The trade deficit and AD

PAJ Holden's You Tube clips http://www.youtube.com/user/pajholden?gl=GB&hl=en-GB are excellent for getting to grips with A Level Economics. The following video is one of my attempts to fill a gap in PAJ's coverage:

http://www.youtube.com/watch?v=HMGMk-5RZcc

A2 Homework due 20 December

Q 2 b Evaluate the possible problems for the UK economy of increased government borrowing. (25 marks)

Jan 2007

Use your feedback tragets from your last 25 mark questions to shape your answer.

AS Economics UK trade deficit narrows

Using the data below assess the likely impact on the UK Economy of a narrowing in its trade deficit (12 marks)

2 marks for use of data

2 marks for use of circular flow diagram

2 marks for explaining impact of rising exports then 2 marks for evaluating this

2 marks for explaining impact of falling imports then 2 marks for evaluating this

http://www.guardian.co.uk/news/datablog/2010/feb/24/uk-trade-exports-imports

http://www.bbc.co.uk/news/business-18069660

AS Economics cover work friday 7/12

Study Powell page 226-227 Answer Q1 and 2 p227 also remember your Autumn Statement article and comment is due in next lesson

AS resit sessions

AS Economics re-sit sessions
Due to staff meetings these have now been changed to the
following dates, all in room 1 3.15pm start:
December 10th (Xin, Nadeem, Sean), 13th (Xin, Julian, Nadeem, Michael, ),

18th (Unit 1 Public Goods, Unit 2 tbc) and 20th Unit 1 and Unit 2 Diagram tests and go over.

A2 Economics - Homework essay due 10 Dec

3 (a) Explain how fiscal policy could be used to influence aggregate demand. (15 marks)

(b) The UK government decides to bring about a significant shift in the sources of tax

revenue from direct taxes, such as income tax, to indirect taxes, such as Value Added Tax

(VAT).

Evaluate the potential economic consequences of such a shift in the sources of tax

revenue. 25 marks)

June 2007

Monday 26th and Weds 28th November Independent study

A2 Economics  - study rest of Powell Ch 19 Answer short questions p326

AS Economics – study rest of Powell Ch 18 Answer short questions p224

To make it easier - skim read and make study notes, provide short answers to the questions; you have until the start of next week to work on this.

AS re-sit revision

Next week 28 Nov starts with Unit 1. Tutor2u has a good article on fish and chips for looking at complements: http://www.tutor2u.net/blog/index.php/economics/comments/whats-that-got-to-do-with-the-price-of-chips

Econ 2 - worth spending time thinking about how fiscal policy, monetary policy and supply side policies may support each other or conflict e.g savings. Also draw trade off diagrams for all six macro objectives.

Thank you to the following for attending very long session today finishing at 4.30pm: Xin, Anuzka, Alfred, Alex K, Alex M, Julian, James, Sean, Lewis, Rhys, Nadeem, Elliot, Taylor, Jack and Tom.

Revision Guru website =  http://www.revisionguru.co.uk/economics/aqa2index.htm

AS Economics - Circular Flow of Income

Independent Study:

Go back over notes and practice using Circular Flow of Income diagram. Use PAJ Holden's video clip, remember to use pause and take notes: http://www.youtube.com/watch?v=gaEY-p-21F8

Stretch yourself: Investigate 'Says Law' and 'Paradox of Thrift.'

Remember to use the basic scaffold for 8 marks: If, then, so...

 

•If households fear recession and the loss of their job, then they save more to be able to cope with a loss of income as witnessed by a rise in the savings ratio by 8 percentage points in 2007-2009. As consumption declines firms have to cut back. As profits fall they reduce workers wages and making workers redundant, known as cyclical unemployment. If national income declines for more than six months, as shown in the circular flow of income diagram, so the very recession people feared will come true.

AQA AS resit revision

Please access on the student area the Economics resources for AS which have been updated. you are advised to follow the scheme of work and to traffic light it to shape revision sessions.

You are strongly encouraged to attempt past exam questions. For multiple choice identify the questions you get wrong and after looking at the mark scheme still do not know why that is the right answer - email me these questions to help you. For data response at first practice each sesction and email me, then as you get feedback I will guide you on what areas to practice the most. Email: tgray@cherwell.oxon.sch.uk. Finally do use the Economics YouTube clips by PAJ Holden and myself available on Cherwell Online channel.
Econ 1 - Exam 15 January pm
Revision sessions 3.15-4pm, Room 1
18 October - going over the basics (S&D, PED, PES, YED, XED) with market failure and government interventions/failure: externalities and  public goods; monopoly and poverty.
October break - revise/complete practice papers - email in as above
8 November  - Complete basics and Exam practice
22 November
6 December
20 December
December break - revise/complete practice papers - email in as above
7 January
14 January - pre exam prep.

