Microeconomics: IB Economics
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Microeconomics: IB Economics
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A brief overview of relevant articles for IB, A-Level and Pre-U economists relating to microeconomic issues
Curated by Graham Watson
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Scooped by Graham Watson
April 3, 2018 7:04 AM
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FT View: Donald Trump, man of steel

From www.youtube.com - April 1, 2018 6:00 PM
The FT's Rob Armstrong looks at how Donald Trump's trade tariffs could impact the global economy.
Graham Watson's insight:
The FT's Rob Armstrong looks, in wry fashion, at the logic behind President Trump's steel tariffs arguing that there's little rationale to them. Not only will it have an adverse effect on the US economy, but it will have negligible effect upon China, which exports little steel to the US.

Additionally, he argues that the subsequent round of tariffs on Chinese goods are also likely to be counter-productive. 
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Scooped by Graham Watson
April 3, 2018 6:56 AM
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Reaping the wind with the biggest turbines ever made

Reaping the wind with the biggest turbines ever made | Microeconomics: IB Economics | Scoop.it
From www.bbc.co.uk - April 3, 2018 6:52 AM
Wind power capacity is growing thanks to giant offshore turbines, but can they get much bigger?
Graham Watson's insight:
A lovely example of how renewables are growing cheaper, in part as a result of economies of scale that have permitted wind turbines to grow to a remarkable size, lowering costs, and reflecting technological development in new materials. 
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April 3, 2018 6:33 AM
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Murdoch proposes Sky News sale to Disney

Murdoch proposes Sky News sale to Disney | Microeconomics: IB Economics | Scoop.it
From www.bbc.co.uk - April 3, 2018 6:30 AM
21st Century Fox says it would sell Sky News to Disney in an effort to ease its proposed acquisition of Sky.
Graham Watson's insight:
The 21st Century Fox - Sky merger is still alive, although Rupert Murdoch appears prepared to accept that he might have to sell Sky News to facilitate the deal. One wonders if, even then, that will be enough for the regulator - however, I suspect that he's got a number of big hitters, notably several members of the Cabinet, doing his bidding in this regard. 

Will it go through, or does it still represent too much of the threat to media plurality? 
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Scooped by Graham Watson
March 29, 2018 3:38 PM
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What you need to know about the gender pay gap

From www.youtube.com - March 27, 2018 6:00 PM

As employers with 250+ workers approach the deadline for reporting their gender pay gap data, the FT analyses the key figures so far, and highlights the best and worst sectors.  

Graham Watson's insight:
A brief FT summary of the gender pay gap as revealed by the UK requirement for firms with more than 250 workers to reveal their gap. As of 27th March, the overall median gap is 9.9%, which effectively means that women work for free after 30th November. A fascinating little insight.
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Scooped by Graham Watson
March 29, 2018 3:33 AM
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How to bring a high street back from the dead | Life and style | The Guardian

How to bring a high street back from the dead | Life and style | The Guardian | Microeconomics: IB Economics | Scoop.it
From www.theguardian.com - March 29, 2018 1:00 AM
Thousands of high street outlets have closed in the last decade, leaving behind a wasteland of betting shops. But one community in York has found a simple way to reverse the decline. Could their model be used nationwide?
Graham Watson's insight:
Just a beautiful article. Jane Jacobs eat your heart out. What makes a high street thrive? Bishopthorpe Street in York might have the answer.
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March 28, 2018 12:40 PM
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Bottle and can deposit return scheme could cost £1bn, say UK retailers | Business | The Guardian

Bottle and can deposit return scheme could cost £1bn, say UK retailers | Business | The Guardian | Microeconomics: IB Economics | Scoop.it
From www.theguardian.com - March 28, 2018 11:31 AM
Major supermarkets express support for government’s plan but key issues, including who would pay for it, remain unclear
Graham Watson's insight:
Following on from the earlier 'scoop' about the deposit return scheme, the Guardian highlights the costs involved, noting that whilst supermarkets announced a willingness to work with the Environment Secretary, Michael Gove - and few do that - there's little detail in relation to the scheme and questions about its cost.
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March 28, 2018 12:08 PM
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Can the ad industry persuade us to eat more vegetables?

Can the ad industry persuade us to eat more vegetables? | Microeconomics: IB Economics | Scoop.it
From www.bbc.co.uk - March 27, 2018 12:04 PM
Advertisers are the experts at persuading us to eat burgers, crisps and fizzy drinks. But what if they tried to sell us something healthier?
Graham Watson's insight:
We're all aware of the power of advertising, but can it be used to popularise vegetable consumption? Popeye did wonders for spinach sales, but will this also work for other vegetables.

