暑假已经开始了，大家在家的时候要=是否会常常想起我们的经济课呢？不要太想念，

这不，暑假作业将一如既往地陪伴大家。
第一部分是推荐阅读书籍。第二部分是各一套微观和宏观的复习题。第三部分是下学
期 HL 和 SL 部分内容的介绍。你在阅读里的思考欢迎你记录下来，下学期的课堂申请做一
次分享。（平时分加分）复习题我们也会开学后评讲，欢迎自荐或组队做小讲师！下学期
微观部分 SL 会主要讲 market failure; HL 会在此基础上额外学习 theory of knowledge 和
market structure。宏观部分就是讲完 mindmap 里还没有学习的内容。国际部分会讨论到贸
易理论、自由贸易和贸易保护各自的存在基础；全球化和地区一体化（如 NAFTA;EU and
euro zone）；国际收支平衡和失衡；汇率的成因于不同的汇率体系等等 ......欢迎大家按话题
及时记录自己的学习体会和疑问。

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以上是一些经济学科的推荐读物：
《一课经济学》（美）黑兹利特 著（资深财经记者）
曼昆《经济学原理》
《富国陷阱——发达国家为何踢开梯子 Kicking away the Ladder——Development Strategy in
Historical Perspective》2020-5 剑桥大学经济学家张夏准代表作
《资本主义的真相——自由市场经济学家的 23 个秘密 23 Things They Don’t Tell You About
Capitalism》
《哈佛经济学笔记》1-2-3
《置身事内——中国政府与经济发展》兰小欢著
《时运变迁—— 世界货币、美元地位与人民币的未来 Changing Fortunes: The World's
Money and the Threat to American Leadership 》[美] 保罗·沃尔克 / [日] 行天丰雄 /
保罗·沃尔克
美国战后经济地位的奠基人之一、“最伟大的联储主席”沃尔克，和日本前大藏省国际金
融局长行天丰雄，携手回顾世界货币体系的演变历程。作为战后 20 世纪七八十年代政策制
定和国际谈判的两位核心参与者，作者回顾了诸多世界经济事件，从布雷顿森林体系的建
立到崩溃，从广场协议到卢浮宫协议，再到几次石油危机引发的通货膨胀。

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Review of FD topics
(1) Markets competition and government interventions

We have already learned Introduction to markets, competitive markets including

elasticity, and discussed the necessity of government intervention in certain markets in
Microeconomics. We will investigate market failure in both HL and SL in DP study.
For HL class we would learn theory of production and market structure as extra
challenge!

Case study:The market for housing

Extract A

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Problems facing UK first time buyers
Over a third of aspiring first time buyers in the UK have given up hope of ever being
able to save for a deposit to buy a property, new research has found. A deposit is
the minimum amount that must be paid upfront when buying a property, which is a
proportion of the price of the property. [para1]
The UK Government has a Help to Buy scheme designed to help people buy a home. The
government subsidises the mortgage (loan) needed to buy a property, so buyers require
a smaller amount saved as a deposit. Under this scheme, first time buyers need as little
as a 5% deposit to qualify for a mortgage. This is due to end in the first few months of
2017. The research from mortgage insurer Genworth says this will mean a return to 20%
deposits, which would see the average time needed to save for a deposit rise from three
years to over 10 years. [para2]
“Trying to buy your first home in the current climate is like chasing a runaway train. Even
with good salaries that could comfortably support a mortgage, thousands of aspiring
first time buyers can only save modest sums, especially those who are already paying
rent. This deposit trap is why many feel they are left with the all or nothing choice of
borrowing from family or waving goodbye to ever owning a home,” said Simon Crone,
a vice president at Genworth. [para3]
“Help to Buy has significantly improved access to mortgages with deposits that are
actually realistic to save. The numbers using the scheme may be modest, but it has made
significant inroads in the short-term to boost access at the lower end of the property
market,” he pointed out.[para4]
(Source: adapted from http://www.propertywire.com/news/europe/uk-first-time-buyers-
201409309641.html September 2014)
Extract B
Housing and flood defences
A radical new approach to housing and a £2.3 billion of investment in flood defences
were announced as part of the UK Government’s new National Infrastructure Plan 2014. [para1]
One key proposal is for the government to plan, build and sell homes. An initial
programme on a government-owned former airfield near Cambridge will see the
development of 10 000 homes. This approach will fast track the development by
providing certainty and making new homes available more quickly. [para2]
The government will make the initial investment but expects that later costs will be met
through the sale of land and homes. It will also evaluate the feasibility and economic
effects of rolling out this model on a wider scale, to support and accelerate housing supply.
[para3]
The plan also commits to £2.3 billion of capital investment to over 1400 flood defence
projects in a 6-year programme of investment. As a result, over 300 000 homes will
be better protected and over £30 billion of economic damages prevented. Major
projects that will benefit include £42 million for the Oxford Flood Alleviation Scheme,
£80 million for the Humber Estuary and over £17 million for Tonbridge, Yalding and the
surrounding communities. [para4]

