• You must have an interest in the subject, this will come through reading outside a strict academic syllabus.
• You need to be able to talk about issues and express personal opinions. Don't leave it until a week before. This can only be gained over time. Try and find someone interested in topical subjects, or write some ideas down in a blog or something.
• They won't test you on memorising statistics. I remember before my interview, a schoolmate spent all day "revising the financial times" - He was really disappointed when they asked him to:

"Imagine you have to explain the northern ireland peace process to an alien from outer space."

• Don't be shy, but don't come across as arrogant or a know it all. At the end of the day they are judging whether you would be a good person to teach. A good student is not just bright and clever, but pleasant to teach.

• I'll never forget my philosophy inteview. They asked some question about logic. I couldn't do it. Rather than move on to another question, they just stuck with same question for half an hour. - I still couldn't do it 30 mins later. I was convinved they wouldn't let me in. But, thankfully economics and politics were normal interviewers. (by the way i never understood logic and never went to logic classes. I dropped philosophy at end of first year.
• If they ask you for a philosophical definition of courage you could always try setting fire to their newspaper. see link
  

Labels: interviews

• Lower savings ratio and increased debt. See: why debt has increased in the UK
• Rising House Prices. Booming Housing market creates positive wealth effect and more spending
• High levels of consumer confidence

• Interest rate rises take time to have effect. For example, many fixed rate mortgages taken out when interest rates were very low (2003 and 2004) are soon coming to an end. Therefore, homeowners will soon be facing much higher mortgage payments and as a consequence reduce their spending.
  
• Some feel rising house prices are actually causing young consumers to spend less. This is because people fear there is a bubble which will soon burst. Also first time buyers need to save to get on the property ladder
• High levels of debt in the UK, mean that rising interest rates will have a big impact.
• Global inflation is still relatively benign due to process of globalisation e.t.c.
• House prices may set to fall soon - House price fall likely
  

Labels: inflation

1. Lower prices
2. greater competitiveness
3. increased growth

• See: Advantages of Free Trade

• Disadvantages of Free Trade

• WTO
• WTO at Make Poverty HIstory
  

Labels: trade

• For example, one dollar will buy more goods in China than in UK. This is because the cost of living is cheaper in China. Real exchange rates don't often take this into account.

Labels: economic growth

• Factors Contributing to Globalisation
• International Exchange
• Trade Liberalisation and Protection
• Sources of possible conflict between trading blocs and the role of the World Trade Organisation WTO
• The Balance of Payments
• Competitiveness
• Exchange Rate Systems
• European Monetary Union
• Inward investment by MNC’s
• External Shocks to the Global Economy
• Public Expenditure and Taxation
• Fiscal Policy
• Unemployment (natural Rate)
• Inflation (phillips curve trade off)
  
• Monetary and Supply Side Policies

Labels: essays

• Causes of Recessions
• How a US recession might effect the UK
• Problems facing an economy recovering from recession
• Are UK recessions caused by a failure of monetary policy?
• Is US economy heading towards recession?
  

Labels: recession

• See reasons for low inflation in UK

• Government policies to increase competitiveness
• International Competitiveness
  

Labels: UK economy

Labels: development economics, globalisation

• Phillips curve and Unemployment in UK
• Reasons for fall in unemployment in UK
  

Labels: unemployment

• Explain reasons for fall in unemployment in the UK
• Discuss whether demand side policies will reduce unemployment
  

Labels: unemployment

Labels: development economics

Policies to deal with an Ageing Population

• Impact of an ageing population
• Britain's Demographic Time bomb at Guardian
• UK Retirement age set to rise to 68 at BBC
  

Labels: pensions

• Supply of labour depends on things like
• number of qualified workers
• Time taken for qualifications
• Non monetary benefits e.t.c

Labels: labour markets, wages

Labels: labour markets

Labels: labour markets

Labels: minimum wage

Diagram of monopsony

Labels: labour markets

Labels: pensions

Labels: funny

Labels: monopsony

• free trade
• devalutaion
• absence of susbsidies.