It's interesting to see an top adman confess that 'happiness' not 'health' sells, and it's to be hoped that this will inform the advertising and make it less paternalistic. Nevertheless, one wonders what Christopher Snowden would make of it.
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Scooped by Graham Watson
March 27, 2018 2:44 AM
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London property slump most widespread since financial crisis | Money | The Guardian

London property slump most widespread since financial crisis | Money | The Guardian | Microeconomics: IB Economics | Scoop.it
From www.theguardian.com - March 26, 2018 7:01 PM
House prices falling in almost half of all postcodes in the capital, figures reveal
Graham Watson's insight:
An interesting little article that highlights the changing nature of the London housing market. The falling house prices in half of all postcodes reflects the changing D&S conditions in the capital.
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Scooped by Graham Watson
March 26, 2018 3:01 PM
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Hydrogen-powered transport key to climate targets, says Shell | Environment | The Guardian

Hydrogen-powered transport key to climate targets, says Shell | Environment | The Guardian | Microeconomics: IB Economics | Scoop.it
From www.theguardian.com - March 26, 2018 1:39 PM
Oil firm says gas could account for 10% of global energy consumption by end of century
Graham Watson's insight:
If even Shell are endorsing hydrogen cars, then it seems that the end of the petrol engine is nigh. This article details the fact that the oil company believes that, apart from the growth of battery-electric vehicles, these cars are going to be the way in which we meet our climate change commitments.  
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Scooped by Graham Watson
March 26, 2018 9:57 AM
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Embrace smart meter rollout or go bust, big energy firms warned | Business | The Guardian

Embrace smart meter rollout or go bust, big energy firms warned | Business | The Guardian | Microeconomics: IB Economics | Scoop.it
From www.theguardian.com - March 26, 2018 8:04 AM
Smart Energy GB boss says those who fight move risk new market entrants overtaking them
Graham Watson's insight:
Are smart meters the future? Certainly the chief executive of Smart Energy GB, Sacha Deshmukh, thinks so, arguing that the Big Six energy companies haven't been wholehearted in supporting them, but that this won't be in their own self-interest in the longer term.

Given that there is a commitment to offer the meters to every home and business by the end of 2020, he argues that this will increase competition, increase switching and those firms than don't offer smart meters are effectively signalling something about the price of the energy they sell.

Thus, whilst there are short-run concerns about the cost of smart meters, their supporters are of the view that this will be more than offset by subsequent efficiency gains.
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Scooped by Graham Watson
April 3, 2018 6:59 AM
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Could non-alcoholic gin ever be as good as the real thing?

Could non-alcoholic gin ever be as good as the real thing? | Microeconomics: IB Economics | Scoop.it
From www.bbc.co.uk - April 1, 2018 6:57 AM
A new breed of adult-focused soft drinks is providing alternatives to traditional alcoholic tipples.
Graham Watson's insight:
Non-alcoholic gin. Whatever next? A reflection of changing consumer tastes. 
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Scooped by Graham Watson
April 3, 2018 6:49 AM
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AI 'poses less risk to jobs than feared' says OECD

AI 'poses less risk to jobs than feared' says OECD | Microeconomics: IB Economics | Scoop.it
From www.bbc.co.uk - April 2, 2018 6:42 AM
Far fewer jobs are at high risk of being lost than had previously been claimed, says an OECD study.
Graham Watson's insight:
The OECD has investigated the impact of artificial intelligence on employment and concludes that despite earlier surveys predicting that the effect on US and UK jobs would be severe, the threat is over-estimated. The OECD view is that AI will affect around 10% of American jobs and 12% of UK jobs. 

Of course, the important fact to bear in mind is that the impact of AI is a net one - substitution if they replace workers, but also complementary, in that workers are required to operate the new technology. 
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March 29, 2018 3:55 PM
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BP chief Bob Dudley's pay jumps by almost 13% to $13.4m | Business | The Guardian

BP chief Bob Dudley's pay jumps by almost 13% to $13.4m | Business | The Guardian | Microeconomics: IB Economics | Scoop.it
From www.theguardian.com - March 29, 2018 8:24 AM
Repeat of shareholder revolt of two years ago is unlikely after oil firm’s strong 2017 performance
Graham Watson's insight:
More on executive pay - one of my favourite subjects. Is anyone worth $13.4m per year? Bob Dudley doesn't tweet and I'm fairly sure he doesn't have a Scoop It! board either. But he earns more than I do in a little over two days. He must be worth every penny.
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Scooped by Graham Watson
March 29, 2018 3:24 PM
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Engineering giant GKN sold to Melrose for £8bn

Engineering giant GKN sold to Melrose for £8bn | Microeconomics: IB Economics | Scoop.it
From www.bbc.co.uk - March 29, 2018 3:20 PM
Shareholders back an £8bn offer after a bitter fight for control of Britain's biggest engineering firm.
Graham Watson's insight:
The end of a 1980s style merger - with engineering giant GKN having been taken over by Melrose Industries, which views itself as a specialist in turning around mismanaged firms. The merger has been controversial - with a number of parties, notably the government taking an interest in the merger and eliciting a number of guarantees about Melrose's future conduct of the firm. 
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Scooped by Graham Watson
March 29, 2018 2:25 AM
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Reckitt Benckiser cuts boss’s pay for second time

Reckitt Benckiser cuts boss’s pay for second time | Microeconomics: IB Economics | Scoop.it
From www.bbc.co.uk - March 29, 2018 2:22 AM
The Gaviscon maker has cut Rakesh Kapoor's pay by 18% to £12.5m after the firm underperformed.
Graham Watson's insight:
A rare instance of executive pay going down as well as up? But wait a minute, admirable though Rakesh Kapoor's pay cut might be, he's still getting total compensation of £12.5m in 2017. 

