The dictionary definition of ‘development’ is to improve, to progress, or to grow – but development is not just about growth! It is concerned with the improvement of human welfare within an economy, and so it encompasses concepts such as the standard of living, cultural identity and political freedom. Many thanks to Stephen Grant for letting us have details of an opportunity to teach in a thriving Economics & Business department in a quite simply stunning part of the country - Canford School. Applications need to be in by 1 February 2012, so move quickly! Just a few years ago the Zimbabwean economy was in collapse and meltdown and the political system on the point of disintegration under the disastrous handling of the dictator Robert Mugabe. When hyperinflation ruled, a sign once appeared in the toilets of a hotel in Harare, “please do not flush Zimbabwean dollars down the toilets”
Three years since the creation of a coalition government, there are some tentative but notable signs of improvement. Inflation has fallen and the use of the US dollar and other regional currencies as legal tender has helped to finance essential imports of basic products. Unemployment remains above 75% of the labour force and there is huge absolute poverty, but the glimmers of hope are there as shown by this recent news report from AlJazeerah English. Last week my A2 students were asking what’s with all the fuss about manufacturing - services create jobs too! There’s a lot of talk about how the UK economy needs to focus more on its manufacturing industries as a means to get the economy out of its current predicament. We should be more competitive in what we produce, so that we can sell more overseas, boosting export revenues and creating jobs at the same time. Here’s a timely video from The New York Times, dissecting the iPhone and using it to help us understand the importance of manufacturing as a means of creating jobs. Many thanks to David Good for alerting us to this Economics teaching vacancy with our friends in the department at Salesian College.Username Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A Go Blog One way of expressing the gains from trade in goods and services between countries is to distinguish between the static gains from trade (i.e. improvements in allocative and productive efficiency) and the dynamic gains (the gains in welfare that occur over time from improved product quality, increased choice and a faster pace of innovative behaviour)
Some of the broader gains from free trade are outlined below: Here is a ten question quiz covering the economics and business news this week - have a go and see who can get the biggest distance using the javelin challenge. To play the full quiz just register for free on the Zondle site! Good luck The official figures show that there are now more than one million young people counted as unemployed in the UK although the precise scale of the jobless crisis is difficult to measure accurately. Nonetheless, it represents a fundamental economic, social and political problem and one that policy makers must address.
In this video report from Al Jazeerah, Lawrence Lee visits Leeds to find a well qualified nineteen year old with good qualifications but who cannot afford to go to university and is finding it tough to win a place in the police force - his main ambition. We like this - in fact we like this a lot - virtually the whole of the micro course in three glorious minutes - enjoy Microeconomics Music Video- Econ World (featuring the Little Mermaid) Diane Coyle gave a superb talk on the state of the economics profession and made a powerful case for curriculum reform in a talk in Germany earlier on this week. The transcript of the talk can be found here and this link takes you to the audio file. Excellent CPD for all of us in the school and college economics teaching community. It ends on a very positive note, not least the surge in student numbers and enthusiasm for our fantastic subject!: Username Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A Go Export demand can be an important driver of growth and development. For many years China has practiced export-led growth with exports accounting for over 40% of GDP. China ran a trade surplus with the rest of the world of around of $200 billion in 2009 – this looks huge, but is fairly modest as a share of GDP. The surplus on the balance of payment current account has diminished from over 10% of GDP in 2007 to less than 6% in each of 2010 and 2011. But China still has a structural trade / BoP surplus.: Username Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A Go Rapid economic growth in China has led to a sharp rise in C02 emissions per head of population and also electric power consumption per capita. Per capita emissions remain well below those of rich advanced nations but China is now committed to improving the sustainability of her economic growth and also in making big advances in researching, testing, developing and investing in clean energy technologies as a source of future exports. According to the 12th Five-year Plan (covering the years 2011-2015) China aims to reduce energy consumption per unit of GDP by 16 percent in the five years to 2015. Carbon dioxide emission will drop by 17 percent if the plans are met. Per capita incomes in China are rising though still low by advanced-nation levels. China ranks at 119 in terms of average incomes, according to World Bank data (per capita incomes, PPP adjusted). But China is now the biggest car market in the world and there has been a huge rise in the sales of luxury goods to China (these products have a strong income elasticity of demand).