Econ 2 - Exam 28 January pm
Revision sessions 3.15-4pm, Room 1
11 October - Getting feedback on where you went wrong on paper 1 or 2 using e-AQA. Going over the basics on Growth and Unemployment (Fiscal policy); Inflation (Monetary policy) and trade deficits.
25 October - completing the basic fundamentals of Macro-economics
October break - revise/complete practice papers - email in as above
15 November
29 November
13 December
December break - revise/complete practice papers - email in as above
10 January
17 January
24 January - pre-exam prep.

Edexcel AS Specification and scheme of work

For Edexcel's specifaction please see the following link:
http://www.edexcel.com/quals/gce/gce08/economics/Pages/default.aspx
The Scheme of work is in the student shared area and is constantly revised as more resources become available.

Perfect Competition Homework

05 Explain what is meant by a ‘perfectly competitive market’ (Extract D, line 29) and, using
a diagram to help you, analyse how a fall in demand across the retail industry can be
expected to affect the sales and profits of an individual retail firm operating in a perfectly
competitive market. (10 marks) June 2010



Use Tutor2u powerpoint to recap class notes: http://www.tutor2u.net/economics/presentations/a2economics/micro/PerfectCompetition/player.html

AS Economics Re-sits

Thanks to Nadeem, Xin, James, Anuzka, Julian for coming to the session today and Sean I got your apologies - but where were the rest of you?

Please do use the moodle resource for AS revision material, you can log in from home as you would log on to the School's system.

I expect all of you to complete the following exam paper in full - multiple choice and data over the holiday for the paper you are retaking:

 Jan 09 ECON 1; http://store.aqa.org.uk/qual/gce/pdf/AQA-EC0N1-W-QP-JAN09.PDF

Jan 09 ECON 2; http://store.aqa.org.uk/qual/gce/pdf/AQA-EC0N2-W-QP-JAN09.PDF


If you have had the eAQA service from me it might be worth also looking at the Summer 2012 paper  - available in the student shared area/Economics/A Level/2012 papers

Your practice responses will shape the remaining re-sit sessions every Thursday Room 1 3.15-4pm in term 2 so re-arrange part-time work and other commitments so you can come along.

AS Economics October break study

Mr Gray - ECON 2
Study macro objectives for testing when you return. use the following chapters; we will be studying the use of AS/AD diagrams when you return so only do a light read when these are mentioned. Ch 16, 17, 20, 21 and 22.

Answer the following questions:
What is a trade deficit (4 marks)
Analyse two cuases of a trade deficit (8 marks)


Mr Lawfull: ECON 1
Study supply and demand - shift and movements and use of market forces for test when you return; in addition answer these 6 mark questions:
Answer Jan 2011 Sugar Q9b

http://www.edexcel.com/migrationdocuments/QP%20GCE%20Curriculum%202000/January%202011%20-%20QP/6EC01_01_que_20110112.pdf

Answer Jan 2012 Beef Q9a

http://www.edexcel.com/migrationdocuments/QP%20GCE%20Curriculum%202000/January%202012%20-%20QP/6EC01_01_que_20120307.pdf

Thurs 25 October AS Period 1 and 2

12 EC E combined lessons - period 1 room 13
period 2 - room 11

A2 Economics 24 Oct

Year 13 Economics
ECON4: Produce a presentation illustrating why monetarists might believe that "unemployment is a price worth paying." Using AD (shifting in) then AS (shifting out) analysis. Study Long Run Phillips curve, Short Run Phillips curve and the natutal rate of unemployment and try to integrate them into your presentation.
ECON3: Be prepared to accurately draw the perfect competition diagram in your next lesson.

Tuesday 23 October

 

Period 1 12 EC Answer exam-style questions: using current data (google pink book) what is meant by a trade deficit (4 marks) Analyse two causes of a trade deficit (8 marks)

Period 3 12 Ec Using Powell study Chapter on balance of payments, be prepared to recreate basic outline of the current account and define each section in next lesson.

13EC C

ECON 3 - Study perfect competition in short run making abnormal loss/profit and movement to long run equilibrium, be prepared to present this analysis to rest of class on Thursday.

ECON 4 - Monetarism: Answer essay question:

Evaluate the likely effectiveness of monetary policy in the management of the

economy in the light of the current economic climate.

Monday 22 October

Year 13 Economics
ECON4: Produce a powerpoint presentation illustrating why monetarists might believe that "unemployment is a price worth paying." Using AD (shifting in) then AS (shifting out) analysis. Study Long Run Phillips curve, Short Run Phillips curve and the natutal rate of unemployment and try to integrate them into your presenttation.
ECON3: Be prepared to accurately draw the perfect competition diagram in your next lesson.

Year 12 Economics:
ECON 2: Study in AS Powell the Balance of Payments. Be prepared to write up the key elements of the current account and accurately define them.
ECON 1: Sudy shifts in supply and demand. Try to master using market force language of surpkuses/shortages as well as extensions/contactions.

All work is due next lesson.