• specialisation
• economies of scale
• world growth
• increased competition, incentives to cut costs

Labels: development economics

• Difficulty of attracting foreign capital flows, will lead to current account deficit.

• low wage costs
• scope for growth
• natural resources
• examples of India and China in attracting external finance
  

Labels: development economics

• Specialisation in one Commodity

Labels: development economics

• However, a large % of aid is tied aid. This means it is fixed for certain investment projects which benefits the donor countries. In a sense this is not really aid, but it is classed as Aid. (e.g. building of dams in Argentina)

• However, there is concern aid can lead to dependency. Developing countries come to rely on aid and lose incentives to improve productivity. This depends on the type of aid given. E.g. some aid can be just to improve infrastructure, this is more beneficial than handouts.

• However, if food aid is temporary, e.g. in a famine low prices are not concern. Food aid needs to be short term and specifically targeted to avoid this potential problem.

• However, aid could play a role in improving trade performance. For example, aid could be used for education and training to increase labour productivity. This enables the country to become more competitive in the long run.

• Why have IMF and World Bank not reduced relative poverty in developing countries?
• Problems of Aid: Case study in Africa at World Bank
  
• Problems of Aid
• Aid: can it work? Review of books on Aid including
  

  The White Man's Burden: Why the West's Efforts to Aid the Rest Have Done So Much Ill and So Little Good

  by William Easterly

  Penguin, 436 pp., $27.95

• 
  

Labels: development economics, globalisation

• The supply curve will shift to the right. This will cause a lower price and higher quantity.
• The effect depends upon elasticity of demand. If demand is inelastic removing an indirect tax will cause a big fall in price.
• If demand is elastic it will cause a small fall in price and large increase in quantity.

Labels: taxation

• Globalisation

Labels: globalisation

• Arguments for the UK staying in the European Union
• Arguments for Leaving the European Union

• Costs and Benefits of EU membership for UK
  
• Disadvantages for Eastern European Countries
• Benefits of Euro
  

Labels: european union

• Maximum working week
• Minimum wage
• Extension of Full time rights to part time and temporary workers
• Works councils,
• parental leave,
• regulation on sexual harassment,
• minimum wage,
• minimum four weeks' paid holiday,
• 40-week maternity leave

• Extension of full time rights to part time workers may benefit women more than men. This is because women are more likely to work in part time / temporary jobs.
• The same is true for minimum wage legislation. It is more likely to benefit female workers, because they are more likely to do part time / service sector jobs, which benefit from a minimum wage.
• However, on the other hand it could be argued the increased legislation may make firms less willing to take on female workers. If women are likely to receive generous maternity leave, the firm may be inclined to pay less so that it can afford to pay maternity leave (more likely they will just not get taken on)
• Maximum working week is more likely to apply to men. Women are more likely to do part time / temporary jobs. This will reduce the total take home pay for men (as opposed to hourly wage) This will bring total earnings of men closer to women.
• The legislation has its limitations. Differences in wages are due to many factors such as; women choosing lower paid jobs, taking career breaks and therefore not getting promoted. Therefore these legislation may not tackle the fundamental reasons for imbalances.

Labels: labour markets, wages

• Assess the impact of an increase in Government spending on education and health care.

Labels: fiscal policy

Labels: Poverty

• better childcare provision.
• This enables women to take on more part time jobs

Labels: labour markets

Labels: development economics

Labels: development economics

1. Good for workers.
2. Could increase productivity, if workers are tired their productivity falls.
3. Increases motivation. Some workers feel exploited if they are forced to work long hours.
4. Good for safety of workers, especially in industries like driving.
   
5. gives protection to workers working for monopsonies or have no trade union to represent
6. Could increase employment. Firm needs 2 workers, rather than 1 worker doing 70 hours.
   