China wants to achieve a re-balancing of her growth – towards domestic consumption and away from exports. Another key aim of the plans for the next 5 years is a surge in market-driven entrepreneurial activity. Plus a continued shift towards higher-value, high-knowledge manufactured products. China has experienced fast growth in the last twenty years, in the last decade; the increase in Chinese GDP has been seven times the rise in the GDP of Japan. China has a new growth target of 8% pa for the next five years – a downgrading of growth but still way in excess of normal trend growth for any of the advanced economies such as the UK, Germany and the United States. In 2000, China’s accounted for 7.1% of the world’s total GDP (in PPP terms). By 2015 China will have a 19% share of global GDP. This is higher than any of the other BRIC nations
As an Apple aficionado, I regularly visit the macrumors.com site to keep up to date with the latest news about my favourite computer company, so it was interesting to see this article today looking at the effect on revenue for app producers who put their apps ‘on sale’ A few weeks ago came the announcement that an Indian business is finally set to launch the World’s cheapest tablet computer. This laptop device will sell for around 18 times less than the price of an iPad in London! How can a laptop be manufactured for less than $US 40? The rapid growth of the India economy has been helped by her economy enjoying a number of supply-side advantages. That said there remain structural supply-side weaknesses that will limit her continued competitiveness and development. This blog looks at the plusses and the minuses. This new five minute video report from the Financial Times is excellent on the competitive pressures facing many manufacturing businesses located in southern China. Wages are rising quickly and some manufacturing businesses have already moved either to lower-cost locations within the Chinese economy or to other countries such as Bangladesh and Indonesia.
But there are alternative approaches and this video emphasises the decision that some manufacturers have made to stay put but instead to move up the value chain and produce higher-end, higher-priced products for advanced western markets. Businesses are reluctant to move factories and sacrifice the human capital that has been accumulated over in some cases over thirty years. The 2012 Royal Economic Society Essay Competition for students is launched today. Details below… 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. This is the first of a short series of blogs focusing on economic growth and development in the Indian economy, Our first blog provides some background data and study videos on India. Five superb teaching opportunities in one night here on the Economics blog! Many thanks to John Greenwood for giving tutor2u first details of this vacancy at St Olave’s. A part-time vacancy here at a school with a terrific reputation for Economics. Many thanks to tutor2u blogger Rob Earl for letting us have the details. A HOD vacancy this time - many thanks to our colleagues at Culford School for letting us have first details of this opportunity: Another superb vacancy here - ideal for talented economics teachers who support T2U! These superb economics teaching opportunities keep on coming and here is another cracker - Kings College School in Wimbledon. Don’t for get to mention that you heard about it here on T2U! I’ve just found this fascinating video from the amazing TED website which is an excellent example to show how ‘the market’ can can be used to solve an external cost 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.
What happened in the UK in 1851, the United States in 1920 and in the World in 2008? These three years mark the estimated year when the size of a given urban population overtook the size of the rural population. And now China has reached this significant landmark.
The Chinese Bureau for National Statistics reported recently that in 2011, the proportion of urban population reached 51.27 percent (1.3% higher than in 2010) with the urban population standing at 690.79 million persons, an increase of 21 million persons in a year. China’s rural population stood at 656.56 million persons and for the first time her urban population was 34.23 million persons more than the rural population.
Click below for some study / teaching resources: Before you read this blog please have a look at another blog written by our good friend Mark Johnston from New Zealand. Students of China and the US economy will find it fascinating!
There are good grounds for no longer calling China an emerging economy - it has arrived! The multiple significance of the rapidly-growing Chinese economy is plain for all to see but for Britain, only a small percentage of our exports of goods and services go there and this must change if Britain is to fully engage with and benefit from the rising might of the Chinese consumer. 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. This news report looks at the human cost of an example of the tragedy of the commons - illegal logging in the south Philippines which contributed to tens of deaths from the effects of flash flooding. Ecosystems and economic prospects are damaged at the same time because of failures in environmental management. Although it is focussed on the U.S economy, this five minute video is a cracker because it covers a number of issues about GDP that students find difficult to grasp, in an engaging way. “All money these days is really a form of debt from somewhere else. We know now in 2012 that our debts cannot be repaid in full.”
Philip Coggan from the Economist was on fine form at the LSE last week when he spoke to a packed audience in the new academic building on the subject of his latest book. When trust in the monetary system breaks down we are in a very difficult place and, in a wonderfully broad historical sweep Philip Coggan offered some revealing insights into what a reformed global monetary system might look like in the years ahead. I was listening to the radio this morning, and ‘Big Yellow Taxi’ was playing. This led me on to an interesting idea for thinking about externalities. KAL, The Economist’s cartoonist, has produced an excellent cartoon in the latest issue perfect for a discussion of a very topical externalities issue in North America. And one that has also been ‘causing tremors’ in the news over here too!
