EconomicsToo

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...

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...

It is always great to hear how students are getting on as they progress through life, moving on to bigger and better things... Many of our students at GIS go on to study at some of the world's best universities and it was wonderful to hear from Jia Yi Lim, who recently moved from Malaysia to the USA and is now settling into life at Harvard University. When in Year 13, Jia Yi was over-the-moon to have received offers from Harvard, Stanford and Cambridge ...having only made 3 applications! Harvard was chosen in the end, but it was certainly a decision which took considerable time, a lot of thought and careful deliberation. In only her first semester at Harvard, Jia Yi is loving life. Having been fortunate enough to have taught her A Level Economics as well as enjoy watching her debate and witnessed her incredible community service work ( Project Smile ), I thought I knew what Jia Yi was capable of. However, her contributions so far at Harvard, as I am sure you'll agree, a...