A2 Economics - PowToon

Curb That Pay

How long would you have to work to earn $17.1m - just one year if you are a chief executive in some of Switzerland's leading companies. Swiss voters are going to the polls this weekend to decide on strict new laws to limit executive pay. The measures, if approved, would limit the salaries of top managers to no more than 12 times the wage of the lowest-paid worker in the same company. Would this work? 

Curb The Pay

Easy Jet Profits Take Off

Easyjet saw a 51% rise in yearly pre-tax profits to £478m, partly thanks to the introduction of allocated seats. Allowing passengers to book their seats had had a big impact on profitability which has boosted shares by almost 6%. Easyjet said 60.8 million passengers flew with it during the year ending 30th September. What would this indicate about the market structure of airlines?

Easy Profit

IAG See Rise In Profits

The IAG, who own British Airways , have seen a rise in their profits. There was an 8% increase in pre-tax profits for the summer quarter of 2013, an increase of 507 million Euros compared with last year. This increase has been aided by the recovery of their Spanish airline, Iberia. Profits for the Spanish airline were 74m Euros in the summer quarter for 2013 whilst were only 1m in the same quarter in 2012. This is due to the company's focus on cutting jobs and paying at the carrier. Profits at BA also increase to 477m Euros compared to 269m Euros in the same quarter last year. BA have benefited from demand for transatlantic flights and the London market, To combat the fall in demand for business travel to London, due to last years Olympics, they were also helped by a 100m Euro 

'bounce back'. 

By Victoria Clayton

Imagine A World Without Shops or Factories

When you are in the middle of a torrent of change, innovation eclipsing innovation, it can be hard to know what is passing and what will last. The BBC's Peter Day believes that, here in 2013, we are in the middle of a revolution so great it could turn our old familiar world upside down.

World Without Factories

Tesco Profits Drop

Tesco has reported a 23.5% drop in group pre-tax profits to £1.39bn in the six months to Aug 24 amid difficult times in Europe and Asia. This has prompted Tesco to push forward with the re-vamp of their hypermarket stores. Sainsbury's continued to pile on the pressure with like-for-like sales up 2%. The UK market has witnessed a surge in competition with the likes of Aldi, Lidl and Waitrose challenging the major players. Consider the competition/market share issues for Tesco.

Tesco Profit Drops

7 Day Switch

Around 35,000 British consumers moved their current accounts during the first week of a new industry switching regime aimed at promoting greater competition in the banking sector. Have the reduction of the barriers to entry now made this market more contestable? Great story for A2 Unit 3 Economics.

Customers Switch Banks

Tescopoly

How did Tesco come to dominate the British high-street? It all started with a barrow selling fish paste and is now visited by millions with more than 330,000 employees working in 3,146 stores and pre-tax profits in the billions. Follow the story of how it all began by following the link.

Tesco Dominate Market

UK's Most Surprising Salaries

The average UK salary is £26,462 but as you might imagine, there are plenty of jobs which pay considerably more and a lot less than that. Think you know which roles bring in the big bucks? You might be surprised. 

Surprising Salaries

Ryanair Raises Hold Baggage Charge by 66%

Ryanair has raised the cost for passengers taking luggage in the hold of its plane from 30 euros to 50 euros for the summer. The no-frills carrier's chief executive Michael O'Leary intends to increase baggage charges until no-one took its flights with hold luggage.

Ryanair Baggage

How Expensive Is An F1 Car?

Teams employ hundreds of staff and spend millions of pounds not just in travelling round and round the world to compete in the 19 races but also in developing their cars day and night to stay on the pace. Find out just how much by following the link... 

Cost of F1

Royal Mail Sale

Postal workers are set to receive millions of pounds' worth of Royal Mail shares when the company is privatised later this year. Find out more about one of the biggest privatisation deals in years and what will happen to the price of stamps.

Royal Mail Privatisation

Popcorn & Parking

All companies are allowed to place a mark-up onto their products. This is how they make a profit. But what happens when companies appear to charge whatever they think they can get away with? Some interesting findings here about popcorn and parking charges which show excellent examples of inelastic demand. Very useful report for A2 Economics and part of a great programme you can catch up on BBC called Your Money, Their Tricks.

Popcorn & Parking

Come Fly With Me

Check out this graphic on low-cost air fare to see how ticket prices fall and rise for three of the biggest carriers. Why do you think that the prices change so much & how do the low cost airlines keep the price so low? Click the link below to find out more.

Air Prices

Cineworld Competition Concerns

Cineworld takeover of Picturehouse investigated amid competition concerns. OFT refers takeover to the Competition Commission over fears some cinema goers may face higher ticket prices and reduced choice. How would this apply to some of the suppliers that AS PLC deal with? Also great for Economics of Work & Leisure - Cinema Industry. Take a look...

Competition Cinemas

Minimum Wage To Rise

Minimum wage to rise but 1% hike for young falls behind inflation which leaves Vince Cable defending lower 4p and 5p rise for under-21s as adult minimum wage increase by 12p an hour. What effect will this have on the economy/AD?

Minimum Wage Rise

Most Wanted!

What are the most in demand jobs currently around the world? More and more people are migrating but which countries are demanding which jobs? Check out the chart by following the link. Consider why the wage rate may be so high for these jobs using demand and supply of labour.

Migration Round The World

Bigger No Longer Better

Supermarkets sense that size may no longer be key to conquering universe as Tesco finds its mega stores are a waste of space and Morrisons make a late bid to get online as grocers adapt to new habits. Excellent ideas behind economies and diseconomies of scale here! Follow the link below.

Supermarkets Size

No Better Off

Workers in the UK are earning no more than they were 10 years ago, according to the Office for National Statistics (ONS). Find out why this comes as no real surprise by following the link below.

Earning The Same

Simples Pensions

Plans for a 'simple' flat-rate state pension have been unveiled, but many of those entering the workforce now will be worse off than under current rules.

Simple Pensions