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/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/unit-3-micro-video-resources-on-carbon-taxation http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-video-resources-on-carbon-taxation#When:08:49:45Z The crucial issue of how best to tackle climate change and make significant progress towards a low-carbon economy is one that gives students tremendous opportunities to hone their analysis and evaluation skills. A few weeks ago the Australian government was successful in getting through the Senate proposals for a new carbon tax and in this blog we link to some excellent video reports on the background to this decision. AS and A2 Specifications, AQA Economics Unit 3, A2 Micro, Cost Benefit Analysis, Environmental Economics, Government Intervention, Indirect Taxes, Market Failure, Externalities, Information Failure, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, 2012-02-05T08:49:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-winning-the-war-on-deforestation http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-winning-the-war-on-deforestation#When:08:18:52Z Justin Rowlatt from the BBC has been investigating some of the remarkable progress being made in controlling deforestation in Brazil. The battle focuses on an area known as the “arc of destruction” and the video reports here show the impact of a government making a clear commitment to tackling the issue and backing it up with force and with incentives. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Agriculture, Emerging Economies, Development Economics, Brazil Economy, Cost Benefit Analysis, Environmental Economics, Global Economy, Government Intervention, Regulation, Teaching of Economics, 2012-02-05T08:18:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-richard-wilkinson-on-inequality-and-economic-harm http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-richard-wilkinson-on-inequality-and-economic-harm#When:08:05:36Z I have been using this talk given at TED 2011 by Richard Wilkinson when teaching the topic of poverty and inequality and the risks that a growing chasm between low and high income groups can have for society and economic performance. Students and teachers familiar with the work of Pickett and Wilkinson and their recent book “The Spirit Level” will know well the approach that these authors take. They use published data on inequality and link to wide differences in a range of economic and social outcomes. Their work has been criticised by many on the right, not least because their argument is strong and clear - namely that we need to reduce inequality to tackle some of society’s deepest and most corrosive problems. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 2, A2 Micro, AS Macro, Poverty and Inequality, Standard of Living, Teaching of Economics, 2012-02-05T08:05:36+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/res-annual-essay-competition-for-students-2012 http://www.tutor2u.net/blog/index.php/economics/comments/res-annual-essay-competition-for-students-2012#When:08:54:00Z The 2012 Royal Economic Society Essay Competition for students has been launched. Details below… RES Essay Competition 2012, A2 Macro, A2 Micro, AS Macro, AS Micro, Teaching of Economics, 2012-01-25T08:54:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-can-the-uk-computer-games-industry-grow http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-can-the-uk-computer-games-industry-grow#When:22:17:37Z Britain is one of the world’s biggest exporters of creative products - from live TV shows and music to books, arts, architecture and films the economy has built up an enviable global reputation for excellence and a growing trade surplus to aid our balance of payments. Computer games falls squarely into this category but, according to TIGA - the trade association representing the UK’s games industry - unless there is renewed government support, the future of this sector is at risk. TIGA claims that the British games industry is suffering a significant ‘brain drain’ as talented programmers and artists leave the country to work abroad. AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, A2 Micro, AS Micro, Business Economics, Economic Growth, Economics of Technology, GCSE Economics, Government Intervention, Subsidies, Macroeconomic Policies, Supply-side policies, Market Failure, Factor Immobility, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Teaching of Economics, UK Economy, Regional Economics, Unemployment, 2012-01-24T22:17:37+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-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-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/economics-revision-workshops-in-2011-12 http://www.tutor2u.net/blog/index.php/economics/comments/economics-revision-workshops-in-2011-12#When:07:35:24Z The dates for our popular Unit 2 & Unit 4 Economics revision workshops in Spring 2012 are now confirmed: Provisional bookings for these revision workshops can now be made using the following form: The dates and locations are shown below: A2 Macro, A2 Micro, AS Macro, AS Micro, Teaching of Economics, 2012-01-16T07:35:24+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-worlds-largest-solar-plant-opens http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-worlds-largest-solar-plant-opens#When:03:51:50Z This autumn the world’s biggest solar plant power station opened in Spain. Comprising 600,000 parabolic mirrors, the Andasol 3 CSP plant is the size of 70 soccer fields and has 88km of piping. The economies of scale are huge and if solar power is going to work and be viable anywhere it is probably here or in North Africa. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Cost Benefit Analysis, Economic Growth, Economics of Technology, Environmental Economics, Government Intervention, Subsidies, Market Failure, Externalities, Market Equilibrium and Price, Price Mechanism in Action, 2012-01-16T03:51:50+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/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/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-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/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-4-macro-video-resources-on-unemployment http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-video-resources-on-unemployment#When:18:17:02Z This blog entry brings together a selection of recent news reports and videos covering the economics of unemployment in the UK and inother countries. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Micro, AS Macro, Labour Market, UK Economy, Unemployment, 2012-01-03T18:17:02+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/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/unit-4-macro-human-capital-and-economic-growth http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-human-capital-and-economic-growth#When:16:06:44Z In A2 macroeconomics the underlying causes of economic growth and development and constraints on both of these are covered in more depth. One of the concepts students might be familiar with is that of human capital. I have always summarised the idea of human capital as being a measure of the overall quality of the human input available to produce goods and services in an economy. The ONS have published a new study on the value of human capital in the UK and they draw on a definition given by the OECD AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Micro, AS Macro, Emerging Economies, Development Economics, Economic Growth, Labour Market, International Trade, Macroeconomic Policies, Supply-side policies, Teaching of Economics, Tuesday Talks, UK Economy, Unemployment, 2011-12-23T16:06:44+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/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-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/dont-you-just-love-it-when-panorama-does-your-lesson-for-you-part-2 http://www.tutor2u.net/blog/index.php/economics/comments/dont-you-just-love-it-when-panorama-does-your-lesson-for-you-part-2#When:21:23:16Z It’s amazing- you wait ages for a good Panorama story about Economics and then two come along at once! Read on for information about another useful Panorama programme for looking at competition between the major supermarkets, and the reality behind the ‘price wars’ in the UK supermarket industry. AS and A2 Specifications, EdExcel Economics Unit 3, A2 Micro, 2011-12-06T21:23:16+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/dont-you-just-love-it-when-panorama-does-your-lesson-for-you http://www.tutor2u.net/blog/index.php/economics/comments/dont-you-just-love-it-when-panorama-does-your-lesson-for-you#When:21:17:22Z If you’re intending on teaching your classes about the government’s Private Finance Initiative in the coming days, I strongly urge you to read on AS and A2 Specifications, EdExcel Economics Unit 3, A2 Micro, 2011-12-06T21:17:22+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-hope-bikes-a-commitment-to-excellence http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-hope-bikes-a-commitment-to-excellence#When:17:44:51Z Are you into your cycling? The huge expansion of interest in cycling in the UK from road racing through to BMX and mountain-biking has gone hand in hand with the fantastic success of British cyclists on the international stage. 2012 promises to be another strong year for the industry despite difficult economic conditions. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, Business Economics, Management Issues, Economic Growth, Economics of Technology, International Trade, Manufacturing Industry, Teaching of Economics, Transport Economics, UK Economy, Regional Economics, 2011-11-30T17:44:51+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-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/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/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/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/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/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-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-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-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-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-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-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/the-bicycle-a-merit-good-and-an-integral-part-of-sustainable-transport-solu http://www.tutor2u.net/blog/index.php/economics/comments/the-bicycle-a-merit-good-and-an-integral-part-of-sustainable-transport-solu#When:18:19:53Z A recent economic study1 found that bicycle ownership can boost household income in sub-Saharan Africa by 35%.  I may be biased given my passion for cycling but I think there are indeed some very strong economic arguments for encouraging more bicycles both in the developing and the developed world. The bicycle: more than just a mode of transport Beyond the Bike - the Economic Cycle, A2 Macro, A2 Micro, AS Macro, Emerging Economies, African Economy, Economic History, Environmental Economics, Macroeconomic Policies, Monetary Policy, Supply-side policies, Market Failure, Externalities, Merit & De-Merit Goods, Transport Economics, Unemployment, 2011-10-05T18:19:53+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-monospony-power-and-low-wages-in-care-homes http://www.tutor2u.net/blog/index.php/economics/comments/unit-3-micro-monospony-power-and-low-wages-in-care-homes#When:05:46:37Z An October 2011 edition of Panorama from the BBC investigates low pay and poor working conditions for thousands of people struggling to earn a decent living in the care homes