Efficiency of a policy:
What they are able/can do to streamline...
E.g. does it improve allocative, productive and dynamic efficiency
Effectiveness of a policy:
Which government policy is most likely to meet a specific economic or social objective?
Which policies are likely to have an impact in the short term when a quick response from consumers and producers is desired, and which policies are likely to prove most cost-effective in the longer term?
Equity effects of intervention:
Sustainability of a policy:
The Norwegian economy and the Norwegian economic policy is good today, because the country has a good fiscal-(oil and taxes) and monetary policy course.
Anyway the government has been smart in their use of the oil money, by saving it for the future, and for any problems that might come up, demand of oil is decreasing etc.
We have managed to keep growth rates low, and with an economic growth and low unemployment, we have helt the Norwegian economy stable for many years.
The only thing the Norwegian government should do something with is the extent of “sick leave”(?) and disability benefits; let older people stay in work etc.
When you are the third part, you're just effected by the world around you, and not involved in the decision.
Ex: Teacher learns a student to be very good in philosophy, that gets other people the student associate with, to think in a more philosophic way. Ergo: you are affected by what the student learnt from the teacher.
Costs and benefits
Private- costs and benefits: Individuals directly involved in the decision to take a particular action, eighter as producers or consumers. The cost is incurred by when the individuals are taking a action. The benefits coming to the individuals who takes a particular action. Ex: A good/service payd by an individual.
External- costs and benefits: consequences that falls on the third part. Th
e costs are the consequences that happen to the third part. The benefits are the externalities to the third part. Ex: Noise problems.
Social- cost and benefits: The total costs and benefits of a particular action.
Negative externalities
Definition: This exist where the social cost of an activity is reater than the private cost.
Examples:
Illegal dumping of waste: The private cost to dumping is minimal. The external cost has to be covered by those such as local councils, responsible for maintaining the environment.
Drinking: The private cost is the cost of what you drink and how sick you get. The external cost is the police who have to stand guard for you, and the the companyes which is cleaning the streets.
The problem with positive externalities is that there is under-production of Q and Q1, with too few scarce resources are being used. Therefore the market has hailed. 
Positive externalities
Definition: This exist where the social benefit of an activity exceeds the private benefit.
Examples:
Education and training: The private benefits is that you get improved skills, and get a better payd and more intressting job. The external benefits are that you get better qualified emplyees for firms, and in a long term, cmpetitiveness for the economy for the country.
Crossrail: The private benefit is that everything is going to go faster. The external benefit is that the project will reduce road traffic, reducing overcrowding.
The problem with negative externalities is that there is overproduction of Q and Q1, and the price paid is lower than it should be. Therefore, the market has failed because of allocative inefficiency. 
Every time Chris say “Elasticity” your answer should be “Responsiveness”
The definition you read in your book says that elasticity is the extent to which buyers and sellers respond to a change in market conditions.
When the price is elastic, the percent change in the demand is sensitive to a change in price, when this allows to that the consumers choose a alternative(substitute) product.
Inelasticity:
The price is inelastic when the percentage change in the quantity demanded is insensitive to a change in price.
Example: Oil
The formulas:
Price elasticity of demand(PED) is the responsiveness of the demand to a change in the price of the product.
%change quantity demanded / %change in price
If PED = 0 then demand is perfectly inelastic.
If PED is between 0 and 1, then demand is inelastic.
If PED = 1, then demand is unit elastic
If PED > 1, then demand is elastic
Price elasticity of supply(PES) is the responsiveness of the quantity supplied to change in the price of the product:
%change quantity supplied / %change in price
When PES is > 1, then supply is price elastic
When -1 PES is <1,>
When PES = 0, supply is perfectly inelastic
When PES = infinity, supply is perfectly elastic following a change in demand
Cross elasticity of demand(XED) is the responsiveness of demand for one product in relation to change in the price of another product:
%change in quantity demanded of a product A / %change in price of a product B
When XED is >0, gives substitutes goods
When XED is <0,>
Income elasticity of demand(YED) is the responsiveness of demand to change in income:
%change in quantity demanded / %change in income
Normal goods: >0, positive
Inferior good: <0,>
Sources:
OCR Economics AS
http://www.tutor2u.net/economics/revision-notes/index.html
The prices of goods and services are influenced by how much the producers are willing and able to produce, and how much the costumers are willing and able to pay.
Definition of demand: the quantity of a product that consumers are able and willing to purchase at various prices over a period time.
