In the article below, Ashley Seager from the Guardian argues that the government is doing little to encourage the take-up and adoption of alternative forms of energy generation for households. Indeed he argues hat the situation has got worse and not better in recent months with changes in the system. Only 270 houses were helped with the fitting of photovoltaic systems last year. In Germany the equivalent figure was 130,000.
Reasons to see red over green energy Guardian (18/2/08)
Questions
| 1. |
Assess the external costs and external benefits resulting from installing a photovoltaic electricity generation system on a house. |
| 2. |
Using diagrams as appropriate, show how the installation of photovoltaic cells on houses will alter the socially optimal market equilibrium. |
| 3. |
Evaluate two policies that the government could use to encourage the more widespread adoption of alternative methods of generating power. |
The start of a new year is a time that many of us make New Year Resolutions. Generally we have broken these before then end of January, but a new web site called Stickk.com aims to helps us keep the resolutions. Can economics help us rationalise the process of making resolutions? In the article below Tim Harford (the Undercover Economist) looks at incentives and what economics can tell us about New Year Resolutions.
Rationalising resolutions MSN Slate (22/12/07)
Questions
| 1. |
Assess the importance of incentives in determining people’s economic behaviour. |
| 2. |
How does the analysis of ‘rational behaviour’ help us understand the economic choices people make? |
| 3. |
Discuss the likely success of the business model developed by Stickk.com. |
As Nicolas Sarkozy takes over as President of France, he faces a difficult economic situation. Poor economic growth, worsening international competitiveness and a worrying level of unemployment and social unrest mean that he has much to do. His approach will inevitably be controversial and the extent to which he is able to implement his promised reforms may depend on how well he can carry the main stakeholders with him.
Les misérables: France’s unhappy position BBC News Online (7/5/07)
Questions |
| 1. |
Explain the principal economic policies that Sarkozy has promised to implement. |
| 2. |
Discuss the economic problems faced by France. |
| 3. |
Analyse the economic constraints faced by Nicolas Sarkozy as he tries to implement his policies. |
| 4. |
Assess the likely success of the economic policies promised by Sarkozy. |
With the news this month of the death of Boris Yeltsin, it has been an opportunity to look back at the economic legacy of the first democratically-elected President of Russia. Boris Yeltsin took over at a time when all goods were scarce and the industrial infrastructure was crumbling. He adopted policies of extensive privatisation and abandoned price controls. To what extent has this created the Russia of today and what is the legacy he has left behind?
Yeltsin’s moment The Economist (subscription) (26/4/07)
Yeltsin’s economic legacy BBC News Online (24/4/07)
Questions
| 1. |
Explain the reasoning behind the policies that were adopted by Boris Yeltsin in his early years in office. |
| 2. |
Discuss the extent to which those policies enabled the development of the Russian economy. |
| 3. |
Assess the current state of the Russian economy. |
The red top newspapers and others have recently been leading a campaign for the scrapping of inheritance tax. They argue that the growth in house prices means that increasing numbers are becoming subject to inheritance tax and that it is inherently unjustified as a tax. The article below by David Lipsey looks at these arguments and argues that this is a myth.
The ‘death trap’ menacing middle Britain is a myth Guardian (12/1/06)
Questions
| 1. |
Explain how inheritance tax is levied and the rates it is charged at. You can always use the HM Treasury budget site to find out more detail on the tax. |
| 2. |
Assess the advantages and disadvantages of the scrapping of inheritance tax. What impact is the ending of a tax of this nature likely to have on the macroeconomic performance of the UK? |
| 3. |
Discuss the assertion in the article that “substantial inheritance is the enemy of equality of opportunity”? |