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Revision: Handy Mnemonics
23rd April 2011
We are on the search for handy revision Mnemonics for use with economics - can people recommend ones that they find useful?
SPEW (Monopoly)
Service - does the lack of competition affect the quality of service to consumers?
Prices - how high are prices compared to competitive / contestable market
Efficiency - productive, allocative and dynamic
Welfare - what are the overall welfare outcomes? Is there a net loss of welfare in markets dominated by businesses with monopoly power?
SPICED (Currency)
Strong
Pound
Imports
Cheaper
Exports
Dearer
BRITS (elasticity of supply)
BRITS
1. Barriers to entry – e.g. Patents or high cost of advertising could make it hard for new firms to enter the market
2. Raw materials – If raw materials are readily available, it will be relatively easy to expand production
3. Inventory – Businesses with plenty of stock can increase supply easily.
4. Time – Many agricultural products take time to make so supply is fixed in the short term.
5. Spare Capacity – If businesses are not running to full capacity they are more able to increase supply. The supply of goods and services is often most elastic in a recession when there is plenty of spare labour and capital resource
Anymore out there that have worked for you and your students?
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.