Do you know what the current rate of economic growth is? Probably not. In the article below Larry Elliott argues that this may indicate that the link between economic growth and happiness has been broken and that alternative measures of GDP may be more helpful in analysing the performance of the economy.
Cameron should count on happiness Guardian (27/8/07)
Questions
| 1. |
Explain what is meant by the term ‘Index of sustainable economic welfare’. |
| 2. |
Examine three factors that may raise economic welfare that are not included in a conventional measure of GDP. |
| 3. |
Use the Friends of the Earth make your own ISEW site to analyse the factors that may contribute the most to economic welfare. Discuss the arguments for and against the introduction of an ISEW as an official government measure of economic welfare. |
In complete contrast to the holidaying habits of the Blair family, Gordon Brown chose to take his holiday this year in Weymouth on the Dorset Coast. Is he setting us a good example? Should we all be holidaying at home to support the UK economy? In the article below, David Smith looks at the impact of holidaying abroad on the UK balance of payments.
Holiday at home and do your bit for Blighty Times Online (26/8/07)
Questions
| 1. |
Examine the impact of growing overseas travel on the UK balance of payments. |
| 2. |
Assess the impact of a reduced tourism deficit on the rest of the UK economy. |
| 3. |
Discuss policies that the government could adopt to help encourage a reduction in the balance of payments deficit on tourism. |
British Airways has been fined £270m for their part in a price-fixing cartel. Fines were levied by both the US Department of Justice and the UK Office of Fair Trading following an agreement between British Airways and Virgin to fix the level of surcharges charged to passengers as a result of rising fuel prices.
Where’s Branson’s apology? BBC News Online (Robert Peston blog) (7/8/07)
BA’s price-fix fine reaches £270m BBC News Online (1/8/07)
OFT defends ‘snitch’ policy Guardian (5/8/07)
BA boss speaks out over price fixing Guardian (3/8/07)
How arch rivals colluded to hike up cost of air travel Guardian (2/8/07)
Questions
| 1. |
Define what is meant by the term ‘price-fixing cartel’. |
| 2. |
Explain the characteristics of a market that are most likely to result in a cartel. |
| 3. |
Discuss policies that the government could put in place to prevent this kind of price-fixing arising in the future.. |
The widening of the M6 will cost £3bn or £1000 an inch. What does this fact tell us about the government’s green priorities? Are we really leading the world on climate change as the government likes to claim? In the article below Ashley Seager (Economics Correspondent for the Guardian) looks at these issues and argues that we may be the poor man of Europe when it comes to ‘green’ policies.
Green means slow to this government Guardian (6/8/07)
Questions
| 1. |
Explain what Ashley Seager means by the sentence “What the government has also not done is send out new “price signals”, as economists call them” (paragraph 7). |
| 2. |
Explain what is meant by a feed-in tariff (FIT). Why does Ashley Seager argue that this is a vital policy tool in the fight against climate change? |
| 3. |
Discuss two policies that the government could adopt to help raise the proportion of renewable energy generated in the UK. |
The combination of high global demand for milk and variable weather has led to a rapid rise in the price of milk. Cheese is made from milk (sorry to state the obvious!) and so cheese prices have risen to a new high in excess of £2000 per tonne and further price hikes are expected. One conclusion that could be drawn from this is that it is better to have a takeaway pizza now rather that in a month’s time, but what other effects is this price increase for milk likely to have?
Cheddar hits £2,000 a tonne as global milk demand soars Guardian (15/7/07)
Questions
| 1. |
Identify the key determinants of demand for cheese. |
| 2. |
Using diagrams as appropriate, illustrate and explain the changes that have taken place in the market for cheese. |
| 3. |
Assess the extent to which the price increase for milk can be passed on to consumers of associated products like yoghurt and cheese. |