http://www.tutor2u.net/blog/index.php/economics/ en tutor2u.net Copyright 2012 2012-02-11T19:04:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-public-goods-news-clips http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-public-goods-news-clips#When:19:04:45Z A selection of recent news clips linked to the concept of public goods Flood defence Lighthouse protection Speed cameras Private prisons Fireworks in Oban AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Government Intervention, Market Failure, Public Goods, 2012-02-11T19:04:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/russias-monopoly-power-over-gas-supplies http://www.tutor2u.net/blog/index.php/economics/comments/russias-monopoly-power-over-gas-supplies#When:08:47:23Z It has been a bit chilly in the UK for the last few days, but nothing compared to the temperatures as low as -35 which have hit parts of central and eastern Europe. Of course, they are used to far colder winters than us, and have different ways of dealing with the weather, but reliance on gas supplies from Russia for the majority of their heating fuel leaves countries including Bulgaria, Serbia and Bosnia vulnerable to disruption in that supply. AS Micro, Emerging Economies, Russia Economy, Business Economics, Monopoly, Market Failure, Externalities, 2012-02-05T08:47:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-winning-the-war-on-deforestation http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-winning-the-war-on-deforestation#When:08:18:52Z Justin Rowlatt from the BBC has been investigating some of the remarkable progress being made in controlling deforestation in Brazil. The battle focuses on an area known as the “arc of destruction” and the video reports here show the impact of a government making a clear commitment to tackling the issue and backing it up with force and with incentives. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Agriculture, Emerging Economies, Development Economics, Brazil Economy, Cost Benefit Analysis, Environmental Economics, Global Economy, Government Intervention, Regulation, Teaching of Economics, 2012-02-05T08:18:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/elasticity-of-demand-on-apples-app-store http://www.tutor2u.net/blog/index.php/economics/comments/elasticity-of-demand-on-apples-app-store#When:20:40:53Z As an Apple aficionado, I regularly visit the macrumors.com site to keep up to date with the latest news about my favourite computer company, so it was interesting to see this article today looking at the effect on revenue for app producers who put their apps ‘on sale’ AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Equilibrium and Price, Elasticity of Demand, 2012-01-26T20:40:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/res-annual-essay-competition-for-students-2012 http://www.tutor2u.net/blog/index.php/economics/comments/res-annual-essay-competition-for-students-2012#When:08:54:00Z The 2012 Royal Economic Society Essay Competition for students has been launched. Details below… RES Essay Competition 2012, A2 Macro, A2 Micro, AS Macro, AS Micro, Teaching of Economics, 2012-01-25T08:54:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-can-the-uk-computer-games-industry-grow http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-can-the-uk-computer-games-industry-grow#When:22:17:37Z Britain is one of the world’s biggest exporters of creative products - from live TV shows and music to books, arts, architecture and films the economy has built up an enviable global reputation for excellence and a growing trade surplus to aid our balance of payments. Computer games falls squarely into this category but, according to TIGA - the trade association representing the UK’s games industry - unless there is renewed government support, the future of this sector is at risk. TIGA claims that the British games industry is suffering a significant ‘brain drain’ as talented programmers and artists leave the country to work abroad. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, A2 Micro, AS Micro, Business Economics, Economic Growth, Economics of Technology, GCSE Economics, Government Intervention, Subsidies, Macroeconomic Policies, Supply-side policies, Market Failure, Factor Immobility, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2012-01-24T22:17:37+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/externalities-in-action-ted-talk http://www.tutor2u.net/blog/index.php/economics/comments/externalities-in-action-ted-talk#When:21:52:43Z I’ve just found this fascinating video from the amazing TED website which is an excellent example to show how ‘the market’ can can be used to solve an external cost AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Environmental Economics, Government Intervention, Government Failure, Market Failure, Externalities, 2012-01-23T21:52:43+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-3d-printing-and-a-manufacturing-revolution http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-3d-printing-and-a-manufacturing-revolution#When:16:56:38Z Additive manufacturing or 3D printing is an emerging technology that takes product design data which provides a geometric representation of a product such as a pen and that data is then sent over to a machine that allows products to be manufactured ‘on the spot’ typically using additive materials in liquid or powder format. This TED talk from Lisa Harouni (co-founder of Digital Forming) looks at examples of intricately designed products made using this new and increasingly affordable manufacturing technology. 3D machines can build structures, build replacement parts and parts within parts - the detailed resolution possible is incredible. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Business Economics, Economies of Scale, Management Issues, Cycles and Shocks, Aggregate Supply, Economic Growth, Economics of Technology, Environmental Economics, Manufacturing Industry, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2012-01-23T16:56:38+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/video-resources-on-rising-inequality http://www.tutor2u.net/blog/index.php/economics/comments/video-resources-on-rising-inequality#When:10:24:14Z In this blog entry we will be bringing together some short video resources that might be useful when teaching and studying the economics of inequality. Please do add some more resources using the comment box at the bottom and we can add them to the listing. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 2, A2 Micro, AS Micro, Government Intervention, Market Failure, Poverty and Inequality, Standard of Living, Teaching of Economics, UK Economy, Regional Economics, 2012-01-23T10:24:14+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-illegal-logging-and-the-human-cost http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-illegal-logging-and-the-human-cost#When:07:43:53Z This news report looks at the human cost of an example of the tragedy of the commons - illegal logging in the south Philippines which contributed to tens of deaths from the effects of flash flooding. Ecosystems and economic prospects are damaged at the same time because of failures in environmental management. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Agriculture, Emerging Economies, Development Economics, Environmental Economics, Market Failure, Externalities, Information Failure, Public Goods, Teaching of Economics, 2012-01-23T07:43:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/externalities-in-song http://www.tutor2u.net/blog/index.php/economics/comments/externalities-in-song#When:16:05:24Z I was listening to the radio this morning, and ‘Big Yellow Taxi’ was playing. This led me on to an interesting idea for thinking about externalities. