Year 4 - Sources of Finance

Hmmm,

I think we're probably all agreed that Friday didn't make much sense. I thought that giving you a worksheet and getting you to work through it, you would learn the material along the way. I probably gave you too much to chew on, though. Apologies.

So! Let's have a look at sources of finance again and make sure we're happy with all of that:

http://www.bized.co.uk/educators/16-19/business/accounting/presentation/sourcefinance_map.htm

http://www.bized.co.uk/educators/16-19/business/accounting/presentation/sourcefinance.ppt

http://www.bized.co.uk/educators/16-19/business/accounting/activity/sourcefinance.htm

Mr W

IMF SAPs - Year 6

Time to find out about Structural Adjustment Policies. If you have a look through Zambia's debt problem, you'll see what policies the IMF has put in place.

http://www.bized.co.uk/virtual/dc/trade/bank/issue1.htm

Year 4 Cashflow

Now that we know a little more about cashflow, let's have a look again at:

http://www.bized.co.uk/learn/business/accounting/cashflow/simulation/game.htm

If you've finished going through this, time to start having a look at a real company:

http://www.bized.co.uk/virtual/cb/factory/production/worksheets1.htm

Year 6 international debt

• http://www.bized.co.uk/virtual/dc/works/debt.htm

Year 4 quiz

And some quizzes to test what you've learnt:

http://www.bbc.co.uk/schools/gcsebitesize/business/csquiz/accountingprinciples.shtml
http://www.bbc.co.uk/schools/gcsebitesize/business/csquiz/accounts.shtml
http://www.bbc.co.uk/schools/gcsebitesize/business/csquiz/cashflow.shtml

Year 4 cashflows

I'm hoping this presentation about cashflow should work

http://tutor2u.net/business/presentations/accounts/cash_management/index.html#

If it doesn't, try this one:

http://www.bized.co.uk/learn/business/accounting/cashflow/simulation/index.htm

Then have a look at working capital:

http://tutor2u.net/business/finance/workingcapital_needs.htm

World Bank Macroeconomics

Hi Year 6,

You may well find these links useful for looking at growth:

World bank macroeconomics

UN HDI reports

Mr W

Cashflow fun

So! We've looked at Profit and Loss accounts and we've looked at Balance Sheets. It's time to have a look at the amount of cash in the business:

http://www.bized.co.uk/virtual/bank/business/planning/financial/step2.htm

Have fun

Mr W

Year 5 Global Warming

For those of you researching global warming (all of you in year 5!), you may want to look at:

http://news.bbc.co.uk/1/hi/in_depth/629/629/7074601.stm

Year 4 ratios work

Have a look at the following information on ratios analysis. You should work down to the end of Analysis 3 on liquidity, completing the activities as you go

http://www.bized.co.uk/compfact/ratios/intro1.htm

Year 4, new half term

http://www.bized.co.uk/educators/16-19/business/strategy/activity/busownership2.htm

Year 4 work - Monday 15/10

Hi Guys,

Work for today is the magnificent simulation:

http://www.bized.co.uk/learn/business/accounting/cashflow/simulation/index.htm

LInks for Year 4 lesson

Today we're trying to find the employment by sector and output by sector for the Czech economy around 1990 and 2006. Don't worry if you can't find the exact years - a couple of years either way is fine.

Search links

http://www.google.co.uk/ (make your searches specific!)
http://www.wikipedia.org/
http://www.cnb.cz/
https://www.cia.gov/library/publications/the-world-factbook/

Activity and Homework (for next Monday to be emailed)

http://www.bized.co.uk/educators/16-19/business/strategy/lesson/bussurvival.htm

Useful Links for the Future

http://www.bized.co.uk/compfact/comphome.htm

New School Year, New Office

For those of you trying to seek me out, my office is now in room 008 (Music room office).

How much do I need to revise?