sector. AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, Government Intervention, Minimum Prices, Labour Market, Trade Unions, Poverty and Inequality, Teaching of Economics, 2011-10-04T05:46:37+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/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/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-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/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/transport-economics-rail-investment http://www.tutor2u.net/blog/index.php/economics/comments/transport-economics-rail-investment#When:16:59:00Z Here is a super short transport cost benefit analysis example regarding plans to re-open a rail link between Oxford and Milton Keynes could generate millions of pounds for the economy. In total it would cost £178m and then £11.6m a year to run, but Oxford Economics says it would bring an economic benefit to the area which it estimates at £32m a year. This BBC news video would make for a good short introduction to the example, and here are some other links to coverage of the Oxford Economics research in the local papers. Oxford Mail: Rail link could be worth £38m a year Official web site East West Rail   AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, A2 Micro, AS Micro, Cost Benefit Analysis, Macroeconomic Policies, Supply-side policies, Teaching of Economics, Transport Economics, UK Economy, Regional Economics, 2011-08-12T16:59:00+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-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/transport-economics-government-failure-in-roadbuilding http://www.tutor2u.net/blog/index.php/economics/comments/transport-economics-government-failure-in-roadbuilding#When:05:35:01Z A controversial motorway extension in Scotland is set to open. Glasgow’s new £657m M74 extension set to open (BBC News). The 6-lane elevated M74 extension is over-budget at a cost of £657m, which works out at £131m per mile or £75,000 a yard (£80,000 a metre). How can road extensions cost so much? Can the costs be justified by the suggested economic benefits? The BBC article provides a good mini-case study in transport cost-benefit analysis. Here are some other supporting links: AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, A2 Micro, Cost Benefit Analysis, Government Intervention, Government Failure, Transport Economics, 2011-06-28T05:35:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/oceans-at-grave-risk http://www.tutor2u.net/blog/index.php/economics/comments/oceans-at-grave-risk#When:19:28:00Z The tragedy of the commons and the grave consequences for the state of marine ecology are highlighted in this new report. Covered with passion in this blog. Climate change, pollution and over-fishing are two fundamental problems for the oceans. More details here from the International Programme on the State of the Ocean (IPSO) website. The report identifies a number of important policy approaches to tackle the problems - The scientists say that the ‘precautionary principle’ must be used in terms of oceanic impacts, in other society shouldn’t don’t proceed with activities unless they are proven to be largely safe for marine ecosystems.  And they argue for much stringer use of property rights by widening the size of international marines of the sea. TED Talk: Jeremy Jackson: How we wrecked the ocean   AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 4, A2 Micro, AS Micro, Emerging Economies, Cost Benefit Analysis, Environmental Economics, European Economy, EU Farming and Fishing, Global Economy, Government Intervention, Market Failure, Teaching of Economics, 2011-06-20T19:28:00+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/a2-micro-revision-definition-issue-analysis-evaluation http://www.tutor2u.net/blog/index.php/economics/comments/a2-micro-revision-definition-issue-analysis-evaluation#When:16:51:00Z These are the key things an examiner looks for. 1/ Definitions - precise, succinct, carefully used 2/ Issue - otherwise known as points 3 Analysis – Diagrams, ‘economics toolkit’ 4/ Evaluation – Limitations to effectiveness, situations when something doesn’t work, which is the most effective and why, downsides of a policy 5/ Application and Knowledge are credited where there is data or own knowledge of an economy A2 Micro, 2011-06-12T16:51:00+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/aqa-a2-economics-european-context http://www.tutor2u.net/blog/index.php/economics/comments/aqa-a2-economics-european-context#When:15:37:00Z Each of the AQA a2 economics papers contains data response questions where understanding and awareness of the context of the economics of the European Union comes into play. We have a EU Economy in Focus study companion which is published in updated form each year. Details are available here. One area for revision focuses on the analysis diagrams that might be used to support your answers to EU context questions, I have put together a listing of topic areas where a diagrammatic approach might pay dividends - it is not exhaustive of course, merely some suggestions that might be useful. It appears below: AS and A2 Specifications, AQA Economics Unit 3, AQA Economics Unit 4, A2 Macro, A2 Micro, European Economy, EU Enlargement, EU Farming and Fishing, Single Market, The Euro, OECD Economies, Teaching of Economics, 2011-05-23T15:37:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/labour-market-days-lost-through-industrial-disputes http://www.tutor2u.net/blog/index.php/economics/comments/labour-market-days-lost-through-industrial-disputes#When:12:01:01Z Many more days are lost to strike action in public sector industries than in the private sector according to data available here AS and A2 Specifications, AQA Economics Unit 3, EdExcel Economics Unit 3, A2 Micro, AS Micro, Labour Market, Trade Unions, 2011-05-23T12:01:01+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