13EC C lessons

Thurs 18 Oct - Room 3 - Monetarism: MV=PT, LRPC and NAIRU.
Mon 22 Oct - Period 1 room 22, period 2 LS1 - Perfect Competition model
Tues 23 Oct - Period 4 and 5 Room 10 Monetraism complete - Past data response question
Thurs 25 oct 0 period 3 - room 9 setting of Perfect Competition essay

13EC E combine

Week 2 - please make sure that you are at the following lessons with Mr Gray:
Friday 12th October - period 3 - cover lesson, complete data plans for Econ 3 and 4 as distributed on the 10th. check with me if any problems before you write up. Keep focussed on the areas you need to improve on, from your feedback last time.

Wednesday 17th October training day, cover work for:
Mr Gray - Study Chapter 68 Anderton, Answer Questions 1-3 p477.
 http://www.youtube.com/watch?v=SYEvFRQchyw
http://www.economicshelp.org/essays/economics-growth-happiness.html
http://www.economist.com/blogs/feastandfamine/2012/04/happiness

Mr Lawfull - Study Ch 43 Anderton Answer Questions 1, 2 and 3 p286-287 short answers.

Thursday 18 October - period 3 - room 3

Friday 19th October - period 3 - room 3, currently no lesson, cover work set for Mr Lawfull:
Study Ch 44 esp Applied Economics p296-297 Answers Questions p298.


Do keep looking back at this blogspot for updates.

A Level Economics quizzes

Difficult to find tutor2u multiple choice questions.

General economics subject knowledge quiz:
http://www.tutor2u.net/quiz/economics/default.asp

Topic based quiz - try Demand and Supply 1 for Unit 1 and Inflation for Unit 2:

http://www.edexcel.com/migrationdocuments/QP%20GCE%20Curriculum%202000/January%202012%20-%20QP/6EC01_01_que_20120307.pdf

AS Practice questions 15 Oct

Using the past papers link below answer:

June 09 (4 cpi calc)

Target (4)

June 10  ( index weights 4)  (target 8)

June 11 cpi basket (6)

Jan 12 (8)

AS Edexcel Past papers for new year 12

To access past papers for Unit 1 (Mr Lawfull and Miss Read) and Unit 2 please click on the link, January papers for Unit 2 (Mr Gray) started in 2011. Click on Curriculum from 2008 then Economics:
http://www.edexcel.com/i-am-a/student/Pages/Pastpapers.aspx

Masters of money

Keynes, Hayek and Marx - a great series of documentaries:

http://www.youtube.com/watch?v=3rIs5YF5gqw

AS Economics E group

Thursday 11 October

Period 1 - room 13
Period 2 - room 11

Independent study - research: The Economics of Happiness

A2 Lessons 13EC C combine

Please ensure that you are at the following lessons and that you inform me in advance if you are unable to make it:
Week day period - room

2Mon1 - 22
Econ 3 work set: Answer Q1, 2 and 3 from the following past paper on GM crops:
http://store.aqa.org.uk/qual/gce/pdf/AQA-ECON3-W-QP-JUN10.PDF
due in Monday 13 October

2Mon2 - LS1
Econ 4 work set: Answer Q1, 2 and 3 from the following past paper:
 http://store.aqa.org.uk/qual/gce/pdf/AQA-ECON4-W-QP-JAN10.PDF
due in Monday 13 October

2Tue4 - 10
2Tue5 - 10
2Thur3 - 9

1Mon1 - S11
1Mon2 - 75
1Tue5 - 1
1Thur3 - 3

Economics homework 12 EC

Miss Read –Study Ch 3 complete question p33 due Wednesday 10th October.
http://www.youtube.com/watch?v=QqvB8N_m-tI&list=UUksIqFYQv2lK91pBGvOuMag&index=7&feature=plcp

Study Ch 4 Answer Q’s p 38 and 41

Mr Gray –Study Ch 16 Answer Q’s p183, p184, p 186 and p188.

Both due Friday 12th October.

12 ECe - combined lesson, room 11 - period 3 Tuesday 9 October - Feedback on Ch 16 Macro-objectives and test.

Economics Trip 20th September

Here are some additional resources associated with the trip to the Museum of London Docklands and Bank of England. if you are unable to make the trip it is very important that you take advantage of these resources and make some detailed notes for feeding back in class.

http://www.bankofengland.co.uk/education/Pages/filmsgames/default.aspx

http://www.bbc.co.uk/history/british/empire_seapower/trade_empire_01.shtml

Is the USA in recession?

As the Presidential elections gear up it is worth considering current economic developments in the USA and how they may have an impact on the UK. As this excellent article, thanks to Tom,  shows they have a different view on 'recession' over there: http://www.independent.co.uk/news/business/analysis-and-features/economists-who-make-the-recession-call-768835.html

The scope of economics - an introduction

http://www.bbc.co.uk/news/10613201

Economics at the Movies

Great fun resource for A Level economics insights:

Tutor2u Economics at the movies plays movie clip straight away

MoviesforEcon you need to have the DVD but an extensive catalogue

Great clip found on Quantitative Easing - thank you Rhys. If any of you find any other clips worth adding please comment.

Stretch yourself in Economics - learning from the greats

It’s time to stretch yourself – please comment on any other resources you would recommend or review resources as a comment.