In reply to Barbora, and to all of you out there, I know if you could get away without revising some sections, some of you may take that option:

Looking at the last 2 summer's worth of exams (which are available on the blog):


May 05 SL

Paper 1: Choice of 1 Essay from 4 on sections: 2, 3, 4, 1/5
Paper 2: 3 questions out of 5 on sections: 2, 3, 4, 5, 5

May 06 SL

Paper 1: Choice of 1 Essay from 4 on sections: 1/2, 3, 4, 5
Paper 2: 3 questions from 5 on sections: 3, 2, 2, 5, 5

May 05 HL

Paper 1: Choice of 1 Essay from 4 on sections: 2, 3, 4, 1/5
Paper 2: 3 essays from 6 on sections: 5, 2, 3, 3, 4, 5
Paper 3: 3 questions from 5 on sections: 2, 3, 3, 4, 5

May 06 HL

Paper 1: Choice of 1 Essay from 4 on sections: 2, 3, 4, 5
Paper 2: 3 essays from 6 on sections: 2, 2, 2, 3, 2, 5
Paper 3: 3 questions from 5 on sections: 2/5, 3, 4, 4, 5


So in a word, no. But! You'll need to be pretty hot on all the other section and I know that you don't all love some of the other sections either.

Good luck all

More Year 6 Revision

In addition to today's revison, we're having another revision session tomorrow (Friday) starting at 2:30 till about 4:00-4:30 in room 111. (Don't worry, we'll still have the session on Monday morning).

Come join the party.

Revision Session Yr 6

Hi All,

Apologies for not posting sooner - couldn't until I knew how the exams panned out.

However! Revision Session tomorrow 10:15-12:15. We will meet in the refectory at first and possibly find a room after that (we may have to move in the middle because of classes). I should be free in some of the afternoon for those of you who don't have exams on, so if you need to find me, come along or drop me an email when you want to meet (I'll check my emails often).

Mr W

P.S. Will have a session 9:15 on Monday as well for those of you with last minute panics

UCAS

For those of you looking to apply to universities in the UK, I've set up a website at:
ucasontoast.blogspot.com
For those of you who don't already know, I'll be taking over the UCAS university role from Mr Rossall next academic year.

Mr W

Our Generation's Challenge

One billion people on the planet are too poor, too hungry, too disease-burdened, too bereft of the most basic infrastructure even to get on the ladder of development. The rich world seems to be believe, despite all the fine speeches (and there have been many), that this doesn't really matter, because the actions of the rich countries don't begin to address this problem. We are leaving ten million people to die every year because they are too poor to stay alive. Fine speeches will not solve that problem.

Every year the BBC asks a leading scientist (yes, economics is a proper science) to give a series of lectures. This year the economist Jeffrey Sachs has given a series of lectures about the problems facing our generation and how they can be solved. The above quote is taken from his first lecture. He also gives a series of ideas of what we can do as individuals to address the problems. For the misguided amongst you who think that economics is not THE most interesting subject around, you can download the lectures from the links below.

It's a fascinating and crucial concept for us - peace as a way of solving problems.

Lecture 1
Lecture 2
Lecture 3
Lecture 4
Lecture 5

Clickable IB Guide

Wikipedia has a revision guide which is worth looking at if you're bored with some time to kill (or have IB exams coming up!)

http://en.wikibooks.org/wiki/IB_Economics

Real GDP

For the year 5s who are trying to work out real GDP for different countries:

Find a list of figures of GDP for the last few years, e.g.

2000 - $100 billion
2001 - $105 billion
2002 - $110 billion
2003 - $115 billion

We can work out from that the percentage increase in GDP each year
e.g. $105 - $100 = $5
$5 /$100 x 100 = 5%

However, these are only nominal statistics. We need to combine these with the inflation statistics - we minus the inflation rate from the headline figure to get the real rate of growth each year.

Multiply these figures by the first year and you should get a set of figures for real GDP. I know that sounds confusing, but it should be relatively easy in Excel. What it means is that though at first you seem to get a set of figures with growth of:
5%
4.9%
4.8% etc

once you minus inflation from it it will look like:
3%
2.9%
2.8% etc
(those figures aren't precise)

Then you can times those by each year:
$100 x 3% = $103 billion
$103 x 2.9% = $105.9 billion
$105.9 x 2.8% = $108.9 billion

Hope that makes sense.

Mr W

More Past papers

Though I'm not uploading the mark schemes, there are some more past papers at the link below.

http://base.google.com/base/a/1543614/D1755735407837280505

If you can show me you've done some work on them, then I'll give you the mark scheme for them.