This article could be useful as an illustration of the EU context in relation to employment in general, and flexible employment in particular. Attracting inward FDI is arguably a significant benefit of UK membership of the EU, and one of the advantages which the UK can offer compared to, say, France is relatively flexible employment laws.: Username Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A Go This article on the appalling depth of workless households in Liverpool is a reminder of the multiple aspects of relative poverty and economic/social exclusion.
The causes of unemployment are complex - many are structural - but it is hard to draw much if any optimism from reading this article. By some estimates over one third of households in Liverpool have no one in work and second and third generation unemployment is not uncommon. This is a must article for students to read if they want a better awareness of the human cost of non-employment. Read: Below the breadline on Liverpool’s workless estates Since I started teaching, I have been interested to observe links between the subjects I teach at A Level – Economics and Business Studies – and other subjects students have studied at GCSE or A Level. Students love being asked to share knowledge from their other subjects; it surely helps reinforce learning and helps avoid subject material being compartmentalised. For Oxbridge calibre candidates, it helps them see beyond the syllabus and how our work relates to other subject areas. Cross curricular links are important in earlier Key Stages but I’m not sure we give them nearly as much prominence at A Level. Many thanks to our colleagues at Harrow School for alerting us to yet another top opportunity for tutor2u Economics teachers! Details below. Don’t forget to mention that you saw this on T2U! Due to growing numbers in both Economics & Business Studies at Reed’s School, we are looking for an additional teacher. What an amazing week for top job opportunities on tutor2u for economics & business teachers. Don’t think we’ve ever had so many colleagues contacting us with superb teaching vacancies. Why advertise in TES when you can reach over 13,000 Economics & Business teachers direct? Here is the latest - a real belter - HOD of Econ & Business at Bristol Grammar School.
This is a story that I will use next time I am teaching about the money supply. What do you do when you are lost on a freezing cold mountain and desperately need some warmth? Details below of an economics & business teaching vacancy which is sure to interest many colleagues….
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.
Nearly every country has a tax on petrol, although the amount varies widely. And given that the landed price of petrol is quite similar (see the graph below), it can be seen what effect the tax has on quantity demanded. The results are very much in line what economic theory would predict and there are also clear implications for countries that want to reduce petrol consumption. I do my level best to avoid the processed meat aisles in the supermarkets - or at least the lower end of what is on offer (I remember once the 5pence sausage that was a guaranteed 2 per cent pork!). But perhaps excessive consumption of processed meats - much of which finds a way into the traditional Full-English might be doing people much more harm than good? Follow this BBC news report for more details.
Just as the Monetary Policy Committee have been saying for a while, inflation is starting to fall back towards their target. The fall to 4.2% in December is rather sharper than expected, and is the biggest monthly fall since April 2009. With further falls almost certain in the next few months as the VAT rise and energy price hikes roll out of the 12-month figures, analysts have commented today that this will leave the opportunity for the MPC to inject further rounds of QE into the economy with less fear of triggering too much demand-pull inflation. This mornng the Bank of England published a letter from the Governor to Andrew Tyrie MP, Chairman of the Treasury Select Committee which is discussing financial stability policy. The letter provides some simple indicators that might be used to help monitor financial stability. Today’s research in the labs can be the harbinger of terrific innovations that change the landscape of consumer product markets in the years ahead. The iPod Nano is a brand but the research behind nano-technology itself might bring about eye-watering improvements in the energy efficiency of devices that are part and parcel of our daily lives.
This brief news report from Al Jazeerah looks at innovation in nano technologies and what might be around the corner. Researchers at IBM have created the world’s smallest magnetic digital-storage device, using just 12 atoms to hold a single data bit of information. A hat-tip to Emily Gladstone for pointing me in the direction of this article…useful for both economists and geographers, and illustrates the inter-disciplinary nature of the subjects. Another fantastic teaching opportunity here to join the team at Dulwich College. Details below:
Filed under: Innovation, Public Policy / Political Economy Here is a selection of short video clips that might be useful when teaching the economics of productivity as part of the AS macro course. I often start with the “Fast Hands” video clip (one minute only) because it raises all kinds of issues about division of labour and the quality of life of people who do these tasks. And the short 25 second clip on the world’s fastest hand is guaranteed to make a mark! If you have some other videos on productivity to share please leave a link in our comment slot at the bottom of the blog.
