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Sunday, 24 April 2011

Revision aid: Mnemonics - you love them!

I am 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 - to help explain the currency transmission mechanism (X-M)

Strong

Pound

Imports

Cheaper

Exports

Dearer

BRITS - to help explain the elasticity of supply.

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

If you can think of anymore, let me know....

2 comments:

  1. My As level class also uses TIGERS for Government's main macroeconomic objectives:

    Trade balanced (BOP)
    Inflation low and stable
    Growth
    Employment
    Redistribution of wealth
    Sustainability of the enviromental situation

    and PINTS WC for factors that shift supply (micro economics)
    Productivity
    Indirect Taxes
    Number of firms in the market
    Technology
    Subsidies
    Weather
    Costs of production

    Your site is brilliant for AS revision -thankyou!

    ReplyDelete
  2. I use X pints = WC too!
    TYpE PN-1 for conditions of demand.
    I use SCAMS rather than BRITS (Spare capacity, Alternative methods, Materials, and Stocks).
    CELL for the factors of production.

    ReplyDelete