Use Tutor2u's recommended list: click here

2011 List included:

Additional Reading – for the beach this summer; to stretch yourself; entertain you and impress examiners or for UCAS statements and University interviews:

Freefall: America, Free Markets, and the Sinking of the World Economy (2010) – Joe Stiglitz; very US focussed by Nobel prize Economist,   discusses the causes of the 2008 recession/depression and goes on to propose reforms. Among the policy-makers he criticises are George W. Bush and Barack Obama.

The Undercover Economist, Tim Harford, Little, Brown, 2006

- the author of ‘Undercover Economist’ columns in the FT looks at the economics of everyday, http://blogs.ft.com/undercover/.

Keynes: The Return of the Master is a 2009 book by economic historian Robert Skidelsky. The work discusses the economic theories and philosophy of  John Maynard Keynes, and argues about their relevance to the world following the Financial crisis of 2007 to 2010.

Butterfly Economics: A New General Theory of Social and Economic Behavior is a book by Paul Ormerod dealing with economic theory, published in 1999. The author uses a plethora of insect-related metaphors to show that an economy tends to function like a living organism and is thus able to learn and to adapt.

Alternative media

For a good summary of news articles and video links suitable for A level Economic students: http://tutor2u.net/blog/index.php/economics . ‘Debtocracy’ http://www.tutor2u.net/blog/index.php/economics/comments/debtocracy-what-greece-should-do-according-to-the-greek-people/

offers an alternative view to the Greek crisis.

Mr Gray’s favourite economist at the moment – Martin Wolf: http://www.ft.com/comment/columnists/martinwolf

Samuel Brittan’s column’s are always very thought-provoking:  http://www.ft.com/comment/columnists/samuelbrittan

Road to Serfdom – Hayek: an illustrated on-line version is available at: http://mises.org/books/TRTS/

The legendary TV series "Free to Choose" (1980) by Nobel Prize-winning economist Milton Friedman is now available on Google Video for free: http://miltonfriedman.blogspot.com/

Noreena Hertz, a leading economist has been described as: "one of the most powerful women in Britain" and "one of the greatest communicators of our generation." See her website: http://www.noreena.com/

Stephanie Flanders, the BBC’s Economics editor has her own website: Stephanomics - this is where she discusses the UK economy, how it relates to the rest of the world, and how it affects us all: http://www.bbc.co.uk/news/correspondents/stephanieflanders/

Econstories.tv

Great videos. Good and humorous way to learn about the battle of ideas. Essential viewing for As and A2 macro-economics.

Click here: http://econstories.tv/

Cover work ECON 4 Essay deadlines

Plan your response to the following questions:

Use your AS notes and the Cherwell Economics You Tube clips to help you>

Q9 http://www.youtube.com/playlist?list=PLDD9906E2D0AEA78B&feature=plcp

Q10 http://www.youtube.com/playlist?list=PL425A40D762065536&feature=plcp

June 2011 Essay 2

‘Inflation needs to be avoided at all costs but it is nowhere near as damaging to an economy as deflation.’

0 9 Explain how inflation is measured in the UK through indices such as the Retail Prices Index (RPI) and the Consumer Prices Index (CPI). (15 marks)

1 0 To what extent might it be argued that inflation is preferable to deflation? (25 marks)

Your plan for part 10 should be around a page long and follow the same structure as your AS 25 mark responses

Plan due in: Mon 25th 12EC E
Plan due in: Tuesday 26th 12 EC 1 and 2

Then write up as a full response taking care with your Quality of Written Communication in the following lessons:

12EC E Thursday 28 June - cover lesson due to Pre-Sixth
12EC 2 (Period 4 Room N5) 12 EC 1 (period 5 Room N1) 2 Friday 29 June

12EC E - Monday 2 July room change go to N2


Final Essay to be handed in
2 July 12 EC E
3 July 12EC C

Crash course in future Economics

For a simple guide to the economy that challenges and stretches your thinking, try the following. Great for Evaluation at AS and A2 Level Economics or for anyone new to the subject.

The Crash Course

Why Study Economics

When looking back 81% of Economics graduates said YES they would study Economics again. Here are some links that might help motivate you:
Why Study Economics website
Interviews with students

Econ 4 - The Euro and eve of exam

In response to a student concerning a practice Euro question:

"A key issue with any question regarding the UK and the Euro is not necessarily the pros and cons contained within the question but the deeper question of what impact it would have on the value of the pound. In the case of joining if the pound was to join would it have to fall in value to do so to obtain parity? Would this fall wipe out the cost gains associated with the removal of  transaction costs. If the question is about the UK’s attitude towards a weaker Euro then the concern would be that UK exports are becoming more uncompetitive unless we can cut costs, improve our quality or fin new customers in the BRIC countries."

For the pre exam talk I will be in Room 1 from 8.20am with a talk begining at 8.30am.

Mr Gray 

Target 2.0 Individual Study

Independent Study Tasks

Student A: Housing Market

Using a supply and demand diagram analyse why house prices change?

What do you think is likely to happen to house prices?

