economax Autumn 2011 - second edition now available

The second edition of econoMAX, our digital magazine for A Level Economics students and teachers, is now available to subscribers on the econoMAX website. Details of the latest articles below. The third edition should be available in a couple of weeks.

School / college subscriptions to econoMAX remain at just £50 per year (for the 6th year running!) - your subscription allows whole-school access and distribution of econoMAX articles, including the entire archive dating back to 2004.

You can order your subscription to econoMAX here.

A sample article from the latest edition can be viewed here

Productivity - Gains at the Margin (Robert Nutter)

Productivity levels in an economy have a significant effect on its overall competitiveness. In the macro economy productivity is often measured by GDP per worker per hour worked. Within a firm, in microeconomic terms, it is measured by output per worker. This is relatively easy to measure when a firm produces a tangible product such as cars, TVs or shoes. However, in the service/tertiary sector, the biggest employer in most advanced economies, productivity is more difficult to measure, but is still nevertheless important.

BAE Systems: No defence against job loss (Andy Reeve)

The UK is the second largest exporter of defence items in the world, with the USA being the largest exporter. The biggest manufacturer in the UK is BAE Systems, which currently employs 40,000 workers. However, with the continued threat of defence spending cuts, both at home and by other western nations, it is estimated that the number of job cuts in the defence industry could be in the region of 30,000.

Poverty in the United Kingdom (Andy Reeve)

As the economy continues to falter and the level of unemployment rises, the level of inequality in society continues to rise. In a recent report by the Institute of Fiscal Studies, the number of middle-income families is declining due to falling income levels. In addition to this, the report also suggested that the number of children living in poverty has risen and will continue to rise to 3.3 million in 2020. This figure refers to the term “relative poverty” which is defined as a household income below 60% of the median income within the society.

The Herfindahl Index (Robert Nutter)

The Herfindahl-Hirschman Index is a measure of market concentration, and although not as well known as the simple four or five firm concentration ratio, it is seen as a more accurate measure of concentration.

What’s in a rating? (Mark Seccombe)

As many countries attempt to deal with their debt burdens (with varying degrees of success), one of the most frequently cited reasons is their rating. This article will outline briefly how these ratings are created and why they are seen as so important by governments around the world.

Would Nigeria been better off without oil? (Mark Johnson)

In the October 2007 edition of econoMAX I wrote a piece comparing the oil rich nations of Nigeria and Norway – “Chalk and Cheese”. Further research into Nigeria shows how desperate the state of the economy is in and one wonders if they would be better off without oil.

Inflation – Target 5.2? (Andy Reeve)

Your teachers will recall the days when the target rate of inflation was 2.5% - measured by the Retail Price Index method, rather than the current 2.0%, measured by the Consumer Prices Index. So, it is with interest to see the new level of inflation for September rise to 5.2%.

Should the UK loosen its ties with the EU? (Liz Veal)

With the Eurozone still ‘in crisis’ and the size of the EU’s bail-out fund rising sharply and the possibility of a Greek default lingering on, it is not surprising that some MPs are questioning whether or not the UK should remain in the EU. It is a good time for those with a Eurosceptic leaning to strike and demand a referendum – the general public are alarmed that the UK may have to help foot the bail-out costs via the IMF, while real incomes fall and the ‘pinch’ is well and truly being felt. Hostility to the EU may be growing. Civitas, the right-wing think tank, argues that the EU is ‘damaging Britain’s economic recovery and sapping job growth.’