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Wednesday 30 September 2015

Sunday 27 September 2015

Sunday 20 September 2015

Wednesday 16 September 2015

Unit 1: The Demand Curve

A useful powerpoint to help explain the theory of demand.

Monday 14 September 2015

Unit 2: The Star Wars Multiplier effect

Hopefully you are all as excited as me about the new Star Wars film out this year. Well, there is, as always, lots of economics behind the story. For example, the multiplier effect, which is perhaps, the single most important macroeconomic concept that you learn in your first year of post-16 Economics. Every economist should appreciate its significance.

Click here to see an example of a positive multiplier effect in action. - this time from the filming of the new Star Wars film. It's a pity they didn't announce these details on International Star Wars day - or May the 4th, as it's more commonly known. I have attached the trailer, just for fun!



Unit 1: Human Capital in Japan! (& fake girlfriends)

Just in case you didn't believe me, click here for the article that shows the population issues in Japan. It is quite a funny piece, but there is a lot of Economics behind the story.

How will the Japanese make stuff in the future?
What is happening to one of their most precious resources?

Unit 1: Specialisation & the Division of Labour

Sunday 13 September 2015

All Units: The Latest Economic Review

The latest edition of the Economic Review is available in the library. Please make it a habit to have a look at it and read the relevant articles. It is written by examiners for A level students.

Monday 7 September 2015

Unit 1: Production Possibility Curves & Opportunity Cost

Unit 3: Amazon's costly Fire Phone Flop!

Stick to selling things rather than making them. That might be the message for Jeff Bezos and his team at Amazon after they decided to abandon their attempt to enter the increasingly contestable global smartphone market.
The Amazon Fire Phone has failed - spectacularly.
The WSJ reported recently that Amazon has taken a $170m loss on unsold inventory of the phone - and the project has now been abandoned.
Of course the setback of the Fire Phone won't stop Amazon investing in new product innovation. But it is a reminder that in some market segments - particularly smartphones - they face intense competition!

Tuesday 1 September 2015

Unit 1: The Economics of the NHS - Scarcity

Many economics teachers bring the economics of health care into their teaching at an early stage of a new course. It is a terrific issue to look at when considering the basic economic problem of unlimited wants and limited means, the factors of production used in providing health care and also the issues of opportunity cost and key decisions about who gets the care they need and how best to fund appropriate healthcare for the population.
The NHS originally launched with a budget of £437m (approximately £9bn at today’s value) and was designed to offer free-at-the-point-of-delivery, acute and emergency medical care for everyone – regardless of their status or income. The government spent £113bn on the NHS in England in 2014/15; a 1.8% increase in real terms on the 2013/14 expenditure.
Total health expenditure in the UK in 2012 amounted to 9.3% of GDP, of which 7.8% was government spending. The UK’s government spending as a percentage of GDP ranked 9th out of the 30 OECD countries with available data for 2012.
Each year data is produced on the base cost of a range of treatments provided by the NHS. The annual heat care report from Benenden Health has prompted a lot of media interest. They found that the majority of people vastly under-estimate the resource cost of providing different treatments. Drawing on data from this report and that made available by the NHS, I have produced a table below of a selection of treatments.
Examples of base cost for a range of treatments
Base cost – this is usually excluding the costs of pre-treatment, GP appointments, post-procedure care and follow-up care.
Costs are higher for patients who need an extended stay in hospital
Base costs for 2013-14 (costs have been rounded up for ease of use)
  1. Planned caesarean-section in NHS hospital £2,400
  2. Natural birth in NHS hospital £1,800
  3. Abdominal hernia repairs £2,300
  4. Hip replacement £8,900
  5. Liver transplant £70,000
  6. Gastric (stomach) by-pass £5,000
  7. One round of IVF treatment £6,000
  8. Bone marrow transplant £70,000
  9. Heart transplant £43,000
  10. Cochlear Implant £17,000
  11. Kidney transplant from heart-beating donor £15,000
  12. Kidney transplant from non-heart-beating donor £13,600
  13. Plasma exchanges (20 or more) £9,700
There are many options for teaching this.
A matching exercise to see if students can match the treatment with the cost
A discussion based around the concept of opportunity cost - for example a student could have a fixed budget of £200,000 and be asked to consider how that budget might be allocated to the treatments listed, justifying their rationale.
The data can form the basis for independent research on how costs can best be controlled in the NHS, whether or not people should expect to have most treatments available free at the point of clinical need. Choose an ambitious title for a piece of extended writing!
Suggestions for further reading and research
Sustainability of the National Health Service as a Public Service Free at the Point of Need (July 2015) http://researchbriefings.parliament.uk/ResearchBri...
Articles on the NHS from the Guardian http://www.theguardian.com/society/nhs
Guardian: The Secret Doctor: people would use the NHS less if they knew the true price tags http://www.theguardian.com/commentisfree/2015/aug/...
Statistic: Public sector employment in the United Kingdom (UK) as of June 2015, by industry (in million individuals employed) | Statista