GSCE Economics

Great interactive data on budget deficits around the world

2009-11-19T17:20:00Z

The BBC have produced a fantastic visual interactive map of budget deficits across the world between 2007 and 2010. It would make a great starter activity or a main part to a lesson on government budgets.

Petrol prices set to rise

2009-11-19T17:00:00Z

The cost of a barrel of oil has risen from $40 a year ago to $80 now with the price expected to rise even further in the coming months.
These oil tankers are apparently refusing to dock and unload their contents until the price of oil rises!

The value of the cargo is rising by $1 million a day.

This article explains further.

Great video on how to use the OECD website

2009-11-18T17:16:00Z

The BBC have created a great short video showing how to use the OECD website. This will be particularly good for the OCR module on global issues.

Direct or indirect taxes – You decide

2009-11-15T20:27:00Z

I have been asking my year 11 students which taxes they would raise to reduce the UK’s massive budget deficit. These two articles would be perfect to help with the debate. The first shows a disadvantage of direct taxes as 50 millionaire hedge fund traders are leaving the city for Geneva to hide from the 50% income tax rate with fears that many will follow.

The second article reveals how retailers are worried that VAT will be increased in the new year to 20%. A big disadvantage of increasing indirect taxes such as VAT is it could reduce spending. An interesting lesson activity would be to set up a debate about the pros and cons of direct and indirect taxes using the two articles as case studies.

Bit of fun on a Saturday morning - Youth unemployment

2009-11-14T10:13:00Z

This cartoon is a bit of fun but illustrates an important point about the rise in youth unemployment. Unemployment rose by the smallest amount this month since the recession began. However 1 in 5 under 24’s are out of work.

Why is youth unemployment such a problem for the UK?
High youth unemployment not only creates a massive problem for the productive capacity of the economy now and in the future but it also has long term effects on the health and social wellbeing of these young people.
this artcile explains more.

Great video on BA and Iberia merger

2009-11-14T07:36:00Z

Following on from my blog yesterday I have found a great video clip on the proposed merger of BA and Iberia. Willie Walsh talks about the synergies that are going to occur due to the merger.

BA and Iberia - economies of scale

2009-11-13T08:36:00Z

The proposed merger of British Airways and Iberia shows types of economies of scale very nicely. Economies of scale occur when a firm grows larger its long run average costs fall. If we remember the mnemonic we used for types of economies of scale - Really, Fun, Mums, Try, Making, Pies, we can then apply this to the merger.

Risk bearing, Financial,Marketing, Technical, Managerial, Purchasing

Willie Walsh said “Both airlines will retain their brands and heritage while achieving significant synergies as a combined force.”

Using this article find some of the economies of scale that the merged company will benefit from.

8 million economically inactive – Unemployment definition

2009-11-12T09:18:01Z

A common mistake I noticed whilst marking GCSE papers this summer, involved students writing that an unemployed person is someone who has not got a job. I will use this article in an unemployment lesson to show that to be unemployed you must be willing and able to find a job, but currently out of work. The article shows that 7.9 million (one in five of working age) people in the UK are out of work and are not trying to find a job. They are considered to be economically inactive.

Another article which would be very useful for an unemployment lesson clearly explains the difference between the two main measures of unemployment, the Claimant Count and the ILO survey.

Click read more for some questions on unemployment

1. Explain why the ILO survey normally shows unemployment to be higher than the claimant count (4 marks)
2. Define unemployment (2 marks)
3. Explain two types of unemployment (4 marks)
4. For the two types of unemployment explained in question 3, discuss possible ways of reducing the level of unemployment (6 marks)

On this day…40 years ago – Technological unemployment

2009-11-12T08:11:00Z

This interesting article from the Guardian, written 40 years ago, is a fantastic example of technological unemployment. Maureen O’Connor warns ‘Girls need more careers advice before the computers really take over’. The article estimated that in the United States, 25% of secretaries would be redundant within seven years due to computers rapidly being introduced into offices.

After reading the article students could be asked to think of any current examples of technological unemployment.

Toy shortage at Christmas?!

2009-11-11T17:21:00Z

Have toy manufacturers misjudged the amount of sales this Christmas? With the UK still in a recession toy manufacturers could have presumed that Santas budget was much lower this year and therefore produced fewer toys.

This BBC video would make a great starter activity which could lead on to a discussion of factors that cause the demand curve to shift and elasticities.

UK trade deficit worsens - Q&A

2009-11-10T13:24:01Z

This is often a topic that GCSE Economists struggle with. An interesting article on the BBC explains how the UK trade deficit has worsened due to the car scrappage scheme.

The article would make an excellent data response with the following questions:

1. Explain what is meant by exports. (2)
2. Explain what is meant by trade deficit. (2)
3. What in the trade deficit for September? (1)
4. Explain how the current value of the pound has led to UK exports being more competitive. (5)
5. Explain why the significant increase in UK exports is important to the UK economy. (8)

Booming businesses in the recession

2009-11-09T21:08:00Z

We have all heard lots about the numerous businesses that have lost out to the recession. We have not heard so much about the businesses that have done well out of falling incomes and increased unemployment.

This BBC video would make a great starter activity with a discussion about other goods and services that have benefited from the recession.

Mnemonic Monday – Types of Unemployment

2009-11-09T07:26:00Z

This mnemonic will tie in with my Super Starter Sunday on unemployment. It aims to help students remember the different types of unemployment

Very Silly Fools Swallow Thick Chips

Voluntary
Seasonal
Frictional
Structural
Technological
Cyclical

Super Starter Sunday - Unemployment special

2009-11-08T21:22:00Z

This week the pictures show different types of unemployment.

1. As usual the students have to guess the news stories using the pictures.
2. Students should then try to work out the type of unemployment in each picture
3. In groups, they could discuss ways solve each type of unemployment.

Super_Sunday_Starter_-_Economics_in_the_news_Unemployment_no_password.ppt

Competition in action - M&S to sell top brand names

2009-11-06T09:20:00Z

Marks and Spencer have recently lost market share in part due to the emergence of Waitrose but also due to shoppers trading down supermarkets due to the recession. Well M&S have decided to fight back.

Up until now M&S have only stocked own brand items. In a bid to increase their customer base M&S are now going to stock up to 400 big named brands such as Kellogg’s and PG tips.
This article explains further.

This could start an interesting discussion on how firms compete. Is price the most important factor when choosing a supermarket or do we look at service or another factor. This type of question would be a discuss question at GCSE and could be worth 8 marks.