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