1. Some workers may wish to work longer hours. Prevents workers gaining overtime, an important source of income for some workers.
2. Some jobs have variable hours, therefore at critical times it is important to be able to work longer hours if necessary. Some jobs are very seasonal like strawberry pickers.
3. Discourage investment. Firms may see the working time directive as an unnecessary burden and indication of lack of flexibility. This may discourage firms from starting up. UK may attract more inward investment if it got rid of working time directive

• working time directive at Guardian
• Working Time Regulations at DTI
  

Labels: labour markets

• Income and wealth in UK
• Poverty, inequality and economic growth

Labels: inequality

• Taxes on negative externalities
• Should taxes on cigarettes be increased?
  

Labels: taxation

1. Education and training. Give unskilled and unemployed better chance to get a job

• However, is expensive, govt training may not be effective, will take a long time

• However, legislation like this already exists, difficulty is in implementing it. For example, how do you prove not getting a job is due to discrimination

• Very expensive to implement women may still be limited to just having part time jobs

Labels: labour markets

Labels: labour markets

Labels: exam technique, labour markets

• Lower union density in part time jobs - yes. part time see less benefit from joining unions
  
• Part time Usually employed by the public sector - To some extent, although it is not clear cut. There are many part time jobs in the private sector.
  
• As they work less hours MRP will be lower - Not necessarily. It would be better to say those who work part time have less opportunity to get on the job training. Therefore, they are more likely to remain unskilled. This is one reason why they have lower MRP and therefore get higher wages. Some part time workers (e.g. management consulatants may have a high MRP and wage.
• Part time Workers often work with less formal contracts, therefore they are perhaps more likely to work for monopsony employers and get lower paid as a result.
• Part time workers more likely to be in service sector and jobs which are traditionally low paid, e.g. cleaners, bar staff e.t.c.. These jobs have elastic supply and low skills qualifications.
  

Labels: labour markets

Labels: labour markets

• Some reasons for a trade deficit (current account deficit)
• How to Reduce a current account deficit
  

Labels: trade

• Increase in service sector. Many jobs in catering and retail lend themselves to part time. Manufacturing jobs tend to be full time
• Increased female participation in labour markets. The number of women in the labour market has increased due to changing social trends and rise in childcare provision. However, many women returning to work prefer part time work so that they can look after children as well.
• However, there has also been an increase in the number of men doing part time work,
• Increased labour market flexibility. In response to increased competitiveness of globalisation, firms are seeking to cut costs. One way is to only employ workers when they are needed, therefore part time and temporary workers are one way to do this. However, part time workers don't necessarily increase productivity, they tend to have less loyalty and are less likely to get training suitable for the job. Labour turnover is higher for part time workers.
• national minimum wage. This has increased the pay of low skilled workers. Therefore, it has encouraged firms to be more careful with employing people.

Labels: labour markets

Labels: labour markets

• Will the US dollar continue to fall?

Labels: exchange rates, US economy

1. Higher levels of economic growth. Higher growth implies higher levels of consumer spending. Therefore, this will lead to an increase in imports. This is a significant factor in the UK because we have a high marginal propensity to import. Basically this means that a rise in income causes a bigger % increase in spending on imports. (imports tend to be luxury goods.)
2. Appreciation in the exchange rate. This causes exports to be more expensive and imports to be cheaper. Therefore quantity of exports fall. However, the effect depends on the elasticity of demand. If demand is inelastic, then more expensive exports will have little impact on reducing quantity.
3. Loss of competitiveness. If exports become less competitive, due to lower productivity then demand for exports fall. This is likely to explain a long term deficit. It has occured to a large extent in the UK because of globalisation. E.g the UK has lost comparative advantage for the manufacture of many goods to Asian countries like China.

