Microeconomics: IB Economics
29.2K views | +2 today
Follow
Microeconomics: IB Economics
Economy
A brief overview of relevant articles for IB, A-Level and Pre-U economists relating to microeconomic issues
Curated by Graham Watson
Your new post is loading...
Your new post is loading...
Scooped by Graham Watson
March 28, 2018 12:31 PM
Scoop.it!

​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.
more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
March 28, 2018 12:00 PM
Scoop.it!

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.
more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
March 27, 2018 2:28 AM
Scoop.it!

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.
more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
March 26, 2018 10:02 AM
Scoop.it!

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.
more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
March 26, 2018 9:15 AM
Scoop.it!

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?
more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
March 28, 2018 12:08 PM
Scoop.it!

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.
more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
March 27, 2018 2:44 AM
Scoop.it!

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.
more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
March 26, 2018 3:01 PM
Scoop.it!

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.  
more...
No comment yet.
Sign up to comment
Scooped by Graham Watson
March 26, 2018 9:57 AM
Scoop.it!

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.
more...
No comment yet.
Sign up to comment
About Follow us Resources Terms Mobile Features
Facebook
X
LinkedIn