quick post: just a small cartoon on the current US currency. (i think it looks so cute.)




Area of Concern:
Food Shortage (Rise in Food Prices)


Things to take note of:

1) "when the world began consuming more grain than it grew"
(Supply EXCEEDS Demand)

2) "food scarcity is accelerating"
(Scarcity = Limited resources available are unable to satisfy the unlimited human wants)

3) "world grain prices last year alone rose by 42%, and dairy, by 80%"
(An Increase in Demand and Decrease in Supply will cause the equilibrium price to RISE)


Reasons for supply-demand imbalance of grain:
A) Population growth and prosperity in new-rich countries (Increase Demand)
(Changes in Consumer Income is one of the determinants of demand / factors that shift the demand curve. The ability of consumers to buy goods is directly proportionate to their income. Usually, as the income increases, more of a good will be demanded. However, we must also consider that food is income inelastic as one need not consume too much food before feeling satisfied / the rate at which the desire of a good is satisfied as consumption increases is one of the determinants of Income Elasticity of Demand. An increase in income will lead to a less than proportionate increase in consumption of food.)

B) High price of oil (Decrease in Supply)
(This had led to increase in the price of fertiliser that is critical for improving crop yields)

C) Weather disruptions (Decrease in Supply)
(Changes in Climatic Conditions is one of the determinants of supply / factors that shift the supply curve. When there is storm, flood or rain, the supply of agricultural goods will be affected adversely. For example, bad weather conditions will lead to poor harvest for agricultural crops.)

D) Use of considerable amounts of maize and oil seeds to produce biofuels (Decrease in Supply)
(Although this his been beneficial to environment protection, this has led to further food shortages.)


Possible solutions:
i) Using more land for food production
(This method is near impossible due to the lack of land)

ii) Using high-yield strains of rice and wheat (GM food production)
(Genetic manipulation will be able to raise yields per hectare, saving on land area at the same time. However, we should consider the negative medical impacts of excessive consumption of GM food such as allergic reactions and toxicity)










This article is about the rising prices of rice :D
click on the picture to enlarge it if you can't see yah? (:




According to THE NEW PAPER (27th Apr 2008), the supply of rice is decreasing as major rice producing and rice exporting countries start to curb exports.


Thailand, the world's largest exporter, has seen merchants intentionally withholding grains to jack up prices.
Vietnam, the world's third largest exporter imposed a 22% cut in exports, contributing to the rise in prices.
In Bangladesh, the cyclonic weather caused severe flooding and destroyed rice crops in November last year.


With the supply of rice decreasing, price is expected to rise even more and the poor would be the most adversely affected.


with love,
Jasmine Kwok.






(http://www.ted.com) Law professor Yochai Benkler explains how collaborative projects like Wikipedia and Linux represent the next stage of human organization. By disrupting traditional economic production, copyright law and established competition, they're paving the way for a new set of economic laws, where empowered individuals are put on a level playing field with industry giants.

That's just a glimpse of the future.





Full Article Here!
(http://www.channelnewsasia.com/stories/afp_world_business/view/342577/1/.html)

1. Increasing Demand for Oil-related products + Scarcity / Factors leading to scarcity such as political unrest, with Oil being a finite resource
'Oil prices hit record highs above 117 dollars per barrel in New York, following a pipeline attack in Africa's biggest producer Nigeria.

Kuwait's acting oil minister said on Sunday that supply and demand factors are not to blame for the soaring price of crude oil, which reached fresh highs last week.

Oil prices hit record highs above 117 dollars per barrel in New York, following a pipeline attack in Africa's biggest producer Nigeria.'


2. OPEC nations still account for two-thirds of the world's oil reserves, and, as of March 2008, 35.6% of the world's oil production, affording them considerable control over the global market.
'Oil-producing countries have rejected calls to raise output amid record prices - five times higher in as many years - saying the rise in demand was artificial.'

'"The level of stockpiles does not currently affect prices on the world market," Mohammad al-Olaim said on the sidelines of an energy forum in Rome attended by oil-producing countries, companies and consumer nations.'


3. OPEC has the aim of ensuring the stabilization of prices / Cartel members may agree on such matters as price fixing, total industry output, market shares, etc.
'Organisation of the Petroleum Exporting Countries (OPEC) president Chakib Khelil, currently touring Kuwait, echoed him, saying there was no need for an immediate hike in production.'


4. Effect of inflation/deflation (US dollar)
'Khelil, on his part, said the falling value of the US dollar was responsible for the surge in oil prices. "When the dollar loses one percent, the price of a barrel of oil rises by four dollars," he said.'