What has happened recently to house prices, house sales, repossessions, negative equity, new mortgages being issued?

Research - The Savills share price

Shares of one of Britain’s biggest estate agency groups can be seen as a proxy for the level of confidence about the volume of housing transactions in the future.

Which direction is good? Up

What happened yesterday? Up 0.75p to 240.75p (sic)

Why has this happened?

What do these changes mean for inflation and interest rate or QE  decisions?

Independent Study Tasks

Student B: Oil Prices

Using a supply and demand diagram analyse why oil prices change?

What do you think is likely to happen to oil prices?

What has happened recently to oil prices, petrol prices, energy bills, cost of plastic, factory gate prices (cost of production)?

Research Brent crude future

This is the price per barrel of crude oil for delivery in the future, and gives an indication of the future cost of many kinds of energy, from petrol to diesel to heating oil and of plastic, a key component in many products.

Which direction is good? Some argue that too steep a fall would indicate a massive global depression, but on balance, down is good.

What happened yesterday? It went up by 30 cents to $84.66 a barrel (sic)

Why has this happened? What might happen?

What do these changes mean for inflation and interest rate or QE  decisions?

Independent Study Tasks

Student C: The Labour Market - Unemployment and wages

Using a supply and demand diagram analyse why wages, employment and unemployment levels have changed?

What do you think is likely to happen to unemployment, employment, wages, productivity?

What has happened recently?  

www.nomisweb.co.uk – free access to UK labour data

The Hays share price

Official unemployment figures are out of date and backward-looking. They say nothing about the future. Hays is a huge recruitment consultancy, seeking temps and permanent employees for employers in all kinds of industries across Britain and other parts of the world. Its share price can be seen as a very rough proxy for the outlook for job vacancies.

Which direction is good? Up

What happened yesterday? Down 2½p to 71½p (sic)

Why has this happened? What might happen?

What do these changes mean for inflation and interest rate or QE  decisions?

Independent Study Tasks

Student D: Exchange Rate  - Pound against the Euro, import and export prices

Using a supply and demand diagram analyse why the value of the pound may change against the Euro?

What do you think is likely to happen to the value of the pound against the Euro over the next few months?

What has happened recently? 

The sterling index

This is the measure of the pound’s buying power in a sprinkling of our biggest trading partners. Exporters love a weakening currency because it makes it easier to win sales, but it makes us poorer and makes pounds go less far abroad, and it sucks in inflation.

Which direction is good? Up

What happened yesterday? It fell 1.42% to 90% (sic)

What has happened to the price of imports and exports recently?

Why has this happened? What might happen?

What do these changes mean for inflation and interest rate or QE  decisions?

ECON 4 Revision Reminder

Do send in practice papers or pop in to go over any questions or topics. From home the following tutor2u resources are really good:

Help in Revising

Revision Clinic

Euro Crisis

BRICS

Year 12 Term 6 work

Your key focus this term is getting to grips with the demands at A2 exam level for having a clear logical chain of reasoning and critical analysis at a deeper level than AS. We are doing this by getting you to:

• Complete an oral presentation for the Target 2.0 competition; and
• Submit a Data question for ECON 3 and an Essay for ECON 4. 

Further details and deadlines below.

The Target 2.0 Challenge

In a team of four make a presentation assessing the state of the economy and the outlook for inflation for the next six months and make your decision on interest rates.

The presentation

The presentation is usually a formal powerpoint one with each person taking 2 minutes and a captain introducing the team and bringing the team view together as a conclusion. The presentation should last for no more than 15 minutes. You may produce a video presentation either instead or as part of your presentation.

As a group you will need to decide what should happen to interest rates individually and as a group in your conclusion.

Extension: You may also want to decide on whether further quantitative easing is required and the most effective way to do this?

Task 1: Appoint your captain

Q&A

Your presentation will be followed by a question and answer session where all team members will be expected to confer before answering and to answer all questions. It is important that no one dominates the answers provided.

Be confident in answering the following questions:

• What is inflation/deflation?
• How is it measured using RPI/CPI – Index numbers?
• What are the advantages and disadvantages of inflation/deflation?
• Why is low and stable inflation important?

Task 2 – all members of your team need to be able to answer the questions above?

Extension task for one or more team members:

• Has the Bank of England given up on the Target of 2.0?

Resources

FILMS: What is Inflation and what does the Bank of England do: http://www.bankofengland.co.uk/education/Pages/filmsgames/default.aspx

INTRODUCTION VIDEO: What is the Interest Rate challenge:

http://www.bankofengland.co.uk/education/Pages/targettwopointzero/default.aspx

Choose the flash player option.

Inflation tools (GAMES) - http://www.bankofengland.co.uk/education/Pages/inflation/default.aspx

Top tips

• Appoint a captain and allocate tasks
• Go for quality over quantity – ensure you know your stuff rather than covering too much. We are looking for clear logical chain of reasoning and critical evaluation throughout. A Government minister would never say to an economics adviser: “I do not understand that”, instead they would say “you have said that badly.” Be clear with your communication avoid jargon whilst using good economic theory and data.
• Your captain will set out the importance of the inflation target at the start.
• Everything should be focussed on what does this mean for inflation and interest rates.
• Have a print out of your presentation with your team names on – either power point slides or key points.
• Use your own primary research and amended fan diagrams.

