Presentation on theme: "FROM AS TO A2 Quintin Brewer. WIDER READING (1) Books: Why not try: Free Lunch: David Smith (Profile Books) Eat the Rich: PJ ORouke The Great Crash: JK."— Presentation transcript:
WIDER READING (1) Books: Why not try: Free Lunch: David Smith (Profile Books) Eat the Rich: PJ ORouke The Great Crash: JK Galbraith (Penguin) Key ideas in Economics R & D Dransfield (Nelson Thornes)
WIDER READING (2) Newspapers and journals: The Economist Sunday Times (David Smith) Times Independent on Sunday Independent esp. Monday & Thursday Observer (William Keegan) Guardian esp. Monday (Larry Elliot)
WIDER READING (3) Look at articles critically …. What is positive? What is normative? Which economic concepts can be applied? What analysis is relevant? What information is missing?
Extended Writing at A2 Need to write essays and extended responses Requires ability to develop a coherent argument apply concepts Explain transmission mechanisms fully Evaluate data, theories, ideas
SYNOPTIC ASSESSMENT AT A2 All syllabuses include synoptic assessment in one or more A2 modules Therefore, dont forget what youve learned in AS! You may need to use concepts from AS in your answers to A2 questions e.g. AD/AS analysis
Assess the likely implications of a rise in world oil prices on the economies of the EU. 1. INFLATIONARY IMPACT: Knowledge, understanding and application: increased costs e.g. costs of transport; oil as raw material of plastic, tyres etc Analysis: use of AD/AS analysis – leftward shift in AS Evaluation: oil cost now less significant as a % of GDP than in the past; other factors putting downward pressure on inflation; gradient of AD curve
Oil Prices Implications (2) 2. DEFLATIONARY IMPACT: Knowledge, understanding and application: For oil importing countries AD is likely to fall Analysis: Consideration of components of AD: C + I + G + (X-M) - M rises so AD falls Evaluation: Extent of impact depends on how much oil price has risen; rise in M might be offset by rise in other components of AD; gradient of AS curve
Oil Prices Implications (3) 3. EFFECT ON GROWTH: Knowledge, understanding and application: If AD falls, then GDP is likely to decrease Analysis: Oil exporting countries receive increased revenues but unlikely to spend all of them. Oil importing countries face decreasing AD Evaluation: Impact on growth not likely to be as great as in 1970s because economies are now less oil dependent
Oil Prices Implications (4) 4. EFFECT ON B/P: Knowledge, understanding and application: Oil importing countries will face an increase in value of oil imports Analysis: Demand for oil is price inelastic. Therefore, expenditure on imports will increase and the B/P will deteriorate Evaluation: Impact on B/P depends on how much oil price rises and whether the oil price rise is sustained
Oil Prices Implications (5) 5. OTHER AREAS FOR CONSIDERATION: On unemployment – fall in AD is likely to cause a rise in unemployment On external costs – if use of cars/lorries/planes falls then pollution and congestion might be reduced
Oil Prices Implications (6) 6. EVALUATION Magnitude of oil price rise; Whether high oil price is sustained for a long period Short run / Long run effects Differing effects on different EU countries – depending on degree of oil dependency
GLOBALISATION Consider this question: Assess the factors which have led to an increase in interdependence between counties. Write a summary of key points.
GLOBALISATION: Peter Jays definition: The ability to produce any good or service anywhere in the world, using raw materials, capital and technology from anywhere, sell the resulting output anywhere, and place the profits anywhere.
KEY FACTORS: Reduction in trade barriers – WTO Improvements in technology e.g. giant container ships Improved communications - the internet Growth of MNCs/TNCs Growth in trading blocs Collapse of Soviet Union Industrialisation e.g. in China
QUESTIONS ON EU BUDGET Examine the economic arguments for EU intervention to support agriculture To what extent does the CAP result in a misallocation of resources? Is the UK rebate justified?
DEVELOPING YOUR SKILLS Apply economics to everything you do. How about: The economics of relationships? The economic case for and against taking a gap year? The case for and against doing a non- vocational degree
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