• Reasons for Current Account deficit in UK
• What Causes US Current Account deficit
  

Labels: current account

1. Expansionary Fiscal policy. When economic growth is low, the government may choose to increase spending and cut taxes to try and increase AD. This will cause a budget deficit, because spending is greater than taxes. This is likely to be a significant factor, especially if growth is low. When growth is low government borrowing will automatically be higher. (government have to spend more on benefits and receive less in tax). However, it is still possible to get a deficit during high growth because the government could increase its structural deficit. This has happened in the UK, due to higher spending on public services.
2. Government investment in public services. E.g. higher spending on education and training. This may lead to higher growth in the long term and therefore, government may be able to get higher taxes in the future. This kind of borrowing is structural and would explain borrowing even in a period of high growth

• Lower Real interest rates. Low interest rates mean that loans are more attractive; therefore, it encourages a variety of borrowing, such as credit cards and loans.
• Confidence. Consumer confidence is important for encouraging people to borrow against the expectations of future earnings.
• Economic Growth. Higher economic growth tends to increase consumer confidence. When incomes are rising, people expect them to keep rising
• Supply of Finance. Greater supply of loans and credit cards. Banks more willing to lend to people with bad credit histories.

Labels: debt

• Budget Deficits

• Note this current account deficit is not due to the government.

• A deficit on the current account means that there will need to be a surplus on the financial / capital account component of the balance of payments.
• Balance of Payments
  

hello, i was wondering if you could point of what arguements could be used for the advantages and disadvantages to employees, employers and trade unions would the fairness at work scheme create thank you

The Fairness at Work policy is a set of procedures and advice to follow in the event of a complaint of harassment, discrimination or bullying. It aims to avoid racial, sexual and other forms of discrimination.

• Provides clear guidelines for preventing discrimination
• Gives unions the right to recognition. This right had been eroded meaning employers could ignore workers and unions.
• Guarantees maternity leave
  
• If more than 50% of workers are in a union, a union is by de facto recognised by employers. If it is less than 50% it can be recognised if the workforce vote for it.
• As a result of this legislation the number of unions being recognised in the worforce had a small increase post 2000, (after 2 decades of decline)
• Unions also have restrictions on closed shops and striking without ballot. It is a 2 way process designed to prevent less conflict between unions and employers
  
• Provides a framework for either stopping discrimination or even filing complaints and charges against employers who allow it.

• Getting recognition by employers does not mean trades unions necessarily have much influence over wages and conditions.
• If unions are given too much power it could lead to an increase in the prevalance of strikes and wage inflation. The UK economy suffered in the 1970s from unions having too much influence; it led to a climate of antagonism between workers and firms. (However, the stated aim of fairness at work is to avoid this antagonism)
• There is concern that an increase in government legislation can be a factor in discouraging firms from investing. Inflexible labour markets are seen to be a factor in contributing to high unemployment levels in France and Germany. More legislation like Fairness at work can increase the bureaucracy and red tape of hiring and firing workers.
  
• Many of the ideas have been previously covered by the Sex Discrimination Act (1976) and racial discrimination legislation. Some of the fairness at work legislation is merely repetition.
• Legislation and policy's are no guarantee of being able to prevent it in practice.
• In some sectors of the economy trades unions have a low density (service sector) therefore it is more difficult to implement there.
• To be effective it requires active cooperation of respected parties, trades unions, and employers.

Labels: labour markets

Labels: unemployment

1. Marginal Revenue Product of Labour MRP = MPP *MR
2. MPP = productivity of workers - Are workers in the London more productive than Newcastle? - Unlikely to be the case. Work environments are similar
3. MR - The price of goods is higher in London than Newcastle. This is related to the cost of living. Because goods are more expensive, the workers add a greater MRP than in Newcastle. For example, to get a hair cut in london is more expensive. THerefore, you would expect hairdressers to be paid higher wages. This point is quite significant, especially for service sector type jobs. However, it wouldn't explain differences in Mcdonalds workers where the price of a Big Mac is the same
4. Supply of Labour. Labour shortages in London are likely to push up wages. If there is a surplus of labour in Newcastle this puts downwards pressure on wages. Note: there is a shortgage of nurses in London, but free market forces don't operate for nurses.
5. Government pay London Bonus. Because of London's costs of living, the government pay higher wages

• Monopsony power of workers in north?
• Trades Unions more powerful in London? - not the case
• High paying firms set up in London. E.g. More solicitors and bankers in London. Therefore, it is differences in types of jobs, that is quite important.

