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
-
Friday, March 28, 2008
Friday, March 14, 2008
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
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
Tuesday, February 26, 2008
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.
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.
Monday, February 18, 2008
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
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
Friday, January 18, 2008
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
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
Wednesday, August 1, 2007
Externalities WebQuest
Hi ACJC 1ECX05 and 1ECX09 students,
The purpose of the WebQuest is for you to:
1. Identify examples of positive and negative externalities (eg: health care, education, road pricing).
2. Identify that externality is one source of market failure.
3. Illustrate how externalities lead to inefficiencies in resource allocation in the form of over or under production/consumption.
4. Apply these concepts to assess current Singapore government policies on production and consumption of various goods and services.
Please read your the other 5 group projects from your class. Consider these questions:
1. Has the group managed to meet the above objectives in their report?
2. Do you agree with their report? What are the unclear areas in their report?
3. What are some other points that you can add to their report?
Make at least 2 individual comments in response to the other groups' reports on their selected government policies. Remember to include your name in your comments, otherwise I won't know that you posted!
The deadline is Tuesday, 7 August 2007.
Click on the respective link to the reports by your class:
- 1ECX05 (1SC5)
- 1ECX09 (1SC4/6)
Cheers!
Mr Mervyn Sek
ACJC Economics Department
The purpose of the WebQuest is for you to:
1. Identify examples of positive and negative externalities (eg: health care, education, road pricing).
2. Identify that externality is one source of market failure.
3. Illustrate how externalities lead to inefficiencies in resource allocation in the form of over or under production/consumption.
4. Apply these concepts to assess current Singapore government policies on production and consumption of various goods and services.
Please read your the other 5 group projects from your class. Consider these questions:
1. Has the group managed to meet the above objectives in their report?
2. Do you agree with their report? What are the unclear areas in their report?
3. What are some other points that you can add to their report?
Make at least 2 individual comments in response to the other groups' reports on their selected government policies. Remember to include your name in your comments, otherwise I won't know that you posted!
The deadline is Tuesday, 7 August 2007.
Click on the respective link to the reports by your class:
- 1ECX05 (1SC5)
- 1ECX09 (1SC4/6)
Cheers!
Mr Mervyn Sek
ACJC Economics Department
The Economics of Fashion
A Special Report by Michelle Law
Fashion goods are luxury goods which are generally consumed by people with a certain level of income. It has a low degree of necessity therefore they have relatively high price elastic demand which indicates the responsiveness of the consumers. Furthermore, they are heavily dependant on individual’s taste and preferences as fashion is very subjective as not all designs and cuts would suit a person’s likes or preferences and needs. Also, they are many different types of fashion which cater to different needs such as Haute Couture, Ready to Wear and mass produced lines.
The demand for fashion depends heavily on income and the needs of its consumers. When income increases, consumers have more purchasing power and might chose to upgrade the standard of the good they are currently consuming, for example buying a branded ready-to-wear instead of a piece from a mass produced line. This would cause a change in demand for each type of fashion, a fall in mass produced lines but an increase in ready-to-wear.
Moreover, fashion is generally implied to be related with clothing but unlike clothing, consumers pay for the design and the workmanship involved in producing the good. Thus, clothing would be considered as an inferior good because more people would chose not to buy it when their income increases. In contrast to fashion, clothing would be a necessity as it protects the body from harsh weather and safety reasons.
Alternatively, in fashion, there is limited supply such as in haute couture where such fashion houses produce a limited amount of designs which are handmade as it made to order for a specific customer, and it is usually made from high-quality, expensive fabric and sewn with extreme attention to detail and finish, often using time-consuming, hand-executed techniques. This creates a brand identity and exclusiveness for its customers and maintains the demand for the luxury good which in effect indirectly discriminates consumers as more purchasing power the individual has, the more choices and ability to purchase the good he/she wants.
Current trends and fads in fashion play an extremely important role in the demand of the good as it can influence consumer’s choice. The media coverage today is an extremely influential tool, especially the existence of fashion magazines and editorial critiques on the internet as well as published works. It can sway and steer the course of fashion trends in the world today by advertising certain brands or designs which would affect consumer’s decisions or at the very least form some impact on its audience. Even celebrities who are gaining increasing attention from the public can persuade to consumers and start a new fashion trend thus affecting the demand of the goods.
Fashion goods are luxury goods which are generally consumed by people with a certain level of income. It has a low degree of necessity therefore they have relatively high price elastic demand which indicates the responsiveness of the consumers. Furthermore, they are heavily dependant on individual’s taste and preferences as fashion is very subjective as not all designs and cuts would suit a person’s likes or preferences and needs. Also, they are many different types of fashion which cater to different needs such as Haute Couture, Ready to Wear and mass produced lines.
The demand for fashion depends heavily on income and the needs of its consumers. When income increases, consumers have more purchasing power and might chose to upgrade the standard of the good they are currently consuming, for example buying a branded ready-to-wear instead of a piece from a mass produced line. This would cause a change in demand for each type of fashion, a fall in mass produced lines but an increase in ready-to-wear.
Moreover, fashion is generally implied to be related with clothing but unlike clothing, consumers pay for the design and the workmanship involved in producing the good. Thus, clothing would be considered as an inferior good because more people would chose not to buy it when their income increases. In contrast to fashion, clothing would be a necessity as it protects the body from harsh weather and safety reasons.
Alternatively, in fashion, there is limited supply such as in haute couture where such fashion houses produce a limited amount of designs which are handmade as it made to order for a specific customer, and it is usually made from high-quality, expensive fabric and sewn with extreme attention to detail and finish, often using time-consuming, hand-executed techniques. This creates a brand identity and exclusiveness for its customers and maintains the demand for the luxury good which in effect indirectly discriminates consumers as more purchasing power the individual has, the more choices and ability to purchase the good he/she wants.
Current trends and fads in fashion play an extremely important role in the demand of the good as it can influence consumer’s choice. The media coverage today is an extremely influential tool, especially the existence of fashion magazines and editorial critiques on the internet as well as published works. It can sway and steer the course of fashion trends in the world today by advertising certain brands or designs which would affect consumer’s decisions or at the very least form some impact on its audience. Even celebrities who are gaining increasing attention from the public can persuade to consumers and start a new fashion trend thus affecting the demand of the goods.
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