Essay

As part of the challenge over the next few weeks you will be required to complete the following ECON 4 A2 exam question and will receive further guidance on essay technique.

June 2011 Essay 2

‘Inflation needs to be avoided at all costs but it is nowhere near as damaging to an economy as deflation.’

0 9 Explain how inflation is measured in the UK through indices such as the Retail Prices Index (RPI) and the Consumer Prices Index (CPI). (15 marks)

1 0 To what extent might it be argued that inflation is preferable to deflation? (25 marks)

Homework: Study, research and start to plan an answer to the above ECON 4 question.

You will also complete a Data Question on the Environment for ECON 3.

The Prize

You will be selected to form the Cherwell 2012/13 entry for the Bank of England/Times competition. You will receive a certificate for your presentation and this will be noted on your UCAS application.

Key dates, week beginning:

18^th June – Introduction to Target 2.0 competition, A2 key skills and

set homework for ECON 4

25^th June – Complete ECON 3 Question and research individual area

2 July – Research Individual areas and combine into single group presentation

9 July – Presentations, rehearsals, editing, presentation and judging.

16 July – Final Week, Feedback on ECON 4 and ECON 3

Econ 3 Exam Question

With the big focus on bankers bonuses and the role of shareholders over the last few years it would be worth looking at the followig question from June 2008:

2 (a) Economists often assume that firms have only one objective, to maximise profit.
Explain other objectives firms may have other than profit maximisation. (15 marks)
(b) Evaluate the view that separation of from control has an adverse effect on
firms’ conduct and performance. (25 marks)

Good BBC link

High Pay Commission

A2 Revision sessions - Room 1

Please return all textbooks by 20th June.

Thursday 24th May - Labour Market extension 3.15pm

Mon 28th May  - Period 1 and 2 drop in revision clinic to go over past papers, key theory and any other concerns
Tuesday 29th May Period 4 and 5 revision clinic
Weds 30th May Revision Session ECON 3 & ECON 4 basics
Thursday 31st May Period 4 revision clinic

Monday 11 June - Period 1 and 2 Econ 3 Final Revision session
Tuesday 12 June 12.20 ECON 3 EXAM pre-talk

Wednesday 13 June Period 4 and 5 ECON 4 revision
Thursday 14 June period 5 revision clinic

Tuesday 19 June Period 4 and 5 ECON 4 Final revision session
Wednesay 20 June 8.30am ECON 4 EXAM pre talk

PLEASE RETURN ALL TEXTBOOKS by 20 June 

ECON 3 and 4 EU Question

Worth looking at Robert Preston's Great Euro Crash on BBC iPlayer: clik here
For more than two years Europe has teetered on the edge of an economic precipice - one of the factors that has pushed Britain back into recession. How exactly did Europe get itself into the current financial mess? Talking to historians, economists and politicians, BBC business editor Robert Peston takes a long view of...

Also Go through AQA old papers Unit 4 Working as an Economist for ECON 3 and ECON 4 materials. click here

Econ 1 revision blog on Income Elasticity of Demand

Click here for Tutor2u resource

Greek Euro Exit - topical AS/A2 exam material

For that added insight at the end of your ECON 2 or ECON 4 paper you can always say that the facts have changed. The possibility of Greece leaving the Euro may affect the UK - see Robert Peston's latest clip, click here

Revision Sessions

Wednesday  16 May - period 4 A2 and period 5 AS, both in Library
Thursday 17 May Period 1 AS Economics drop in clinic
Friday 18 May Econ 1 optional pre-talk Room 1 12.30
Monday 21 May - Period 4 AS drop in clinic
Tuesday Periods 1 and 2 AS revision clinic
Wednesday 23 May period 4 A2 and period 5 AS, both in Library
Thursday 24 May period 2 AS clinic
Friday 25 May 8.30am optional pre-talk Econ 2 Room 1

email any queries, past paper attempts to: tgray@cherwell.oxon.sch.uk

UK's trade

Great graphic and get you thinking:
Majority of our exports are now with EU not USA, so its possibly when Europe sneezes the UK catches a cold rather than the USA.
However is the UK de-coupling from the USA and EU - look at the growth in exports to Brazil and India.

Housing Recovery - Evaluation

Robert Shiller in his new book 'Finance and the Good Society' raised some interesting questions about the current housing market and whether a return to large house prices would be a good thing.

It would depend upon the cause of the of the price increase and whether it was a result of anotther unsustainable credit boom followed by another credit crisis. If the cause was rigid planning preventing more houses being built - do we want this?

Complacency: Households assumed that their properties would rise in value so they did not need to save and could borrow on the assumption that they could pay off their debt when they sold the property. Is this likely to happen again? Do we want it to?