The law of demand says that the price will decrease/increase along with demand.
The national demand, costumers wants which refers to the taste, preferences, etc, and effective demand, the ability they have to pay, make the curve of demand.
Demand curve is based on data, calld demand schedule. These data the companyes gathering over time, for exby checking how much of a product they sold to a particular price, asking the costumers what they think about the price, if they could pay more or less, and why, etc.
The price of a product falls we will buy more, which results in an increase in the quantity demand. On the other hand, if the price of a product goes up, quantity of demand dalls, and the only cause is the change in the price of the product. These changes are referred to as movement along the demand curve, which means that a change in a non-price factor leads to an increase factor leads to an increase or decrease in demand for a product.
Consumers supply is how much more extra the costumers are willing to pay over the market price of a product. Higher price → less consumers.
The change in te curve I sbecause of consumers income, the prices of other products and tastes and fashion.
Definition of supply: the quantity of a product that producers are willing and able to provide at different market prices over a period of time.
The law of supply tells us that for a higher quantity the producer will produce more, because they are willing to afford more to a higher price-> revenue increases.
Supply in the market is decided by the producers: to satisfy the consumers, and to make profit.
The therm can be defined as the quantity of a product a producer is willing and able to produce at different market prices.
The factors of production(land, labor, capital, entrepreneurship) has to be used thoughtfully. These, so the company get maximum profit.
For example: a firm produce mobile phones, and they need: emplying skilled labour, producting at a suitable location, the business skills and contact to survive, and the assembly of components and parts.
The supply curve, is the realationship between price and the quantity of a product that is supplied.
An example for how the curve is, “When the price of a product/service increases, the quantity supplied increases.” These is caused by that when the company got more money from the production, they are able to produce more.
Supply schedule, data set which show how much of a product is supplied over a range of prices.
Past records may help the firms, but in the end it's up to you, as a consumer.
Producer surplus is the willingness a firm have to produce for selling products/services under the market price.
The curve changes because of the size and nature of an industry, and government policies and changes in the cost of the production etc.
Price is important for suppliers and costumers. “The price of any product is determined by demand and supply” this is called equilibrium.
Substitutes(competing goods) and compliments(joint demand)
The demand of a substitude goods depends on the price. If a good, A, costs more than another good, good B, of this type, the costumers will choose to buy the cheapest one, B. Which means that B will experience a increase in demand.
The demand of compliment goods, depends on the price of them both, because they belong toether. Ex: Bread and butter, steal and train etc.
So if the price for, for example, steal goes up and the demand will decrease, there will be more expensive to build trains.
Economics problems is how to allocate scarce resources among alternative uses.
Take a choice about what you are going to spend money on.
For ex: Decisions firms have to take about what they should produce and how they could do this in the most efficient way, in contrast to their budget.
Different factors of production, which is the resource inputs that are available in an economy for the production of goods and services, as economic resources: land, labour, factor, entrepreneurship.
Land: Natural resources available, from the earth, and fossil fuels, like oil and cool.
Labour: Human resources available in any economy. Quantity and quality are key considerations.
Capital: Physical resource covering anything that can be regarded as a man-made aid of production. A combination by land and labour to produce things and services, everything you can built.
Entrepreneurship: the willingness of an entrepreneur to take risks and organise production. Entrepreneurs(individuals who have an idea, developing by setting up a new business and encourage it to grow), starting up entreprices(a business, the process by which new businesses are formed)
Specialisation used to address the problem of scarcity is done by individuals workers, regions, firms, or economies. They are only concentrated on doing especially tasks, producing some goods or services.
Exchange(:the process by which goods and services are traded) of goods or services, where you give something and get something of an equivalent value back, like in the olden days...
Market in allocating scarce resources = a market with insufficient resources to meet all want..
Opportunity cost, the cost of the next best alternative, which is forgone when a choice is made.
Ex: Dragon's Den is a television program, where The Dragons (investors) chose if they want to invest in the idea the participants are coming up with. If they investing in it, they lose the opportunity to invest in something else, and if their not investing the participants will maybe get another investor and might succeed on the market. Then the first investor who said no to invest, lost that opportunity to earn money and be fame.
Production possibility curves: this shows the maximum quantities of different combinations of output(=the finished products resulting for the transformation process) of two products, given current resources and the state of tecnology.
