30 visits online. Facebook’s share of visits to social networks has declined from 58% in December 2010 to 51% in December 2011. Does this tally with your own experience? Twitter’s share remains below 3% and Google + doesnt even make the top ten of social networks at the moment. More here from the Daily Telegraph.  Facebook’s share of UK social networking declines   AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Economic Growth, Economics of Technology, 2012-01-12T06:14:41+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-natural-disasters-and-their-economic-impact http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-natural-disasters-and-their-economic-impact#When:23:57:42Z From tsunamis to tornadoes, from droughts to floods, 2011 was a particularly nasty year for natural disasters in many parts of the world. These natural disasters inevitably have demand and supply side effects affecting not just those countries affected but ripple impact across regions and in the broader global economy. The Al Jazeera news video report below provides a clear overview of some of the major natural climatic shocks of 2011 and could easily be used as an introductory resource to discuss what are some of the micro and macroeconomic effects in both the short and medium term. These include: * Effects on the stock of physical capital / infrastructure * Impact on a country’s human capital * Effects on commodity prices, export revenues * Effects on agricultural output, profits, investment, productivity * Ripple effects on manufacturing industries and energy supply/cost * Impact on state tax revenues and the costs of re-building and providing emergency financial support * Effect on the movement of population following extreme climatic events * Natural disasters and changes in the distribution of income / risk of poverty This Economist graphic (published in Jan 2012) looks at the human cost of natural disasters and claims that “the world has succeeded in making natural disasters less deadly.” 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, Agriculture, Emerging Economies, Cycles and Shocks, Aggregate Supply, Economic Growth, Environmental Economics, Global Economy, Government Intervention, Market Equilibrium and Price, Price Volatility, Teaching of Economics, 2012-01-07T23:57:42+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-malfunction-in-in-race-betting-market http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-malfunction-in-in-race-betting-market#When:12:41:27Z Bet Fair has built up an enviable reputation for running an efficient platform for in-race betting online. The platform gives punters the chance both to lay odds on a race and also to take a standard gamble on the result and the technology allows betting before and during the race. But events last week in Ireland have dealt a blow to the standing and reputation of the business as this Channel 4 news video amply demonstrates. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Business Economics, Economic Growth, Economics of Technology, 2012-01-01T12:41:27+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/surveys-statements-and-predictions-for-2012 http://www.tutor2u.net/blog/index.php/economics/comments/surveys-statements-and-predictions-for-2012#When:16:22:45Z As one of many turn-of-the-year round-ups, the BBC has polled 34 ‘leading economists’ in the UK and EU to find out what they expect for the EU in 2012. Unfortunately this report of the results doesn’t give details, but says that25 of the 27 respondents expect recession to return to Europe next year, with many finding it fairly likely that the eurozone will break up, and 20% expecting that at least one member will leave during next year. A2 Macro, AS Macro, Economic Growth, European Economy, International Trade, Macroeconomic Policies, UK Economy, Recession Watch, 2011-12-30T16:22:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-development-issues-the-baby-boom-in-zambia http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-development-issues-the-baby-boom-in-zambia#When:16:33:41Z In this special report from BBC reporter Fergus Walsh, the rapid population growth in the African country of Zambia is examined. Population growth in the country is so quick that it could perpetuate deep poverty in the country despite relatively fast growth in recent years. In Zambia, the UN predicts that the population could triple by 2050, reaching 100 million by the end of the century. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, African Economy, Demography, Economic Growth, Poverty and Inequality, Standard of Living, Teaching of Economics, 2011-12-29T16:33:41+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/resources-on-keynes-and-hayek http://www.tutor2u.net/blog/index.php/economics/comments/resources-on-keynes-and-hayek#When:03:42:45Z In this blog we are putting together a suite of web-based resources on the clash between supporters of Keynes and Hayek, a debate that have gathered momentum in recent times largely in the wake of the global financial crisis. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Economic Growth, Macroeconomic Policies, Keynesian Economics, Teaching of Economics, 2011-12-28T03:42:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-human-capital-and-economic-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-human-capital-and-economic-growth#When:16:06:44Z In A2 macroeconomics the underlying causes of economic growth and development and constraints on both of these are covered in more depth. One of the concepts students might be familiar with is that of human capital. I have always summarised the idea of human capital as being a measure of the overall quality of the human input available to produce goods and services in an economy. The ONS have published a new study on the value of human capital in the UK and they draw on a definition given by the OECD AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Micro, AS Macro, Emerging Economies, Development Economics, Economic Growth, Labour Market, International Trade, Macroeconomic Policies, Supply-side policies, Teaching of Economics, Tuesday Talks, UK Economy, Unemployment, 2011-12-23T16:06:44+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-prospects-for-the-african-economy http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-prospects-for-the-african-economy#When:20:47:49Z In recent times there have been several new reports focusing on growth and development prospects for the African continent. Contained within them is plenty of useful background analysis and comment for students and teachers who spend time looking at developments and issues affecting Africa as part of their economics studies. Follow the links below for more details: AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, African Economy, Development Economics, Commodities Markets, Economic Growth, Global Economy, Teaching of Economics, 2011-12-21T20:47:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-of-deforestation http://www.tutor2u.net/blog/index.php/economics/comments/economics-of-deforestation#When:16:53:58Z The Human Development Report 2011 reported that deforestation is a severe problem. In the last two decades, Latin American and Sub-Saharan Africa have experienced severe forest losses, especially when compared to the rest of the world. For economists the economic and social costs of rapid deforestation represent a telling example of the tragedy of the commons where the pursuit of individual self-interest can risk a permanent destruction of natural resources that undermines the sustainability of communities and societies for current and future generations. The United Nations calculates that deforestation and degradation is responsible for nearly 20 per cent of global greenhouse gas emissions. Will the REDD programme make a difference? REDD stands for Reducing Emissions from Deforestation and Forest Degradation in Developing Countries and is designed to provide financial incentives funded by advanced nations for developing countries to preserve their forests and instead invest in low-carbon paths to sustainable development. The UN estimates financial flows of up to $30bn could come from REDD and related initiatives - the scheme effectively allows rich countries to offset their carbon emissions from domestic industries and consumers by funding clean low-carbon development projects in developing countries. But it is highly controversial and opposed by many organisations such as Friends of the Earth and the World Rainforest Movement. In this blog we have put together some web resources on the issue of deforestation - focusing on causation, consequences and also on some of the policy approaches that might work to bring about behavioural change. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, A2 Micro, AS Micro, Agriculture, Emerging Economies, African Economy, Development Economics, Brazil Economy, Commodities Markets, Cost Benefit Analysis, Economic Growth, Environmental Economics, Global Economy, Government Intervention, Market Failure, Externalities, Public Goods, Teaching of Economics, 2011-12-20T16:53:58+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-mobile-phones-and-african-economic-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-mobile-phones-and-african-economic-growth#When:18:29:12Z The increasing access to and usage of mobile phones is said by many development economists to be having a significant impact on growth and development in many African countries. A 2005 London Business School study reported recently in the Guardian found that for every additional 10 mobile phones per 100 people in a developing country, GDP rises by 0.5%. The chart below tracks mobile phone ownership per 100 of the population for Sub Saharan Africa and also South Africa and Kenya AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, African Economy, Economic Growth, Economics of Technology, 2011-12-18T18:29:12+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/millennium-development-goals-uneven-progress http://www.tutor2u.net/blog/index.php/economics/comments/millennium-development-goals-uneven-progress#When:10:03:24Z This blog brings together some recent videos on progress made towards meeting some of the Millennium Development Goals (MDGs). The Millennium Development Goals include ambitious targets to o Eradicate extreme poverty and hunger o Achieve universal primary education o Promote gender equality and empower women o Reduce child mortality and improve maternal health o Combat HIV/AIDS, malaria and other diseases o Ensure environmental sustainability and develop a global partnership for development 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, Agriculture, Emerging Economies, Development Economics, Demography, Economic Growth, Environmental Economics, Global Economy, Standard of Living, Teaching of Economics, 2011-12-18T10:03:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-patent-wars-a-touchy-subject-for-apple http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-patent-wars-a-touchy-subject-for-apple#When:17:24:57Z This excellent news piece from Ben Cohen at Channel 4 looks at the increasingly aggressive patent war being fought by the manufacturers of the world’s leading mobile phone and tablet devices - the most profitable products in the digital economy. “Where once the giants (Google and Apple) competed on features, they now compete on patents.” The news feature looks in particular at the intellectual property surrounding the slide-screen technology used by millions to unlock a device. Apple claims the IP to this but a video tracked back to twenty years ago suggests that developers were already thinking of something remarkably similar long before the iPhone came into existence. Can the makers of Android defend legal claims from Apple that their IP has been infringed? And who will end up paying for the enormous legal fees and possible extra licencing costs?   AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Monopoly, Oligopoly, Economic Growth, Economics of Technology, European Economy, Single Market, Government Intervention, Regulation, Market Equilibrium and Price, Nature of Demand, Teaching of Economics, 2011-12-16T17:24:57+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/great-economics-blog-to-follow-danny-quah http://www.tutor2u.net/blog/index.php/economics/comments/great-economics-blog-to-follow-danny-quah#When:09:03:57Z Professor Danny Quah from the London School of Economics has a superb blog and I recommend it heartily to economics teachers and students. It is particularly excellent for understanding developments in the global economy, not least Danny’s work in plotting the changing centre of gravity in the world economy over the long term. Here is the link to use. The LSE Public Events team has just released their programme for the New Year, there are plenty of really interesting talks coming up and you can access the Spring 2012 Events Programme by clicking on this link   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, Economic Growth, Global Economy, OECD Economies, Teaching of Economics, UK Economy, 2011-12-15T09:03:57+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-india-the-road-ahead http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-india-the-road-ahead#When:13:13:11Z Here is a short 12 minute video on prospects for the India economy produced by economists at the International Monetary Fund. It covers some of the key current issues including high inflation in a supply-constrained economy, partial progress in reducing poverty and the impact that poor infrastructure has as a constraint on further growth and development. Click on the video link below AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Indian economy, Cycles and Shocks, Aggregate Supply, Demography, Economic Growth, Global Economy, IMF, Teaching of Economics, 2011-12-07T13:13:11+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-hope-bikes-a-commitment-to-excellence http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-hope-bikes-a-commitment-to-excellence#When:17:44:51Z Are you into your cycling? The huge expansion of interest in cycling in the UK from road racing through to BMX and mountain-biking has gone hand in hand with the fantastic success of British cyclists on the international stage. 2012 promises to be another strong year for the industry despite difficult economic conditions. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Management Issues, Economic Growth, Economics of Technology, International Trade, Manufacturing Industry, Teaching of Economics, Transport Economics, UK Economy, Regional Economics, 2011-11-30T17:44:51+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-brand-loyalty-in-mobile-phones http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-brand-loyalty-in-mobile-phones#When:09:33:20Z Brand loyalty is hugely important in all kinds of industries and markets. The costs of acquiring a new customer vastly outweigh the expense of selling more to existing buyers and most of the mobile phone suppliers in this oligopolistic industry focus an enormous effort in building brand identity and brand loyalty to reduce the rate of customer churn (people who switch brands). AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Oligopoly, Economic Growth, Economics of Technology, Market Equilibrium and Price, Nature of Demand, Teaching of Economics, 2011-11-27T09:33:20+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-patent-wars-might-stifle-innovation http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-patent-wars-might-stifle-innovation#When:09:22:56Z In this six minute piece, Rory Cellan-Jones from the BBC looks at the surge in legal actions concerning alleged patent infringements. Intellectual property lawyers are making huge sums from the trend but small and medium sized enterprises especially in technology spaces might have less scope, freedom and resources to innovate as a result. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Oligopoly, Economic Growth, Economics of Technology, 2011-11-23T09:22:56+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/jim-oneill-the-growth-map-economic-opportunity-in-the-brics-and-beyond http://www.tutor2u.net/blog/index.php/economics/comments/jim-oneill-the-growth-map-economic-opportunity-in-the-brics-and-beyond#When:20:15:33Z Jim O’Neill the Chairman of Goldman Sachs Asset Management has a new book published early next week and it looks like being a tremendous resource for teachers and students wanting to deepen their understanding of crucial changes in the global economy. The Telegraph has been publishing extracts from the book - to have a view please click on the links below: AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Brazil Economy, China Economy, Indian economy, Russia Economy, Cycles and Shocks, Economic Growth, Global Economy, International Trade, OECD Economies, Teaching of Economics, UK Economy, 2011-11-22T20:15:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-china-and-india-notes-from-martin-wolf http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-china-and-india-notes-from-martin-wolf#When:10:05:08Z Pete Davies from Greenhead College attended a superb talk by Martin Wolf CBE (Financial Times) at Leeds Business School last week. The focus was on the Great Convergence between developed and emerging economies, and Peter kindly took some excellent notes from the talk which will be of great use to teachers and students covering this key globalisation / development topics. They can be downloaded below as a word file - many thanks to Peter for making them available through the blog! Martin_Wolf_Lecture_Oct_2011.docx AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Balance of Payments, Emerging Economies, Development Economics, China Economy, Indian economy, Cycles and Shocks, Economic Growth, Global Economy, IMF, International Trade, OECD Economies, Standard of Living, Teaching of Economics, UK Economy, 2011-11-06T10:05:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-richard-florida-on-the-great-reset http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-richard-florida-on-the-great-reset#When:10:16:03Z What changes are produced by great economic upheavals? The financial and economic crisis prompts a rethinking of the assumptions about