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Failure, Externalities, 2012-01-22T16:05:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/externalities-cartoon http://www.tutor2u.net/blog/index.php/economics/comments/externalities-cartoon#When:15:43:39Z KAL, The Economist’s cartoonist, has produced an excellent cartoon in the latest issue perfect for a discussion of a very topical externalities issue in North America. And one that has also been ‘causing tremors’ in the news over here too! AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Environmental Economics, Government Intervention, Regulation, Market Failure, Externalities, Oil and Gas, 2012-01-22T15:43:39+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-the-economics-of-solar-subsidies http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-the-economics-of-solar-subsidies#When:22:15:53Z This blog provides a link to a new prezi presentation on the economics of solar subsidies - I have been using it as part of my teaching on aspects of environmental economics for Unit 3 AQA but it might also be useful for unit 1 market failure. I have kept theoretical diagrams out of it and plan to build up relevant analytical concepts such as economies of scale, consumer subsidies, economic and social welfare, government failure et al on a normal whiteboard rather than embed them into the Prezi. I hope it is useful. Follow the tags at the bottom of the blog entry for more recent articles on solar subsidies such as feed-in-tariffs and other environmental economic resources. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Cost Benefit Analysis, Environmental Economics, European Economy, Government Intervention, Subsidies, Market Failure, Merit & De-Merit Goods, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Price Mechanism in Action, Teaching of Economics, UK Economy, 2012-01-18T22:15:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit1-micro-processed-meat-and-cancer-risk-information-failure http://www.tutor2u.net/blog/index.php/economics/comments/unit1-micro-processed-meat-and-cancer-risk-information-failure#When:21:55:28Z I do my level best to avoid the processed meat aisles in the supermarkets - or at least the lower end of what is on offer (I remember once the 5pence sausage that was a guaranteed 2 per cent pork!). But perhaps excessive consumption of processed meats - much of which finds a way into the traditional Full-English might be doing people much more harm than good? Follow this BBC news report for more details. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Cost Benefit Analysis, GCSE Economics, Health Economics, Market Failure, Information Failure, Merit & De-Merit Goods, Market Equilibrium and Price, Nature of Demand, 2012-01-17T21:55:28+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/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/unit1-micro-can-a-minimum-wage-create-jobs http://www.tutor2u.net/blog/index.php/economics/comments/unit1-micro-can-a-minimum-wage-create-jobs#When:00:02:34Z Tim Harford has a piece in his regular column in the Financial Times which discusses some of the issues surrounding the minimum wage and whether a legal pay floor can actually create jobs. Here is the link AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Government Intervention, Minimum Prices, Labour Market, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, Unemployment, 2012-01-17T00:02:34+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-revision-workshops-in-2011-12 http://www.tutor2u.net/blog/index.php/economics/comments/economics-revision-workshops-in-2011-12#When:07:35:24Z The dates for our popular Unit 2 & Unit 4 Economics revision workshops in Spring 2012 are now confirmed: Provisional bookings for these revision workshops can now be made using the following form: The dates and locations are shown below: A2 Macro, A2 Micro, AS Macro, AS Micro, Teaching of Economics, 2012-01-16T07:35:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/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/the-futures-not-so-bright-for-oranges http://www.tutor2u.net/blog/index.php/economics/comments/the-futures-not-so-bright-for-oranges#When:17:03:32Z This week, the price of orange juice concentrate on the global market hit a record high, reaching $2.12 (£1.38) a pound (0.45kg). AS Micro, Market Equilibrium and Price, Elasticity of Demand, Nature of Demand, Nature of Supply, Price Mechanism in Action, 2012-01-13T17:03:32+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-3-micro-prezi-on-environmental-economics http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-prezi-on-environmental-economics#When:07:09:51Z This term I am teaching some environmental economics to my A2 groups. The link below provides access to a Prezi on aspects of environmental issues such as the Tragedy of the Commons and the economics of waste and pollution. I will be updating and extending the Prezi as I develop the lessons. I hope that it is useful. I will try to include as many examples as I can on European and Global issues to do with environmental issues - the beauty of a Prezi of course is the flexibility of ordering course materials and the chance to embed lots of vivid You Tube clips and images into the resource. 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, Environmental Economics, Global Economy, Government Intervention, Market Failure, Externalities, Public Goods, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, 2012-01-11T07:09:51+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/revision-evaluation-skills http://www.tutor2u.net/blog/index.php/economics/comments/revision-evaluation-skills#When:15:06:12Z Here is a short revision presentation on evaluation skills for AS and A2 economics questions which we produced a couple of years ago which might still be useful for the forthcoming exams. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 2, AQA Economics Unit 3, AQA Economics Unit 4, Economics Presentations, EdExcel Economics Unit 1, EdExcel Economics Unit 2, EdExcel Economics Unit 3, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, OCR AS Economics Unit F581, OCR AS Economics Unit F582, A2 Macro, A2 Micro, AS Macro, AS Micro, Teaching of Economics, 2012-01-10T15:06:12+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/exam-advice-10-ideas-for-a-better-economics-paper http://www.tutor2u.net/blog/index.php/economics/comments/exam-advice-10-ideas-for-a-better-economics-paper#When:14:38:22Z Here are some thoughts on ways to improve your scores on your summer economics exam papers. They are in no particular order but I hope some of them might be useful Ten Thoughts on Improving Your Economics Papers Streamed presentation PDF handout version AS and A2 Specifications, Economics Q&A, Economics Exam Advice, A2 Macro, A2 Micro, AS Macro, AS Micro, Teaching of Economics, 2012-01-10T14:38:22+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-revision-mc-questions-on-public-and-private-goods http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-revision-mc-questions-on-public-and-private-goods#When:13:41:06Z Here is a quick revision multiple choice quiz on public and private goods created using Zondle AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Failure, Public Goods, 2012-01-09T13:41:06+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-revision-mc-questions-on-negative-externalities http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-revision-mc-questions-on-negative-externalities#When:13:39:52Z Here is a quick and short revision quiz on negative externalities created usign Zondle AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Failure, Externalities, 2012-01-08T13:39:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-amd-a2-economics-10-ways-to-improve-evaluation http://www.tutor2u.net/blog/index.php/economics/comments/as-amd-a2-economics-10-ways-to-improve-evaluation#When:06:01:12Z AQA, EdExcel, OCR Economics Evaluation, revision, As students build their revision efforts ahead of the impending A Level Economics units, here is an updated version of my revision document on evaluation skills for AS and A2 economists… AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 2, AQA Economics Unit 3, AQA Economics Unit 4, EdExcel Economics Unit 1, EdExcel Economics Unit 2, EdExcel Economics Unit 3, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, OCR AS Economics Unit F581, OCR AS Economics Unit F582, A2 Macro, A2 Micro, AS Macro, AS Micro, Teaching of Economics, 2012-01-04T06:01:12+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-prezi-on-the-economics-of-negative-externalities http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-prezi-on-the-economics-of-negative-externalities#When:01:42:13Z This blog provides a link to a constantly updated revision Prezi on negative externalities and market failure - designed for students taking AS Microeconomics Unit 1 and those studying externalities for the IB Diploma. The Prezi contains lots of short news videos on examples of externalities. Click on the link below to access the Prezi. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Environmental Economics, Government Intervention, Government Failure, Indirect Taxes, Regulation, Market Failure, Externalities, Information Failure, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, 2012-01-03T01:42:13+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-externalities-from-metal-theft http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-externalities-from-metal-theft#When:20:42:02Z If a criminal steals metal from a building yard or a jewellers the impact is relatively isolated but when metal theft extends to lifitng metal from roofs, railway lines and many other public buildings, thousands are inconvenienced and left to pay the cost - negative externalities are clear. This news report from Al Jazeera looks at the growing economic and social problem of metal theft in London and a second video report from Channel 4 news looks at the external costs of copper theft from cables on the rail network that delays services and puts lives at risk. What are the best options for dealing with this crime epidemic? The Met Police has set up a specialist metal theft unit as part of their response. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Government Intervention, Market Failure, Externalities, Teaching of Economics, UK Economy, Regional Economics, 2012-01-02T20:42:02+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/unit-1-micro-biomass-subsidies-and-timber-prices http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-biomass-subsidies-and-timber-prices#When:20:55:09Z If you are a fan of laminate flooring, wood panelled walls or neat wood-based fencing for the garden, the chances are that you will be paying higher prices in the years ahead. Despite the Britain offering a temperate climate for a plentiful supply of wood and a well organised system of land registry and plantation management, the UK market price of different types of timber has shot up over the last two years. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Commodities Markets, Cost Benefit Analysis, Environmental Economics, Government Intervention, Government Failure, Market Failure, Market Equilibrium and Price, Nature of Demand, Price Mechanism in Action, Inter-related Markets, Teaching of Economics, 2011-12-30T20:55:09+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-a-world-of-seven-billion-people http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-a-world-of-seven-billion-people#When:16:37:16Z Fergus Walsh from the BBC provides this really clear video info graphic on the expanding global population estimated to have exceeded seven billion during 2011 and forecast to rise to eight billion by 2025. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, A2 Micro, AS Micro, Emerging Economies, Demography, Poverty and Inequality, 2011-12-30T16:37:16+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-supply-shortages-drive-peanut-prices-higher http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-supply-shortages-drive-peanut-prices-higher#When:11:31:19Z Supply shortages in key growing regions have caused the price of peanuts to surge to record highs. Peanut prices in Europe are 60% higher than a year ago and the cost of peanuts in the USA has more than doubled in the last twelve months. The price spike is the result of lower production from India, Argentina and the United States. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Agriculture, Commodities Markets, Market Equilibrium and Price, Nature of Supply, Price Volatility, 2011-12-29T11:31:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-video-clips-on-negative-production-externalities http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-video-clips-on-negative-production-externalities#When:09:39:06Z This blog entry provides a variety of news video clips illustrating examples of negative externalities from production. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Environmental Economics, Market Failure, Externalities, 2011-12-29T09:39:06+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/european-economics-resources-on-the-cap http://www.tutor2u.net/blog/index.php/economics/comments/european-economics-resources-on-the-cap#When:19:47:30Z This blog entry will provide a regularly updated set of links to resources to the European Union’s Common Agricultural Policy and attempts to reform this contentious and complex system of farm support. Check below for suggested links AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Micro, AS Micro, Agriculture, Emerging Economies, Commodities Markets, European Economy, EU Farming and Fishing, Government Intervention, Buffer Stocks, Government Failure, OECD Economies, French Economy, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, UK Economy, Regional Economics, 2011-12-28T19:47:30+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/what-is-the-socially-optimal-level-of-concerts-in-hyde-park http://www.tutor2u.net/blog/index.php/economics/comments/what-is-the-socially-optimal-level-of-concerts-in-hyde-park#When:12:52:11Z It seems those fortunate enough to live next to Hyde Park are increasingly bothered by the negative externalities arising from the concerts put on there. This BBC article is a good illustration of the difficulties involved at arriving at a socially-optimal level of production. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, OCR AS Economics Unit F581, A2 Micro, AS Micro, Cost Benefit Analysis, Government Intervention, Government Failure, Regulation, Market Failure, Externalities, UK Economy, Regional Economics, London Economy, 2011-12-23T12:52:11+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/great-blog-to-follow-joseph-rowntree-foundation http://www.tutor2u.net/blog/index.php/economics/comments/great-blog-to-follow-joseph-rowntree-foundation#When:12:33:53Z If you are at all interested in the latest research findings in the domains of poverty, inequality, economic and social exclusion and the social impact of government policies, the Joseph Rowntree Foundation website is highly recommended. In this particular blog the JRF provide a revealing list of things that they have found during the course of 2011 - there is some excellent background evidence here for AS and A2 students wanting data to support their work on poverty and inequality and social trends in the UK. You can also follow the JRF on Twitter - use this link AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Poverty and Inequality, Standard of Living, Teaching of Economics, Teaching Opportunities, UK Economy, 2011-12-22T12:33:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-sub-normal-profits-bp-leaves-the-solar-industry http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-sub-normal-profits-bp-leaves-the-solar-industry#When:09:32:16Z British Petroleum has decided to exit the solar energy energy industry claiming that the business has become unprofitable because of excess supply and falling prices. In 2011 a number of solar firms have gone out of business including California’s Solyndra and Germany’s Solon. BP will focus instead on investing in other renewable energy sectors including wind power and biofuels. Whilst the decision by BP to exit the industry appears significant, infact total global investment in solar power continues to rise. MidAmerican Energy Holdings owned by Warren Buffett have agreed to purchase a $2 billion solar project under development in California and a 49 percent stake in a $1.8 billion plant in Arizona. Google Inc. and KKR & Co have announced a joint venture to pump money in four California solar power plants with total capacity of 88 megawatts. The powerful search engine business uses a huge anount of energy every year and has committed itself to large scale investment in renewable energy supplies to help power their server farms.   AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Cost Benefit Analysis, Environmental Economics, Government Intervention, Subsidies, Market Failure, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Teaching of Economics, 2011-12-21T09:32:16+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-of-deforestation http://www.tutor2u.net/blog/index.php/economics/comments/economics-of-deforestation#When:16:53:58Z The Human Development Report 2011 reported that deforestation is a severe problem. In the last two decades, Latin American and Sub-Saharan Africa have experienced severe forest losses, especially when compared to the rest of the world. For economists the economic and social costs of rapid deforestation represent a telling example of the tragedy of the commons where the pursuit of individual self-interest can risk a permanent destruction of natural resources that undermines the sustainability of communities and societies for current and future generations. The United Nations calculates that deforestation and degradation is responsible for nearly 20 per cent of global greenhouse gas emissions. Will the REDD programme make a difference? REDD stands for Reducing Emissions from Deforestation and Forest Degradation in Developing Countries and is designed to provide financial incentives funded by advanced nations for developing countries to preserve their forests and instead invest in low-carbon paths to sustainable development. The UN estimates financial flows of up to $30bn could come from REDD and related initiatives - the scheme effectively allows rich countries to offset their carbon emissions from domestic industries and consumers by funding clean low-carbon development projects in developing countries. But it is highly controversial and opposed by many organisations such as Friends of the Earth and the World Rainforest Movement. In this blog we have put together some web resources on the issue of deforestation - focusing on causation, consequences and also on some of the policy approaches that might work to bring about behavioural change. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, A2 Micro, AS Micro, Agriculture, Emerging Economies, African Economy, Development Economics, Brazil Economy, Commodities Markets, Cost Benefit Analysis, Economic Growth, Environmental Economics, Global Economy, Government Intervention, Market Failure, Externalities, Public Goods, Teaching of Economics, 2011-12-20T16:53:58+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-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/prezi-on-information-failures http://www.tutor2u.net/blog/index.php/economics/comments/prezi-on-information-failures#When:08:46:03Z Click below to open a new Prezi on aspects of information failures / gaps and market failure together with some of the interventions that might be used to address imfornation imperfections in many markets. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, Economics Q&A, Q&A - Market Failure, A2 Micro, AS Micro, Government Intervention, Regulation, Market Failure, Information Failure, Merit & De-Merit Goods, Market Equilibrium and Price, Teaching of Economics, 2011-12-20T08:46:03+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-empty-housing-and-economic-efficiency http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-empty-housing-and-economic-efficiency#When:11:08:50Z Channel 4 recently focused on the causes and effects of the hundreds of thousands of empty homes in the United Kingdom. Why is it given persistent shortages of affordable housing that perhaps a million homes lie empty and unused whilst an estimated two million families are in severe housing needs. New housebuilding has collapsed and in Britain we are building 100,000 fewer new houses every year than we need just to keep up with the changing mix of households and demographic change. An interesting exercise is to show students some of the Channel 4 Campaign videos and then get them to put together policy ideas as to how to reduce the volume of empty homes and reduce the length of housing waiting lists. Links to some of the Channel 4 videos can be accessed below: AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, GCSE Economics, Housing Economics, Government Intervention, Regulation, Subsidies, Introductory Economics, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Standard of Living, Teaching of Economics, UK Economy, Regional Economics, London Economy, 2011-12-15T11:08:50+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-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-1-micro-50-years-since-the-end-of-the-max-wage-in-football http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-50-years-since-the-end-of-the-max-wage-in-football#When:13:51:22Z Around this time of my micro course my students look at maximum prices (price ceilings) in different markets. There are still plenty of contemporary examples to consider, for example salary caps for executives, caps on the cost of mobile phone texts and roaming charges, rent ceilings etc. But here is a resource that will be of special interest to football-loving economists, namely the 50th anniversary of the ending of the maximum wage in football. The Independent has this nifty set of graphics looking at landmarks in wages of top footballers over the years. Click on: The maximum wage and football’s money trail AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Government Intervention, Maximum Prices, Labour Market, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, 2011-11-23T13:51:22+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/government-plans-to-boost-the-housing-market http://www.tutor2u.net/blog/index.php/economics/comments/government-plans-to-boost-the-housing-market#When:11:55:04Z The Government has announced today a scheme to help first time buyers on to the property ladder. It has been reported widely in the press with mixed reactions. The BBC article outlines the main proposals (here is the link to The Daily Telegraph). It is interesting from a political point of view that this government should chose to intervene in this market, though perhaps we should not be too surprised as it was the Conservatives that brought in the ‘Right to Buy’ legislation in 1980. AS and A2 Specifications, AS Micro, Housing Economics, Government Intervention, Government Failure, Regulation, Market Failure, Information Failure, Market Equilibrium and Price, Elasticity of Demand, Elasticity of Supply, Nature of Demand, Nature of Supply, Price Mechanism in Action, 2011-11-21T11:55:04+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/pasty-prices-something-to-chew-over http://www.tutor2u.net/blog/index.php/economics/comments/pasty-prices-something-to-chew-over#When:13:53:49Z I am trying to get my head around this example of pasty prices that I encountered at Waterloo Station on Tuesday night. The vendor is selling a large pasty for £3.90 and “The Big One” for £4.00 - a difference of just ten pence? Why not charge more? Or at least cut the price of the large pasty to something like £3.30 to encourage people to pay the £4.00 option? Am I missing something here? I asked the guy running the concession “what is the difference between the large pasty and the big one?” His cogent reply put me right “The big one is bigger!” I bought the large pasty because as far as I can see, there is no difference in size. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Market Equilibrium and Price, Nature of Demand, Teaching of Economics, 2011-11-19T13:53:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/applications-of-elasticity http://www.tutor2u.net/blog/index.php/economics/comments/applications-of-elasticity#When:12:11:05Z Once students have understood the theory of the different elasticities, an important progression is being able to apply it to different markets. One exercise that I use with my iGCSE and AS groups is as follows: AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Equilibrium and Price, Elasticity of Demand, Elasticity of Supply, 2011-11-18T12:11:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/lse-lecture-daniel-kahneman-thinking-fast-and-slow http://www.tutor2u.net/blog/index.php/economics/comments/lse-lecture-daniel-kahneman-thinking-fast-and-slow#When:18:33:48Z This is a blog drawing on a lecture at the LSE with Professor Richard Layard in discussion with Nobel winner Daniel Kahneman! AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Behavioural Economics, Market Failure, Teaching of Economics, 2011-11-15T18:33:48+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-asymmetric-information-buying-a-used-car http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-asymmetric-information-buying-a-used-car#When:10:17:29Z An autumnal hat tip to Kevin Hinde at Durham Business School for spotting a new report from the Office of Fair Trading which finds that the market for second-hand, used cars remains the biggest source of complaints from customers. Nationally over 56,000 people have complained to the OFT-managed Consumer Direct in the year to date with 70 per cent of the complaints relating to faults with the cars and over 13 per cent about misleading claims or omissions by the seller. The used car market is a classic example of asymmetric information and the risks of consumer welfare being damaged by fraudulent selling and sub-standard service. The OFT have released a short film on customer rights that might be a good teaching resource to use when covering this topic. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, A2 Micro, AS Micro, Government Intervention, Market Failure, Information Failure, Market Equilibrium and Price, Nature of Demand, Teaching of Economics, Transport Economics, 2011-11-14T10:17:29+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/lse-lecture-darwin-economy http://www.tutor2u.net/blog/index.php/economics/comments/lse-lecture-darwin-economy#When:22:36:54Z Last week I took some of my pupils to the LSE for Professor Robert Frank on “Liberty, Competition and the Common Good: The Darwin Economy”, chaired by Paul Mason. Frank’s book is about the fact that Charles Darwin understanding of competition offers a better guide to economic reality than Adam Smith and rational choice theory. Smith’s view is putting us all at risk by preventing us from seeing that competition alone will not solve our problems. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Behavioural Economics, Game Theory, Market Failure, Externalities, Teaching of Economics, 2011-11-13T22:36:54+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/edexcel-unit-1-marking-exercise http://www.tutor2u.net/blog/index.php/economics/comments/edexcel-unit-1-marking-exercise#When:23:20:38Z When it comes to answering data-response questions, my students regularly make the same mistakes- in particular not evaluating their answers when required. Hopefully this activity will help to teach them the importance of evaluation, and what it actually means. AS and A2 Specifications, EdExcel Economics Unit 1, AS Micro, Agriculture, 2011-11-12T23:20:38+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/behavioural-economics-bittersweet-symphony-the-psychology-of-food http://www.tutor2u.net/blog/index.php/economics/comments/behavioural-economics-bittersweet-symphony-the-psychology-of-food#When:08:46:09Z Last night I attended a discussion with Professor Charles Spence, Head of the Crossmodal Research Laboratory at the Department of Experimental Psychology, Oxford University. He was speaking about the psychology of food, and his work with Heston Blumenthal at the Fat Duck. It was a tremendously entertaining and revealing talk about the ways in which top chefs are embracing ideas from psychology and neuroscience in creating new products and experiences. But how many of the innovations will find their way into the everyday meals that we eat rather than the ‘once in a lifetime’ conspicuous consumption of a meal at a Michelin-starred restaurant? Constant trial and error from Chefs in charge of their own destiny is a world away from the financial imperatives and constraints of the mass-volume industrial food processing businesses. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Behavioural Economics, Teaching of Economics, 2011-11-08T08:46:09+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/some-mock-questions-on-the-rice-market http://www.tutor2u.net/blog/index.php/economics/comments/some-mock-questions-on-the-rice-market#When:22:07:33Z A few weeks ago Mo Tanweer spotted and posted a story about Thailand’s government introducing a new minimum price scheme for rice farmers.  Over half-term, I set my AS class the task of creating some exam questions based around this article.  Here’s the outcome. AS Micro, 2011-11-06T22:07:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-has-the-time-come-for-a-tobin-tax http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-has-the-time-come-for-a-tobin-tax#When:15:22:26Z This week I am setting my AS micro students a question on proposals for a Tobin Tax - partly because it is hugely topical and also as a way of developing their evaluation skills on paper and coming to a reasoned final conclusion. Here are some of the links to suggested reading and some video shorts on this topic: AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 2, EdExcel Economics Unit 1, EdExcel Economics Unit 2, AS Macro, AS Micro, European Economy, The Euro, Financial Markets, Global Economy, Government Intervention, Indirect Taxes, OECD Economies, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, 2011-11-06T15:22:26+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-luxury-goods-in-action http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-luxury-goods-in-action#When:14:02:45Z Have you got £40,000 or £50,000 to spare on a Christmas present? A hat tip to Freddie Drapkin for spotting these examples of products perfectly suited to status races and ostentatious consumption! Glass pool table (£39,000) £45,000 -  luxury table football table World’s largest jigzaw puzzle (£200) And for the lazy tea drinkers among you - try this! AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Equilibrium and Price, Elasticity of Demand, Nature of Demand, Teaching of Economics, 2011-11-06T14:02:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-positive-and-negative-externalities-aqa http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-positive-and-negative-externalities-aqa#When:21:25:07Z At an AQA online AS feedback session this afternoon there was a suggestion that demerit goods should only be shown with negative externalities in consumption, i.e. with a divergence between marginal private benefits and marginal social benefits. Whilst the mark scheme currently accepts both this and external costs for explaining a demerit good, it was suggested that this would be changing to only allow the consumption (dis-benefits) issue. AS and A2 Specifications, AQA Economics Unit 1, AS Micro, Market Failure, De-Merit Goods, Externalities, 2011-11-03T21:25:07+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-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/tour-of-the-us-income-distribution-the-l-curve http://www.tutor2u.net/blog/index.php/economics/comments/tour-of-the-us-income-distribution-the-l-curve#When:07:52:08Z Everyone knows about the Lorenz Curve but with the OWS events of late I came across the ‘L Curve”. The red line represents a graph of family income across the population. The height of the curve at any point is the height of a stack of $100 bills equalling that income. On the scale of the football field graph shown here the bottom 99% of the population measure their incomes in inches.  The top 1% measure their incomes as stacks of $100 bills feet or even miles high!  The total wealth of the few people in the vertical spike equals the total wealth of the rest of the population combined. 