Have fun

Mr W

Past Paper Mark Schemes

I have now uploaded the mark schemes for the past papers below which can be found at:

http://base.google.com/base/a/1543614/D13208440222399794706

Don't just try to learn mark schemes, though. It's not that helpful. I will also upload a set of papers without a mark scheme which, if you bring me some work on, I will be more than happy to give you the mark scheme for

Mr W

Past Papers

There are some past papers online at the address below. Some of them you will have seen before. If you want the mark schemes, come and see me!

http://base.google.com/base/a/1543614/D2679434569799006787

Mr W

IB Revision Guide...eventually!

Hi All,

Many apologies of course, but I figured out why the revision guide from the library wouldn't upload - apparently I can only upload up to 20 MB files and this is around 80 MB. If I emailed it to you all, many of your email providers would reject it also.

With no more excuses, I will tell you that I've uploaded it onto sharebigfile.com. You'll need to enter the code at the bottom of the page and click on redraw to get the file. If that's causing a problem, just bring a memory stick and I can put it straight from my lap top onto it.

http://www.sharebigfile.com/file/143164/IB-Revision-guide---economics-pdf.html

Of course me posting this will mean I get to see you all tomorrow still, won't it...

Mr W

Thailand. land of the baht

Do you believe the Central bank governor or do you think she's bluffing? Might be worth talking about in a commentary

Thailand will not put ceiling on baht-c.bank

Evaluation

I never stop talking about it, I know.

Some ideas from a recent IB examiners course are in the PowerPoint presentation below. Please take note!

http://base.google.com/base/a/1543614/D16097099734123917191

Mr W

IB Revision Guide

I've uploaded a pdf file of the revision guide in the library so that you don't all have to fight over the same one.

HOWEVER!

I do so with the following warnings:

• It is not absolutely comprehensive
• It doesn't always explain ideas, just gives the outline of them
• It will not in itself answer essays - you need to do some work on brainstorming essay answers and logical idea flows (A > B > C)
• IT DOES NOT TEACH EVALUATION - this is where a lot of your marks are going to come from!

This may be a good resource for your revision, but it will not in itself be the answer to your revision.

That said, I hope it's useful

Mr W

http://base.google.com/base/a/1543614/D13150297098557151495

P.S. Please don't print it out at school. The idea of it being a pdf is that you don't need to. If you do, a 90-odd page pdf will block up the printer for about 30 minutes, which will lose you many friends.

Macroeconomics Notes

I've received from a friend of mine some macroeconomics notes which you may find useful for revision or if you want another way into the topics. You should be able to get them at:
http://base.google.com/base/a/1543614/D4917446654718508178
Mr W

More commentary ideas

Hi All,

I'm sure I've said it many times, but if you stlil need guidance on finding sources:

Google News search what you want to write your topic on (monopoly, merit goods, externalities etc) and this should give you some ideas of which topics to look at. Then search again for news articles whichare about that topic (oil prices, state monopolies etc). Alternatively, check out the news feed on the homepage of this blog (but remember that you can't use articles from it as it's not a news source)

For now, here are some ideas:

Crowding out - Prague's City-Wide Free Wireless Project Runs Into Telcom Opposition
Monopoly / oligopoly - Ofcom to investigate pay TV market
Barriers to development - Firms struggle in crumbling Nigeria
International competitiveness - New EU states 'poor competitors'

Initial Guidance for Extended Essay in Economics

I know a lot of you have been thinking about doing and EE in Economics, which is great news. I'm happy to supervise you so long as you have a good title and idea about what you are doing with it.

An extended essay is a daunting task in any subject area. It is good to think that an EE is written not to describe something but rather to solve a problem or to provide an answer to an interesting problem. At least, to attempt an answer. It is this search for an answer that makes the essay an interesting endeavor for you. Otherwise, the exercise is just dull and boring.
Here are some things to keep in mind as you consider doing your EE in economics:

• Select a topic related to your own reality: your town, your mom’s work
• Narrow your topic to a reasonable size: local, not national
  Use: How does DVD piracy affect competition between local shops?
  Not: What are the effects of DVD piracy on the Chinese economy?
• Make sure to have the necessary sources available
• You must use data you have collected yourself [primary data]
• Possess a firm command of the relevant economic theory
• Pose your question in the form of a hypothesis, not a description
  Use: Does the introduction of technology into the leather industry in Dharavi worsen unemployment and economic conditions in the surrounding slum areas?
  Not: What is the impact of technology on the leather industry in Dharavi, India?