• Why are women paid less than Men?
• Wage determination in competitive markets
  

Labels: labour markets, wages

• Official aid is from governments or institutions like the world bank.
• This aid is often conditional. For example, world bank insist on free market reforms
• Some argue these SAPs (structural adjustment policies) can help reduce corruption and inefficiency. Others argue these SAPs create more problems than they solve. E.g. workers lose rights and increases inequality.
• Sometimes government aid is only a soft loan - i.e money lent at a low interest rate. Loans are beneficial because they are more likely to be used where they are needed. However, others argue if the interest is very low, countries may have less incentive to worry about rates of return; this can encourage inefficiency.

• AID is often earmarked for certain big projects, which give a reciprocol benefit to the developed country. However, these projects often do little to tackle causes of poverty and lack of development. Best loans are unconditional.

• In theory private / charity will give AID where it is most needed rather, than for mutual benefit.
• However, private aid may be insufficient to make a lasting difference. We cannot rely on private charity alone. Small charities may have high admin costs and not benefit from economies of scale. On the other hand they may have specialised information about particular problems governments are not interested in.
• Private AID may disrupt local economies - creating dependency and disrupting local farming.

• Foreign Direct investment will help to increase AD, and therefore, can increase the rate of economic growth. However, FDI is often a relatively small component of AD. Multinationals don't like to risk too much in developing countries.
• Foreign Direct investment can also help to increase productive capacity. This will shift AS to the right and enable higher rates of growth. Investment from abroad may also help improve the skills and technology of the local workforce; Foreign multinationals may help implement better work practices.
• However, FDI may require skilled labour which has to be brought in from abroad. Therefore, developing countries don't benefit that much.
• FDI may have strings attached; e.g. reciprocol spending.
• FDI may involve exploitation of natural environment. Foreign multinationals may not care about environment.
• Harod Domar model suggest savings and investment are important for determining the rate of economic growth.

Labels: development economics

1. In a recession to increase AD (expansionary fiscal policy)
2. To finance public sector investment, which can increase economic growth in the long term.

• Economic Record of Gordon Brown
  
• Meeting the golden rule
  
• Fiscal Policy
  
• A black hole in the Golden rule at Economics UK
  

Labels: fiscal policy

• Impact of a collapse in House prices on UK economy
• What determines whether UK house prices will fall?

• Always seems to be something like:
• Discuss policies to reduce environmental pollution

Labels: a levels

Labels: wages

• Economic growth hasclose to long run trend rate, therefore, avoids inflationary pressure.
• Role of MPC in maintaining inflation close to government's target of CPI 2%. For example, MPC have increased interest rates 4 times in the past 18 months to reduce inflationary pressures.
• High Exchange Rate. This makes exports more expensive and therefore reduces export volumes.
• Diagram could involve a simple AD/AS framework with AD increasing at same rate as AS
  

• Improved technology, which helps to reduce costs
• Supply side policies
• More flexible labour markets, less wage bargaining. Wage inflation lower (also effects demand pull inflation)
• e.t.c
  

• Long period of economic expansion. This has created jobs. Draw a simple AD / AS diagram showing an increase in AD and Real GDP
  
• Sustained economic growth and low inflation creates a positive environment for encouraging investment, this has led to increased job opportunities.

Labels: inflation, readers questions

• Immigrants have low skills and / or struggle with English. This limits the range of jobs available and can lead to structural unemployment. This structural unemployment may be exacerbated by racial discrimination.

