EconomicsToo

Welcome to the intriguing world of international school economics, where the seemingly mundane task of organising a Year 11 prom unravels into a captivating exploration of human behaviour and economic quirks. Behind the scenes of this student-funded, annual extravaganza lies a fascinating tale of pizza sales and pricing strategies. While the casual observer might dismiss it as a simple fundraising effort, a closer look reveals a complex interplay of economics, psychology and social dynamics that intrigues me... This post is my attempt to unravel a perplexing phenomenon: the curious case of seemingly irrational pizza box purchases by students. Here, I delve into the factors that might be influencing these decisions, aiming to not only illuminate the humorous aspects of economic decision-making but also provide valuable insights into the complex realm of human choices and preferences. Image source   Pizza Sales and Pricing Strategy: The Year 11 prom is a student-funded annual event....

In the bustling world of academics where examinations, assignments, homework and extracurricular activities all clamour for your time and attention, it’s easy to underestimate the power of a seemingly simple act: showing up . A dig into the research has led me to believe that there is so much more to the relationship between attendance and academic achievement than the obvious and strong positive correlation we often talk about here in GIS. A full class! Where IGCSE and A-level subject results are concerned, it seems that attendance is way more than just a formality; it's a strategic investment with very tangible returns. Plenty of studies point towards this; a recent UK government blog post called " Why is school attendance so important and what are the risks of missing a day? " is very clear in its answer: attendance is paramount and the risks of missing a day are high! Every day at school is crucial and missed days can accumulate rapidly according to the article, whic...

In our recent mock exams, some Year 13 students were confused about the concept of contestable markets. Many defined them as simply being a market with high levels of competition. They often went on to correctly explain the benefits to consumers, as a contestable market does have a similar impact on the behaviour of incumbents (firms already in the market). Contestable markets, in contrast to 'competitive' markets, are where the presence of potential entrants acts as a competitive constraint on the incumbent firms, even if these potential entrants do not actually enter the market. In this context, the concept of contestability is used to capture the degree of competition in a market, with fully contestable markets having zero barriers to entry and exit and the ability of firms to enter and exit the market quickly and easily.  I mentioned this common error to my fellow economist, Mr O'Hagan and he shared with me a brilliant analogy he uses to explain contestable markets: Th...

Every year, as we go through the Options process (IGCSE and A Level), parents and students alike have hundreds of questions. And rightly so, the decision is important. But one question we hear multiple times every year is:  "What's the difference between business and economics?" ...and more often than not, this question includes accounting. This post hopes to shed some light on this and help explain the main differences.  At GIS, we like to use an analogy given to us a few years ago by another economics teacher (Mr Stewart...credit where credit is Stew!)…   First, let's talk about Business Studies . Business studies delves into the core areas related to businesses and their operations. The buying, selling, producing and marketing of goods and services.  Imagine a business, let's say it is a factory. Visualise lifting the roof off and peering inside; you see four main sections each with very different things going on... In one area, there is a team of people using ...

The time has come around again...and now it is the turn of this year's Year 9 students to start thinking about their options for IGCSEs. As popular as ever, economics provides an excellent choice that complements all the other subjects, be they options or core subjects. Here's a little bit about what economics is, why you should think about choosing it, and maybe who should not select it! image source What is economics? Economics is a social science that deals with the production, distribution, and consumption of goods and services. It is a broad field that touches on almost every aspect of our lives, from the goods and services we consume to the jobs we hold and the money we earn. As such, economics is an incredibly important subject to study, and here are just a few reasons why: - Economics helps us understand the world around us: By studying economics, we can gain a deeper understanding of the forces that shape our world, including the factors that influence supply and deman...

The contestable market theory is an economic theory that proposes that a market is competitive as long as it is easy for firms to enter and exit. According to this theory, even if there are only a few firms in a market, if it is easy for new firms to enter and existing firms to exit, the market will behave competitively. This is because the threat of new entrants and the possibility of existing firms exiting will provide an incentive for firms to keep prices low and quality high in order to remain competitive. Watch this video for an explanation of contestable markets for CIE A2 and all you need to know: Limit pricing is a common pricing strategy that involves setting prices at a level that is low enough to deter new firms from entering a market, but high enough to cover the costs of existing firms. Firms may use limit pricing in order to protect their market share and prevent new entrants from gaining a foothold in the market. Prices are set at ATC = AR when the market is perfectly co...

An oligopoly is a market structure in which a few firms dominate the industry. These firms have significant market power and can influence prices. In Malaysia, there are several industries that are considered oligopolies, including: The telecommunications industry: A few large firms, such as Maxis and Digi, dominate the Malaysian telecommunications market. The banking industry: A few large banks, such as Maybank, CIMB, and Public Bank, dominate the Malaysian banking market. The automotive industry: The Malaysian automotive market is dominated by a few large firms, such as Proton and Perodua. The media industry: A few large media firms, such as Astro and Media Prima, dominate the Malaysian media market. Oligopolies can have significant market power and can influence prices. They can also lead to less competition and potentially higher prices for consumers. It's worth noting that the level of concentration in an oligopoly can vary over time, as firms enter or exit the market and as m...

This is an essay shared with us by Ee Jenn, a Year 12 economist at Garden International School KL, which has been entered into an economics essay competition. It has been a while since we have posted and following the recent pandemic and a period of online-learning, we are now back in school and wanted to get this blog back up and running so we can share some of the thoughts, ideas and wonderful work from within our community.  We wish Ee Jenn the best of luck with the essay, and hope you enjoy reading it as much as we did... How relevant is economics during a pandemic and in what way might economists make things better? The economy is socially embedded in modern society. Almost every individual is an economic agent, impacted by the decisions of economists, corporations and legislators – economic crises spillover into the everyday lives of individuals; vice versa, seemingly un-economic environmental crises like natural disasters or pandemics have proven to have detrimental economic...

It's always great to showcase outstanding work undertaken by our students and what follows below is an essay by Rachel Gibbons. She is a current Year 13 Economist at GIS and entered this essay into the  John Locke Institute Essay Competition, 2018... The John Locke Institute Essay Competition invites students to explore a wide range of challenging and interesting questions beyond the confines of the school curriculum and Rachel  was delighted to hear her essay on the gender/wage gap was shortlisted and received the award of High Commendation . As with all students, Rachel is open-minded and loves feedback, so feel free to pass on any comments about her arguments in the essay...enjoy! It has been said that a company may hire a woman for four-fifths of what a man would earn, to do the same job and do it just as well. If this were true, why would any profit-maximising employer choose to hire any men at all? Is there another explanation for the perceived gender wage gap? ...