Thursday Reading: Current events in Economics

Click here to read article about the latest interest rate rises in the US. Questions to think about:

Why have the Fed increased rates?
What impact will this have on the economy (think about economic objectives/winners/losers)?
Short term Vs long term impact?

Click here to read article on international economics. The IMF are bailing out Argentina. Again, questions to think about are similar to the above.

All useful background knowledge for your upcoming exams.

Minimum Wage - A timely article looking at low pay in the UK

A record £15.6m worth of underpayment to UK workers has been discovered by the government in the past year. Click here to access the article.

Issues to discuss:

Does this suggest that the minimum wage legislation is failing?
How could the government combat this?
Should this be higher up the governments agenda? (it was hardly headline news last week)

Hyper inflation - some of the worst examples

An interesting piece on inflation (Click here). Some of the worst examples in history are listed here. Questions for discussion:

What are the consequences of hyperinflation for the economy. the value of money, living standards?

How would you solve the problem of hyperinflation? (how long would it take, would it work?)

Oligopoly in action: Tesco open new cheaper stores in UK

Thank you to Mr Choudhury for finding this video.

Lots of great economics here. Tesco is losing market share to Lidl & Aldi (suggesting the supermarket sector is contestable).

Tesco is responding by introducing direct competition into these markets. Will it work or have Lidl & Aldi got first mover advantage (would you swap supermarkets easily?)

Trump, tariffs & trade: International trade in action

Interesting yes...and it will help you write essay on tariffs.

Click here for article.

Labour Market Failure - including monopsony power

This video from Geoff is an excellent way to look at why the perfect labour market is only an assumption. It also looks at possible solutions and evaluates government policy. Excellent for any essay you might attempt in this area.

 

Click here to access an excellent article on how monopsonist employers are driving down wages in the US.

All Economists: Latest UK inflation figures show unexpected rise!

Click here to access a BBC article on how UK inflation rose in August 2018. Thoughts to consider:

What was the cause of this rise?
Is it a one off blip, or more long term issue?
What could the government & the Bank of E
ngland do to address this problem?
What are the short and long term consequence of any possible action?

Monetary Policy in action

All year groups should read the two links and the following presentation on monetary policy. Two countries in economic crisis have taken drastic action to try and solve one of the important economic objectives....inflation.

My question to you is, will it work and what are the possible consequences for the people!

Turkey raises interest rates - click here for the story.

Argentina raises interest rates - click here for the story.

AS Macro Revision: Monetary Policy and Exchange Rates from tutor2u

Apple & the mobile phone market: Oligopolistic competition in action

With the new i phone launch, we have lots of information on how firms in this oligopolistic market compete. Price is the last thing on their minds.Useful points to consider:

game theory
non-price competition
first mover advantage
new entrants/exits (see picture)

Click here to access the BBC article

Y13 Labour Markets

Tutor2u - Labour Market Economics from tutor2u

1. Discuss Factors That determine wage differentials in the UK? (30)

2. To what extent are wages determined by Marginal Revenue Product MRP theory ? (30)

3. Discuss the impact on Labour Markets of Net Immigration? (30)

4. Discuss whether Trades Unions actually benefit Members and non Members? (30)

5. Explain reasons for the increased labour Market Flexibility? (30)

6. Discuss policies to Increase labour Market Flexibility? (20)

7. Discuss 3 policies to reduce Inequality in the UK (30)

8. Explain causes of increased relative poverty in the UK (10)

9. Discuss policies that the government can use to Increase Labour Market Participation Rates. (3)

10. Discuss the impact of an increase in income tax on labour markets (30)

Y12 Economics: Production Possibility Curves

The following is an aid to the subject of 'Production Possibility Curves (also known as frontiers).