Some recent Micro examples from the IB forum [specific and generic]:

• The effects of the new Bolivia economic policies [liberalization] on the shoe-shining boys’ market in La Paz city.
• How did my uncle’s company survive? [His uncle produced kimonos at very high costs. Yet, it was very successful]
• Efficiency analysis: Centralized Breakfast or Breakfast in each residence? [In his boarding school]
• The Hamburger Market in my Town: A Case of Perfect Competition? [Street sellers of hamburgers in Malaysia]
• Changes in Standards of Living under China’s Transition. Survey using three representative households [Family friends]
• Life in a Sudanese refugee camp. Why is it that refugee household sizes are inversely proportional to household income? [A boy goes back to his refugee camp and collects primary data for his EE]
• The shop in my village. Can it remain a monopoly even when entry is not restricted? [This is a shop in a tiny village in Eritrea and the EE tests the theory of contestable markets]
• What market structure does X operate in?
• Does X achieve allocative and productive efficiency?
• Will the privatization of X lead to increases in allocative and productive efficiency?
• Is the behavior of X consistent with the theory of oligopoly?
• Do the social costs of X outweigh the social benefits?

Some recent Macro/Development examples from the IB forum:

• Does the official Austrian inflation rate truly correspond to the inflation that students in Austria are experiencing? [It is a macro topic, but very nicely brought down to earth by relating it to the cost of living of the students themselves.]
• The liberalization of textile exports and the demise of the MFA (Multifiber Agreement) in India. How have small textile producers in India been affected by this: say, my uncle’s factory or the factory in which my mom works, or the factory round the corner. I suspect that small firms in India will be adversely affected because it would be mainly the large firms that will achieve vast economies of scale, reduce cost, increase exports, lower their prices and drive the small factories out of business.
  

In order for me to evaluate your idea, I will need the following information:

The research question you intend to pursue: Example: How effective is government intervention on the sale of cigarettes?

How you intend to collect your data: Example: Use sales data from three tobacco shops before and after the implementation of a new tax on cigarettes

The items of economic theory you intend to use: Example: Price Elasticity, Demand And Supply, Cost/Benefit Analysis, Income Effect

The hypothesis you intend to test: Government intervention has not reduced the sale of cigarettes.

Hope that helps. I'm sure EE is going to be a lot of fun

Mr W

Portfolio advice from the IB

This is taken from the last page of the Internal Assessment booklet. I know that if you're not careful some of you will never get that far, so I thought I'd bring it to your attention here...


Advice for Students

The following may be valuable advice when preparing work for the commentaries.

• The portfolio is worth 20% of your final mark at higher level and 25% at standard level. A good
portfolio can improve your overall grade.
• Find a suitable current article. Short articles, concerned with real economic matters, are
recommended.
• Read the article carefully and highlight or underline relevant parts.
• Define relevant terms but note that there is no need to repeat terms you have already defined in
earlier commentaries.
• Apply relevant theory—link theory to your particular extract.
• Do not simply paraphrase or summarize the article (this is a common fault).
• The use of diagrams is highly recommended. Whenever possible, use a diagram to illustrate
theory. Make sure you fully label all diagrams from the text. (If you are drawing a supply and
demand diagram for the oil market, do not simply put Price [or even P] on the y axis—give the
full information—price of oil $ per barrel). If there are figures in the extract, include them in the
commentary. If you are using diagrams from the Internet, adapt them to apply to your
commentary.
• Highlight any fallacies in arguments and try to reach a balanced conclusion.
• Try to use a common style of presentation for each of your commentaries—a common font,
size of print, style of heading. Although it is not a requirement, you are strongly recommended
to type your work.
• Use the IB Diploma Programme economics internal assessment criteria to guide your work.
• Remember that across your complete portfolio you must refer to at least three sections of the
syllabus.

Note that any interim assessment is not your final assessment. The final mark is based on your
whole portfolio. The mark is confidential. It is subject to moderation (outside examination) by the
IBO, and your teacher is not permitted to give you this information.

Zambia!

