Economics On Toast

Wednesday, 23 January 2008

I want a good grade at IB!

...then have a look at the following macroeconomic commentaries.

http://www.economist.com/blogs/freeexchange/2008/01/enough_with_the_stimulation_al.cfm
http://www.economist.com/blogs/freeexchange/2008/01/helicopter_ben_to_the_rescue.cfm

You don't need to worry too much about the stock market implications for IB, but ask yourself

What shape you think the writers would draw the AD/AS curve?
What do they think about the Phillips curve?
What is NAIRU?
Can fiscal policy get an economy out of an economic slump? What are the risks in using fiscal policy?

Tuesday, 22 January 2008

Scroobius Pip

http://www.youtube.com/watch?v=yoN6XfyQsr4

Monday, 21 January 2008

Notes from the first class:

Angels - There was some good work going on. The group did seemed divided at times, though. Started to lose a sense of purpose towards the end of the lesson.

Fertilisers - Slow to start and very disorganised. No real minutes to show from the first meeting.

Janxy - Diligent work and good co-operation.

EOT - Purposeful in approaching the task. Good chair and secretary.

You may also want to look at the films (some of which are in the library) Thank you for Smoking, The Corporation, The Insider, A Civil Action, The Rainmaker. Hurry, though, as other groups will be after the same films! You may also want to download the following podcasts:
http://www.management-issues.com/2007%2F10%2F17%2Fpodcast%2Fthe-working-week-25.asp
http://www.business-ethics.com/goodcompany
http://www.podcastdirectory.com/podshows/238573
http://ethicalstl.org/libraryaudio.shtml
http://communityradio.coop/Podcasts/default.asp#ethicsmatters
http://podcastalley.com/podcast_details.php?pod_id=32497

Year 4 Problem Based Learning

Now that you are in your groups, I will assign you your problem. The basic problem can be found at:

http://www.bized.co.uk/current/pbl/2006_07/050307.htm and http://www.bized.co.uk/current/pbl/2006_07/050307problem.htm

2 groups will be undertaking this. The other 2 groups will look at a similar problem, given below:

Learning Objectives

At the end of this PBL activity, students might have covered some of the following areas:
The meaning of 'ethical responsibility' in business
The meaning of the term 'stakeholders'
An understanding and appreciation of the responsibilities and conflicts that businesses have to their stakeholders
The wider effects of legislation and cases brought by those who are affected by a businesses activity
The nature and meaning of the term 'cost-benefit analysis'
The extent to which a business should be responsible for the damage they inflict on consumers
The difference between legal responsibility and stakeholder theory

(some of these are the same, some different)

Ford Pinto

The Ford Pinto was a subcompact car manufactured by the Ford Motor Company for the North American market, first introduced on September 11, 1970, and built through the 1980 model year. It had a similar car sold under the Lincoln-Mercury brand, in the Pinto's case, the Mercury Bobcat first appeared in Canada for 1974, and subsequently in the U.S. the following year.

Through early production of the model, it became a focus of a major scandal when it was alleged that the car's design allowed its fuel tank to be easily damaged in the event of a rear-end collision which sometimes resulted in deadly fires and explosions. Critics argued that the vehicle's lack of a true rear bumper as well as any reinforcing structure between the rear panel and the tank, meant that in certain collisions, the tank would be thrust forward into the differential, which had a number of protruding bolts that could puncture the tank. This, and the fact that the doors could potentially jam during an accident (due to poor reinforcing) made the car a potential deathtrap.

Ford was aware of this design flaw but allegedly refused to pay what was characterized as the minimal expense of a redesign. Instead, it was argued, Ford decided it would be cheaper to pay off possible lawsuits for resulting deaths. Mother Jones magazine obtained the cost-benefit analysis that it said Ford had used to compare the cost of an $11 repair against the cost of paying off potential law suits, in what became known as the Ford Pinto Memo. The characterization of Ford's design decision as gross disregard for human lives in favor of profits led to major lawsuits, criminal charges, and a costly recall of all affected Pintos. While Ford was acquitted of criminal charges, it lost several million dollars and gained a reputation for manufacturing "the barbecue that seats four."