That works out at £260,000 per week or £37,000 per day. Is anyone really worth that sort of money? 
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March 28, 2018 12:31 PM
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​Jaguar to supply 20,000 cars to Google's self-driving spin-off Waymo | Technology | The Guardian

​Jaguar to supply 20,000 cars to Google's self-driving spin-off Waymo | Technology | The Guardian | Microeconomics: IB Economics | Scoop.it
From www.theguardian.com - March 27, 2018 2:43 PM
Deal, worth up to £1.3bn, shows Waymo’s ambition in developing driverless ride-hailing service
Graham Watson's insight:
The battle for two markets is encapsulated in this Guardian article: the market for electric cars and the market for self-driving vehicles. It looks like the deal between Waymo and Jaguar is good for both parties - however, is there really first-mover advantage and might others benefit from some spillover effects of this - or is the intellectual property involved tightly protected by intellectual property rights,

Additionally, what are the efficiency implications of all of this? Lots to ponder, particularly given survey data this week that has revealed that many people are opposed to giving up their petrol engines.
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Scooped by Graham Watson
March 28, 2018 12:00 PM
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Deposit return scheme: Who would pay?

Deposit return scheme: Who would pay? | Microeconomics: IB Economics | Scoop.it
From www.bbc.co.uk - March 28, 2018 11:55 AM
The plastics industry says a deposit return scheme would mean consumers would have to pay more for drinks.
Graham Watson's insight:
Another article which looks at a policy designed to tackle waste. Apparently, the UK is considering a Scandinavian-style deposit return scheme.

However, not everyone is enthusiastic about the scheme: there's an opportunity cost of installing 'reverse vending machines' and it's likely to be producers that are going to have to meet this cost. Of course, they are then likely to pass this on to consumers, who are probably going to pay more for their drinks.

Lots of good evaluative angles here - relating to the possibility of government failure, who bears the burden of the scheme and whether or not, ultimately, it enhances efficiency or not.
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Scooped by Graham Watson
March 27, 2018 2:28 AM
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Pubs in danger: Six charts on how the British drink

Pubs in danger: Six charts on how the British drink | Microeconomics: IB Economics | Scoop.it
From www.bbc.co.uk - March 27, 2018 2:26 AM
Across Great Britain, adults are drinking less often. So how are tastes changing and why are they cutting back?
Graham Watson's insight:
The over-consumption of alcohol is a demerit good, but equally the drinks industry is facing many challenges of its own, not least a decline in the number of pubs. This article is an interesting primer that looks at how patterns of alcohol consumption have changed over time and the implications of this.
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March 26, 2018 10:02 AM
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DPD to offer couriers sick pay and abolish fines after driver's death | Business | The Guardian

DPD to offer couriers sick pay and abolish fines after driver's death | Business | The Guardian | Microeconomics: IB Economics | Scoop.it
From www.theguardian.com - March 26, 2018 8:50 AM
Delivery firm to offer 6,000 drivers right to be classified as workers in wake of Don Lane’s death
Graham Watson's insight:
Is this a turning point, one of many in the gig economy, with courier DPD offering self-employed couriers the right to be classified as workers in the wake of a worker's death.

Additionally, they are starting to offer sick pay and the £150 daily fine levied if workers were unable to find cover in the event that they were going to be absent. The latter, in particular, strikes me as cruel.
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Scooped by Graham Watson
March 26, 2018 9:15 AM
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First and second-class stamp prices rise

First and second-class stamp prices rise | Microeconomics: IB Economics | Scoop.it
From www.bbc.co.uk - March 26, 2018 9:08 AM

Royal Mail says the price rises are necessary to maintain the universal postal service.

Graham Watson's insight:
The price of stamps is always an interesting proxy for inflation, and this article reveals that had stamps tracked inflation since 1989, a first class stamp should cost 41p not the 67p that it now does.

However, the reason this is 'Microeconomic' is because I'd like to unpick what might be behind the price increases. A rise in price, elementary microeconomic principles tell us would come about either because of an increase in demand or a reduction in supply. However, has there been an increase in demand? You wouldn't have thought so - the number of letters sent has decreased, although online retail has increased the number of parcels sent. Thus, are the former subsidising the latter?

Alternatively, have costs risen? This seems more likely - the unit cost of delivering a letter is likely to have risen, particularly if the Royal Mail has been unable to drive down costs, notably labour costs. And yet, you would have thought that the threat of competition, not least in the parcels sector, would have put downwards pressure on prices as well as the rising number of competitors. So, is this sort of rate of price increase sustainable?
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