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/china-bans-its-airlines-from-paying-eu-carbon-tax http://www.tutor2u.net/blog/index.php/economics/comments/china-bans-its-airlines-from-paying-eu-carbon-tax#When:05:52:33Z On 1st January this year, the EU introduced an Emissions Trading Scheme (ETS) which levies a charge on flights in EU airspace based on carbon emissions. They estimate that this will add between 2 and 12 euros to flight tickets. Airlines are required to purchase emissions permits, like utilities and heavy industry in the EU, and airlines that do not comply face fines of 100 euros for each tonne of carbon dioxide emitted for which they have not surrendered allowances. In the case of persistent offenders, the EU has the right to ban airlines from its airports. A2 Micro, Emerging Economies, China Economy, Business Economics, Environmental Economics, European Economy, Government Intervention, Indirect Taxes, Market Failure, Externalities, Transport Economics, 2012-02-06T05:52:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/russias-monopoly-power-over-gas-supplies http://www.tutor2u.net/blog/index.php/economics/comments/russias-monopoly-power-over-gas-supplies#When:08:47:23Z It has been a bit chilly in the UK for the last few days, but nothing compared to the temperatures as low as -35 which have hit parts of central and eastern Europe. Of course, they are used to far colder winters than us, and have different ways of dealing with the weather, but reliance on gas supplies from Russia for the majority of their heating fuel leaves countries including Bulgaria, Serbia and Bosnia vulnerable to disruption in that supply. AS Micro, Emerging Economies, Russia Economy, Business Economics, Monopoly, Market Failure, Externalities, 2012-02-05T08:47:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-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-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-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-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/france-and-flexible-employment http://www.tutor2u.net/blog/index.php/economics/comments/france-and-flexible-employment#When:10:03:05Z This article could be useful as an illustration of the EU context in relation to employment in general, and flexible employment in particular. Attracting inward FDI is arguably a significant benefit of UK membership of the EU, and one of the advantages which the UK can offer compared to, say, France is relatively flexible employment laws. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, Business Economics, Competitive Markets, European Economy, Labour Market, Macroeconomic Policies, Supply-side policies, OECD Economies, French Economy, Teaching of Economics, 2012-01-22T10:03:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-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-2-macro-look-upwards-to-find-the-next-downturn http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-look-upwards-to-find-the-next-downturn#When:03:34:05Z Correlation does not necessarily imply causation but analysts at Barclays Capital are worried that a surge in skyscraper construction in China and India might be a forward indicator of another burst of financial and economic distress. This report in the Independent covers their findings: “Clusters of building activity usually coincide with periods of easy credit, excessive optimism and rising land prices, which often occur before market corrections.” * India is scheduled to complete 14 new skyscrapers taller than 240 meters (787 feet) over the next five years from the current two * China will increase the number of skyscrapers to 141, from the current 75, by 2017 * London’s Shard is expected to be completed in 2012 – at 1,017ft, it will be the tallest building in Western Europe News video from the BBC: Skyscrapers ‘linked with impending financial crashes’ Guardian news video: Huaxi: the village that towers above China   AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Emerging Economies, Business Economics, Economies of Scale, Cycles and Shocks, Aggregate Demand, Capital Investment, Economic Growth, Global Economy, Teaching of Economics, 2012-01-16T03:34:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-at-the-movies-foods-that-make-billions-cereals http://www.tutor2u.net/blog/index.php/economics/comments/economics-at-the-movies-foods-that-make-billions-cereals#When:19:37:56Z Here is a link to a you tube video from the BBC looking at the modern food business and the huge profits to be made from the breakfast cereal industry. Part of the series The Foods that Make Billions (cereals, bottled water and yoghurt) The Foods That Make Billions - Cereals Yoghurt A2 Micro, AS Micro, Business Economics, Economies of Scale, Commodities Markets, Teaching of Economics, Economics at the Movies, 2012-01-15T19:37:56+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-samsung-and-lg-fined-for-price-fixing http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-samsung-and-lg-fined-for-price-fixing#When:17:12:40Z As A2 microeconomists approach their Unit 3 exam, they need to make sure they have good examples to support their analytical theory and should therefore be interested in the news from South Korea where the antitrust regulator has fined Samsung Electronics and LG Electronics for conspiring to fix the prices of some appliances. The regulator said the two firms held secret meetings in 2008 and 2009 to agree on prices for washing machines, flat-panel TVs and laptop computers and has fined Samsung 25.8bn won, while LG was fined 18.8bn won. A nice relevant example of collusion, price fixing and the government’s response to this anti-competitive behaviour   A2 Micro, Business Economics, Oligopoly, 2012-01-13T17:12:40+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-1-micro-capital-used-to-build-cross-rail http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-capital-used-to-build-cross-rail#When:21:26:07Z The tunnelling equipment involved in CrossRail - Europe’s biggest civil construction project - is immense in every way! This BBC news video of the earth cutting machinery is a brilliant visual to use when teaching economies of scale or introducing the concept of physical capital! The machinery is made in Germany naturally! AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Business Economics, Economies of Scale, Introductory Economics, 2012-01-11T21:26:07+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-does-manufacturing-matter http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-does-manufacturing-matter#When:14:16:52Z Vicky Pryce FRSA has a new article on the economic significance of manufacturing industry for UK economic renewal. It is available here from the January 2012 edition of the RSA Journal. In a related article Sir Christopher Frayling FRSA discusses the rise of the Maker Movement. Back in November 2011 Channel 4 news ran a special on the future for UK manufacturing here is a link to a related video AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Business Economics, Management Issues, Manufacturing