Ex:
Opportunity cost:
Take a look at the diagram in the picture above. If you choose to work more with maths, than economics, you use more time on maths, and less on economics → better grades in maths than economics. Visa Versa.
Benefits:
The pollution per unit carried will decrease, since the larger ships are able to transport a larger quantity of cargo per transport. Consumer prices will be decreased; transport costs will be lowered by the usage of larger ships. Recording to the case study a larger ship is only in the need of 13 crewmembers per ship, therefore labour costs will be decrease, also fuel costs will be decreased due to the low number of ships needed.
Costs:
Huge transport ships cost allot to make, this isn’t really a big issue since the price of building allot of small ships will most certainly match the price of the larger ships. The big issue on the other hand is if the cargo companies want to save money on the large ships they need to fill the full capacity of the ships must be filled by every transport.
Krugman says “Gordon Brown was selling the economic successes of Britain in the past 15 years on false pretences,”
He's saying that Britain needs to go back to manufactured goods.
Then he offers some ideas of how this could happen, and suggests the British government follows in the footsteps of Silicon Valley.
Krugman then talks about new innovation hotspots(with new idea, which can give the owner(the company) much money) and the importants that the government must catch them early and correctly incubate them so they don't fizzle.
The difference from the Norwegian to the UK school system is huge. Being here in the UK for a month, I all ready think that everything is better here, (maybe because I'm starving for education(?)) with great teachers and school system.
Norwegians are confident that you have to fend yourselves, as an individual. You have to prove that you are growing up now, when you are a teenager and can, by yourselves, work with the school without the help and almost no ones to following you up. The school are expecting results from you, and feel they can relax because they already have done their exams. So now it's your turn, and you are alone.
The main problem, I believe, is among the teachers in the Norwegian school. Which has led to a fatigue syndrome, which has affected most of the people who have anything to do with the school.
The problem comes from lack of funding and focus, which threatens the quality.
Today we are on the lower part of the list of the knowledge level in school, in the Europe.
The reason we have so many strange things in the profession is probably because the last 20 years have been easy to get into the training program.
A bi-factor, although I think these has a lot to say, is that the focus of further education is small, just a little talk about college and future, do not make the motivation for students.
Coming from secondary school, students usually falls one grade down in all subjects. Ending up dropping up in dropping out of high school.
I do not know the English school system very well yet, but I have been here for a month or so, now, and I feel that there is a lot better, than the Norwegian system.
The level of teaching staff is significantly higher, than in my country. All the teachers in my school, here in UK are good, I think. They seems like people who are very happy in their jobs, because they want to teach the students to give them the knowledge to our life.
Here in england, I think that being a teacher is a more respectable, better paid and most important of all, have more knowledge and better education.
The follow-up from school, makes you feel like someone are there for you, in addition to family, who want to help you as a student and a person.
They do this by making a tight, personal relationships to their students, with small classes and teachers who take the job more seriously, working in their spare time ass well (meaning that we can contact them and always get help).
Teachers expect you to work more here in the UK than in Norway, but in return they are there for you, like always. Motivation is a key word here. Students who work more get more challenging, which makes smart students do not feel useless and bored in lessons, in different to the Norwegian school.
Subjects realized and practices, so they do not seem unreal and useless for us.
The future is not too far away, and we begin to plan now, in Unlike in Norway, with UCAS. This is the hour in which we get an introduction to the universities, subjects, etc.
We are still children and need someone to follow-up, because we, at least I know that I don't know yet, not already know what to do in our lives, and what to focus on.
Throughout my life have I been told that education is important, and always thought that I should walk in parents' footsteps.
I started in secondary school and became more and more tired of school and homework, teachers and further education.
I just wanted to travel around the world and working as a bartender, and create art on the side.
I used to think that starting up your own business/company is almost impossible, especially for girls, (do not know why, but just have that feeling) and I have never wanted to work under someone. So, I felt that I didn't want any further education. This is probably from to little knowledge.
I have never done so much at the school before, and homework has been like hell to me.
Now, here at school, my teachers, has gotten me to focus again. Unlike in the Norwegian school where teachers just gave up, if you didn't show that much interest.
Therefore, I am incredibly glad that I have come here, to the EF, Oxford. I have received education and training on a whole new ground. Although it's hard to do homework, since I'm not used to it, I just feel like a bad result of the Norwegian education system. I like now for the first time in many years to sit in in the lessons.
In recent years I have had next to none motivation for university, but now I'm starting to get an idea of maybe doing it.(There is light!) This is because of teachers, whom are incredibly clever, enthusiastic and with the desire each day.
