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Real-world issue 1 - How do consumers and producers make choices in trying to meet their economic objectives?

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Real-world issue 1 - How do consumers and producers make choices in trying to meet their economic objectives?

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Interaction between consumers and producers in a market is the main mechanism through which resources are directed to meet the needs and wants in an economy.

Consumer and producer choices are the outcome of complex decision-making.

Welfare is maximized if allocative efficiency is achieved.

Constant change produces dynamic markets.

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This unit is made up of nine lessons for SL, and twelve, more involved lessons for HL.

In SL, we will spend approximately 35 hours on this unit.

In HL, we will spend approximately 70 hours on this unit.

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Real-world issue 2 - When are markets unable to satisfy important economic objectives —and does government intervention help?

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Real-world issue 2 - When are markets unable to satisfy important economic objectives —and does government intervention help?

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The market mechanism may result in socially undesirable outcomes that do not achieve efficiency, environmental sustainability and/or equity.

Market failure, resulting in allocative inefficiency and welfare loss.

Resource overuse, resulting in challenges to environmental sustainability.

Inequity, resulting in inequalities.

Governments have policy tools which can affect market outcomes, and government intervention is effective, to varying degrees, in different real-world markets.

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Copy of Edexcel Evaluating in Microeconomics A3 Poster

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subscribe to Planet Money podcast

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Zoe Chace and Robert Smith are reporting from European borders this week. This story is about the unofficial border within one country - the border that divides northern and southern Italy. This is the fourth story in a four-part series.
A decade ago, the Barilla pasta factory in Foggia, Italy, had a big problem with people skipping work. The absentee rate was around 10 percent.

People called in sick all the time, typically on Mondays, or on days when there was a big soccer game.

Foggia is in southern Italy. Barilla's factories in northern Italy had much lower absentee rates. So the company told Nicola Calandrea, the manager of the Foggia plant, that they would close the factory unless he brought the absenteeism rate down.

Calandrea decided that to save the factory, he had to change the culture.

He started sending a doctor to the houses of employees who were calling in sick every week. He figured out which doctors were signing the notes for employees who were absent most often, and sent them letters.

And, perhaps most importantly, he told everyone in the company that absenteeism was much worse at the Foggia plant than at Barilla's factories in the north. And he made it clear that the company would shut the factory down if the problem didn't improve.

All of a sudden, even workers with perfect attendance were freaked out.

"We knew we had to put some pressure on the other [workers] to say, 'You should come to work,'" says Michael Beneze, who works on the bowtie pasta line.

Beneze remembers the moment he realized the culture was shifting. Another worker asked for a day off, and his supervisor refused. So the worker called in sick - and used his sick day to play in a soccer match. He played well - he even scored a goal, and got written up in the local paper.

His fellow workers ratted him out, and he got fired. He was the only person to be fired as part of the crackdown on absenteeism.

The factory's absenteeism rate, which used to be around 10 percent, is now below 4 percent.

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How A Pasta Factory Got People To Show Up For Work

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subscribe to Planet Money podcast subscribe to Planet Money podcast Zoe Chace and Robert Smith are reporting from European borders this week. This story is about the unofficial border within one country - the border that divides northern and southern Italy. This is the fourth story in a four-part series.

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Economics topic 1 & 2 test Flashcards | Quizlet

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Study with Quizlet and memorise flashcards containing terms like demand, supply, quantity demand and others.