The Guardian business web site has this excellent photo stream on life inside the Nissan car factory. Follow them on Twitter Tim Harford has a piece in his regular column in the Financial Times which discusses some of the issues surrounding the minimum wage and whether a legal pay floor can actually create jobs. Here is the link
Username Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A Go Blog TUESDAY 23 APRIL 2012
We are running a series of repeat revision workshops after Easter 2012 for AS & A2 Economics. Our venue is the stunning Vue Cinema at Westfield Stratford City - right at the heart of the London 2012 Olympics! We’ve scheduled four workshops - one each for:
AS Microeconomics (Unit 1)
AS Macroeconomics (Unit 2)
A2 Microeconomics (Unit 3)
A2 Macroeconomics (Unit 4)
Each workshop will feature the 2011/12 workshop materials specifically designed by tutor2u to support A Level Economics exams this year.
To book places on these workshops, please use the following form:
https://tutor2u.wufoo.com/forms/posteaster-2012-economics-revision-workshops/ 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: 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.: Username Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A Go 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
We frequently use infographics in class to help pupils digest certain tricky concepts and to add some colour and spice to otherwise dry theory.
1/ This one brought some life to the key term discretionary income and how it changes over a lifetime
2/ I’ve been using this one for years to help students get to grips with inflation, the concept of weights, expenditure survey categories, basket of goods etc.
3/ Here’s another my A2 Micro students found when researching innovation, patents and dynamic efficiency . It is perhaps a moment of more political than economic significance, but on Friday 13th January 2012 Standard and Poors, a leading credit rating agency announced that France was losing her triple A (AAA) credit rating for sovereign debt. It was part of a larger downgrading of government bonds among a sizeable chunk of Euro Zone countries, the argument being that plans to achieve deficit reduction lacked credibility. France was downgraded, S&P also lowered the long-term ratings on Austria, Malta, Slovakia, and Slovenia, by one notch. The rating levels for Cyprus, Italy, Portugal and Spain were dropped two notches.
Here is a brief Channel 4 report on the news and some other links to the story. Only four Euro Zone countries now have an AAA rating. Do you know who they are? Emma Wall has a piece in the Telegraph today about Frontier Markets - 25 countries that have stock markets but because of their size, inexperience or political instability do not yet qualify for “emerging market” status. These are higher risk markets for investors but target countries that are gradually becoming more open to trade and investment and which have high grown potential. A new year hat tip to Richard Coulthard from Handsworth Grammar School in Birmingham for spotting this BBC news article on the economic impact of piracy in Somalia. Richard comments that this is just what economic theory would predict after large increases in the money supply but from a quirky angle. Read: Somali piracy ‘boosts Puntland economy’ To access the Chatham House report from this which this news report is drawn, please click here
Joseph is 29 years old and makes a living selling vehicle parts in the dusty trucker town of Igawu in Southern Tanzania. When he approached me during my breakfast and flashed 2 fresh $100 bills, I was naturally interested to know where they came from. I offered him a ride north to find out…: Username Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A Go In this blog we provide links to official You Tube clips from the Joy of Stats programme made available by the Open University. Click below to view the selectionUsername Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A Go Blog I’ve been looking forward to seeing this movie, which is finally released here in the UK… 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
This week, the price of orange juice concentrate on the global market hit a record high, reaching $2.12 (£1.38) a pound (0.45kg). Don’t you just love it when oligopolistic theory plays out in the real world:
On Wednesday, EdF announced it was cutting gas prices by 5%.
Thus began the price war with the strategic interdependence that exists in oligopolistic markets…
British Gas also responded with a 5% cut (although craftily undercut EdF by saying it will be immediate, rather than EdF’s one which will take effect in February).
SSE responded with its own price cut on Thursday…
NPower announced their cut today on Friday…
E.On and Scottish Power are set to follow soon.
Is this price war driven by a follower-leader relationship, or is it simply due to them facing the same cost structures?
Read about it here.
Here is a good evaluation phrase to use when building an answer in an A2 macro essay - “clusters of risks” - it captures the inter-connected and multi-polar nature of our world economy and also the many fragilities and uncertainties that surround us at the moment we many countries struggle to achieve a durable recovery. What a week of top job vacancies on the Economics blog and here is another cracker! An excellent opportunity to join an expanding team at Oundle School, with Mo Tanweer (Head of Department and tutor2u presenter/blogger) and Andrew Ireson (tutor2u presenter). Details below.
Back by popular demand! Wednesday 20 June 2012 - Central London
Economics is a booming subject at A Level, with student numbers having grown by over 25% in the last few years. Many teaching colleagues are either new to the subject or have been asked to brush up their Economics in order to support the teaching of this fantastic subject.