The wealth effect - if you sell your house you still need to find somewhere to live and the price of other houses or rented properties in your area have also risen. you could leave the area to buy a cheaper property. you could leave the area to where property prices/rents are lower buit what are the job prospects and familty/social ties?

Downsizing and Inheritance: An elderly person or couple may decide to sell their property and move into a smaller one or rent. However if a household has more than one child then rising house prices will mean that either all of them could not afford to buy a house, if they inherited the value of the house,  in an expensive market. How do we provide affordable housing for the next generation?

Tutor 2U Revision

There is a lot of useful resources on the Tutor2u Economics Blog so keep looking for the latest updates. I have selected some useful ones for you to look at:

Supply Side Economics AS/A2

Elasticity Quiz AS Econ 1

Monday May 14th 9pm Online Revision Clinic AS/A2

AS/A2 Evaluation Special 25 mark responses

Homework - Study Anderton Chapter 89 Common markets, especially the Applied Economics Section.

Look at the Data Question extracts on Turkey p635 then, rather than answering the questions set, as a 25 mark response answer the following question: Discuss the impact on the UK of Turkey joining the EU.

Email responses to : tgray@cherwell.oxon.sch.uk

Protectionism

Check out the following link: Protectionism diagrams

Top up sessions

Every Wednesday 18 April - 9th May
A2 Period 4
AS Period 5

A2 Protectionism

Homework set on 17/18 April:
Prepare to answer the following essay question under timed conditions on 24th/25th April:
4 (a) Explain the factors which may help to determine an economy’s export performance.
(15 marks)
(b) Evaluate the economic consequences for members of a customs union, such as the EU, of
the protectionist policies it adopts towards the rest of the world. (25 marks)

Economic Timelines

Recent Interactive Time Lines from the Guardian:

Inflation

http://www.guardian.co.uk/business/interactive/2009/mar/24/rpi-inflation

Gold Price

http://www.guardian.co.uk/world/interactive/2008/jan/25/gold

Unemployment

http://www.guardian.co.uk/business/interactive/2009/jun/22/unemployment-and-employment-statistics-recession

GDP growth

http://www.guardian.co.uk/business/interactive/2008/oct/22/creditcrunch-recession

The Washington Post

The US Output Gap

http://www.washingtonpost.com/wp-srv/business/the-output-gap/index.html

AS Economics

AS ECONOMICS

EASTER REVISION and the final countdown – ECON 1 - 18 May pm, Econ 2 - 25 May am

Easter Revision day – AS 9am-12.30

Resources

Use the following tasks to add to your Easter Revision plan – remember to treat as small bite-size sections.

1.       Specification: Keep traffic lighting (RAG sheet) the specification and prioritise the red and ambers rather than just cover the course from start to finish.
2.       Revise key terms – know your definitions (2 DEF), use glossary.

3.       Practice your key diagrams – be ready for diagram test after Easter; how can you illustrate current issues: can you use the forces in supply and demand, what is the impact on the UK using AD/AS and why does it change?
4.       If stuck on a topic make use of the Cherwell Economics You Tube Channel. I will do my best to fill remaining gaps on Wednesday, so you have until then to bring my attention to your main concerns for micro or Macro Economics. http://www.youtube.com/user/CherwellEconomics/featured

5.       Past papers – AQA website: Select sections of exam papers and email over to me for marking and feedback, I expect to see a regular stream of attempted parts to questions and will try my best to give you feedback within 24 hours. The key is practicing the AQA style of writing. Email: tgray@cherwell.oxon.sch.uk

6.       Powell 2012: Use the resources from the revision conference and access the additional ones in the students shared area via Barracuda, or load up on memory stick/email home (size of some documents makes this difficult).

7.       Student Unit Guide AQA Philip Allan Updates – worth getting on Amazon. Go over model student responses highlighting PEEE, do you see how they are offering precise logical chain of reasoning and critical analysis (evaluation), do they bring in something new at the end to win the argument.

8.       Revision day  - 2^nd April – come along. Alert me to any priority areas before hand to get the most out of the day – the red highlights on your specification.

9.       Keep checking over my blogspot for old tips and new postings: www.grayseconomics.blogspot.com. Do use the comment section for help and I will making a new post for all to benefit from.

10.   Make use of Revision web-sites out there

www.tutor2u.net

www.s-cool.co.uk

http://www.economicshelp.org/

Revision Programme
Using the following AQA link: click here

Spread out you revision so that you complete the following practice programme over Easter alongside your general revision. For each response email me.

Treat each point as a separate revision task taking around 30 minutes rather than doing it all in one go.

