Cross Price Elasticity of Demand (XED)

Useful Tutor2u summary here: •https://www.tutor2u.net/economics/reference/cross-price-elasticity-of-demand

A2: Optimal Currency Areas - end of the Euro, Pound and US Dollar?

With Catalonia, Spain and the EU in the news perhaps time to dust off  useful article about optimal currency zones?

Interesting article by Keynesian economist Paul Krugman on why the Euro may or may not have created problems for its member states; or why the USA might break up. Worth using the article to think about our own currency union - the pound. Do we have an optimal currency area in the UK or will Scotland leave the Pound?

http://krugman.blogs.nytimes.com/2012/06/24/revenge-of-the-optimum-currency-area/

The creation of the Euro-zone will create an optimal currency zone: http://www.bbc.co.uk/news/business-13893034

Year 13 Perfect Competition

Some useful Tutor2u videos to get your head around perfect competition in the short run and long run. It is important that you familiarise yourself with the conditions behind perfect competition and the notion of normal and abnormal profit. Try to relate perfect competition to existing markets.

https://www.youtube.com/watch?v=CC3ck5B-L-s  = Short run

https://www.youtube.com/watch?v=OLaqDnx5tws = Long run

Ebay is cited as an example of a market close to perfect competition, but how close is it? Read this excellent article by Tejvan Pettinger to get you exam prepared and consider EBay's competitors.

http://www.economicshelp.org/blog/2379/economics/ebay-and-perfect-competition/

Paj as always has a lovely short video explaining Perfect Competition here:

https://www.youtube.com/watch?v=7lhX78vlHSY

Exam Tip - always try to show the two diagrams market (industry) and firm alongside each other.

Growth

AS Level Resources
Is the UK 5th or 9th in the world: https://fullfact.org/economy/uk-worlds-5th-or-9th-largest-economy/
Tutor2u revision material http://www.tutor2u.net/economics/revision-notes/as-macro-national-income.html
GDP at constant prices http://stats.oecd.org/glossary/detail.asp?ID=1164
Study Chapter 22 p106 and Ch31 p152 (Anderton 6e)
Nominal ranking GDP  http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
World rankings GDP Per capita  http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita

Understanding Index numbers - http://www.tutor2u.net/economics/revision-notes/as-macro-using-index-numbers.html


Alternative measures:
HDI world ranking http://en.wikipedia.org/wiki/Human_Development_Index
Economics of Happiness 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
Happiness Activity https://www.tutor2u.net/economics/blog/world-happiness-index-2017-an-interactive-activity

Comparative Advantage Theory

Accurately defined - http://www.economicshelp.org/blog/glossary/comparative-advantage/
Explained in 60 seconds - https://www.youtube.com/watch?v=U12yZXBmQmY
Video explaining https://www.youtube.com/watch?v=Vvfzaq72wd0
A useful numerical example and criticisms - http://www.economicsonline.co.uk/Global_economics/Comparative_advantage.html
World's biggest MNCs https://www.weforum.org/agenda/2017/01/worlds-biggest-corporate-giants/
Trade quiz: http://news.bbc.co.uk/1/hi/business/3201185.stm
Trade negotiator: http://news.bbc.co.uk/1/hi/business/6183887.stm
TPP: http://www.bbc.co.uk/news/business-32498715
China: http://www.bbc.co.uk/news/business-36877573
Trade Patterns: http://www.economicsonline.co.uk/Global_economics/The_pattern_of_trade.html
UK Trade Patterns https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/32114/10-803-uk-trade-performance-growth-patterns.pdf
Globalisation under attack http://www.bbc.co.uk/news/business-37554634
Globalisation's elephant: http://www.bbc.co.uk/news/business-37542494

this Summer learn your Economists...

Good post on the Tutor2u blog regarding learning about your Economists. It is not essential for the exams but provides a useful foundation to understanding the assumptions behind the theories you learn. Also - click on there revision workshops, worth booking for yourself!

https://www.tutor2u.net/economics/blog/which-economists-do-a-level-students-need-to-know-about-some-year-12-summer-homework?utm_medium=email&utm_campaign=Economics%20daily%20digest%20Wed%2019th%20July%202017&utm_content=Economics%20daily%20digest%20Wed%2019th%20July%202017+CID_86d008c8cea34acf79745bb2f980161c&utm_source=CampMonitor&utm_term=Which%20Economists%20do%20A%20Level%20students%20need%20to%20know%20about%20Which%20Economists%20do%20A%20Level%20students%20need%20to%20know%20about%20The%20specifications%20discuss%20the%20need%20for%20students%20to%20use%20the%20theories%20of%20significant%20economists%20but%20arent%20prescriptive%20about%20which