Industry, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2012-01-10T14:16:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-factors-driving-business-investment http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-factors-driving-business-investment#When:13:42:35Z Profit-seeking businesses will go ahead with an investment if they believe that it will - over its projected lifetime - yield a real rate of return greater than if the money had been invested in the next best alternative way. Opportunity cost is a useful idea to use here. Private sector businesses usually focus on these objectives when investing in new capital inputs: AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Cycles and Shocks, Aggregate Demand, Capital Investment, Macroeconomic Policies, Keynesian Economics, UK Economy, 2012-01-10T13:42:35+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-low-cost-airlines-beat-the-recession http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-low-cost-airlines-beat-the-recession#When:20:57:39Z The global financial and economic crisis has created many problems for airlines - falling business and 1st class passenger revenues, increased insurance costs, problems in getting loan finance, volatile exchange rate and the challenges of steep increases in aviation fuel prices to name just a few. We could also add the shockwaves from the spring 2011 Japanese earthquake and tsunami, the Arab Spring and a decline in tourism, and the steadily deteriorating global economic outlook - with the Euro Zone crisis threatening a second recession for Western Europe. But discount airlines - carriers that offer no-frills and charge plenty for extras on top of low basic fares - seem to have fared pretty well despite the turbulent conditions. Many passengers now appear willing to sacrifice luxury for cheaper flights and there are plenty of news stories of low-cost airlines in Europe, Asia and Africa who are announcing expanded route maps for 2012 and beyond. What economic factors help explain the continued expansion of low-cost airline carriers? AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Emerging Economies, Business Economics, European Economy, Global Economy, Transport Economics, 2012-01-01T20:57:39+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/business-people-in-the-news-quiz-2011-edition http://www.tutor2u.net/blog/index.php/economics/comments/business-people-in-the-news-quiz-2011-edition#When:10:57:09Z Here is a ten question picture quiz on some of the personalities who have made the business news headline during 2011. How many can you get first time? When you get the questions right - how fast can you speed down the powerboat river? Business Economics, Teaching of Economics, Digital Learning, 2011-12-30T10:57:09+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/2012-carnage-on-the-high-street http://www.tutor2u.net/blog/index.php/economics/comments/2012-carnage-on-the-high-street#When:16:26:24Z There are many retail industry experts forecasting that the early months of 2012 might be tough for some struggling retailers. We will keep this blog post updated on a regular basis as news of some high profile retail failures comes through. And we will link to media coverage of some of the attempts to restructure retailers under the threat of closure. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Management Issues, UK Economy, Regional Economics, Recession Watch, 2011-12-28T16:26:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/regulatory-capture-at-hmrc http://www.tutor2u.net/blog/index.php/economics/comments/regulatory-capture-at-hmrc#When:05:32:27Z Is the story of HMRCs failure to collect the right amount of tax from some big businesses an example of regulatory capture? In the current example, the Public Accounts Committee has said that HM Revenue and Customs enjoyed an “unduly cosy” relationship with major companies, and their procedures have allowed rules to be ‘bent’ so that up to £25bn tax has been underpaid. Regulatory capture (an example of government failure) is what happens when regulated industries are able to gain influence over their regulator, so that instead of serving the public interest, the regulator actually supports the interest of the industry concerned. In this case, there does not seem to be one specific industry concerned (although Goldman Sachs’s underpayment of something between £8mn and £20mn comes in for particular criticism); however the situation does seem to meet the requirements defined by the Economist as “Gamekeeper turns poacher or, at least, helps poacher”. More on the story here: Taxman slammed over ‘cosy’ business relations Goldman Sachs tax deal faces UK legal challenge A2 Micro, AS Micro, Business Economics, Government Intervention, Government Failure, 2011-12-23T05:32:27+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-oligopoly-and-duopoly-in-bus-markets http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-oligopoly-and-duopoly-in-bus-markets#When:15:01:48Z The UK Competition Commission has published an important report into the market structure of local and regional bus services in the UK, twenty five years after the industry was deregulated and largely privatised. Coverage of the report can be found here (BBC news). Largely as a result of a long-term process of consolidation through merger and acquisition, the UK bus industry is found to be highly concentrated with five businesses dominating the sector even though more than 1,200 businesses provides services. The five largest operators (Arriva, FirstGroup, Go-Ahead, National Express and Stagecoach) carry 70 per cent of those passengers. The CC also found that head-to-head competition between operators is un-common and that-on average-the largest operator in an urban area runs 69 per cent of local bus services - effectively a monopoly position. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Monopoly, Oligopoly, Competition Policy, Market Equilibrium and Price, Nature of Supply, Transport Economics, UK Economy, Regional Economics, 2011-12-20T15:01:48+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/the-christmas-tree-of-integration http://www.tutor2u.net/blog/index.php/economics/comments/the-christmas-tree-of-integration#When:15:12:26Z A seasonal look at the methods of growth for firms, covering organic growth and the sources of external growth. AS and A2 Specifications, AQA Economics Unit 3, Business Economics, Monopoly, GCSE Economics, 2011-12-15T15:12:26+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-inside-a-biscuit-factory http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-inside-a-biscuit-factory#When:10:25:58Z This five minute video is superb for illustrating economies of scale in the production - we take a trip through the United Biscuit factory to see how millions of products are made every day. The commentary is a little simplistic but as a visual aid it is brilliant. A great example to use of capital intensity in production and the nature of supply curves and the elasticity of supply. Here is the link to use AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Business Economics, Economies of