how businesses succeed and how economies operate. In a recent edition of the Global Business programme on BBC radio 4, Peter Day met Richard Florida, a renowned economic geographer who has written a new book The Great Reset. Here are some of the notes I jotted down from the programme: AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Business Economics, Economic History, Economic Growth, Economics of Technology, Environmental Economics, Manufacturing Industry, Teaching of Economics, UK Economy, Regional Economics, 2011-11-05T10:16:03+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-time-of-use-pricing-for-energy http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-time-of-use-pricing-for-energy#When:23:28:48Z When is electricity demand highest in the UK? The answer comes at the end of the blog! The UK government is committed to the rolling out of smart energy meters between now and the end of 2020. Millions of homes will have smart meters installed which track how much electricity you use and when you use it - the installation cost is approximately £350 per unit although this may come down with the utilisation of economies of scale. Smart meters will give consumers and the utility businesses minute-by-minute information about energy consumption and this could fast-forward the launch of time of use pricing tariffs for us all in the years ahead. It will mark a move away from flat-rate tariffs towards fully-fledged peak and off-peak pricing. At the moment around one in ten households are on Economy 7 tariffs which offers lower prices for electricity used during off-peaking times in the late evenings and early mornings. Economy 7 seems to have been around for as long as CEEFAX and if you understand that you are giving your age away! AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Cost Benefit Analysis, Economic Growth, Economics of Technology, Environmental Economics, Market Equilibrium and Price, Nature of Demand, Teaching of Economics, 2011-11-02T23:28:48+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-world-economy-how-did-we-get-here-and-where-are-we-going http://www.tutor2u.net/blog/index.php/economics/comments/the-world-economy-how-did-we-get-here-and-where-are-we-going#When:09:02:12Z On Wednesday 26 October 2011, I attended a fascinating lecture at the LSE by Nemat Shafik, Deputy Managing Director of the IMF. She started with outlining the role of the IMF as a cooperative of 188 countries (the newest member being South Sudan), who poor their resources and finances in order to support each in times of difficulty.  She then went on to talk about the current slowdown, its causes, the risks involved if the slowdown was to continue and the potential policies needed to aid a recovery. AS and A2 Specifications, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Economic Growth, Global Economy, IMF, Macroeconomic Policies, OECD Economies, 2011-11-02T09:02:12+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-economies-of-scale-and-the-kinect http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-economies-of-scale-and-the-kinect#When:05:34:16Z Here is an example of economies of scale in production. Microsoft’s motion-sensing camera the Kinect was one of the fastest-selling consumer electronics device in history when it was launched in November 2010. In a report on the FT’s technology blog, Dennis Durkin, Xbox chief financial officer, is quoted as saying that economies of scale have been the major factor driving down the unit price of Kinect from $30,000-$40,000 when it was under development two years ago to $150 now. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Economies of Scale, Economic Growth, Economics of Technology, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2011-11-01T05:34:16+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-google-maps-to-charge-for-usage http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-google-maps-to-charge-for-usage#When:15:55:09Z Google has announced that heavy users of the Google maps application will now be charged - it will be interesting to see if this move from a zero price targeted at websites that make extensive use of the Google Maps coding will affect demand for the program. 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 Demand, Teaching of Economics, 2011-10-31T15:55:09+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-economists-attack-food-price-speculation http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-economists-attack-food-price-speculation#When:08:36:54Z Food prices are now rising by up to 10% a year in Britain and Europe and a new forecast from the United Nations predicts that prices can be expected to rise at least 40% in the next decade. Whilst conventional theories of changes in supply and demand conditions can be used to explain some of the increase in food prices, many economists are concerned that speculation by hedge funds and other investors has amplified the natural volatility of prices driving food prices away from fair values and contributing to a huge rise in global food poverty and hunger. These days, cocoa, fruit juices, sugar, staples, meat and coffee are all now global commodities, along with oil, gold and metals. Is this the moment to legislate to limit the scope for speculative activity in food markets? The video below provides an excellent introduction to speculation in food markets - it features Neil Kellard, Professor in Finance at the University of Essex AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, OCR A2 Economics Unit F585, AS Micro, Agriculture, Balance of Payments, Emerging Economies, Development Economics, Commodities Markets, Economic Growth, Financial Markets, Government Intervention, Buffer Stocks, Poverty and Inequality, Market Equilibrium and Price, Price Mechanism in Action, Price Volatility, Teaching of Economics, 2011-10-24T08:36:54+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-drop-box-and-freemium http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-drop-box-and-freemium#When:19:19:26Z For many students and teachers DropBox is the cloud file synching application of choice, I share study files with colleagues and pupils as my courses develop and evolve during the year. The statis revealing the expansion of the business are impressive. The You Tube video (below) is from Forbes as they interview founder Drew Houston and here is a link to the full Forbes article. Drop Box growth statistics are impressive. DropBox is zooming in on 50-million-users, a forecast revenue of $240 million in 2011 even with 96% of users paying nothing - a classic example of the freemium model in action! AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Economic Growth, Economics of Technology, Teaching of Economics, 2011-10-18T19:19:26+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-3 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-3#When:04:19:57Z In the third extract of the winning essay for the 2011 Keynes Prize in Economics, Ross van der Watt asks “What should be done to revitalise cities in decline?” AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Development Economics, Economic Growth, Environmental Economics, 2011-10-15T04:19:57+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/can-the-invisible-hand-solve-africas-poverty http://www.tutor2u.net/blog/index.php/economics/comments/can-the-invisible-hand-solve-africas-poverty#When:21:51:10Z At last night’s Senior Economics Society at Oundle we had a riveting talk by Hywel Rees-Jones, Managing Director of CDC, which covered so many areas of the issues of development economics. The talk was entitled “Can the invisible hand solve poverty in Africa?” Whilst conceding that some of the statements were broad generalisations across a variegated continent, Hywel discussed some of the key issues facing Africa. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, African Economy, Development Economics, China Economy, Commodities Markets, Economic Growth, Environmental Economics, European Economy, Global Economy, Government Intervention, International Trade, Manufacturing Industry, OECD Economies, Teaching of Economics, 2011-10-13T21:51:10+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-2 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-2#When:21:16:45Z In this second extract from his prize-winning essay, Ross van der Watt focuses on the question “Should Rapid Urbanisation in Developing Countries be encouraged or resisted?” AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Development Economics, Economic Growth, Environmental Economics, Global Economy, Teaching of Economics, 2011-10-13T21:16:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-1 http://www.tutor2u.net/blog/index.php/economics/comments/keynes-prize-the-economics-of-cities-1#When:21:12:31Z In this first extract of the winning essay in the 2011 Keynes Prize for Economics, Ross van der Watt asks “How important are Cities to Economic Growth?” Emerging Economies, Development Economics, Economic Growth, Environmental Economics, Global Economy, Teaching of Economics, 2011-10-12T21:12:31+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-uk-suffers-a-weak-recovery http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-uk-suffers-a-weak-recovery#When:08:34:36Z AS macro students will be studying the economic cycle and following the struggles of many countries to sustain a recovery in demand, output and jobs after the 2008-09 recession. The well respected independent forecasting body, the National Institute (NIESR) has produced new data suggesting that the UK recovery is on course to be “the weakest of any since the end of the First World War”, with gross domestic product still 4pc below its pre-recession peak. The risks of a second recession (a double dip) look to be rising week by week especially when one looks at the consumer and business confidence data. Here is a link to the NIESR report and also to BBC news coverage of their findings. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Aggregate Demand, Economic Growth, Macroeconomic Policies, Teaching of Economics, UK Economy, Recession Watch, 2011-10-12T08:34:36+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-amazon-launches-the-kindle-fire http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-amazon-launches-the-kindle-fire#When:06:01:45Z In the increasingly competitive and contestable market for tablet devices, leading online retailer Amazon has launched the Kindle Fire.   AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Economies of Scale, Oligopoly, Economic Growth, Economics of Technology, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Teaching of Economics, 2011-10-01T06:01:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-science-cities-and-external-economies-of-scale http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-science-cities-and-external-economies-of-scale#When:12:14:59Z This feature article from the BBC web site is essentially about the vital importance of high-knowledge industries in sustaining competitiveness and growth in a globalising world. Europe lags behind many emerging countries in terms of the resources devoted to science and technology, research and development and creative industries in particular. But the article makes reference to the expansion of science cities - knowledge clusters that bring together higher education expertise and entrepreneurial zeal - their number continues to grow from California and Boston in the USA, Cambridge in the UK, Education City in Qatar, Science City in Zurich and Digital Media City in Seoul. All good examples to use of the commercial leverage from external economies of scale in high-tech industries. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Emerging Economies, Business Economics, Economies of Scale, Economic Growth, Economics of Technology, European Economy, Single Market, Global Economy, International Trade, Macroeconomic Policies, Supply-side policies, Manufacturing Industry, Teaching of Economics, UK Economy, 2011-09-29T12:14:59+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-you-sue-i-sue-patent-wars-explode http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-you-sue-i-sue-patent-wars-explode#When:20:34:00Z The scale of the legal battles between different businesses in the mobile industry might just be unprecedented. This nifty graphic from the iDownload blog provides an overview of the complex web of litigation - a lawyer’s dream! But if Samsung succeed in delaying the release of the iPhone5 then what might become of their reputation with millions of consumers worldwide? An Indian Summer hat tip to Graham Carter for flagging up this visual. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Monopoly, Oligopoly, Economic Growth, Economics of Technology, Teaching of Economics, 2011-09-25T20:34:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-bangladesh-and-comparative-advantage-in-textiles http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-bangladesh-and-comparative-advantage-in-textiles#When:19:51:00Z Many thanks to Pete Davies from Greenhead College, Huddersfield for pointing out a stunningly good article on the shift of manufacturing for garments towards the low-labour cost Bangladeshi economy. Read: Bangladeshi apparel gains from China’s rising costs - there is so much in this article about the relative cost differences and the importance of trade in garments for the Bangladesh economy, especially now that the European Union (EU) has allowed duty-free access to Bangladeshi clothes into the single market since the start of 2011. 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, Economic Growth, Global Economy, International Trade, Standard of Living, Teaching of Economics, 2011-09-19T19:51:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-economic-growth-and-inequality http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-economic-growth-and-inequality#When:20:48:01Z Not all of the benefits of growth are evenly distributed. A rise in real GDP can often be accompanied by widening income and wealth inequality in society that is reflected in an increase in relative poverty. “Although economic growth in China has created vast wealth for some, it has amplified the disparities between rich and poor. Although the average wealth per Chinese citizen was $17,126 - almost double that of other high growth economies such as India - median wealth was just $6,327. In 2010, China’s Gini-coefficient stood at 0.47. Inequality in China has now surpassed that in the United States.” Source: Dr Damian Tobin School of Oriental and African Studies 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, Development Economics, China Economy, Economic Growth, Global Economy, Macroeconomic Policies, Poverty and Inequality, 2011-09-14T20:48:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-human-development-index-hdi http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-human-development-index-hdi#When:20:41:00Z The Human Development Index (HDI) forms part of the annual human development report and is a composite measure of economic and social welfare that has three main components. At its most basic it focuses on longevity, basic education and minimal income and progress made by countries in improving these three outcomes. The inclusion of education and health indicators is a sign of successful government policies in providing access to important merit goods such as health care, sanitation and education. 1. Knowledge: First an educational component made up of two statistics – mean years of schooling and expected years of schooling 2. Long and healthy life: Second a life expectancy component is calculated using a minimum value for life expectancy of 25 years and maximum value of 85 years 3. A decent standard of living: The final element is gross national income (GNI) per capita adjusted to purchasing power parity standard (PPP) “Human development is the expansion of people’s freedom to live long, healthy and creative lives; to advance other goals they have reason to value; and to engage actively in shaping development equitably and sustainably on a shared planet. People are both the beneficiaries and the drivers of human development, as individuals and in groups” Source: HDR Report, November 2010 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, Development Economics, Economic Growth, European Economy, Global Economy, International Trade, 2011-09-13T20:41:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-progress-towards-millennium-goals http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-progress-towards-millennium-goals#When:17:14:00Z The Centre for Global Development has just released fresh research on the extent of progress towards the Millennium Goals. This is the link to a set of inter-active charts and data available to download in excel format. An ideal site for student-centred research on this key topic. 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, Economic Growth, Global Economy, Teaching of Economics, 2011-09-12T17:14:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-inequality-and-development http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-inequality-and-development#When:17:10:00Z The September 2011 edition of the IMF’s Finance & Development magazine focuses on developments in inequality and the impact of the widening gap between rich and poor on development programmes and growth. The headline article is by Branko Milanovic who looks at changes in income inequality over the last twenty-five years. A rich resource for students and teachers wanting updates on this key aspect of globalisation. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Emerging Economies, Development Economics, Economic Growth, Global Economy, Poverty and Inequality, Teaching of Economics, 2011-09-12T17:10:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/slicing-up-the-apple-globalisation-graphic1 http://www.tutor2u.net/blog/index.php/economics/comments/slicing-up-the-apple-globalisation-graphic1#When:07:16:01Z This lovely graphic from the Economist gives a visual picture of some of the forces of globalisation at play in the manufacture of the iPhone. I was particularly surprised by the contribution to components by Samsung, which is also one of Apple’s main competitors in the Smart Phone market. There are also some useful stats underneath the graphic which would be great in a lesson where concentration ratios and market structures are being introduced. A2 Macro, A2 Micro, Business Economics, Oligopoly, Economic Growth, Economics of Technology, Global Economy, 2011-08-22T07:16:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/slicing-up-the-apple-globalisation-graphic http://www.tutor2u.net/blog/index.php/economics/comments/slicing-up-the-apple-globalisation-graphic#When:07:16:00Z This lovely graphic from the Economist gives a visual picture of some of the forces of globalisation at play in the manufacture of the iPhone. I was particularly surprised by the contribution to components by Samsung, which is also one of Apple’s main competitors in the Smart Phone market. There are also some useful stats underneath the graphic which would be great in a lesson where concentration ratios and market structures are being introduced. A2 Macro, A2 Micro, Business Economics, Oligopoly, Economic Growth, Economics of Technology, Global Economy, 2011-08-22T07:16:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-gdp-per-person-since-the-credit-crunch http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-gdp-per-person-since-the-credit-crunch#When:06:46:00Z The Economist has a tremendous charts available here showing what has happened to GDP per person employed since the Global Financial Crisis hit in 2007. The range of outcomes is huge with countries such as China, India, Indonesia and Poland achieving solid gains (indeed Poland was one of the few EU countries to avoid recession) whilst the PIIGS including Greece, Ireland and Italy have suffered badly. The UK is not immune too as the chart makes clear. The chart would make for a terrific discussion among students starting their Unit 4 course and could also be used as a teaching resource for students new to macroeconomics - not least in prompting discussion of the meaning and measurement of GDP and the concept of the economic cycle. 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, Cycles and Shocks, Economic Growth, Global Economy, OECD Economies, Teaching of Economics, UK Economy, 2011-08-19T06:46:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-motorsport-valley-and-external-economies-of-scale http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-motorsport-valley-and-external-economies-of-scale#When:08:52:00Z The occasion of the 2011 British Grand Prix at Silverstone in Northamptonshire is an opportunity to showcase the extraordinary growth and success of the motorsport industry in the UK. It is a classic example of the benefits that can flow from external economies of scale, and also of the way in which genuine competitive advantage in the global economy can be built and nurtured. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Economies of Scale, Economic Growth, Economics of Technology, Manufacturing Industry, Transport Economics, 2011-07-12T08:52:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-new-business-models-in-a-digital-age http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-new-business-models-in-a-digital-age#When:19:24:00Z Here is a link is to an article from the Wall Street Journal Blog - written by Don Tapscott, author of Wikinomics. He provides five examples of industries facing structural challenges in the digital age and how a revamped business model based around collaboaration might pay dividends - he is an interesting guy to follow for potential E&M and Economics students AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Management Issues, Economic Growth, Economics of Technology, Teaching of Economics, 2011-07-11T19:24:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/china-the-end-of-cheap-labour http://www.tutor2u.net/blog/index.php/economics/comments/china-the-end-of-cheap-labour#When:06:29:00Z China’s unit labour cost advantage in high-volume manufacturing is being eroded at a faster rate according to this feature piece from Time Magazine. “The average manufacturing wage in China is still only about $3.10 an hour, (compared with $22.30 in the U.S.), though in the eastern part of the country, it’s up to 50% more than that.”  There are strong economic, social and political pressures for wages to rise and as they do this will have hugely significant demand and supply-side effects on their economy, for example accelerating the pressure for China to invest more in new technologies and product and process innovation to move higher up the value chain and become less dependent on supplying cheaper products to the rest of the world. My recent China Economics Revision Note focuses on some of these issues. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Economic Growth, Global Economy, Labour Market, Standard of Living, Teaching of Economics, 2011-06-28T06:29:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/development-economics-emerging-africa http://www.tutor2u.net/blog/index.php/economics/comments/development-economics-emerging-africa#When:06:22:00Z Emerging Africa: This new briefing document from the Center for Global Development looks at how 17 African economies are leading the way towards stronger and more durable development. A hat tip to John Wilson from New Zealand for flagging up the resource via his Twitter account. John can be found here: @mixedeconomies AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Development Economics, Economic Growth, Global Economy, Teaching of Economics, 2011-06-28T06:22:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-future-of-food-retailing-tesco-in-south-korea http://www.tutor2u.net/blog/index.php/economics/comments/the-future-of-food-retailing-tesco-in-south-korea#When:19:09:00Z Here is a fascinating short video on the techniques and tactics adopted by Tesco as they sought to become South Korea’s number one offline and online food retail store. Business Economics, Oligopoly, Economic Growth, Economics of Technology, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2011-06-27T19:09:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-micro-fears-over-a-century-of-hunger http://www.tutor2u.net/blog/index.php/economics/comments/as-micro-fears-over-a-century-of-hunger#When:08:19:00Z Nigel Cassidy reports in this video from BBC news on fears that the world faces “a century of hunger” if the international community cannot agree on new rules regarding food prices. Food security is a hugely important global economic, political and social issue and one of the best resources for keeping up to speed on this is the Guardian’s dedicated page of articles. Here is the link. Check the links at the bottom of the blog for past articles on this topic. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 4, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Micro, Agriculture, Emerging Economies, Development Economics, Commodities Markets, Cycles and Shocks, Economic Growth, European Economy, EU Farming and Fishing, Global Economy, Government Intervention, Buffer Stocks, International Trade, Poverty and Inequality, Market Equilibrium and Price, Price Mechanism in Action, Price Volatility, Standard of Living, Teaching of Economics, 2011-06-22T08:19:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/six-global-trends-shaping-business-strategy http://www.tutor2u.net/blog/index.php/economics/comments/six-global-trends-shaping-business-strategy#When:14:50:00Z This is a cross posting from the Business Studies blog because it strikes me as being SO useful for A2 students in particular as they look to include synoptic arguments and ideas into the evaluation this June. This new report by consultants Ernst & Young is a pinch of gold dust for such students, as it examines in a reasonably accessible way six broad, long-term developments which shape business around the globe. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, A2 Micro, Emerging Economies, Development Economics, Business Economics, Management Issues, Cycles and Shocks, Economic Growth, Global Economy, Teaching of Economics, 2011-06-15T14:50:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/development-econ-wealth-and-inequality-in-china http://www.tutor2u.net/blog/index.php/economics/comments/development-econ-wealth-and-inequality-in-china#When:07:16:00Z The BBC is running a special series of short reports on the chasm in wealth inequality in fast-growing China. One in a Billion looks at China’s new super rich. This set of video reports on Chinese development from Carrie Gracie (Nov 2010) is also worth looking at A portrait in miniature of China’s transformation AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Economic Growth, Poverty and Inequality, Teaching of Economics, 2011-06-10T07:16:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-economies-of-scale-in-solar-power http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-economies-of-scale-in-solar-power#When:10:22:30Z How about this for economies of scale in the renewable energy industry? A new photovoltaic park has opened in Les Mées in France, By the end of 2011, solar panels will cover 200 hectares and produce around 100MW, making it the biggest solar array in France. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Economies of Scale, Economic Growth, Economics of Technology, Environmental Economics, European Economy, Single Market, Market Failure, Merit & De-Merit Goods, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2011-05-27T10:22:30+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/macro-revision-putting-things-in-context http://www.tutor2u.net/blog/index.php/economics/comments/macro-revision-putting-things-in-context#When:18:43:00Z I always ask of my students that they try to put policy issues and decisions into some kind of context. The effective use of context - either in a domestic or external setting or using recent history as a guide can greatly improve evaluation marks in exam essays. Our aim in a revision session today was to build some of that context with respect to some of the key issues facing the UK economy. A starting point was the impact of the recession and how this is shaping the strength and pattern of recovery as we head through 2011 and into 2012. As befits an open economy heavily integrated into the European and global economic and financial system, many key recent developments on growth, jobs, inflation and trade are impacted by external demand and supply-side shocks and headwinds. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Economic Growth, Teaching of Economics, UK Economy, 2011-05-25T18:43:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-recession http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-recession#When:21:29:00Z A recession is a hard-landing and means a fall in the level of real national output i.e. a period when the rate of growth is negative, leading to a contraction in employment, incomes and profits.  There is in fact more than one definition and measurement of a recession. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Economic Growth, Macroeconomic Policies, OECD Economies, Greece Economy, UK Economy, 2011-05-23T21:29:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-spare-capacity http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-spare-capacity#When:21:22:00Z Spare capacity measures the extent to which an industry, or economy is operating below the maximum sustainable level of production - there are spare factor resources of land, labour and capital. There are many measures of capacity utilisation including surveys of business activity, the estimated output gap and the rate of unemployment in the labour market. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Cycles and Shocks, Aggregate Supply, Economic Growth, Macroeconomic Policies, Manufacturing Industry, 2011-05-23T21:22:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/some-light-relief-from-revision-this-weeks-economics-tv http://www.tutor2u.net/blog/index.php/economics/comments/some-light-relief-from-revision-this-weeks-economics-tv#When:19:17:00Z Here is a selection of this week’s TV (and a bit of radio) that seems to have some good economics content and might provide a welcome, yet useful, break from revision. Sunday 15th May: BBC4 8pm, ‘The Secret Life of the National Grid’ - could be worth a look in terms of economies of scale, network externalities, economic growth and the importance of infrastructure Sunday 15th May: Radio 4 8pm, ‘The Bankers and the Bottom Billion’ - possibly some useful bits in terms of development economics Monday 16th May: BBC1 8.30pm, ‘Panorama’ - this week’s investigative documentary looks at the illegal trade in waste electronic products following the introduction of regulations governing how we can dispose of such things - probably very good in terms of analysing a type of government failure Monday 16th May: BBC1 9pm, ‘The Street That Cut Everything’ - looks rather entertaining as well as providing a bit of an insight into topics such as government spending on public goods and goods that generate positive externalities Monday 16th May: BBC4 9pm, ‘The Golden Age of Canals’ - whilst at first glance this may not seem too appealing, I suspect there are some interesting nuggets in terms of networks and infrastructure spending, as well as a look at why canals fell into obsolence due to the invention of the combustion engine (some creative destruction here!) Tuesday 17th May: BBC3 9pm, ‘Secrets of the Superbrands: Technology’ - a good look at how monopolies put up strategic barriers to entry in terms of branding and smart use of technology to achieve consumer loyalty Thursday 19th May: ITV1 7.30pm, ‘The True Cost of a Car’ - a look at the impact on motorists of rising fuel prices and insurance premiums, which will bring in cross-elasticity of demand in a roundabout way Thursday 19th May: Radio 4, 8pm, ‘The Report’ - a closer look at the operation of supermarkets and why there is opposition to their expansion (useful for looking at the impact of rising market power) Friday 20th May: BBC2 7pm, ‘Wind Farm Wars’ - probably very useful for those sitting AS Unit 1 this summer in terms of negative and positive externalities of production, and the ins and outs of cost-benefit analysis Hopefully there’s some light relief in there for everyone! All of the BBC programmes will be available on iPlayer for several days after they’ve been broadcast. A2 Macro, A2 Micro, AS Macro, AS Micro, Emerging Economies, Development Economics, Business Economics, Economies of Scale, Monopoly, Oligopoly, Cost Benefit Analysis, Economic Growth, Economics of Technology, Government Intervention, Regulation, Market Failure, Externalities, Public Goods, Market Equilibrium and Price, Inter-related Markets, 2011-05-15T19:17:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-revealed-advantage http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-revealed-advantage#When:14:45:02Z Tim Harford’s piece in the New York Times today is a stunning visualisation of what economists term revealed competitive advantage - if you have a few moments please do read through it - superb for understanding the inter-connections between trade performance and structural changes in output, jobs and investment. “Economies change in structure over time, moving from simpler goods to scarcer, more valuable ones. Countries rarely make radical structural changes. Instead, they generate capabilities gradually, and new industries usually develop from existing ones. Unfortunately, some industries — oil extraction, say, or fishing — do not naturally lead to anything new without a huge leap.” Here is the link to the article AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Balance of Payments, Emerging Economies, Economic Growth, Global Economy, International Trade, OECD Economies, Teaching of Economics, 2011-05-12T14:45:02+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-innovation-in-markets http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-innovation-in-markets#When:11:48:00Z This is a revision presentation covering aspects of innovation in markets. A PDF version of the presentation designed as a handout can be downloaded here. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Oligopoly, Economic Growth, Economics of Technology, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2011-05-04T11:48:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/macroeconomics-revision-measuring-consumer-confidence http://www.tutor2u.net/blog/index.php/economics/comments/macroeconomics-revision-measuring-consumer-confidence#When:06:41:00Z For students preparing for macroeconomics exams, there is a useful analysis of consumer confidence on the BBC website this morning. Following the GDP figures released by the ONS last month, and the corresponding Nationwide Consumer Confidence figures for March, there is an assessment of the Nationwide index and the importance of expectations of employment and wages in the eyes of Robert Gardner, Nationwide’s Chief Economist. A2 Macro, AS Macro, Behavioural Economics, Economic Growth, Standard of Living, UK Economy, 2011-05-04T06:41:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-chinese-investment-in-the-eu http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-chinese-investment-in-the-eu#When:13:23:00Z There is much focus on Chinese foreign direct investment in Africa and Latin America - China is also making huge investments in Australia as my friend Mark Johnston writes about in this blog. Here Euro News looks at investment in the European Union by Chinese owned businesses. New motorways in Poland ahead of the 2012 European Football Championships, co-financed by the EU, are being built by Chinese companies. The Chinese are also buying up public debt, in Greece, Spain and Portugal. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, China Economy, Cycles and Shocks, Aggregate Supply, Economic Growth, European Economy, EU Enlargement, Single Market, Global Economy, Macroeconomic Policies, Supply-side policies, OECD Economies, Poland, Teaching of Economics, 2011-05-03T13:23:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/consequences-of-one-child-policy-play-out http://www.tutor2u.net/blog/index.php/economics/comments/consequences-of-one-child-policy-play-out#When:21:58:00Z There has been much coverage in the last few days of the latest data on China’s population trends and in particular strong evidence about the ageing of her population. The demographic dividend of the fast population growth during the Mao era is well and truly over. The annual growth of the Chinese population is falling away - the average annual growth was 0.57% over the last decade, down from 1.07% in 1990-2000. And when the age structure of the population is analysed, we find that the number of people over the age of 60 rose by about 48m, reaching 13.3 per cent of the population. China’s total population is now 1.339bn – up 5.84 per cent from the last decade. The number of old people in China has grown by more than the population of Spain over the last ten years and there is growing pressure for a reversal of the controversial one-child policy. 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, Demography, Economic Growth, Global Economy, Labour Market, Macroeconomic Policies, Supply-side policies, Teaching of Economics, 2011-04-30T21:58:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-and-a2-macro-revision-the-china-effect http://www.tutor2u.net/blog/index.php/economics/comments/as-and-a2-macro-revision-the-china-effect#When:11:58:01Z This is a new eight-page revision briefing note for students taking AS and A2 macroeconomics courses on developments in the Chinese economy and their impact on the UK and the wider global economy. Fans on our Facebook page voted for it and we will be adding some more revision briefings in the next week based on the votes and preferences on the page! What is happening in China and in China’s changing economic relationships around the world is and will continue to have a profound impact on the UK and European Economy - this revision briefing looks at some of these connections. Download it here in pdf format Revision_China_Effect_2011.pdf 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, Economic Growth, Global Economy, International Trade, OECD Economies, Teaching of Economics, UK Economy, 2011-04-26T11:58:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/smartphones-and-creative-destruction http://www.tutor2u.net/blog/index.php/economics/comments/smartphones-and-creative-destruction#When:07:23:00Z Is the multi-function and ubiquitous smartphone one of the best examples of creative destruction. This article “10 Things Killed by the Smartphone” points to a clutch of devices and products whose demand has been affected by the mass volumes of data-heavy smartphones that now dominate the market. MP3 Players Nintendo 3DS and Sony PSP Point-and-Shoot Cameras Personal Video Players Voice Recorders Portable GPS Navigation Devices Personal Digital Assistant (PDA) Wristwatch iPod Nano Paper Maps Telephone Directory Assistance AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Competitive Markets, Oligopoly, Economic Growth, Economics of Technology, Market Equilibrium and Price, Nature of Demand, Price Mechanism in Action, Teaching of Economics, 2011-04-16T07:23:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a-new-strategy-for-promoting-growth-development http://www.tutor2u.net/blog/index.php/economics/comments/a-new-strategy-for-promoting-growth-development#When:19:56:00Z I’ve just read this fascinating economic development story on the BBC website- had to check it wasn’t an old April Fools prank, but apparently not… AS and A2 Specifications, EdExcel Economics Unit 4, Emerging Economies, Development Economics, Economic Growth, Economics of Technology, 2011-04-08T19:56:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-economic-structure http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-economic-structure#When:21:13:00Z Economic structure is a term that describes the changing balance of output, trade, incomes and employment drawn from different economic sectors – ranging from primary (farming, fishing, mining etc) to secondary (manufacturing and construction industries) to tertiary and quaternary sectors (tourism, banking, software industries).  Changes in economic structure are a natural feature of economic life but they bring challenges in terms of reallocating factors of production. For example, a shift in production and jobs in one sector can lead to problems of structural unemployment. Our charts below track production in manufacturing, services and in agriculture for the UK economy. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Economic Growth, UK Economy, 2011-04-06T21:13:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/tracking-the-effects-of-the-recession-on-gdp http://www.tutor2u.net/blog/index.php/economics/comments/tracking-the-effects-of-the-recession-on-gdp#When:11:59:01Z An excellent resource for Unit 2 and Unit 4 macroeconomics. Vishnu Padmanabhan from Timetric has this excellent look at the impact of the recession on real GDP growth in OECD countries. Which countries did best and worst in the recession? It turns out that Australia, Poland, Israel and South Korea were the countries least affected by the crisis and all avoided a full-blown recession - experiencing instead a soft landing. Here is Vishnu’s article. Our own growing selection of Timetric charts can be found by scrolling down to the bottom of this blog entry. The OECD has just produced their annual review of Going for Growth - a largely supply-side look at policies designed to promote long-term growth in productive potential in the world economy. Details can be found here. 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, Cycles and Shocks, Economic Growth, European Economy, The Euro, Global Economy, Credit Crunch, OECD Economies, French Economy, German Economy, Greece Economy, Ireland Economy, Japan Economy, Spain Economy, US Economy, Teaching of Economics, UK Economy, 2011-04-05T11:59:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/information-empires-and-monopolies http://www.tutor2u.net/blog/index.php/economics/comments/information-empires-and-monopolies#When:16:07:00Z This edited eleven minute video from the RSA explores the rise of information monopolies - from the telephone to films and now the internet. Leading technological historian Timothy Wu exposes the battle for the soul of the internet. he has some pertinent things to say about how the preferences of consumers (a growing desire and willingness to pay for higher quality, filtering, reliability, brand) might actually reinforce the natural tendencies of industries that start out open, flourishing and diversified to consolidate into a controlling monopoly or an oligopoly. Will Google and Apple come to dominate to a much greater degree? For Wu one of the signs to look out for with these types of companies is whether the balance tips between innovation and defensive behaviour.   AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Oligopoly, Economic Growth, Economics of Technology, Teaching of Economics, 2011-04-02T16:07:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/innovation-googles-driverless-car http://www.tutor2u.net/blog/index.php/economics/comments/innovation-googles-driverless-car#When:16:35:00Z A four minute gem from TED! Economic Growth, Economics of Technology, Teaching of Economics, Transport Economics, 2011-03-31T16:35:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/uk-ecoonmy-the-search-for-growth http://www.tutor2u.net/blog/index.php/economics/comments/uk-ecoonmy-the-search-for-growth#When:07:59:00Z Where does economic growth come from and how best can a balanced recovery be sustained? These questions are now central to macroeconomic debates in the UK - from the impact of the Coalition’s fiscal austerity programme to key decisions being made by the Bank of England about if and when to start tightening monetary policy. Stephanie Flanders from the BBC has this blog on the growth issue and a revealing and positive report from the North East of England. She also has a two-part series on radio 4 available here. I blogged here about the growth debate last month after attending a lecture at the LSE. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Economic Growth, Macroeconomic Policies, Teaching of Economics, UK Economy, 2011-03-16T07:59:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/timetric-income-per-capita-over-the-very-long-run http://www.tutor2u.net/blog/index.php/economics/comments/timetric-income-per-capita-over-the-very-long-run#When:21:58:00Z A wonderful chart showing the long run path of GDP per capita for the USA, Africa, Western Europe and Asia at constant 1990 prices. The sweep of this data makes for a terrific discussion in the classroom. So too does the second chart which tracks UK population and per capita GDP (measured in US dollars at constant 1990 prices) Economic History, Economic Growth, Global Economy, Teaching of Economics, 2011-03-13T21:58:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-revision-investment-spending http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-revision-investment-spending#When:09:10:01Z This revision blog looks at the drivers of capital spending and the importance of investment for economic performance AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Aggregate Demand, Capital Investment, Economic Growth, Macroeconomic Policies, UK Economy, 2011-03-12T09:10:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/timetric-internet-browser-market-shares http://www.tutor2u.net/blog/index.php/economics/comments/timetric-internet-browser-market-shares#When:00:02:00Z Timetric update the latest figures for market share in the web browser market - they are shown in the chart below. Internet Explorer continues the long slow slide as rival browsers become more popular and web users reveal their preferences! AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, A2 Micro, AS Micro, Business Economics, Oligopoly, Economic Growth, Economics of Technology, Market Equilibrium and Price, Nature of Demand, Teaching of Economics, Digital Learning, 2011-03-12T00:02:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a-virtuous-circle-of-recovery-paul-krugman http://www.tutor2u.net/blog/index.php/economics/comments/a-virtuous-circle-of-recovery-paul-krugman#When:09:44:00Z A hat tip to Larry Spence for flagging up this super piece from Paul Krugamn in the New York Times. His focus is on the dynamics of an economic recovery and the risks of fiscal austerity tipping the US back into recession. “As families have repaired their finances, they have increased their spending; as consumer demand has started to revive, businesses have become more willing to invest; and all this has led to an expanding economy, which further improves families’ financial situation…....... The clear and present danger to recovery, however, comes from politics — specifically, the demand from House Republicans that the government immediately slash spending on infant nutrition, disease control, clean water and more.” More here on How to Kill a Recovery AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Economic Growth, Macroeconomic Policies, Fiscal Policy, OECD Economies, US Economy, UK Economy, Recession Watch, 2011-03-06T09:44:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/patent-box-or-innovation-box-as-innovation-stimulant http://www.tutor2u.net/blog/index.php/economics/comments/patent-box-or-innovation-box-as-innovation-stimulant#When:19:54:00Z The UK coalition government does not yet have a growth strategy worth the name but they have invested plenty of capital in the idea of a Patent Box. This involves a lower corporation tax on profits drawn from patented products) and is a supply-side policy to make UK an attractive location for innovative industries. One proposal is that royalties and other profits from patented products and technologies would be taxed at just 10 per cent. But many economists argue that this is at best an ineffective way of lifting the amount of research and development in the British economy. They look instead to the Netherlands where an Innovation Box has had a significant impact - it reflects the view that patents are only a small part of the innovation process - you dont necessarily have to patent an idea to make small scale innovations commercially viable. Channel 4 news tonight visited Sandwich in Kent where the Pfizer research and development facility is set to close. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Business Economics, Cycles and Shocks, Aggregate Supply, Economic Growth, Economics of Technology, Government Intervention, Subsidies, Macroeconomic Policies, Supply-side policies, Manufacturing Industry, Teaching of Economics, UK Economy, 2011-03-02T19:54:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/information-failures-broadband-market http://www.tutor2u.net/blog/index.php/economics/comments/information-failures-broadband-market#When:12:51:00Z “Confusion is rife and millions of people are not getting what they have been sold” - a damming indictment of the retail broadband market in the UK exposed here by Rory Cellan Jones in a BBC news article and supporting video clip detailing information failures regarding high speed broadband and the dubious ‘up to x mb/s’ adverts that typically only 3% of UK customers experience…a stronger hand from OFCOM is needed to address this information issue. A hat tip to Henry Wingfield for spotting the article. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, A2 Micro, AS Micro, Business Economics, Oligopoly, Economic Growth, Economics of Technology, Market Failure, Information Failure, 2011-03-02T12:51:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-consumer-pants-index-cpi http://www.tutor2u.net/blog/index.php/economics/comments/the-consumer-pants-index-cpi#When:16:36:00Z GDP, unemployment rates, inflation, imports, exports, mortgage approvals - how else can we assess the current state of the economy? This article from Lovemoney.com suggests a whole new kind of CPI for us to consider, as well as other ‘unofficial indicators’ of the economy’s health. Might be fun way to kick off a lesson. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Aggregate Demand, Economic Growth, UK Economy, 2011-03-01T16:36:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unique-user-numbers-at-myspace-collapse http://www.tutor2u.net/blog/index.php/economics/comments/unique-user-numbers-at-myspace-collapse#When:23:10:00Z How many students still use MySpace? This social network owned by News Corporation looks to be in terminal decline to judge by the sharp and dramatic fall off in unique users in the United States. The labour force is being cut in half and News Corp looks set to end up with huge losses from its ill-fated acquisition of MySpace - Rupert Murdoch’s News Corp bought MySpace for $580m.  MySpace’s revenues have fallen sharply to less than $350m in 2010 this year, down from $470m in 2009 and way short of the $1 billion target set by Murdoch on purchasing the business.   Business Economics, Economic Growth, Economics of Technology, 2011-02-23T23:10:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/role-playing-and-economic-growth http://www.tutor2u.net/blog/index.php/economics/comments/role-playing-and-economic-growth#When:20:39:00Z A good, fun lesson activity to demonstrate to students the importance of economic growth, but also particularly the COSTS associated with it… AS and A2 Specifications, EdExcel Economics Unit 2, AS Macro, Economic Growth, 2011-02-22T20:39:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/apply-vertical-integration-and-ipad-pricing http://www.tutor2u.net/blog/index.php/economics/comments/apply-vertical-integration-and-ipad-pricing#When:08:41:00Z A half term hat tip to Henry Wingfield for spotting this super article in Wired magazine. It discusses how Apple is able to keep the iPad at the $500 price point and looks at how the company is vertically integrated and the importance of its retail stores. Have a read here. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Economies of Scale, Oligopoly, Economic Growth, Economics of Technology, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Teaching of Economics, 2011-02-21T08:41:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economic-growth-presentation http://www.tutor2u.net/blog/index.php/economics/comments/economic-growth-presentation#When:14:11:00Z Here is a streamed version of my notes from the LSE presentation last night on “Where is economic growth going to come from”? PDF Handout available here A copy of Professor John van Reenen’s powerpoint presentation is available to download. Download ‘Where is Future Growth Going to Come From?’ AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Aggregate Supply, Economic Growth, Macroeconomic Policies, Supply-side policies, Teaching of Economics, UK Economy, 2011-02-18T14:11:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/never-mind-plan-b-we-need-plan-v-for-the-uk-economy http://www.tutor2u.net/blog/index.php/economics/comments/never-mind-plan-b-we-need-plan-v-for-the-uk-economy#When:00:12:00Z George Osborne is convinced that the Coalition does not need a plan B. But for growth to be nurtured and sustained in the years ahead we need a Viagra-style boost to our competitiveness and capacity - Plan V. This was one of the main themes from a talk given by Professor John Van Reenen at a packed Hong Kong lecture theatre at the LSE (London) last night. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Business Economics, Management Issues, Economic Growth, Macroeconomic Policies, Supply-side policies, Manufacturing Industry, Teaching of Economics, UK Economy, 2011-02-18T00:12:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/worlds-most-innovative-companies http://www.tutor2u.net/blog/index.php/economics/comments/worlds-most-innovative-companies#When:13:48:00Z This is perfect for examples to draw on when teaching and learning about dynamic efficiency in markets - it is a subjective list but the Fast Company has produced a selection of the fifty most innovative companies in the world adding a profile for each. According to the introduction, the selected businesses are non-dogmatic and they are willing to fail. A great resource and one that I will return to. Below we have added some of recent blog posts on aspects of the economic and business drivers of innovation AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Economic Growth, Economics of Technology, Teaching of Economics, 2011-02-17T13:48:00+00:00