Tutor2u has a new website - lot easier to use. This is a really handy article on Trade deficits and some top exam tips.
http://beta.tutor2u.net/economics/blog/trade-imbalances-animation
Tuesday, 10 February 2015
Career in Business or Economics
Careers talks in Business and Economics. These talks will take place during the week
2-6 March (National Careers Week!), in rooms on north site (TBC and depending
upon numbers). Deadline for sign-up is FRIDAY
27 FEBRUARY. Please click on the following links, to sign up:
3
March, Business and Finance: https://www.eventbrite.co.uk/e/cherwell-alumni-careers-talks-business-and-finance-tickets-15449793749
6
March, Non-Profits, Charities and NGOs: https://www.eventbrite.co.uk/e/cherwell-alumni-careers-talks-non-profits-charities-ngos-tickets-15449839887
Tuesday, 3 February 2015
Using Anderton for your Edexcel AS/A2 exams
The edition you have is the Purple 5th Edition (ISBN 978 1 4058 9235 3)
All - take a look at Chapter 104 effective study!
Exam Paper 6 EC01
Study Chapters 1-18 and Ch 57
In addition you need a basic awareness of the labour market diagram and minimum wage.
Exam Paper 6EC02
Re-study Chapters 1-4
Study Chapters 19 - 37
Exam Paper 6EC03
Study Chapters 38-56
Exam paper 6EC04
Study Chapter - 65, and 76-103
All - take a look at Chapter 104 effective study!
Exam Paper 6 EC01
Study Chapters 1-18 and Ch 57
In addition you need a basic awareness of the labour market diagram and minimum wage.
Exam Paper 6EC02
Re-study Chapters 1-4
Study Chapters 19 - 37
Exam Paper 6EC03
Study Chapters 38-56
Exam paper 6EC04
Study Chapter - 65, and 76-103
Tricky AD questions
Try the following questions, by drawing AS/AD diagrams as your answers, then look at answers below:
1.Falling Budget Deficit
2. Falling Budget Surplus
3. Reduced Trade deficit
4. Reduced Trade Surplus
5. Share prices crash
6. Housing boom
Changes in Budget Deficits and Trade Deficits often trip students up as they focus on the deficit rather than the movement.
1. Whilst a Budget Deficit indicates Government Expenditure is greater than tax revenue - the direction is a 'falling' budget deficit meaning that the Government is using AUSTERITY MEASURES or CONTRACTIONARY FISCAL POLICY - so Government Expenditure is likely to be cut or we are witnessing Income Tax increases - thus shifting AD to the left.
2. Falling Budget Surplus - means AD shifting right. Re-write the above analytical style to explain this.
3. Whilst a Trade Deficit indicates our Export Earnings are less than what we spend on Imports - the direction is a 'falling' trade deficit meaning that the UK may be witnessing an increase in export earnings (for example due to recovery in the Euro-zone countries demanding more UK goods) or we are spending less on imports as UK goods are more competitive compared to foreign imports - thus shifting AD to the right.
4. Reduced Trade Surplus - means AD shifting left. Re-write the above analytical style to explain this, use Germany as your example.
5. With 9 million shareholders in the UK falling share prices mean that many people will feel less well off. UK households are less likely to borrow and spend as they know they may not be able to clear their debts by selling shares. This is known as a negative wealth effect so domestic consumption will fall - thus shifting AD left. In addition wider consumer and business (Investment) confidence may be damaged if the fall in shares is large and persistent.
6. There are about 25 million homes in the UK, of which seven out of 10 are owner-occupied. For those people who own homes a housing boom is likely to shift AD right. A housing boom may also be known as a speculative asset bubble resulting in Positive Equity (the value of the house is higher than the price at which it was bought). The Government and the Bank of England have helped banks lend to home buyers through Funding for Lending and the Help to Buy Scheme. Re-write the above analytical style to explain this, using the UK housing market as your example. http://www.telegraph.co.uk/finance/economics/9955734/Osborne-denies-mortgage-efforts-will-create-housing-bubble.html
http://www.theguardian.com/commentisfree/video/2013/oct/21/help-to-buy-uk-property-bubble-video
1.Falling Budget Deficit
2. Falling Budget Surplus
3. Reduced Trade deficit
4. Reduced Trade Surplus
5. Share prices crash
6. Housing boom
Changes in Budget Deficits and Trade Deficits often trip students up as they focus on the deficit rather than the movement.
1. Whilst a Budget Deficit indicates Government Expenditure is greater than tax revenue - the direction is a 'falling' budget deficit meaning that the Government is using AUSTERITY MEASURES or CONTRACTIONARY FISCAL POLICY - so Government Expenditure is likely to be cut or we are witnessing Income Tax increases - thus shifting AD to the left.
2. Falling Budget Surplus - means AD shifting right. Re-write the above analytical style to explain this.
3. Whilst a Trade Deficit indicates our Export Earnings are less than what we spend on Imports - the direction is a 'falling' trade deficit meaning that the UK may be witnessing an increase in export earnings (for example due to recovery in the Euro-zone countries demanding more UK goods) or we are spending less on imports as UK goods are more competitive compared to foreign imports - thus shifting AD to the right.
4. Reduced Trade Surplus - means AD shifting left. Re-write the above analytical style to explain this, use Germany as your example.
5. With 9 million shareholders in the UK falling share prices mean that many people will feel less well off. UK households are less likely to borrow and spend as they know they may not be able to clear their debts by selling shares. This is known as a negative wealth effect so domestic consumption will fall - thus shifting AD left. In addition wider consumer and business (Investment) confidence may be damaged if the fall in shares is large and persistent.
6. There are about 25 million homes in the UK, of which seven out of 10 are owner-occupied. For those people who own homes a housing boom is likely to shift AD right. A housing boom may also be known as a speculative asset bubble resulting in Positive Equity (the value of the house is higher than the price at which it was bought). The Government and the Bank of England have helped banks lend to home buyers through Funding for Lending and the Help to Buy Scheme. Re-write the above analytical style to explain this, using the UK housing market as your example. http://www.telegraph.co.uk/finance/economics/9955734/Osborne-denies-mortgage-efforts-will-create-housing-bubble.html
http://www.theguardian.com/commentisfree/video/2013/oct/21/help-to-buy-uk-property-bubble-video
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