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(Source: adapted from https://www.gov.uk/government/news/ambitious-plans-for-housing-flood-
defence
and-roads-set-out-in-national-infrastructure-plan-2014)

Topics for analysis and discussion in exercises and commentary

(a) With reference to Figure 1, explain one possible reason for the differences in price
elasticity of supply of new housing between countries.
(b) With reference to Extract A, assess the likely impact of the Help to Buy scheme on
the market for rented properties in the UK.
(c) With reference to Figures 1 and 2 and your own knowledge, discuss the functions
of the price mechanism in allocating housing.
(d) Evaluate the likely microeconomic effects of government intervention in the UK
housing market.
OR
(e) Evaluate the case for government provision of goods and services such as flood
defence schemes or housing.

(2) The National and Global Economy

Part I Macroeconomic performance through indicators

The chart below shows the UK unemployment rate, seasonally adjusted, from 2008 to 2015.

Unemployment fell by three percentage points resulting in rising consumption and investment and
further rounds of increases in disposable income, however, household may also spend more on
imports.
The table below shows marginal propensity to save data for an economy.

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Topics for analysis and discussion in exercises and commentary

(a) Explain one possible reason for the changes in the marginal propensity to save as shown in the
table. From the interest rate or consumer confidence perspective based on the extract.
(b) Explain the likely effect of a fall in the marginal propensity to save on the value of the
multiplier if other things remain equal.
(c) An economy has marginal propensity to save of 0.1, marginal propensity to tax of 0.2 and
marginal propensity to import of 0.1. Which one of the following is the correct size of the
multiplier?

Part II Macroeconomic government intervention with demand-side and supply-side

policy
The Eurozone economy
Figure 1: Exchange rate of the euro (€) to the British pound (£)

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Figure 2: Eurozone inflation rate as measured by the Consumer Prices Index (CPI)

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(Source: adapted from http://www.imf.org/external/pubs/ft/weo/2015/02/weodata/download.aspx)
Extract A European Central Bank disappoints markets with weaker than expected stimulus
Mario Draghi, president of the European Central Bank (ECB), surprised financial markets in
November 2015 with a less ambitious package of monetary stimulus than many had anticipated.
[para1]
The ECB cut its base interest rate by 0.1% to minus 0.3% in order to encourage private banks to
lend funds to companies and households rather than deposit them at the central bank. The central
bank agreed to extend its €60 billion (£45 billion) monthly bond-buying quantitative easing (QE)
programme for a further six months. The ECB’s €1.1 trillion QE scheme had originally been due
to end in September 2016. [para2]
“We are doing more because it works,” Mr Draghi said. Yet the ECB did not increase the size of
its monthly asset purchases and also disappointed those expecting that it would cut interest rates
more aggressively. The euro rose almost 3% against the dollar to $1.08 after the announcement.
Italian and Spanish bond yields both jumped by 0.27% to 1.62% and 1.72% respectively. [para3]
The ECB’s economists reduced their inflation forecasts for the next two years. They now predict
consumer prices in the Eurozone rising by just 1% in 2016 and 1.6% in 2017 – still below the
central bank’s ceiling of 2%. In November 2015, the inflation rate was just 0.1% and core
inflation, excluding volatile items such as fuel and food, dropped to 0.9%. [para4]
Mr Draghi stressed again that monetary policy alone could not restore the Eurozone to economic
health. He called for looser fiscal policy among member states to support aggregate demand and
more rapid implementation of supply-side reforms. “In order to reap the full benefits from our
monetary policy measures, other policy areas must contribute decisively,” he said. [para5]
(Source: http://www.independent.co.uk/news/business/news/ecb-disappoints-traders with-weaker-
than-expected-stimulus-a6759786.html, 4th December 2015)

Topics for analysis and discussion in exercises and commentary

(a) With reference to Figure 1, calculate the percentage change in the value of the euro in pounds
from the start of 2009 to the start of 2015.
(b) With reference to the information provided and your own knowledge, examine two factors
which might explain the change in the rate of Eurozone inflation as shown in Figure 2.
(c) Discuss the likely success of the ECB’s quantitative easing programme in moving Eurozone
inflation closer to ‘the central bank’s ceiling of 2%’ (Extract A).
(d) Discuss ‘looser fiscal policy’ and ‘supply-side reforms’ (Extract A) that may be used by
governments of Eurozone countries to increase economic growth.