Summer Reading

One of my favourite eonomists Martin Wolf selects some best reads for 2017: https://www.ft.com/content/5cf6a4b8-579b-11e7-9fed-c19e2700005f?mhq5j=e3

Also still useful is Tutor2u's  Summer 2015 Oxbridge Economics Reading and Videos: https://www.tutor2u.net/economics/blog/summer-2015-oxbridge-economics-reading-and-videos

UCAS Statement

Tutor2U webinar providing useful tips:

http://www.tutor2u.net/economics/reference/writing-a-great-economics-personal-statement

Electonic document guiding you through applying for economics degrees and on building a strong platform for applications to the UK and overseas:

https://www.tutor2u.net/_legacy/blog/files/UCAS-Economics-Advice-Spring2012.pdf

Welcome to studying Economics at The Cherwell School

For your Summer homework please complete:

8EC0 01 - Write up a report explaining the main reasons why the price of oil has fluctuated in recent years and what you expect it to do next?

8EC0 02- Write a short essay on: "How well is the UK Economy being managed?"

For both pieces of work try to use positive economics referring to research you have used, economic theories you might have discovered and economics data.

Deadline: 4 September

Paper copy or email: tgray@cherwell.oxon.sch.uk

Get Set for your new subject:

Textbook – Anderton 6th edition (Edexcel - new for 2015)

Useful websites:

www.grayseconomics.blogspot.com Mr Gray’s Cherwell Economics website

http://www.tutor2u.net/blog/index.php/economics Economics Blog - Tutor2u, lots of useful resources - google 'Tutor2u subscribe' to be sent latest resources.

Why Study Economics - http://whystudyeconomics.ac.uk/

http://qualifications.pearson.com/en/qualifications/edexcel-a-levels/economics-a-2015.html

Your exam Board Edexcel – specification, Anderton text book link,past papers, mark schemes and examples of students responses with examiner comments.

http://qualifications.pearson.com/en/qualifications/edexcel-a-levels/economics-a-2015.html

Have a lovely Summer break

Mr Gray

Year 13 - Globalization - Summer work

Masden Pirie, President of the Adam Smith Institute, sets out the free market case for Globalisation:

https://www.youtube.com/watch?v=shepp7De_4o

Stephen King was the chief economist at HSBC from 1998 to 2015. He now says 'Western led globalization is in big trouble. We may be witnessing the collapse of the post-war international economic and political order'. HARDtalk's Stephen Sackur asks him why he thinks globalization could go into reverse and what damage could be done to economies across Europe and the United States.

http://www.bbc.co.uk/programmes/p0555kpv

Assess two factors causing deglobalization?

Discuss the benefits and costs of globalization?

Evaluate the consequences of de-globalization?

Further to the above is the issue concerning the 'Economic of Happiness':


https://www.youtube.com/watch?v=pyQaUDLW6ts


Apply the above to a Developed economy (UK/USA/S Korea) and a Developing country (BRICS, MINT, LEDC - e.g. Ethiopia).

Year 13: Merger or De-merger - Summer work

Merge or De-merge:
Choose a company that is proposing to merge or de-merge.
Explain the reasons for the merger/demerger?
Assess the impact of the proposed merger or demerger on businesses, the owners, managers, workers and consumers?
Do you think the government should support the proposed merger or de-merger?

https://www.youtube.com/watch?v=be-M5ZsBtgQ

HDI

http://www.economicshelp.org/blog/glossary/human-development-index/

LSE Economics Essay competition

Hi Tutor2u are promoting a great opportunity for you... see link here https://www.tutor2u.net/economics/blog/lse-economics-society-essay-competition

Chains of reasoning - Tutor2u

A key exam skills is using chains of reasoning in your explanation (analysis). Tutor2u have a collection of short videos to help you with this to develop your thinking skills:

https://www.tutor2u.net/economics/collections/chains-of-reasoning

Multiple choice questions for Macro and Micro.

Click on following AQA link and Unit 02 questions. For Micro look at Unit 01.

http://www.aqa.org.uk/subjects/economics/as-and-a-level/economics-2140/past-papers-and-mark-schemes

Bank of England competition - Y12 heats

About the competition: http://www.bankofengland.co.uk/education/pages/targettwopointzero/default.aspx

Model examples: https://www.youtube.com/watch?v=McqHH3-F0I4

Evaluation skills

AS Micro: https://www.tutor2u.net/economics/reference/evaluation-skills-for-as-micro

Using Tutor2u Revision Videos

https://www.tutor2u.net/economics/blog/using-tutor2u-economics-collections-for-economics-revision

