Unit 3: The Competition Commission and Office of Fair Trading get a re-launch

It is always worth keeping abreast of institutional reform to ensure that exam responses show an awareness and understanding of current contexts.

In light of this, one of the important reforms in the anti-trust arena is the creation of the Competition and Markets Authority, which comes into full existence in April 2014.

In 2012 the Government announced its plans for reform of UK's competition regime.

These include creating a new single Competition and Markets Authority (CMA), which will take on the functions of the CC , and the OFT's competition functions and consumer enforcement powers.

The Enterprise and Regulatory Reform Bill, which gives the effect to these reforms, was approved in April 2013.

A summary of these reforms can be found in this PDF here.


The CMA's website is here.

Unit 3: Revenue Vs Profits

Another useful presentation on Revenues and Profits.

Revenues and Profits from tutor2u

Unit 3: Perfect Competition Presentation

An updated presentation on aspects of Perfect Competition from tutor2u.

Perfect competition summary from tutor2u

Unit 3: Satisficing

Here is an updated revision presentation on satisficing as an alternative to profit maximisation and also some of the factors affecting the profitability of a business such as Stagecoach plc.

 

Satisficing & Profitability Factors from tutor2u

Unit 3: Short Run Costs of Production

A useful revision presentation, looking at a common multiple choice theme.

Unit 3: Fixed Vs Variable costs presentation

A2 Micro: Fixed and Variable Costs from tutor2u

Unit 3: What is allocative efficiency?

Used all the time but generally poorly understood - this video reveals exactly why P=MC is the allocatively efficient point of production (basically where demand=supply)

Y13 Economics: Extra work for the car sharks!

I don't give detentions. They are a waste of my time and yours. However, I will give you some work that I want completed by Tuesday registration. Answer the following:

In several countries there has been increasing pressure for protectionist policies. Evaluate the likely economic effects of an increase in protectionism by the EU. (30 Marks)

Unit 4: Exchange Rate Presentation

Not the ppt I used in class, but a good presentation on exchange rates none the less.

Click here to access.

Unit 3: Monopoly and deadweight (welfare) Loss

The monopoly dead weight loss diagram can cause confusion conceptually and diagrammatically for students. Here is a simple explanation which should help.



Let me know you have watched this and understand it!

One questions.....can monopolies (despite loss of welfare) be good for the consumer?

Please comment....

Unit 3: Competition Commission and private healthcare

Generally speaking, whilst many market failures are bad, some market failures are worse than others. Market failure in the healthcare market can have significant adverse consequences for an economy.

Today, the Competition Commission (CC) has outlined its proposed measures to increase competition in the private healthcare market.

At the heart of these proposals is that freer markets and competition work best.

Read more on the report here.

Unit 4: Homework question on exchange rates

Please complete the following part a) essay question for Monday 20th (that's BEFORE you go on MUN)!

The value of the pound rose from £1 = €1.05 in May 2008 to £1 = €1.26 in November 2012. Examine the factors which might explain this appreciation of sterling against the euro.

Remember 3 points and at least 2 evaluative points for an A* answer.

Unit 4: Exchange rate presentation

Click here to access the presentation on Exchange Rates. Excellent for questions on international trade, balance of payments, the Euro and exchange rates.

Unit 4: From BRIC's to MINT's

Building an Ikea for the 28 million people living in greater Jakarta

In 2001 the world began talking about the Bric countries - Brazil, Russia, India and China - as potential powerhouses of the world economy. The term was coined by economist Jim O'Neill, who has now identified the "Mint" countries - Mexico, Indonesia, Nigeria and Turkey - as emerging economic giants.  Click here to see his explanation.

Unit 1: Asymmetric information - How much sugar is in a can of coke?

Do consumers of carbonated soft drinks really know how much sugar is in their regular fix? 

This five minute Newsnight clip is ideal for showing when teaching aspects of the economics of information failure. 

Will "getting the information in people's hands" help them to adjust their lifestyles? 

What are the economic arguments for and against direct intervention in the market for carbonated drinks such as a tax on high sugar content products? 

What are the alternative options or should we simply let consumers make their own choices?

In January 2013, Coca-Cola, released an advert to address the problem of obesity in the United States. Click here to watch.

Unit 4: Economic Development in Romania

There has been huge recent coverage of the impending relaxation of migrant controls for workers from Romania and Bulgaria - two countries that joined the EU single market in 2007. Here are some different views on the issue.

The World Bank has recently put two short You Tube clips on their channel focusing on the importance of economies of scale, labour mobility and competitive cities as drivers of growth and development in Romania and Bulgaria. They are both worth a look as useful short revision clips for economists and geographers.

Competitive cities

"Competitive cities are the main engine of economic development? Density, distance and division matter?"

Unit 3: Non-Price competition

Here is an excellent example of changes in the nature of non-price competition in the oligopolistic supermarket industry. 

The success of the My Waitrose card (now used by 3 million customers) has catapulted Waitrose into 2nd place for the largest retailer of hot tea and coffee drinks in the UK. They are now second only to McDonald's and some distance ahead of Costa, Starbucks and other well-known high street brands.

Waitrose started offering shoppers who signed up to its loyalty card, myWaitrose, a free cup of tea or coffee every day. They took the view that consumers respond more to immediate rewards / gratification and the power of the word "free" rather than building up interminable loyalty card points for use at some uncertain date in the future.

Read: Waitrose Boss attacks meaningless loyalty cards

Unit 1: Market Failure & Government Failure in one go!

A really useful clip from last night's Channel 4 News highlights both issues - and points you towards the welfare implications of both. This would make a lovely example for any of you facing examination questions which are asking for an evaluation of government intervention in the market. 

In the first place, if the pharmaceutical companies are provided imperfect information, how might this affect market outcomes? And if there is an adverse effect, is there a case for government intervention? 

How would you both justify this, but equally, how might you oppose intervention?

Secondly, to what extent does spending £500m on Tamiflu represent a government failure? How would you define this? And how might it apply in this case. This is all thought-provoking stuff, I hope.