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, Emerging Economies, OECD Economies, US Economy, Poverty and Inequality, Standard of Living, Teaching of Economics, 2011-10-25T07:52:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/university-fees-and-elasticity http://www.tutor2u.net/blog/index.php/economics/comments/university-fees-and-elasticity#When:10:12:19Z When teaching price elasticity of demand, here is a good article on the BBC today on the effect of higher university fees on demand for higher education. Good for discussion of how PED will differ with respect to different types of consumer and for different types of universities, as well as the cross price elasticity of demand with foreign universities. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Labour Market, Market Equilibrium and Price, Elasticity of Demand, Nature of Demand, Teaching of Economics, UK Economy, 2011-10-24T10:12:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-economists-attack-food-price-speculation http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-economists-attack-food-price-speculation#When:08:36:54Z Food prices are now rising by up to 10% a year in Britain and Europe and a new forecast from the United Nations predicts that prices can be expected to rise at least 40% in the next decade. Whilst conventional theories of changes in supply and demand conditions can be used to explain some of the increase in food prices, many economists are concerned that speculation by hedge funds and other investors has amplified the natural volatility of prices driving food prices away from fair values and contributing to a huge rise in global food poverty and hunger. These days, cocoa, fruit juices, sugar, staples, meat and coffee are all now global commodities, along with oil, gold and metals. Is this the moment to legislate to limit the scope for speculative activity in food markets? The video below provides an excellent introduction to speculation in food markets - it features Neil Kellard, Professor in Finance at the University of Essex AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, OCR A2 Economics Unit F585, AS Micro, Agriculture, Balance of Payments, Emerging Economies, Development Economics, Commodities Markets, Economic Growth, Financial Markets, Government Intervention, Buffer Stocks, Poverty and Inequality, Market Equilibrium and Price, Price Mechanism in Action, Price Volatility, Teaching of Economics, 2011-10-24T08:36:54+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/alcohol.-discuss http://www.tutor2u.net/blog/index.php/economics/comments/alcohol.-discuss#When:17:33:03Z This is a great article from the BBC magazine which could equally be used in PSHE discussions - there is a distinct danger that that a class debate on some of the topics introduced here could spill well outside a typical market failure lesson – but that may not be such a bad thing! AS Micro, Market Failure, Externalities, Information Failure, 2011-10-18T17:33:03+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/from-harrods-to-poundland http://www.tutor2u.net/blog/index.php/economics/comments/from-harrods-to-poundland#When:21:20:05Z Here is a nice example to illustrate the varying effects of the recession on the economy… A growing influx of high-spending foreign tourists powered Harrods through the £1bn sales barrier for the first time… whilst Poundland has also has reported a 26 per cent boost in revenues to £642m. A good example to use in discussion of goods and services that have different income elasticities of demand. Read the article at the FT here. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Equilibrium and Price, Elasticity of Demand, Teaching of Economics, 2011-10-17T21:20:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-world-food-day http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-world-food-day#When:19:33:04Z Here is one of the short information videos launched by the World Bank on the occasion of World Food Day - excellent as an introduction to the economics of high and volatile world food prices. Every night, 1 billion people go to bed hungry because food is too expensive. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 4, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, A2 Micro, AS Macro, AS Micro, Agriculture, Emerging Economies, Development Economics, Commodities Markets, Global Economy, Government Intervention, Buffer Stocks, Market Failure, Poverty and Inequality, Standard of Living, Teaching of Economics, 2011-10-16T19:33:04+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-copper-prices-and-a-copper-crime-wave http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-copper-prices-and-a-copper-crime-wave#When:19:18:58Z This Fact Check piece from the Channel 4 web site is superb background on the growing scale of copper thefts and also the economics of incentives when it comes to crime. One to read perhaps if and when your train home is delayed because local hoodlums have lifted some copper wiring from Network Rail! According to the feature, “At its peak of $10,000 a tonne in February 2011, copper was worth more than seven times what it was in 2001 – $1,425 a tonne, according to figures from the London Metal Exchange.” FactCheck: Why copper theft is the perfect crime AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Macroeconomic Policies, Monetary Policy, Market Failure, Teaching of Economics, 2011-10-10T19:18:58+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/hard-choice-in-kenya http://www.tutor2u.net/blog/index.php/economics/comments/hard-choice-in-kenya#When:09:24:46Z This short video report from Will Ross for the BBC from the island of Lamu, considers a number of economic concepts. AS and A2 Specifications, AQA Economics Unit 1, AS Macro, AS Micro, Balance of Payments, Emerging Economies, African Economy, Cost Benefit Analysis, Cycles and Shocks, Government Intervention, International Trade, Market Equilibrium and Price, Nature of Demand, 2011-10-10T09:24:46+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/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/fuel-for-thought http://www.tutor2u.net/blog/index.php/economics/comments/fuel-for-thought#When:14:08:49Z When teaching elasticities, fuel always seems to have been a favourite example of a good with very inelastic demand in response to price changes.  However, this AA research adds further to the evidence that suggests that even fuel has now reached it’s limit in terms of quantity demanded remaining firm at it’s market price. AS Micro, Cycles and Shocks, Aggregate Demand, Global Economy, Credit Crunch, Inflation and Deflation, Macroeconomic Policies, Monetary Policy, 2011-10-05T14:08:49+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-tube-drivers-set-to-earn-50000-a-year http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-tube-drivers-set-to-earn-50000-a-year#When:18:34:50Z In these times of austerity, job insecurity and falling real incomes, tube drivers in London appear to have on the table a relatively generous-looking offer from their employers London Underground. A four year pay deal will be put to union members that could take the gross pay of Tube drivers, currently around £46,000, to over £50,000, while some staff could receive a £10,000 pay rise over the four years. Union density has been falling for a long period in the British economy as a whole but remains high for drivers most of whom are members of Rail Maritime and Transport union under their media savvy leader Bob Crow. The tube drivers would appear to have genuine clout in their collective bargaining negotiations especially with the London 2012 Olympics less than a year away. The authorities will be desperate to avoid or at least minimise the risk of industrial action as the Games come into focus and the eyes of the world are on the capital. In return for agreeing to temporary changes to existing working arrangements during the Games, all train drivers employed by LU will receive a one-off payment of £500. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, A2 Micro, AS Micro, Labour Market, Trade Unions, 2011-10-03T18:34:50+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/changing-consumer-behaviour-taxing-saturated-fat http://www.tutor2u.net/blog/index.php/economics/comments/changing-consumer-behaviour-taxing-saturated-fat#When:21:22:11Z The government in Denmark, has introduced additional taxes on foods which contain more than 2.5% saturated fat. It will add 25p on packets of butter, 8p on crisps. This BBC news clip introduces this new fiscal measure. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 2, EdExcel Economics Unit 1, EdExcel Economics Unit 2, OCR AS Economics Unit F581, OCR AS Economics Unit F582, AS Macro, AS Micro, Cycles and Shocks, Aggregate Demand, Consumer Spending, Market Failure, Standard of Living, UK Economy, Recession Watch, 2011-10-02T21:22:11+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/the-cure-for-economic-slowdown-drive-faster http://www.tutor2u.net/blog/index.php/economics/comments/the-cure-for-economic-slowdown-drive-faster#When:06:38:34Z This is the headline used by Reuters in their report of the government Transport Secretary’s proposal that the speed limit on motorways should be raised from 70 to 80mph. The justification for the proposal is largely that, when the limit was introduced, cars were less safe than they are now, and that technical improvements have made 80mph a safe speed at which to travel. Other arguments include the desire to conform with the higher motorway speed limits in Europe, which are generally higher than in the UK, and also the fact that many drivers do drive at between 70 and 80 on motorways anyway and tend not to be fined for it, so the law may as well be amended to keep up with actual behaviour. A2 Micro, AS Micro, Behavioural Economics, Environmental Economics, Government Intervention, Government Failure, Market Failure, Transport Economics, 2011-10-01T06:38:34+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-coast-guard-protection-and-moral-hazard http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-coast-guard-protection-and-moral-hazard#When:12:08:00Z A hat tip to Mark Seccombe for spotting this fine piece of economics writing from the New York Times economics blog. Casey Mulligan explores the question of whether the US coast guard should enforce that boats install safety beacons as a way of cutting the number of incidents they are required to attend. Does providing a safety-net regardless of whether participants have covered the cost of providing themselves with basic safety equipment lead to a problem of moral hazard? Has mandatory safety belts in cars led to a reduction in the quality of driving? Would compulsory air bags do the same? When is the state justified in applying and enforcing stringent safety requirements on people and businesses as they go about their daily lives? AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Cost Benefit Analysis, Government Intervention, Regulation, Market Failure, Public Goods, Teaching of Economics, 2011-09-29T12:08:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-the-supply-and-demand-rap http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-the-supply-and-demand-rap#When:16:15:00Z An Indian Summer hat tip to John owen for finding and flagging up this super student-produced rap exploring the idea of equilibrium price! A great one to show to the Year 12s as they delve into price theory! Click on the link below AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, 2011-09-28T16:15:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-smoking-and-externalities http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-smoking-and-externalities#When:21:30:00Z I found this entertaining video on the Economics pop culture website - it might be a good resource to use when teaching the externalities of smoking! AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Failure, Externalities, Teaching of Economics, 2011-09-27T21:30:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-exercise-on-equilibrium-market-prices http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-exercise-on-equilibrium-market-prices#When:19:17:00Z I have produced a classroom exercise on changing conditions of supply and demand and how they might affect equilibrium prices. This is available to download as a pdf file using the link below. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Price Mechanism in Action, Teaching of Economics, 2011-09-27T19:17:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-drink-driving-and-government-intervention http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-drink-driving-and-government-intervention#When:18:14:01Z A culture of drink-driving has been a scourge in many countries for decades. The human and economic cost of lives lost and wrecked by motorists driving under the influence of alcohol is huge and most governments have introduced a range of interventions designed to change the incentives facing drivers. But which ones have most impact? AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Government Intervention, Regulation, Market Failure, Information Failure, Teaching of Economics, Transport Economics, 2011-09-26T18:14:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-exercise-on-market-supply http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-exercise-on-market-supply#When:17:52:00Z This is an exercise to test understanding of the conditions of supply in markets. You can download the resource by clicking below. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Equilibrium and Price, Nature of Supply, Teaching of Economics, 2011-09-26T17:52:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-exercise-on-market-demand http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-exercise-on-market-demand#When:19:33:00Z I have attached in this blog a quick exercise on the determinants of market demand. There are twenty examples and students are asked to identify whether there is a movement or a shift in the demand curve and in which direction. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Market Equilibrium and Price, Nature of Demand, Teaching of Economics, 2011-09-25T19:33:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-sleep-money-happiness-and-choices http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-sleep-money-happiness-and-choices#When:09:27:00Z Autumn is arriving here in the UK. I cannot have been alone in finding it tough to drag myself out of bed on Friday morning to teach at the end of a tiring week. The marginal utility of an extra hour under a comfy duvet was so appealing, fortunately so too was the prospect of discussing the Greek debt crisis! Here is an interesting choice to put in front of your students - sure to prompt discussion. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Behavioural Economics, Introductory Economics, Teaching of Economics, 2011-09-25T09:27:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-division-of-labour http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-division-of-labour#When:22:25:00Z The division of labour occurs where production is broken down into many separate tasks. Division of labour raises output per person as people become proficient through constant repetition of a task – “learning by doing”. This gain in productivity helps to lower cost per unit and ought to lead to lower prices for consumers. But there are obvious limits to the division of labour. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Introductory Economics, 2011-09-22T22:25:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/supply-demand-lessons-from-dan-ackroyd-and-eddie-murphy http://www.tutor2u.net/blog/index.php/economics/comments/supply-demand-lessons-from-dan-ackroyd-and-eddie-murphy#When:10:49:00Z This is my first post on to the Economics blog as we kick off with our first offering of AS Economics at my current school this year.  It’s inpsired by the series of ‘Economics at the Movies’ posts.  