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Preview of DP topics
Background theory in Global Economics
国际经济学里内含贸易互惠的基本经济学原理。其中一个前提假设是忽略交易成本（现
实经济中很多的交易会因为交易成本过高而不会发生，全球化的一个最重要的基础设施
之一就是交易成本的大幅下降）。另一个假设是双方都想消费两种商品。如果在一个案
例中，其实双方都可以生产两种商品，那为什么要进行专业化，然后通过贸易获得另外
一种商品呢？只有一种可能那就是通过贸易获得比自己生产要好，这就是所谓的获益。
Relevant Topics for Discussion in Global Economics :
What does trade theory say about the impact of free trade?
Does trade make people better off?
What are the impacts of international trade on the competitive market for a good in both an
importing and exporting country?

了解以下概念，阅读两个案例材料
The growth of international trade and other international linkages is known as globalization.
International trade is driven by comparative advantage. The Ricardian 大卫李嘉图 model of
international trade shows that trade between two countries makes both countries better off than
they would be in autarky(self-sufficient)—that is, there are gains from international trade.
The main sources of comparative advantage are international differences in climate, factor
endowments, and technology.
Exporting industries produce goods and services that are sold abroad.
Import-competing industries produce goods and services that are also imported.
Case 1 TRADE, WAGES, AND LAND PRICES IN THE NINETEENTH CENTURY

Beginning around 1870, there was an explosive growth of world trade in agricultural products,
based largely on the steam engine. Steam-powered ships could cross the ocean much more quickly
and reliably than sailing ships. Until about 1860, steamships had higher costs than sailing ships,
but after that, costs dropped sharply. At the same time, steam-powered rail transport made it
possible to bring grain and other bulk goods cheaply from the interior to ports. The result was that
land-abundant countries—Canada, the United States, Argentina, and Australia—began shipping
large quantities of agricultural goods to the densely populated, land-scarce countries of Europe.
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This opening up of international trade led to higher prices of agricultural products, such as wheat,
in exporting countries and a decline in their prices in importing countries. Notably, the difference
between wheat prices in western Canada and England plunged.
The change in agricultural prices created winners and losers on both sides of the Atlantic as factor
prices adjusted. In England, land prices fell by half compared with average wages; landowners
found their purchasing power sharply reduced, but workers benefited from cheaper food. In
Canada, the reverse happened: land prices doubled compared with wages. Landowners did very
well, but workers found the purchasing power of their wages dented by rising food prices.
Case 2 the Influence of Free Trade Area
Although that car you’re looking at may have been made in Canada or the United States, a
significant part of what’s inside was probably made elsewhere, very likely in Mexico. Since the
1980s, auto production in North America has increasingly relied on factories in Mexico to produce
labor-intensive auto parts, such as seat parts—products that use a relatively high amount of labour
in their production.
Changes in economic policy over the years have contributed greatly to the emergence of large-
scale Canadian and U.S. imports of auto parts from Mexico. Until the 1980s, Mexico had a system
of trade protection—taxes and regulations limiting imports—that both kept out foreign
manufactured goods and encouraged Mexican industry to focus on selling to Mexican consumers
rather than to a wider market. In 1985, however, the Mexican government began dismantling
much of its trade protection, boosting trade with its trading partners. A further boost came in 1993,
when Canada, the United States, and Mexico signed the North American Free Trade Agreement
(NAFTA), which eliminated most taxes on trade among the three nations and provided guarantees
that business investments in Mexico would be protected from arbitrary changes in government
policy.
NAFTA was deeply controversial when it went into effect: Mexican workers were paid only a
fraction of what their Canadian and American counterparts were paid, and many workers,
especially in the United States, expressed concern that jobs would be lost to low-wage
competition. Ross Perot, a U.S. presidential candidate in 1992, warned that there would be a
“giant sucking sound” as U.S. manufacturing moved south of the border. And although
apocalyptic predictions about NAFTA’s impact haven’t come to pass, the agreement remains
controversial even now.
Most economists disagreed with those who saw NAFTA as a threat to the Canadian economy. We
saw in Chapter 2 how international trade can lead to mutual gains from trade. Economists, for the
most part, believed that the same logic applied to NAFTA, that the treaty would make both
Canada and Mexico richer. But making a nation as a whole richer isn’t the same thing as
improving the welfare of everyone living in a country, and there were and are reasons to believe
that NAFTA hurts some Canadian citizens.

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