For the benefit of the Year 6s who know how much I love Zambia!, a link to a relevent story about their debt problem from today's news:

Zambia loses 'vulture fund' case

Emailing Work

PLEASE, PLEASE, PLEASE! If you are emailing work to me, try to remember that I will have 20 or 30 pieces all titled "Eco homework." It doesn't make it easy to look for a piece of work on my computer. Label it with your name and title of the work. Hopefully you will remember to do the same for when you leave school - it's not helpful when applying for a job to email files called "cv.doc"...

Extended Essay Exemplars

Follow the link below and you should find some example Economics Extended Essays and Marks. There is a range of essays, from ones scoring 3/24 to 21/24. Learn from them!

http://base.google.com/base/a/1543614/D1581990987395767806

I've also changed the post about the extended essays below - I think I had the wrong link to the file.

Mr W

Motivation Theories

Have a look at the links below to find out more about the motivation theories of Herzberg and F.W. Taylor

Herzberg

http://www.businessballs.com/herzberg.htm
http://en.wikipedia.org/wiki/Frederick_Herzberg
http://www.tutor2u.net/business/people/motivation_theory_herzberg.asp
http://www.netmba.com/mgmt/ob/motivation/herzberg/

F.W. Taylor

Some of Taylor's essays
http://www.tutor2u.net/business/people/motivation_theory_taylor.asp
http://www.netmba.com/mgmt/scientific/
http://en.wikipedia.org/wiki/Frederick_Winslow_Taylor

Expect a question linking these two together with Maslow and Douglas McGregor

Mr W

Extended Essay

Follow the link to the IB Extended Essay guide. Read with great care about your choice of essay topic - it's not about the history of an idea or copying and pasting a text book!

http://base.google.com/base/a/1543614/D7395746831197244320

Mr W

Year 5 Test - Section 2

I'm sure you remember the test well. Mark scheme is below. Make sure you read the introduction part which tells you how it is being marked (essentially graded by levels of your knowledge and evaluation).

Short-answer questions
The assessment criteria apply to all questions. Each question is worth [10 marks].

Level
0 Inappropriate answer. 0
1 Limited knowledge but some basic points made. There may be significant errors and/or omission of important points. 1–3
2 Evidence of familiarity with basic economic principles. Some ability to apply relevant theory and/or to analyse using relevant theory. 4–6
3 Evidence of familiarity with basic economic principles. Clear ability to apply relevant theory or to analyse using relevant theory. 7–8
4 Evidence of familiarity with basic economic principles. Clear ability to apply relevant theory and to analyse using relevant theory. 9–10


1. Explain why Veblen goods are an exception to the law of demand.
• definition of the law of demand with reference to a time period and including the ceteris paribus clause
• definition of Veblen goods with example(s)
• diagram or explanation indicating an upward-sloping demand curve and/or a direct relationship between price and quantity demanded.
Some responses may also refer to the concept of elasticity of demand.

Examiners should be aware that candidates may take a different approach, which if appropriate should be fully rewarded. [10 marks]

2. To what extent can a firm in monopolistic competition earn supernormal (abnormal) profits?
• definition of monopolistic competition.
• definition of supernormal (abnormal) profits
• diagram showing a firm in monopolistic competition earning supernormal (abnormal) profits in the short run
• supernormal (abnormal) profits are eroded away in the long run because of a lack of barriers to entry
• diagram with an explanation showing the long run equilibrium of a firm in monopolistic competition

Examiners should be aware that candidates may take a different approach, which if appropriate should be fully rewarded. [10 marks]

3. Compare the impact of an indirect tax on the market for cigarettes with the impact of an indirect tax on the market for holidays.
• definition of indirect tax
• diagram and/or explanation to indicate that demand for cigarettes is generally acknowledged to be inelastic, so that the incidence of an indirect tax falls largely on consumers; prices will rise and demand will fall less than proportionately
• diagram and/or explanation to explain that demand for holidays is generally acknowledged to be elastic, so that the incidence of an indirect tax falls largely on producers; prices will rise and demand will fall more than proportionately
• explanations can imply either ad valorem or percentage taxes

Examiners should be aware that candidates may take a different approach, which if appropriate should be fully rewarded. [10 marks]

Portfolio Ideas

Hi All,

this will only be of great importance to the year 5s, but I'm going to put up a list of commentary ideas. I'll keep adding to the list over time.

Make sure:

• Articles are recent - i.e. no earlier than the 6 months before the start of your IB
• Articles come from different sources
• You cover enough sections of the syllabus

If you've already used a particular source, try doing a Google News / Google search and you might well find a very similar article from somewhere else.