Week 1 - Jan 2010

• Unit 01 - Multiple choice - email tgray@cherwell.oxon.sch.uk the questions you found difficult and are still unsure about the answers.
• Unit 01 - Answer a chosen Data Questions a) b) and c)
• Unit 01 Answer the same chosen Data Question - part d, be careful with exam technique
• Unit 02 - Multiple choice - email tgray@cherwell.oxon.sch.uk the questions you found difficult and are still unsure about the answers.
• Unit 02 - Answer a chosen Data Questions a) b) and c)
• Unit 02 Answer the same chosen Data Question - part d, be careful with exam technique

Week 2 - Jan 2011

• Unit 01 - Multiple choice - email tgray@cherwell.oxon.sch.uk the questions you found difficult and are still unsure about the answers.
• Unit 01 - Answer a chosen Data Questions a) b) and c)
• Unit 01 Answer the same chosen Data Question - part d, be careful with exam technique
• Unit 02 - Multiple choice - email tgray@cherwell.oxon.sch.uk the questions you found difficult and are still unsure about the answers.
• Unit 02 - Answer a chosen Data Questions a) b) and c)
• Unit 02 Answer the same chosen Data Question - part d, be careful with exam technique

A2 Revision

A2 ECONOMICS

EASTER REVISION and the final countdown – ECON 1 - 18 May pm, Econ 2 - 25 May am

ECON 3 – 12 June pm; ECON 4 – 20 June am

Easter Revision day – AS 9am-12.30; A2 1pm – 3.30pm

Resources

Use the following tasks to add to your Easter Revision plan – remember to treat as small bite-size sections.

1.       Specification: Keep traffic lighting (RAG sheet) the specification and prioritise the red and ambers rather than just cover the course from start to finish. We are yet to cover the Labour Market (monopsony and monopoly) in ECON 3 and WTO and protectionism (tariff diagram)

for ECON 4.

2.       Revise key terms – know your definitions (2 DEF), use glossary.

3.       Practice your key diagrams – be ready for diagram test after Easter; how can you illustrate current issues: QE3 or dominant forms advertising.

4.       If stuck on a topic make use of the Cherwell Economics You Tube Channel. I will do my best to fill remaining gaps on Wednesday, so you have until then to bring my attention to your main concerns for micro or Macro Economics. http://www.youtube.com/user/CherwellEconomics/featured

5.       Past papers – AQA website: Select sections of exam papers and email over to me for marking and feedback, I expect to see a regular stream of attempted parts to questions and will try my best to give you feedback within 24 hours. The key is practicing the AQA style of writing. Email: tgray@cherwell.oxon.sch.uk

6.       Powell 2012: Use the resources from the revision conference and access the additional ones in the students shared area via Barracuda, or load up on memory stick/email home (size of some documents makes this difficult).

7.       Student Unit Guide AQA Philip Allan Updates – worth getting on Amazon. Go over model student responses highlighting PEEE, do you see how they are offering precise logical chain of reasoning and critical analysis (evaluation), do they bring in something new at the end to win the argument.

8.       Revision day  - 2^nd April – come along, attend the AS as well if possible. Alert me to any priority areas before hand to get the most out of the day – the red highlights on your specification.

9.       Keep checking over my blogspot for old tips and new postings: www.grayseconomics.blogspot.com. Do use the comment section for help and I will making a new post for all to benefit from.

10.   Make use of Revision web-sites out there

www.tutor2u.net

www.s-cool.co.uk

http://www.economicshelp.org/

Create your own Easter Revision programme

Econ 4 work due - EU enlargement, see earlier blogspot post.

Econ 4

Study Fiscal Policy: Direct, Progressive, Flat Tax, Canons, PFI, Automatic stabilisers, structural/cyclical deficits, discretionary, OBR, Ricardian Equivalence, Crowding Out

Skills focus

Essay

b) Discuss the impact on the UK Economy of the attempt by the UK Government to reduce the levels of government borrowing and national debt.

Econ 3 - double session

Study Perfect Competition - assumptions, efficiency and welfare impacts, SR and LR analysis.

Study Monopoly - diagram, limit pricing, revenue maximisising, natural, effficency/welfare impacts, economies of scale, innovation, price discrimination.

Skills focus:

Data Q2 June 2010 - Competition and Monopoly: click here

Econ 4

Study Supply Side Economics, impact on productivity/exports

Skills focus

Data Q Jan 09 Oil shock: click here

Econ 3

Study Oligopolies - Kinked demand, game Theory

Data - old exam paper - ECN5 June 08 - patent: click here

Econ 4

Study Globalisation - practice using competitive and comparative advantantage

Data - June 06 Globalisation: click here

Econ 3

Study - Efficiency: competitive, monopoly, growth and mergers, technology

Data - ECN5 Kodak takeover - Jan 06: click here

Econ 4

Study: Exchange Rates,practice using Marshall Lerner Condition and J curve

Essay - ECN6 - June 08 Q4

4 (a) Explain how a currency’s value against other currencies might be determined. (20 marks)
(b The value of the pound sterling fell by 25% against other major
currencies.
Evaluate the extent to which this might have an impact on UK economic growth or the UK's Balance of Payments.
(30 marks)

For Mark Scheme: click here

Econ 3

Study Environmental Market Failure - externalities and regulation

Essay  ECN5 Jan 09 Q4

4 (a) Explain the main factors to be taken into account when conducting a cost benefit analysis
of a proposed investment in a major sports complex, such as an Olympic stadium.
(20 marks)
(b) Evaluate the possible effects on UK markets of the decision to locate the 2012 Olympic
Games in London.