Scale, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2011-12-01T10:25:58+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-4-macro-does-uk-manufacturing-have-a-future http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-does-uk-manufacturing-have-a-future#When:11:11:47Z Here are links to two superb short reports on prospects for UK manufacturing as the British economy struggles to escape from recession and sluggish growth forecasts in 2011 and 2012. Both are from Channel 4 News that produced a special on the health of the manufacturing sector - excellent for evaluation and for some applied examples to build into essays. The links appear below 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, Management Issues, Macroeconomic Policies, Supply-side policies, Manufacturing Industry, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2011-11-30T11:11:47+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-will-a-youth-jobs-subsidy-work http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-will-a-youth-jobs-subsidy-work#When:11:03:38Z The Coalition Government recently heralded a new scheme designed to address the structural problem of high youth unemployment in the UK economy. Under their “youth contract” plan, employers will be given “wage incentives” worth £2,275 to take on some 160,000 18-to-24-year-olds. But will it have much impact on the problem? The independent Office for Budgetary Responsibility says that the net effect on overall unemployment will be close to zero, because the subsidy incentive will lead to a switch in employment away from older workers. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, A2 Macro, AS Macro, Business Economics, Cycles and Shocks, Aggregate Supply, Government Intervention, Subsidies, Labour Market, Macroeconomic Policies, Supply-side policies, Teaching of Economics, UK Economy, Unemployment, 2011-11-30T11:03:38+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-tacit-collusion-in-the-supermarket http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-tacit-collusion-in-the-supermarket#When:23:39:44Z What do students make of the current price match / big price drop schemes offered by many of the leading food retailers in the UK? On the surface the brand price match scheme shown in the picture below looks like a good deal for consumers in this time of financial hardship and distress. But what it this ‘parallel pricing’ serves merely as a form of tacit collusion with prices on a range of products actually higher than they might be without the facade of price comparisons and discount voucher compensation? AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Oligopoly, Market Equilibrium and Price, Nature of Demand, Teaching of Economics, 2011-11-27T23:39:44+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/some-practice-interview-questions http://www.tutor2u.net/blog/index.php/economics/comments/some-practice-interview-questions#When:21:14:38Z Lots of students are preparing for their economics university interviews in the days ahead. Here is a selection of some of the questions I have been firing at my own students recently. There is no particular order of importance and they not designed to replicate what might be asked, they are simply the questions I like to ask to see if students have an understanding and a passion that goes beyond the mundane nature of AS and A2 courses. I usually throw in some logic and quantitative puzzles at the same time for variety! Business Economics, Teaching of Economics, UCAS and Oxbridge Advice, 2011-11-27T21:14:38+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/as-macro-the-state-of-british-business http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-the-state-of-british-business#When:12:20:49Z How well is British business coping in the aftermath of recession and during a sluggish recovery? Are there signs of improvement or are there warning signs that the UK business sector is fragile and vulnerable as we head into 2012? Four AS macro students - James Richardson, Ludo Higgin, Joe Landman and Nick Russell collaborated on this excellent piece and searched for some revealing clues about the resilience of British businesses at this crucial stage of the economic cycle. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Macroeconomic Policies, Manufacturing Industry, Teaching of Economics, UK Economy, Recession Watch, Unemployment, 2011-11-13T12:20:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-quiz-on-market-structures http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-quiz-on-market-structures#When:20:19:27Z Here is a 12 question quiz on aspects of market structures such as monopoly. The quiz invites students to type in the answer to a number of concepts and we link their responses to a cloass Zondle game - the famous javelin challenge. Who can score the highest mark with the javelin in hand? (!!) AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Teaching of Economics, Digital Learning, 2011-11-06T20:19:27+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-unilever-hit-by-rising-costs http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-unilever-hit-by-rising-costs#When:11:43:15Z Here is a good example of a global giant in consumer products whose profitability has been affected by external headwinds over which it has little control. The Anglo-Dutch business Unilever - the world’s second-biggest consumer-goods company – has announced that profitability might fall in 2011 even after it increased prices to offset soaring costs for the commodities used to make its products. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Management Issues, Market Equilibrium and Price, Nature of Supply, 2011-11-06T11:43:15+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-impulses-to-change-management-models http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-impulses-to-change-management-models#When:21:08:27Z It is natural for large parts of our media to be obsessed with tracking the machinations of Greek politics and the frantic attempts by European politicians to shore up the fragile Euro Zone with palliative bailouts and stability funds. But the really interesting and significant discussions in economics and finance are taking place at a microeconomic level. As I reach twenty-five years teaching this fantastic and utterly fascinating subject, each day I am drawn more to the complex wiring of microeconomic decision-making and further from sterile debates about the direction of macro policy and the irrelevance of most of what passes along those dreadful ticker streams on Sky News, CNBC and Bloomberg. That is why taking time out to listen to programmes such as Global Business, Analysis, The Bottom Line, Hard Talk and many other wonderful outputs from BBC radio provides fresh ideas for the classroom and one’s understanding of new directions in economic thinking. A few weeks back Peter Day from the BBC met Professor Gary Hamel one of those highly-sought management thinkers who are at least prepared to challenge the conventional wisdom of university lecture halls and business schools. Are we now looking at radical shift in the nature of corporate organisation and behaviour? Will the business landscape look very different in the next few years as new models and strategies emerge post-recession and consumers are compelled to revise their choices? Hamel thinks that there is some important straws in the wind and Peter Day teased some of them out in a lively thirty-minute discussion. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Management Issues, Teaching of Economics, 2011-11-05T21:08:27+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/unit-1-micro-costs-and-benefits-of-a-super-sewer-for-london http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-costs-and-benefits-of-a-super-sewer-for-london#When:22:38:37Z Thames Water has plans for a super sewer running 20 miles from Hammersmith to Beckton but the plan has come up against intense opposition from many local resident groups. It is a good example to use of cost-benefit analysis in action with a project that will directly affect millions of people living and working in the capital. There is an almost unending list of stakeholders involved in the debate. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, A2 Micro, AS Micro, Business Economics, Economies of Scale, Cost Benefit Analysis, Cycles and Shocks, Aggregate Demand, Capital Investment, Environmental Economics, Market Failure, Externalities, Public Goods, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2011-11-01T22:38:37+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-3-micro-examples-of-price-discrimination-in-action http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-examples-of-price-discrimination-in-action#When:13:41:47Z I tweeted earlier on today asking economics teaching colleagues what examples they like to use when teaching the topic of price discrimination under conditions of monopoly / imperfect competition. Thank you to everyone who contributed! AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Monopolistic Competition, Monopoly, Oligopoly, Price Discrimination, Market Equilibrium and Price, Nature of Demand, Price Mechanism in Action, Teaching of Economics, 2011-10-31T13:41:47+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-price-discrimination-in-the-e-book-market http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-price-discrimination-in-the-e-book-market#When:09:51:07Z Seth Godin’s Domino Project is an attempt to re-fashion the way in which e-books are published, sold and priced. This blog is particularly interesting for teachers and students who consider different forms of price discrimination. It proposes (at least) three different price tiers: $1.99 ebooks - a clearing price for the majority of e-books $5 ebooks. This is the price for bestsellers, hot titles and academic titles required by courses $10 - $20 ebooks. This is the price you will pay to get the book first, to get it fast, to get it before everyone else Read paying for first What do you think? How do you see e-book pricing tactics evolving as the market grows? The UK Office of Fair Trading is currently investigating the market for e-books in the UK amid allegations of price fixing / collusion by several leading publishers. You can access the OFT investigation using this link. Further reading: Guardian (August 2011): Apple and major publishers face lawsuit over ebook ‘price fixing’ Telegraph: EU raids publishers in ebook price-fixing probe By way of background - new research has found that the average e-book price of front-list e-books across the world was €10.50 net of taxes. The average price of UK frontlist e-books was €10.80, €1.50 more than equivalent US titles, but less than those in Germany, Spain and France. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Behavioural Economics, Game Theory, Business Economics, Monopoly, Oligopoly, Market Equilibrium and Price, Nature of Demand, Teaching of Economics, 2011-10-31T09:51:07+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-should-tncs-make-full-disclosure-on-factory-wages http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-should-tncs-make-full-disclosure-on-factory-wages#When:17:05:41Z Peter Day’s World Business programme on BBC this week is an evocative report on the travels of two people who have explored where we get most of the clothes and the shoes adorned with global brands. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Development Economics, Business Economics, Environmental Economics, Global Economy, Market Failure, Poverty and Inequality, Standard of Living, Teaching of Economics, 2011-10-30T17:05:41+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-uk-executive-pay-all-in-it-together http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-uk-executive-pay-all-in-it-together#When:09:55:00Z At a time when millions of people are taking nominal or real pay cuts, the news that chief executives of FTSE-100 companies have seen their earnings rise by 43% in the last year is particularly difficult to stomach. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Business Economics, Government Intervention, Labour Market, Trade Unions, Poverty and Inequality, Teaching of Economics, UK Economy, 2011-10-29T09:55:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-is-the-sun-dipping-on-solar-subsidies http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-is-the-sun-dipping-on-solar-subsidies#When:18:35:34Z To promote the expansion of renewable energy sources, many governments have introduced subsidies for consumers who install solar panels. In April 2010, the Labour government introduced generous feed-in tariffs to encourage households to install solar photovoltaic systems. Anyone spending £13,000 up front to fit a system to their home was paid 41.3p per kilowatt hour (kWh) generated – enough to earn them a typical annual income of £900 a year in payments, on top of a £140-a-year saving in reduced electricity bills. The big six energy companies are required by law to pay householders who generate their own energy. It looks like the days of generous subsidies for solar panels are coming to an end and there is a rush on to install them before the feed-in-tariff system is changed. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, A2 Micro, AS Micro, Business Economics, Cost Benefit Analysis, Environmental Economics, GCSE Economics, Government Intervention, Subsidies, Market Failure, Externalities, Manufacturing Industry, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Teaching of Economics, 2011-10-27T18:35:34+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-miro-ofcom-gives-stamp-of-approval-for-flexible-pricing-in-mail http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-miro-ofcom-gives-stamp-of-approval-for-flexible-pricing-in-mail#When:06:53:49Z Changes are afoot for the UK household mail industry - a sector that is often used by teachers as an example of a near monopoly in the UK. In 2010, 16bn letters were delivered to 28.2m addresses. Royal Mail was responsible for delivering over 99% of these. The total UK household and business mail market comprises around 16bn items and £6bn to £7bn per annum of revenue. Royal Mail has a market share by revenue of over 90%. Just a few years after deregulation of the sector, the industry regulator Ofcom has produced a consultation document that is likely to give the Royal Mail more freedom in setting the prices of stamps. At present, the Royal Mail loses more than £2 million a week operating its letters business. Increasing competition from new entrants for bulk mail sorting allied to a shift towards email and text have contributed to a 25% decline in postal volumes since 2006. Household spending in Britain on postal services has fallen to just 40p a week. The 2010 Hooper Report on the postal sector, mail volumes are expected to continue to decline globally by between 25% and 40% in the next five years AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Government Intervention, Regulation, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2011-10-21T06:53:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-economic-importance-of-investment http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-economic-importance-of-investment#When:14:41:47Z Capital investment spending can have a significant effect on both the demand and the supply-side of the economy. We were looking at this issue in class this afternoon and I used a small selection of video clips linking to investment projects across different countries. I have linked to them below: AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Business Economics, Macroeconomic Policies, Supply-side policies, UK Economy, 2011-10-19T14:41:47+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/tescos-behaving-badly http://www.tutor2u.net/blog/index.php/economics/comments/tescos-behaving-badly#When:21:23:59Z On paper, it sounds like a totally reasonable price strategy from the market leader in an oligopolistic market - after announcing their worst sales figures in nearly 20 years, Tesco’s came out with a price cut promotion “The Big Price Drop”.  The supermarket – which has pledged to spend £500 million on the high-profile promotion – has promised customers that it would reduce the price of 3,000 essential products across its stores. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Oligopoly, Price Discrimination, Market Equilibrium and Price, Nature of Demand, Teaching of Economics, 2011-10-17T21:23:59+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-can-exports-drive-a-recovery http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-can-exports-drive-a-recovery#When:14:12:47Z UK overseas trade is in the news today with the release of a batch of figures showing a record level of UK exports - see BBC news - UK trade deficit cut by higher exports AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Balance of Payments, Business Economics, Cycles and Shocks, Aggregate Demand, Global Economy, Macroeconomic Policies, Trade Policies, UK Economy, Recession Watch, 2011-10-13T14:12:47+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-contestable-markets-lucozade-takes-on-coca-cola http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-contestable-markets-lucozade-takes-on-coca-cola#When:19:24:11Z A sparkling hat tip to Pete Davies for spotting this one. 1.7 billion litres of cola drank were drunk globally in 2010 & now Lucozade (owned by GlaxoSmithKline) wants a slice of the action!  with the launch of Lucozade Energy Cola. They already have a well-established position in the energy drinks market. Can they overcome possible consumer resistance to this product and brand extension? Marketing Week reports something revealing about their point of sale strategy. Lucozade Energy Cola has already reached retailers ahead of the launch apparently with written guidelines for shopkeeprs asking for it to be stocked in the “energy drink section on the chiller”, but placed “next to the coke selection where possible.! Maybe the new product will find a way into the secret stashes of this Manchester schoolboy entrepreneur? AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Competitive Markets, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, 2011-10-10T19:24:11+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/oxbridge-the-future-for-the-company http://www.tutor2u.net/blog/index.php/economics/comments/oxbridge-the-future-for-the-company#When:14:34:35Z This looks ideal for intending economics and management students .. will it be business as usual or is there a future for the company as we know it? -  here is a link to a FT video discussion - featuring Stefan Stern A2 Micro, Business Economics, Management Issues, 2011-10-10T14:34:35+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-on-youtube http://www.tutor2u.net/blog/index.php/economics/comments/economics-on-youtube#When:19:49:09Z A useful clip for AS micro: barter economies. Or, alternatively, for A2 micro: perfect price discrimination. Watch it here AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, OCR A2 Economics Unit F585, A2 Micro, AS Micro, Business Economics, Price Discrimination, Introductory Economics, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, Economics at the Movies, Fun Friday, 2011-10-09T19:49:09+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/collusion-in-the-classroom http://www.tutor2u.net/blog/index.php/economics/comments/collusion-in-the-classroom#When:07:20:51Z Today we played a variety of ‘prisoner’s dilemma’ games with my U6th economists, highlighting the game theory element of oligopolistic markets. (A nice mix of collusion between the pupils was apparent, coupled with the usual cheating on agreements and back-stabbing – always fun to have in the classroom!) AS and A2 Specifications, EdExcel Economics Unit 3, A2 Micro, Behavioural Economics, Game Theory, Business Economics, Oligopoly, 2011-10-08T07:20:51+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-waste-mountains-as-above-ground-mining http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-waste-mountains-as-above-ground-mining#When:15:51:09Z This remarkable ten minute video is superb when you are studying or teaching the economics of recycling! Whereas recycle rates for metals and paper have been growing year by year, currently less than 10% of plastic trash is recycled—compared to almost 90% of metals— in part because of the complicated and costly problem of finding and sorting the different kinds. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Emerging Economies, Development Economics, Business Economics, Environmental Economics, Market Failure, Externalities, Teaching of Economics, 2011-10-06T15:51:09+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/who-are-the-top-10-grocery-brands-in-the-uk http://www.tutor2u.net/blog/index.php/economics/comments/who-are-the-top-10-grocery-brands-in-the-uk#When:18:28:14Z A simple question and one that might make for a fun quick quiz at the end of a week of teaching! The Grocer Magazine have just published their annual rankings and there are some reassuringly good brand names and products in there! How many can you name without clicking on the following link? The top ten biggest-selling grocery brands in the UK AS Micro, Business Economics, Teaching of Economics, 2011-10-03T18:28:14+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/nmw-classical-real-wage-unemployment http://www.tutor2u.net/blog/index.php/economics/comments/nmw-classical-real-wage-unemployment#When:16:42:17Z As the government increased the NMW this weekend by 15p to £6.08 an hour for adults….....the minimum wage may be pricing young people out of work because employers are finding it too expensive to give them their first job, Government pay advisers have said. Good application here for discussing real-wage classical unemployment. Read more here. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Business Economics, Government Intervention, Minimum Prices, Labour Market, UK Economy, Unemployment, 2011-10-03T16:42:17+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/define-that-term-perfect-and-monopolistic-competition http://www.tutor2u.net/blog/index.php/economics/comments/define-that-term-perfect-and-monopolistic-competition#When:17:11:15Z Here is a useful plenary activity to use with students after having covered the topics of Perfect and Monopolistic Competition. AS and A2 Specifications, EdExcel Economics Unit 3, A2 Micro, Business Economics, Monopolistic Competition, 2011-10-01T17:11:15+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-teacher-update-on-new-regulations http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-teacher-update-on-new-regulations#When:07:25:52Z The end of September has brought a raft of new or changed regulations affecting different markets. Here is a summary of some of them for students and teachers wanting to keep up to date: AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Business Economics, Government Intervention, Minimum Prices, Regulation, Macroeconomic Policies, Monetary Policy, Market Failure, De-Merit Goods, Externalities, Merit & De-Merit Goods, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Teaching of Economics, 2011-10-01T07:25:52+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-3-micro-fixed-and-variable-costs http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-fixed-and-variable-costs#When:21:37:00Z In the short run, because at least one factor of production is fixed, output can be increased by adding more variable factors. We make a distinction in the short run between fixed and variable costs. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, 2011-09-18T21:37:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-short-run-costs-of-production http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-short-run-costs-of-production#When:22:04:00Z This revision presentation looks at costs of production for businesses in the short run AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Teaching of Economics, 2011-09-06T22:04:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/what-do-dewsbury-dudley-hartlepool-margate-stockport-and-west-bromwich-have http://www.tutor2u.net/blog/index.php/economics/comments/what-do-dewsbury-dudley-hartlepool-margate-stockport-and-west-bromwich-have#When:21:29:00Z This is my starter question for the students this week, and brownie points to anyone who knows the answer without having to read on… A2 Micro, Business Economics, 2011-09-06T21:29:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/give-me-five-business-economics http://www.tutor2u.net/blog/index.php/economics/comments/give-me-five-business-economics#When:15:54:01Z Give Me 5 is a flexible lesson activity is all about quick thinking skills. Give Me 5 is designed to help you put your students on the spot!  How much can they recall from a recent lesson or topic? Have they been doing some background reading or listening around their subject? Have they been keeping up with the news? Can they come up with a distinctive or creative answer which their classmates can’t spot? The PowerPoint provided below is for you to edit as required.  The template provides a 30 second countdown in which students are asked to come up with up to 5 different answers to the question / prompt. Edit the slides as required.  The timing is coded to last 30 seconds (to match the cheesy music) - you can always edit this to shorten or lengthen the allowed time per topic. I have included twelve questions loosely connected with a business economics theme but I am sure if you want to use the resource you can easily find different examples and sub-topics to add into the resource! If you have some questions that work really well please add a comment to the blog! Business Economics, Teaching of Economics, Digital Learning, 2011-08-25T15:54:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-quiz-on-business-costs-and-profits http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-quiz-on-business-costs-and-profits#When:12:56:00Z Here is a twelve question quiz on business costs, revenues and profits. In the quiz simply type in the answer - correct answers take you straight into the Ski Sunday game on Zondle - who can get the biggest score?   AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Teaching of Economics, 2011-08-25T12:56:00+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-3-micro-poundland-expands-operations http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-poundland-expands-operations#When:22:05:01Z Poundland has over 370 stores in the UK and has persued an ambitious organic growth strategy. This BBC news video “Tough economic times boost Poundland stores” looks at their expansion into Northern Ireland and now the Irish Republic under a new brand name! Naturally with Ireland being part of the Euro, they have opted not to use their original name when selling discount prices - the new trading name is Dealz! This business is a good example to use of benefitting from extensive marketing / purchasing economies of scale in the highly-competitive discount store market. Poundland is estimated to have a 14 per cent share of the UK’s £36bn discount general merchandise market. In the 12 months to June 2011 it made profits of £21.5million on a £510million turnover. The rapid expansion has been achieved by reinvesting the cash generated from their success rather than relying on heavy borrowing. Poundland is privately owned. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Economies of Scale, 2011-08-07T22:05:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-the-price-of-football http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-the-price-of-football#When:11:18:00Z The BBC’s new Price of Football survey offers an excellent opportunity to use wide differences in the cost of attending football matches across the length and breadth of the UK. A summer hat tip to Ben White (newly installed Head of Economics and Business at St Peter’s School in York) for flagging up this resource on the BBC web site - it is ideal stimulus material for generating a discussion on different pricing tactics, price elasticity of demand and income inelasticity of demand in the soccer industry. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Business Economics, Price Discrimination, Market Equilibrium and Price, Nature of Demand, Price Mechanism in Action, Teaching of Economics, 2011-08-02T11:18:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/capital-labour-substitution-at-foxconn http://www.tutor2u.net/blog/index.php/economics/comments/capital-labour-substitution-at-foxconn#When:08:19:00Z A hat tip to Pete Davies for spotting this excellent example of capital replacing labour in FoxConn factories in China.  With strong pressure for wages to rise further in Chinese manufacturing, FoxConn justify the decision on the grounds that their workers are better placed being shifted to jobs higher up the value chain. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Business Economics, Teaching of Economics, 2011-08-02T08:19:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-cotton-prices-and-the-retail-price-of-clothing http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-cotton-prices-and-the-retail-price-of-clothing#When:10:51:00Z How does the world price of raw cotton affect the cost of buying new clothing on the high street and in the supermarkets? The answer is that the price of natural fibres is a key raw material into manufacturing garments and home furnishings. If prices rise, this increases the costs of production causing an inward shift of supply for clothing and furnishings at a given market price. The world price of cotton has been rising steeply in recent times. As our chart below shows, raw cotton prices are well down from their peak in the spring of 2011, but the index is still more than twice the level of two years ago. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Business Economics, Manufacturing Industry, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Price Mechanism in Action, Price Volatility, 2011-07-13T10:51:00+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/unit-3-micro-oligopsony-dairy-losses-drive-farmers-from-the-fields http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-oligopsony-dairy-losses-drive-farmers-from-the-fields#When:21:43:00Z Hats off to the herd! Milk production in the UK is expanding yet many dairy farmers have or are likely to leave the industry over the next five years unless raw milk production becomes more economically viable. Can the stakeholders in the sector reach fresh agreement on sustainable contracts for the near 40 million litres of milk produced every day? AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Agriculture, Business Economics, Economies of Scale, Oligopoly, European Economy, EU Farming and Fishing, Government Intervention, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Price Mechanism in Action, Teaching of Economics, UK Economy, Regional Economics, 2011-07-10T21:43:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/where-theres-muck-theres-brass http://www.tutor2u.net/blog/index.php/economics/comments/where-theres-muck-theres-brass#When:06:08:00Z I am cross-posting this from the Business Studies blog, so apologies to those who read both - but I think it is a good story for both subjects. I have changed a few of the terms and themes to cover the different emphasis for an economics student. On the face of it, this is a good end-of-term case study which is bound to raise a smirk or a grimace from most students, but actually there is a wealth of good solid theory in it. In answer to the question “What to do with 12,000 tonnes of pig poo?” a farm in Gloucestershire has taken advantage of government grants to set up their own biogas generator, which enables them not only to provide their own power for the farm and farmhouse, but also to sell about 2.2 million kilowatts of electricity each year to the National Grid, and even better, to save money on fertiliser as the by-product has been broken down into a form that can be used on the fields. Even better, the process prevents huge amounts of methane from being released into the atmosphere - apparently each year it saves the equivalent of almost 9,000 return flights from London to New York. So lots of good positive externalities there. A2 Micro, AS Micro, Agriculture, Business Economics, Environmental Economics, Government Intervention, Macroeconomic Policies, Supply-side policies, Market Failure, De-Merit Goods, Externalities, Merit & De-Merit Goods, Teaching of Economics, 2011-07-06T06:08:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/competition-plan-for-universities http://www.tutor2u.net/blog/index.php/economics/comments/competition-plan-for-universities#When:15:36:01Z Competition, AS Microeconomics, A2 MicroeconomicsSo the Universities White Paper has been published.  Words like “Competition” on news feeds instantly make me sit up and take notice.  As my Year 12s embark on their odyssey into market structures and ever more close encounters with efficiency, I think this might just be the case study of the moment.  After all its subject matter is foremost in many of their minds. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, A2 Micro, AS Micro, Behavioural Economics, Game Theory, Business Economics, Competitive Markets, Monopolistic Competition, Competition Policy, Government Intervention, Maximum Prices, Market Failure, Information Failure, 2011-06-28T15:36:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-increased-risk-of-future-shocks http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-increased-risk-of-future-shocks#When:07:05:00Z A new OECD report on the risks of external shocks to the global economy looks like being really useful for teachers preparing fresh materials for their courses. “The interconnectedness of the global economy makes it more vulnerable to major shocks…...these shocks include cyber attacks, pandemics, geomagnetic storms, social unrest and financial crises.” The report can be downloaded here. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Business Economics, Management Issues, Cycles and Shocks, Aggregate Demand, Aggregate Supply, Environmental Economics, European Economy, Global Economy, Credit Crunch, Government Intervention, Macroeconomic Policies, OECD Economies, Teaching of Economics, UK Economy, 2011-06-28T07:05:00+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/unit-1-micro-are-carbon-taxes-ineffective http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-are-carbon-taxes-ineffective#When:20:44:00Z Some evidence here from a survey of the UK business community of ineffective incentives to invest long term to reduce C02 emissions. Green taxes fail to reduce carbon emissions AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Business Economics, Environmental Economics, Government Intervention, Government Failure, Market Failure, Teaching of Economics, 2011-06-20T20:44:00+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/do-you-agree-that-the-government-should-provide-support-to-the-uk-car-indus http://www.tutor2u.net/blog/index.php/economics/comments/do-you-agree-that-the-government-should-provide-support-to-the-uk-car-indus#When:09:25:00Z This is a fairly classic A2 macroeconomics question, and one that the European Automobile Manufacturers Association has been considering at their meeting in London last week. Their conclusion? That non-European governments should scale back assistance for their own automotive industries, but at the same time governments in Europe should support the industry’s efforts to cut car emissions. A2 Macro, Emerging Economies, Business Economics, Competitive Markets, European Economy, Government Intervention, Subsidies, Macroeconomic Policies, Supply-side policies, Manufacturing Industry, 2011-06-12T09:25:00+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/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/a2-micro-competition-policy http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-competition-policy#When:10:02:00Z The aim of competition policy is promote competition; make markets work better and contribute towards improved efficiency in individual markets and enhanced competitiveness of UK businesses within the European Union single market. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Competitive Markets, Monopoly, Oligopoly, 2011-05-20T10:02:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-oligopoly-and-collusion http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-oligopoly-and-collusion#When:07:11:00Z Collusive behaviour is thought to be a common feature of many oligopolistic markets. Collusion is often explained by a desire to achieve joint-profit maximisation within a market or prevent price and revenue instability in an industry. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Oligopoly, 2011-05-20T07:11:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-oligopoly http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-oligopoly#When:07:08:00Z An oligopoly is a market dominated by a few producers. An oligopoly is an industry where there is a high level of market concentration. Examples of markets that can be described as oligopolies include the markets for petrol in the UK, soft drinks producers and the major high street banks. Another example is the global market for sports footwear – 60% of which is held by Nike and Adidas. However, oligopoly is best defined by the conduct (or behaviour) of firms within a market. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Oligopoly, 2011-05-20T07:08:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/revision-presentation-on-price-discrimination http://www.tutor2u.net/blog/index.php/economics/comments/revision-presentation-on-price-discrimination#When:20:25:00Z Our updated presentation on price discrimination is available in three formats Streamed: Handout (pdf) SCORM VLE Import (Zip File) AS and A2 Specifications, AQA Economics Unit 3, A2 Micro, Business Economics, Price Discrimination, Teaching of Economics, 2011-05-19T20:25:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/revision-presentation-on-entry-barriers http://www.tutor2u.net/blog/index.php/economics/comments/revision-presentation-on-entry-barriers#When:18:26:00Z A revised presentation on entry barriers in markets is available here in three formats Streamed presentation Handout (pdf) SCORM VLE Import (Zip File) AS and A2 Specifications, AQA Economics Unit 3, A2 Micro, Business Economics, Monopoly, Teaching of Economics, 2011-05-19T18:26:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/revision-monopsony-power-in-markets http://www.tutor2u.net/blog/index.php/economics/comments/revision-monopsony-power-in-markets#When:18:06:00Z Monopsony is an important idea in economics but not often discussed in the media – indeed there were only six references to it in the Financial Times between 2003 and 2009! But for economists wanting to understand changes in the balance of power between buyers and sellers in different markets and how this affects prices, profit margins and incentives, it is important to have an understanding of monopsony and its effects. At A2 level you will not be expected to use diagrams to show the impact of monopsony power in product markets. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Oligopoly, 2011-05-19T18:06:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/revision-profit http://www.tutor2u.net/blog/index.php/economics/comments/revision-profit#When:18:00:00Z Profit measures the return to risk when committing scarce resources to a market or industry. Entrepreneurs take risks for which they require an adequate rate of return. The higher the market risk and the longer they expect to have to wait to earn a positive return, the greater will be the minimum required return that an entrepreneur is likely to demand. Economists distinguish between different types of profit – explained below: AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Competitive Markets, Monopoly, Oligopoly, Price Discrimination, Government Intervention, Regulation, Teaching of Economics, 2011-05-19T18:00:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-economics-revision-market-structure-conduct-performance http://www.tutor2u.net/blog/index.php/economics/comments/a2-economics-revision-market-structure-conduct-performance#When:14:54:00Z This updated revision presentation is designed to help students preparing for markets-related topics on A2 economics specifications. Market Structure Conduct & Performance - revision presentation Download printable (pdf) slide handout AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Competitive Markets, Economies of Scale, Monopolistic Competition, Monopoly, Oligopoly, Price Discrimination, Competition Policy, Market Equilibrium and Price, 2011-05-19T14:54:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/high-and-low-marginal-cost-products http://www.tutor2u.net/blog/index.php/economics/comments/high-and-low-marginal-cost-products#When:10:13:00Z Marginal cost is the change in total cost from supplying an extra unit or supplying to an extra consumer. In some markets and industries there is a clear marginal cost to producing for the next user. In others, the marginal cost is negligible, bordering on zero. How might this impact on the nature of supply and pricing? AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Economies of Scale, Market Equilibrium and Price, Nature of Supply, 2011-05-19T10:13:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-consequences-of-price-discrimination http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-consequences-of-price-discrimination#When:08:25:00Z Who gains and who loses out from persistent and pervasive price targeting by businesses? To what extent does price discrimination help to achieve an efficient allocation of resources? There are many arguments on both sides of the coin – indeed the impact of price discrimination on welfare seems bound to be ambiguous. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Monopoly, Price Discrimination, 2011-05-19T08:25:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-examples-of-price-discrimination http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-examples-of-price-discrimination#When:08:22:00Z Price discrimination occurs when a business charges a different price to different groups of consumers for the same good or service, for reasons not associated with costs. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Monopoly, Price Discrimination, Market Equilibrium and Price, Nature of Demand, 2011-05-19T08:22:00+00:00