[FYI]
'The next largest group of producers, members of the OECD and the Post-Soviet states produced only 23.8% and 14.8%, respectively, of the world's total oil production. As early as 2003, concerns that OPEC members had little excess pumping capacity sparked speculation that their influence on crude oil prices would begin to slip.'
(http://en.wikipedia.org/wiki/OPEC)




Economic Cartoons:
due to copyright issues, I am unable to post them on the blog.

Here's the link to it though: CLICK HERE!

My favourites:
1. http://www.cartoonistgroup.com/store/add.php?iid=4826

2. http://www.cartoonistgroup.com/store/add.php?iid=10035

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Here's a joke to end things off:

"Economists have forecasted 9 out of the last 5 recessions."


















Click HERE for the full article.

Issue:
Possible merger between Microsoft and Yahoo

Rationale:
"Microsoft is feeling increasing pressure to compete with Google (GOOG), which plans to beef up its portfolio with a $3.1 billion purchase of online advertising company DoubleClick. "

Current Postition:
[Microsoft]
Microsoft currently trails both Yahoo and Google in the lucrative and growing business of Web search.

[Yahoo]
Yahoo has stumbled in recent years with a lack of strategic focus and laggardly technology at a time when Google has been able to monetize its search prowess to a degree that has startled investors.

Fact:
"According to newspaper reports May 4, Microsoft has asked Yahoo to enter formal negotiations for an acquisition that could be worth $50 billion. Yahoo's market capitalization was about $38 billion at the close of trading May 3."

"The deal came after Yahoo and Google said they were having a two week trial of an advertising space-sharing experiment. During the pilot, Google will be able to place ads alongside 3% of search results on Yahoo's website."

"Microsoft threatened to make its offer for Yahoo hostile and to reduce the amount it is prepared to pay if Yahoo's directors did not respond by 26 April." (http://news.bbc.co.uk/2/hi/business/7339992.stm)

Setbacks:
Recently, the shares of Microsoft fell 1.5% to $30.51.
=> Microsoft's falling share price has cut the value of its bid.

(to be continued)






"Steven Levitt is an economics professor at the University of Chicago and the best-selling author of Freakonomics. In this talk, filmed at TED2004, he goes inside an inner-city gang to examine economic principles at work in the real world." (Recorded February 2004 in Monterey, CA. Duration: 22:00)

More Here!





hmm, kind of found this video tht talks abt money/currency:

>click here to watch<

and here's a comic : DIFFERENTIATION ? lol.





Article : (click to enlarge)


Fig 1 : (click to enlarge)




With <3,
Eileen (:




Hi all,

please contribute to this blog. it's OUR econs blog! =)

yay,
qiu




1.TASK

Classes' blog entry may include the following:

• Review of interesting economic articles from journals or internet
• Economic jokes/cartoons that illustrate certain economic concepts.
• Video clips depicting certain economic concepts
• Q & A's, "forum-like" postings on views and comments that are economics related among class members
• Any other relevant economics postings that will enhance the class's blog (i.e. ILP work. etc)

2. RULES AND REGULATIONS

• All blog entries need to be original and not a duplicate of any print, otherwise, state the source of the entry and acknowledge the writer/author concerned
• Entries must be suitable for publication (i.e. not obscene, offensive or indecent) and must not have been submitted in other contests or been previously published
• Role of class members: (a) direct involvement in design of blog - template, content, updating and so on. (b) actively participate in the blogging activities

3. JUDGING CRITERIA

• Content Relevance (Application of Concepts) : 50%
• Active and consistent class participation: 30% (this component of the marks will also contribute to your individual class participation marks which is part of the the Continual Assessment)
• Creative use of multimedia (e.g. flash, music, photographs) : 20%

4. PRIZES

• Best blog will receive a cash voucher of $200 while next 2 best blog will receive a cash voucher of $100 each
• Results announced on 25 July

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ENJOY BLOGGING! :D




CLASS PARTICIPATION (5%) UPDATE 2008

Descriptor (2%):

Motivated
Prepared for tutorials most of the time
Hardly contribute to class discussions

OR

Not well-prepared for tutorials most of the time
Made consistent effort to contribute during class discussions


HOW TO UP TO 3-3.5%?

o Participate in Econ Blog - at least TWO thorough article
reviews + ONE of the following: video, song, cartoon, jokes, etc all
related to economics.

o Submit your own or in groups ONE entry for Wanted! (which can
be something you used for blog).

o Participate in Online Survey for tutorials and lectures.

BE A MATURE ADULT TO GIVE CONSTRUCTIVE FEEDBACK AND NOT JUST GIVE
JUDGMENT WITHOUT HIGHLIGHTING TO YOUR TUTOR OT LECTURER ON HOW TO
IMPROVE!


HOW TO UP TO 4-5%?

o Have been preparing and contributing in class discussion.

o More than the minimum requirements stated above, be it in terms
of quantity and quality.