I’m a big fan of the film ‘Trading Places’ so when we reached the point of looking at supply and demand together, creating market equilibrium and market disequilibrium, I used part of the film to discuss and demonstrate these concepts. AS Micro, 2011-09-19T10:49:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/scarce-resources-immigration-and-the-nhs http://www.tutor2u.net/blog/index.php/economics/comments/scarce-resources-immigration-and-the-nhs#When:07:35:00Z Our first few lessons with the new AS Economics students this year were based on the excellent NHS resources suggested by Ben Cahill and Geoff. The class discussion that these generated was terrific, with the students coming up with a wide range of ideas and questions that led us through many aspects which they will cover in depth over the next two years. One issue was the scarcity of qualified doctors, and the opportunity that immigrant labour gives to increase the ‘labour’ factor of production, and so shift the production possibility boundary to the right - which also touched on regulation in terms of ensuring that doctors who have qualified abroad do match up to the high entry requirements and depth of study for UK medical students. So it will be interesting to discuss with that group today, reports on the BBC this morning that the General Medical Council is concerned that doctors who qualify abroad need more support and induction training on arrival in the UK. One third of the doctors employed in the NHS qualified abroad. Without them, queues for the services the NHS provides would be much longer and we rely on them to expand the capacity of the service. The GMC’s report draws on a wide range of data including doctors’ surveys and patients’ complaints, and concludes that many overseas doctors have problems adjusting to a different cultural, ethical and professional environment in the UK. One example is the regulation by which the NHS is prevented under European law from providing language checks on doctors from the EEA. The reports also say that doctors need help in understanding how the NHS actually works, its structure and the interrelationships of the different bodies within the service. It seems pretty extraordinary that an employer which employs 89,000 staff from overseas would not have thought of offering basic induction training when those staff first arrive - but putting that to one side, hopefully now that the issue has been raised, the employer will find use of resources to provide that training more efficient than dealing with the patient complaints and difficulties that the absence of the training creates AS Micro, Health Economics, 2011-09-16T07:35:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/study-note-the-basic-economic-problem-scarcity-and-choice http://www.tutor2u.net/blog/index.php/economics/comments/study-note-the-basic-economic-problem-scarcity-and-choice#When:21:48:00Z It is often said that the central purpose of economic activity is the production of goods and services to satisfy our changing needs and wants.The basic economic problem is about scarcity and choice. Every society has to decide:What goods and services to produce: Does the economy uses its resources to operate more hospitals or hotels? Do we make more iPhones and iPads or double-espressos? Does the National Health Service provide free IVF treatment for childless couples? How best to produce goods and services: What is the best use of our scarce resources? Should school playing fields be sold off to provide more land for affordable housing? Should coal be produced in the UK or is it best imported from other countries? Who is to receive goods and services: Who will get expensive hospital treatment - and who not? Should there be a minimum wage? If so, at what level should it be set? Economics Study Notes, AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, OCR AS Economics Unit F581, AS Micro, Introductory Economics, 2011-09-13T21:48:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/study-note-economic-systems http://www.tutor2u.net/blog/index.php/economics/comments/study-note-economic-systems#When:21:40:00Z Economic SystemsAn economic system is a network of organisations used by a society to resolve the basic problem of what, how much, how and for whom to produce. Economics Study Notes, AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, OCR AS Economics Unit F581, AS Micro, Introductory Economics, 2011-09-13T21:40:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/study-note-finite-resources-and-sustainability http://www.tutor2u.net/blog/index.php/economics/comments/study-note-finite-resources-and-sustainability#When:21:34:00Z There are only a finite - or limited - number of workers, machines, acres of land and reserves of oil and other natural resources on the earth.  Because most resources are finite, we cannot produce an unlimited number of different goods and services. Indeed by supplying more for an ever-growing and richer population we are in danger of destroying the natural resources of the planet. Economics Study Notes, AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, OCR AS Economics Unit F581, AS Micro, Introductory Economics, 2011-09-13T21:34:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/starter-video-the-slums-of-manilla http://www.tutor2u.net/blog/index.php/economics/comments/starter-video-the-slums-of-manilla#When:14:56:00Z I have used this remarkable 14 minute report from Paul Mason from BBC Newsnight in both my AS and A2 teaching. It prompts plenty of discussion about housing as a need (and a want) and whether the continued existence and growth of informal settlements (slums) is sustainable and preferable to state spending on slum clearance. Geography students (most of whom will study the economic geography of slums) see many connections with economics. The report is superbly edited and ties in well with lessons on concepts of absolute and relative poverty and the extent to which forces of globalisation are driving millions more poorer people away from rural areas into the slums. Colleagues with IWBs who want to bring up relevant background information on the economy of the Philippines might want to make use of the Timetric data page for this country. Here is the link. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 4, EdExcel Economics Unit 1, EdExcel Economics Unit 4, A2 Macro, AS Micro, Emerging Economies, Development Economics, Environmental Economics, Global Economy, Poverty and Inequality, Teaching of Economics, 2011-09-11T14:56:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/starter-activity-health-economics http://www.tutor2u.net/blog/index.php/economics/comments/starter-activity-health-economics#When:17:02:00Z This is a follow-up blog to Ben Cahill’s superb idea for a first lesson in economics focusing on making tough choices about resource use with a kidney dialysis machine. See: An activity for the first Economics lesson of the year! I too will be using health care economics as a starter activity with my AS micro groups this year. I was interested in finding out some of the assumed costs of different health care treatments offered by the NHS and my research took me to published cost/price lists used by NHS Scotland. Drawing on a detailed spreadsheet I selected the following: AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Government Intervention, Health Economics, Introductory Economics, Teaching of Economics, Digital Learning, 2011-09-01T17:02:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/zondle-game-positive-and-normative-statements http://www.tutor2u.net/blog/index.php/economics/comments/zondle-game-positive-and-normative-statements#When:16:42:00Z Here is a ten question quiz on positive and normative statements combined together in a Zondle quiz. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, Teaching of Economics, Digital Learning, 2011-08-28T16:42:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/markets-and-meerkats http://www.tutor2u.net/blog/index.php/economics/comments/markets-and-meerkats#When:20:59:00Z When choosing insurance for various products and services, there are a number of comparison companies fighting for market share. AS Micro, 2011-08-23T20:59:00+00:00