• However, on the other hand some economists argue unemployment levels amongst immigrants are often exaggerated. The reason behind this is that immigrants are more likely to work on the black market (underground economy) For example, immigrants often work for less than the NMW for cash in hand. (This can lead to exploitation of workers and ignoring health and safety legislation)

Labels: labour markets

• Why women are paid less than men
• Labour Market imperfections
• Reasons for Unemployment amongst ethnic minorities
• Essay: Explain wage differentials
  

Labels: readers questions, wages

• More flexible labour markets (e.g. unions have less power)
• Better education and training (reducing occupational immobilities)
• Better information about getting jobs (lower frictional unemployment)
• More difficult to get benefits JSA
• Long period of economic expansion, creating jobs and reducing demand deficient unemployment

Labels: readers questions

• In recent years unemployment in the UK has fallen from 3 million (1992) to under 1 million (2007)
• Inflation has fallen from 10% in 1992 and has remained close to the governments' inflation target of 2% +/- 1.

Labels: unemployment

1. Higher interest rates in the UK. This makes it more attractive to save in the UK, causing hot money flows
2. Lower inflation in the UK. This makes British goods comparatively more competitive, increasing demand.
3. Increased productivity and attractiveness of goods.
4. Speculation. People feel the £ is likely to appreciate in the future
5. Current account surplus. not actually the case, but it would be more likely to cause an appreciation

• Factors influencing exchange rate
• will the dollar continue to fall?

Labels: exchange rates

• If govt spends more by borrowing some of the increased spending, higher Government spending should increase AD, (G is a component of AD.) - see: Government borrowing
  
• However, if tax increases at same rate then net effect on AD is likely to be neutral
• It depends whether government finances by borrowing or by tax
• Also, if higher spending is financed by borrowing it may cause crowding out
  

• Higher government spending may increase productive capacity in the long run. For example, they may spend it on education and training e.t.c.
• However, if it is spent on paying for pensions e.t.c there will be no increase in productive capacity
• However, there is no guarantee that government spending will actually increase educational standards, there may be government failure
  
• Again, it depends what the government is spending its money on.

Labels: government, readers questions

Labels: readers questions

• Growth and Stability Pact is a part of Monetary Union.
• Countries who join the Euro are supposed to sign up to the Growth and Stability Pact
• Basically it means that Governments cannot borrow more than 3% of GDP. i.e. A countries budget Deficit should not be more than a certain amount
• The rationale is that joining the single currency means a common interest rate, set by the ECB. If countries borrow too much it puts upward pressure on interest rates. Therefore, limits on government borrowing are needed to avoid these problems

• It means countries have less flexibility in dealing with economic downturns. In a recession it makes sense to have expansionary fiscal policy. (higher spending and lower taxes) However, this increases the budget deficit. Therefore, to keep government borrowing within the criteria of the growth and stability pact means that the government cannot try and increase AD through fiscal policy.
• It is worth noting in the EURO a country cannot change interest rates, therefore fiscal policy becomes more important
• Many countries have simply chosen to ignore it. This includes France and Germany. As the EU cannot really enforce the growth and stability pact, its impact is obviously lessened.

• Problems recovering from recession
• Disadvantages of EURO
• Benefits of Euro
• Budget Deficits
• Growth and stability pact effectively suspended
  

Labels: Euro

• hi, i'll be doing my AL's soon, and i wanted to know some tips on writing good economic essays. i find it very hard to finish unit 6 within 1 hr and 45 mins, usually i spend about an hour on section A and then take another hour for section B.

• Since you are an edexcel examiner, could you please tell me how many points u should write for say 6, 10 and 12 marks.

• Also, is it ok to use abbreviations in our essays like AD, AS, int. and FDI? Will marks be cut?

Labels: economics help, essays

• However, people may not want to work longer hours, or companies may not ask workers to work more. Even if people work longer, would firms really want to employ less workers?
  

Labels: labour markets