We designed this new course to provide a resource boost for teachers who are new to teaching economics or are a non-specialist in the subject and it was a huge success when it ran for the first time in October 2011. So we’re running it again! A summer date for the next date - 20 June 2012.Username Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A Go Blog 5 year plans are synonymous with the command economies of the 20th century and although the Chinese economy bares little resemblance to what it did 30 years ago, the government still uses these plans as part of their oversight of a mostly market economy. Their latest “Weather Intervention” plan seeks to intervene in the economy on a grand scale, although not in the usual sense!
How far, how fast and in what way should the UK government seek to cut the annual budget deficit and improve the state of public sector finances? These questions continue to be at the centre of a fierce debate among economists. Here is a selection of short video clips that I use when teaching competitive advantage in markets and when introducing the factors that determine the competitiveness of UK producers in global markets. The focus here is on the UK economy but I will add some more videos to the blog as I work my way through this teaching topic.: Username Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A Go The tunnelling equipment involved in CrossRail - Europe’s biggest civil construction project - is immense in every way! This BBC news video of the earth cutting machinery is a brilliant visual to use when teaching economies of scale or introducing the concept of physical capital! The machinery is made in Germany naturally! This classic Monty Python Sketch will bring back fond memories for economics teachers of a certain vintage - but it also has a terrific resonance today - perhaps use it as an introduction to teaching money, banking or exchange rates!. . . Username Passw Forgot your password Not a member Please register tutor2u Economics Business Stds Politics Intl Bacc Sociology Law Religious Stds Management History Geography Give It a Go Other Blogs Search tutor2u Contact tutor2u Latest News Buy Resources Teacher Newsletters Facebook AS A2 Blog GCSE Blog Revision Materials Economics Shop Teacher CPD Revision Workshops econoMAX Business Blog Biz Quiz Bus Studies Shop Teacher CPD Revision Workshops Business Cafe Politics Blog Revision Materials Politics Shop Teacher CPD FPTP TOK Blog IB Economics Blog IB Bus Management Blog Sociology Blog GCSE Revision Materials Shop Blog Study Notes Quizzes Blog Study Notes Strategy Blog Strategy Theory Marketing Blog Marketing Theory Finance Blog Finance Theory History Blog Geography Blog Give It A
The yields on UK government issued bonds has been falling steadily in recent months and, as we turned into January 2012, the yield on ten year government debt edged below 2% - when the UK government continues to borrow eye-wateringly large sums, why are bond yields so low?
The yield on a bond is the income received from a fixed-interest bond, calculated as a percentage of the price paid for it. So a ten year bond bought for £10,000 and paying a fixed annual interest of £600 would offer a yield of £600 / £10,000 = 6.0% per annum.
If the market price of a bond rises - for example, it rises from £10,000 to £12,000, the fixed interest remains the same (£600) but the yield will fall. £600 / £12,000 expressed as a percentage = 5%. Another fantastic teaching opportunity here to join our friends at Wellington College. Details below. This is a superb opportunity to join Paul Bridges (tutor2u presenter and blogger) and his fantastic team at RGS Guildford. Details below. The Guardian DataBlog has a superb resource here on the patterns of UK exports and imports in 2011. Ideal for printing out and using when introducing international trade. There is more official UK trade data here 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. 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.
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 Vicky Pryce FRSA has a new article on the economic significance of manufacturing industry for UK economic renewal. It is available here from the January 2012 edition of the RSA Journal. In a related article Sir Christopher Frayling FRSA discusses the rise of the Maker Movement.
Back in November 2011 Channel 4 news ran a special on the future for UK manufacturing here is a link to a related video
Profit-seeking businesses will go ahead with an investment if they believe that it will - over its projected lifetime - yield a real rate of return greater than if the money had been invested in the next best alternative way. Opportunity cost is a useful idea to use here. Private sector businesses usually focus on these objectives when investing in new capital inputs:
With consumption being such a large component (approximately 2/3rds) of aggregate demand, it is important to understand the role that consumer confidence plays when decisions are made upon major spending commitments. There has been much debate about the top 50p rate of income tax, and whilst the actual data on whether it has led to more tax revenue or less (a good place to introduce the Laffer Curve) is not expected until Jan 31st, The Prime Minister and George Osborne are understood to have concluded that abolishing the levy is politically impossible in the near future amid fears that they will be accused of pandering to the wealthy.
The HMRC report is expected to show that the tax rate has added to the tax coffers in the short term but if seen as a more permanent feature of the tax landscape, over time, may fall, as wealthier taxpayers develop ways of circumventing the higher rate.
Read more here.
Here is a quick revision multiple choice quiz on public and private goods created using Zondle This is a splended DVD with a huge amount to interest students. Great for using when discussing incentives and looking at social policy issues from a different angle.My own students love the section featuring Urail King and his attempt to raise his test scores!