The Economist Articles — Week of 19 Mar 2016

Every week I read through The Economist to pick out articles that may be useful for teaching in the classroom. I’ll be sharing some of my notes and the discussion prompts I’ve come up with in these weekly posts. For students, they can serve as guide-rails for your reading. For teachers, I hope they will be helpful for your teaching.

1. Measuring inflation — How much is that doggy?

Consumer Price Index: “At the moment, calculating America’s consumer-price index (CPI) involves sending people into shops to note down prices. The basket is based on a survey of consumers which is updated only every three years or so.” Explain briefly how the CPI is computed.

2014 A level H2 Economics Review: Microeconomics Qn 2

In 2012 the UK had a very poor harvests for grain and potatoes, which are major ingredients of many of the foods of UK consumers and also Grainsprovide feed for much of Britain’s livestock. At the same time, there was a decline in real incomes of many UK citizens, especially those on low incomes.

Using economic analysis, discuss the impact these events are likely to have had on UK consumers and farmers. [25]

You can always count on A level to come up with at least one Demand and Supply question every year. Despite the concepts being easy to grasp, many tutors (including mine) persuade their students to avoid attempting such questions during exams. The wide array of question types and unfamiliar goods being tested make essays from this topic challenging. However, if you are familiar with the goods or services tested and are able to apply the concepts well, there is no reason to avoid such questions. Here are some steps to help you approach demand and supply questions:

Ask Anything #2

Anonymous asked,

When income increases, do both demand and ped of a good change?

I made a video response to the question. The answer may surprise you.

Errata: For the diagram at the end, the demand for necessity should shift less than the demand for luxury goods. They should not intersect at the same quantity given the original price.

Hope that was useful.

Till next time, dream economics.

Microeconomics: Elasticity

The contents of this post are copyrighted and are used here for educational purposes only. Please do not distribute links without permission.

Designed for JC2 students doing their revision, this series of videos will help you develop a deep understanding of the different elasticity concepts by learning about their similarities and differences, applying them to analysing different markets and thinking about how firms can use elasticity to aid them in their production decisions.

Links to Quizzes have been fixed.