UK Economy 2016

http://www.economicshelp.org/blog/15519/economics/uk-economy-2016/

Growth and development

Solow's catch up growth theory: https://www.youtube.com/watch?v=g-ZFd3qYtRs
Growth without development - longevity, rising inequality, pollution, access to health and education in remote rural area:
http://www.bbc.co.uk/news/technology-17121978
Middle income trap: https://www.youtube.com/watch?v=9uKYYQAgJDg

World in 2016

http://www.oecd.org/eco/outlook/lookingto2060.htm
https://www.youtube.com/watch?v=fnIl212tBPk

Can you get Economic growth without development?

http://www.economicshelp.org/blog/1187/development/economic-growth-and-development/

Year 13: Policies to Redistribute

https://www.youtube.com/watch?v=5mI8_TefNPY

Balance of Payments

Good summary here on the balance of payments. think how the global financial crisis and de-globalisation may effect the UK's balance of payments:

https://www.google.co.uk/webhp?safe=vss&gws_rd=ssl#q=balance+of+payments+a+level+economics&safe=vss&tbm=vid&start=10&*

LRAS

Neoclassical view: https://www.youtube.com/watch?v=Xc-zTsVpx2o&index=10&list=PL6D9DF329A0D693C6

Keynesian versus Monetarist view: https://www.youtube.com/watch?v=QG56sFoNNa8

Externalities revision

As a light-hearted test of do you get negative externalities have a look at the following and explain what is the negative externality:

http://www.criticalcommons.org/Members/jtierney86/clips/the-big-bang-theory-negative-externalities-of-a

The key with negative externalities is explaining the third party effect and to what extent you can place a financial figure on the external cost. This problem is with missing information, in identifying the size of the external cost, is a key debating issue.

Be careful in ensuring you focus on negative external costs of production as explained in this following Tutor2u clip:


https://www.youtube.com/watch?v=nW0Gl_CFoJU

Finally negative externalities have macro implications - so worth taking a look at this TED talk, thanks to Louis Rifat for passing on:

https://www.youtube.com/watch?v=J9_Xc9wxByM

For positive externalities of consumption - take a look at the following clip:

https://www.youtube.com/watch?v=U8qDf5jg92w

Playing 'Monopoly' for real.

Great TED talk here, thanks to Michael Hudson for bringing it to my attention, offers insights that get you thinking about rational decision making and the financial markets.

https://www.youtube.com/watch?v=_VB39Jo8mAQ

Exchange Rate falls...

Succinct video coverage here of the Marshall lerner condition: https://www.youtube.com/watch?v=51vsB2c_m9s

Trump's Economy

Interesting BBC Radio 4 piece : http://www.bbc.co.uk/programmes/b08byp9l

Multiplier

In the ongoing global financial crisis the multiplier remains a central concept to master:

https://www.youtube.com/watch?v=dOWX_SFf9KY 

Year 13: Financial Sector

Make sure you open the links in the following: http://qualifications.pearson.com/content/dam/pdf/A%20Level/economics-a/2015/teaching-materials/The-financial-sector-Theme-4.pdf

Year 13: UK Poverty and Inequality

Poverty in the UK: a guide to the facts and figures; some interesting stats here to get your head around - especially if you click on the 'below 60%' link under Relative Poverty.

https://fullfact.org/economy/poverty-uk-guide-facts-and-figures/

OXFAM wealth inequality report  http://theday.co.uk/economics/criticism-adds-up-over-oxfam-inequality-claim

Macro-Economic History

A fascinating documentary made on the eve of the global financial crisis; with a prescient warning at the end. Essential viewing:

https://www.youtube.com/watch?v=XhdhyQxwFY8

Monopoly - efficiency and welfare.

Worth taking a look at the following Tutor2u resource to refresh yourself on this topic:

http://www.tutor2u.net/economics/reference/monopoly-power-and-economic-efficiency-and-welfare

Welfare economics - illustrate the effect of monopolising a market (do not draw an AC curve).

You need to be able to confidently identify and discuss the question of monopoly and efficiency. As a diagram challenge can you explain and illustrate the following with regards to a monopoly firm:

• Allocative efficiency
• Productive efficiency
• Dynamic efficiency
• Economies and Diseconomies of Scale
• X-inefficiency

Regarding x inefficiency - worth looking at 'too big to fail' in the financial markets:
http://www.tutor2u.net/economics/blog/economics-at-the-movies-too-big-to-fail
http://www.tutor2u.net/economics/reference/financial-economics-financial-market-failure

Natural Monopoly
http://www.tutor2u.net/economics/reference/natural-monopoly
http://www.economicshelp.org/blog/glossary/natural-monopoly/

Price Discrimination - focus on 3rd degree
http://www.economicsonline.co.uk/Business_economics/Price_discrimination.html