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Thursday, 26 May 2016

Unit 4: Micro financing - a critique

A really interesting (and short!) clip on the issues with micro financing. Useful as an evaluative tool when discussing micro finance as an alternative to IMF/World Bank funding governments.

Remember, this is only one point of view and in one area of the world. However, it is backed by evidence.

Typical question where you could use this would be anything that asks for solutions to creating economic development in developing economies other than funding governments, attracting FDI etc.

Unit 3: Price fixing in the 'Supermodel' industry!

In what is regarded as one of the first examples of alleged price-fixing in the 
creative services industry, the Competition and Markets Authority has launched 
an investigation into collusion in the market for super-models!
The Guardian reports here that some of Britain’s top model agencies colluded to 
fix prices charged to retailers, fashion brands and other customers. Read more about 
the case from the Competition and Markets Authority website.

Wednesday, 25 May 2016

Unit 2 & 4: Purchasing Power Parity

With the unit 2 and theme 2 exams approaching, it is essential to have some background on the usefulness of PPP when comparing GDP between countries.
Since market exchange rates are usually influenced by the forces of supply and demand, and they cause the appreciation or depreciation of a currency. The exchange rate though determined only through the market, is not accurate in demonstrating purchasing power of peoples’ income in different countries.
The PPP is calculated by comparing the price of a basket of comparable goods and services in different countries.
It allows you to compare the price of household items in different countries.
To make comparison between countries meaningful you need a way of comparing exchange rates between countries which compares the cost of living in those countries.
If you are given a question in your upcoming exams relating to the PPP here is a way of demonstrating your understanding:
Let’s say a basket of the same goods and services is worth $100 in the US and the same basket of goods is worth €130 in Cyprus.

Friday, 20 May 2016

Unit 2: Study afternoon Sunday

hello all,

Just a reminder if you have not heard. I will be In School from lunchtime on Sunday to offer a last minute revision session. I will focus on the following:

The multiplier - how to calculate it and possible long answer questions on it
Index numbers
HDI and GDP/capita
Plans for long answer questions

If you cannot make it, please revise those areas above. (In addition to the obvious)

I'll be in from 12.30 onwards

Wednesday, 18 May 2016

Unit 2: Macro-Economic study notes

Here is a topic-by-topic listing of the available study notes for the macroeconomics topics for Year 1 (AS) A Level Economics here on tutor2u.

Unit 2 - Macro study notes

Unit 2 - Macro playlist

Unit 3: Banking watchdog wants to cut prices/fees banks charge

Thanks to Daniel (I don't often say that! :-) for this FT article (Click here to access) on how the CMA, in an attempt to boost switching rates and encourage banks to compete for customers, unveiled proposals centred on making fees transparent and opening up bank data for other parties, to help them enter the market.

Good article which discusses the issues of dominant firms exploiting consumers.