H2: Real useful YouTube videos on market structure diagrams!

Richard McKenzie (author of Microeconomics for MBAs) made several YouTube videos on market structures, especially explaining the important diagrams in your lecture notes. If you’re unsure of any diagram, do watch the appropriate YouTube video below. During term time, it’s best to watch the specific video you need as all the videos together take about 1 hour. Make sure you draw along with the video to practise.

Perfect competition Part 1 [9:33]
http://www.youtube.com/watch?v=YLK3emHpkdk

Perfect competition Part 2 [5:21]
http://www.youtube.com/watch?v=LlLbPNZDkDQ

Monopoly Part 1 [6:38]

http://www.youtube.com/watch?v=lBsyxvJrCO4

Monopoly Part 2 [4:52]
http://www.youtube.com/watch?v=gyQlOBKSSh8

Monopoly Part 3 (Comparing monopoly and perfect competition) [7:38]
http://www.youtube.com/watch?v=fqN3Ok6PhfM

1st degree price discrimination [7:34]
http://www.youtube.com/watch?v=9T9TN3OuTjc

3rd degree price discrimination [7:57]

http://www.youtube.com/watch?v=Q7cKAmkhgto

Monopolistic competition [4:36]
http://www.youtube.com/watch?v=Xlpo4F6MdbM

To add to the fun, I've also made my own Scratch animation on how a monopolist maximises profit (MR=MC):

http://scratch.mit.edu/projects/MrHueAtAJC/241703
[Click green flag to restart!]


Enjoy!

H1: National income accounting websites

Economic Survey of Singapore 2007
http://app.mti.gov.sg/data/article/12381/doc/ESS_2007Ann_Full_Report.pdf

Human Development Index
http://hdr.undp.org/en/statistics/

Big Mac Index
http://www.economist.com/finance/displaystory.cfm?story_id=11793125

Happy exploring!

H1: Roman Empire's GDP?

Angus Maddison is like the Sherlock Holmes for compiling world economies statistics on long time horizons, since the year 1AD. He explains how you can work out the GDP of the Roman Empire (going back to the average of gold & wheat units) as well as GDP of China (technologically more advanced in 1000AD, but fell behind after Europe's scientific revolution in the 1500s).
Listen to his interview with BBC here:
http://news.bbc.co.uk/today/hi/today/newsid_7516000/7516994.stm

H2: Oligopoly: Indonesia to leave OPEC

In H2, towards the end of term 3 we'll begin our study of oligopoly - a market structure characterised by a few large firms (with a high concentration ratio), high barriers to entry, and a large degree of mutual interdependence.
One type of oligopoly is the cartel - for example, the OPEC cartel for petroleum. This video from BBC explains why Indonesia is leaving the OPEC cartel:
http://news.bbc.co.uk/1/hi/business/7424903.stm

H2: Economies of scale & the 6,014-seat world's largest restaurant!

See a video from BBC on the scale & decor of this restaurant in Syria!

http://news.bbc.co.uk/1/hi/world/middle_east/7435424.stm

A large firm like this restaurant tends to enjoy internal economies of scale (i.e. the lowering of long run average costs as output increases). Its kitchen is like a production line where one chef can prepare 25-30 helpings of popular dishes in one minute - that's one bowl every two seconds!

What other internal economies of scale might this restaurant enjoy? What about internal diseconomies of scale? Find out answers to these questions as we soon study Production & Costs!

Elasticity Song (link)

Our H1 students in JC1 have just completed the elasticity topic, while our H2 students are just starting elasticity. So do check out the elasticity song to recap some elasticity determinants!
http://jceconomist.blogspot.com/2007/05/elasticity-song.html

H1: Gross National Happiness in Bhutan (video)

You've heard of GDP, GNP, maybe HDI. Now see the BBC video on how the remote Himalayan kingdom of Bhutan considers GNH - Gross National Happiness
http://news.bbc.co.uk/player/nol/newsid_4810000/newsid_4813200/4813298.stm?bw=bb&mp=wm&news=1&nol_storyid=4813298&bbcws=1

And also watch how they cope with market failure:
1. Ban on tobacco
2. Removal of Coke & Pepsi advertisements
3. Ban on some TV channels (World Wrestling Federation, MTV)
--> Students glued to TV, less inclined to do homework!

'Happiness is the ultimate desire of every individual.'
- Home & Cultural Affairs Minister, Bhutan
-

Opportunity NYC programme

Later in the term we'll learn about Market Failure, in particular where external benefits exist or where information is imperfect. We'll learn about merit goods - goods deemed to be socially desirable by the government, largely because they yield positive externalities, or benefits to third parties. Merit goods include healthcare and education.

Related to merit goods is a privately funded scheme in New York City (NYC) called the Opportunity NYC programme. This programme rewards parents and children with cash for doing such things as getting proper health check ups (healthcare) and passing school exams (education). It seems a good way to spur longer-term thinking that benefits both the individual and society, i.e. it encourages parents and children to consume merit goods.

Does it work? Blacks, who make up nearly 15% of NYC's student body, earn fewer than 4% of the top marks in advanced-placement exams (for university-bound students). But a similar scheme in Dallas, Texas has managed to increase the number getting top scores by 30%.

For more details on the Opportunity NYC programme, read the Economist article:

'When bribery pays'
http://www.economist.com/finance/displaystory.cfm?story_id=10854937

Consumer surplus and cinema popcorn

What has cinema popcorn got to do with consumer surplus? Read this interesting article on how cinema operators try to capture your consumer surplus by selling you expensive popcorn:
http://www.tutor2u.net/blog/index.php/economics/comments/popcorn-and-price-discrimination/

This is linked to the topic of Price Discrimination which we'll learn later in the year when we study the monopoly.

Economics of dating and love

Since it's post-Valentine's season, here are some interesting (but out of syllabus) articles on the Economics of dating and love:

1. Economics of dating
http://timharford.com/2007/11/business-life-the-economics-of-dating/

2. Love Economics
http://www.solvedating.com/love-economics.html

Welcome to a new year with the JC Economist!

Hi budding JC economists,
If you're new to this blog, welcome! Do click on the hyperlinks below to read articles on topics you have recently studied!

JC1s
Scarcity - can there be abundance instead? Read to find out!
Demand & supply - what has demand got to do with Valentine's Day? With comics? Click to discover!

JC2s
Standard of living - are there alternative measures apart from GDP?

Happy reading & discovering!

Mr Hue