Make sure the presentation of the blog is attractive. This is to encourage people to read it – and, more importantly – to comment.
Presentation can be improved by the overall impact of the design. This requires careful choice of colours, plus the use of blog lists, link lists and labels.
Example – 1
Colour co-ordination poor. No archive. No labels. Post consists entirely of a photo.
Example – 2
Clear and easy to read. Good use of space.
The post itself should also be attractive to the eye. This can be achieved through the careful use of colour, videos, cartoons, photographs etc. Nothing is more boring than just a load of text!
Example:
Some attempt can be made to personalise the blog.
And another…
The post itself should be spell-checked and grammar-checked.
Sentences such as:
“Dummy copies of a thinner Observer, has been mad, and all the «extra» stuff, like music, sport etc. are at risk.”
are just careless. Mad?
One of the purposes of blog-writing is to improve your English. Thus posts should always also be checked with Peter. This type of post:
“In relation to how its like to have an internet site, where you even could make some money on having. It will be more more revenue/profit and less expenditure,
On the other hand, removing this employment, which would be a shame especially in this period we are now with financial crisis, where we need to build the world again and go all the work. “
Should, later, be corrected.
It is not enough to copy and paste. The purpose is to interact with what you read and make the resulting post your own words, your own comments. Equally we are to learn from other posts, so technical terms should be explained.
Example:
The financial crisis has also(of cours) had influenced the football market and the clubs... The banks won't give overdraft to the footballclubs and the sponsors are going out, the tickets have been fallin with 5% in 60% of the UK footballclubs. Therefore all the income resourses have been reduced, and the market is unstable.“
This is full of spelling mistakes!
Here is how it could have been expended:
The financial crisis has also(of cours) had influenced the football market and the clubs...
Explain how?
What is the financial crisis?
The banks won't give overdraft to the footballclubs and the sponsors are going out, the tickets have been fallin with 5% in 60% of the UK footballclubs.
So, giving examples, what have football clubs done?
What is a market? What are the risks of the market being unstable?
Other links can be added:
And mind maps summarising key areas of Economics can be displayed:
Ideally, a podcast will be made:
And videos etc.
Thus the blog, if treated sensibly, will be a tool for learning.
The other questions is ‘What should I write about?’
Obviously this blog is for your Economics and/or Business Studies. But you could write about other subjects you study.
You could also write about your life, personal things, football, music – anything. The important thing is at the very minimum to do your homework and write about Economics/Business Studies. Also you MUST have labels so everything is neatly categorised.
Also you must comment on other blogs – this helps you develop evaluation skills.
You can always get ideas from other blogs, click here
Maybe make money from your blog:
Also through Blogger Buzz and Blogs of Note learn about different designs etc.
Guardian Media Group (GMG=a company of the United Kingdom owning various mass media operations) have decided to shut down The Observer(a news paper) so they are now cutting down sharply on their staff, and still looking for more ways to cut down the costs.
Redundancy Scheme, have done that 82 poster has gone from the commercial side of the business.
Dummy copies of a thinner Observer, has been mad, and all the «extra» stuff, like music, sport etc. are at risk.
Guardian New & Media (GNM=is the core division of GMG) had £36.8m operating loss last year. Although, Carolyn McCall, the group chief executive says that: “GNM is looking to the future and making sure it’s in good shape.”
The debt-laden Independent is seeking another extension of its standstill deal with bondholders, which expires on Friday. If the deal fails, the group may have an emergency rights issue.
A deal with the bondholders, which expires on Friday, is still standing, which means that if they don't get they as to do anything, as they probably wouldn't the deal fails, and the group may have an emergency right issue.
Chris Anderson, Pop Artist
“Chris Anderson is a big idea-man”
Mr. Anderson wrote The Long Tail, a book about the economic miracle of Amazon.com, where he is telling about the internet's infinite shelf space, where companies could make more money selling a product online.
The point of this is that if every store do this, they will save a lot of money. The cost of owning a store, with all the cost adds that belong to this, employees, cleaning etc., is big. In relation to how its like to have an internet site, where you even could make some money on having. It will be more more revenue/profit and less expenditure,
On the other hand, removing this employment, which would be a shame especially in this period we are now with financial crisis, where we need to build the world again and go all the work.
(The Norwegian people dared not seem like they wantet to take a chance on something new.. smart?)