Czech jobless rate by ILO methods down at 6.6 percent in Q4 2006

Section: 3, Source: Prague Daily Monitor, Date: Feb 07 2007

IMF lifts world growth estimates

Section: 3/4, Source: BBC News, Date: Sep 14 2006

US loses top competitiveness spot

Section: 3/4, Source: BBC News, Date: Sep 26 2006

A Seller's Market

Section: 2, Source: Eurasianet / Transitions Online, Date: Sep 8 2006

China's trade surplus hits record

Section: 4, Source: BBC News Online, Date: Oct 12 2006

French work hours push up baguette price

Section: 2, Source: Reuters, Date: Nov 15 2006

Zimbabwe heads for economic meltdown

Section: 5, Source: The Guardian, Date: Feb 8 2007

More to be added soon!

French Trade Minister blames euro, oil prices for record deficit

Czech Republic: Inflation significantly lower

EU Fines Otis, Four Other Elevator Makers for Cartel

Price squeeze 'hitting farmers'

IB Resources

I'm not sure if this will work, but there should be uploaded IB files (Economics guide and internal assessment guide) at:
http://www.google.com/base/a/1543614/D13995245545295215153

Mr W

Welcome to the Economics Blog

Welcome to Economics On Toast. I know I should have written this as the first post, but, I was so excited about the test (as I know the year 5s are) that I couldn't wait to get writing about it.

Hopefully I'll be able to post what sections we are covering at the moment and some useful links to sites which might help your studies. Any suggestions greatly received.

Happy economixing.

Mr W

Year 5 Test

It's just what you always wanted - a test on section 2.
You should be answering the question:

1. (a) Explain how a monopolist may be able to earn supernormal (abnormal) profits in the long run.
[10 marks]

(b) “Production by a monopolist will always be against the interests of consumers.” Discuss.
[15 marks]

The mark scheme is below for those of you who read this - the first part is the general description of grade boundaries for all the exams of this type. The second part is a guide for answering this particular question:

Part (a) [10 marks]

Level

0 Inappropriate answer. 0 Points
1 Limited knowledge but some basic points made. There may be significant errors and/or omission of important points. 1–4 Points
2 Evidence of familiarity with basic economic principles. Some ability to apply relevant theory and/or to analyse using relevant theory. 5–6 Points
3 Evidence of familiarity with basic economic principles. Clear ability to apply relevant theory or to analyse using relevant theory. 7–8 Points
4 Evidence of familiarity with basic economic principles. Clear ability to apply relevant theory and to analyse using relevant theory. 9–10 Points

Part (b) [15 marks]

Level

0 Inappropriate answer. 0 Points
1 Limited knowledge but some basic points made. There may be significant errors and/or omission of important points. 1–3 Points
2 Evidence of familiarity with basic economic principles. Some ability to apply relevant theory and/or to analyse using relevant theory. 4–7 Points
3 Evidence of familiarity with basic economic principles. Clear ability to apply relevant theory and/or to analyse using relevant theory. 8–12 Points
4 Evidence of familiarity with basic economic principles. Clear ability to apply relevant theory and to analyse using relevant theory. Evidence of ability to evaluate. 13–15 Points

1. (a) Explain how a monopolist may be able to earn supernormal (abnormal) profits in the long run.

• definition of monopoly
• definition of supernormal (abnormal) profits
• diagram to show supernormal (abnormal) profits
• supernormal (abnormal) profits would normally be competed away in a more competitive industry
• discussion of barriers to entry
• awareness of contestable markets
[10 marks]

(b) “Production by a monopolist will always be against the interests of consumers.” Discuss.

On the negative side, a monopolist may:
• charge a higher price for a lower level of output
• be productively and allocatively inefficient
• not produce at the socially optimal level of output
• have excessive political influence
• act as monopsonist.

A lack of competition may:
• result in complacency
• result in lack of innovation
• result in high unit costs.

On the positive side, a monopolist may:
• have lower unit costs because of economies of scale
• as a natural monopolist, exist in the public interest
• price discriminate to the benefit of some consumers
• invest in research and development (eg pharmaceuticals) leading to important innovations
• use predatory pricing, which will temporarily benefit the consumer.
[15 marks]