Impact of Technology and AI on Markets

GovernorReal World Applications Leave a Comment

This is for students of IB and JC A Level Economics learning Market Structure / Market Power! How Technology can Affect Markets: It is important to note that technology’s impact on markets can be complex and multi-faceted, and its effects may vary across different industries and regions. Nonetheless, technology has the potential to fundamentally reshape market structures and dynamics, driving …

How Will AI Affect The Economy? Will Unemployment Increase?

GovernorReal World Applications Leave a Comment

These are questions that have been on my mind and highly relevant to the J2 and IB Y6 classes that I have been conducting. Recently, the Straits Times published a really interesting article: “The Coming Creative Destruction From AI.” Goldman Sachs estimated that 300 million full time jobs could be replaced by AI. Reported by BBC. Mind Boggling. Macroeconomics students …

Can ChatGPT Teach Economics?

GovernorReal World Applications 3 Comments

In class, I have always been citing the US as a large economy and Singapore as a small economy (both are developed economies), with population size being a key reason for the difference.  Recently, it struck me that Japan is not that highly populated, yet is the 3rd largest economy in the world. Hmmm…that prompted me to ask Chat GPT …

Real World Economics Applied – Crying Over Spilt Milk? Reining in US$55bn Formula Milk Industry

GovernorReal World Applications Leave a Comment

An excellent article from the Straits Times recently: How the $73.5 billion infant formula industry milks new parents’ anxieties, and what S’pore is doing about it Some facts gleaned from the article: In Economics, we learn about non-price competition.  There are two key ways: Through Product Innovation (typically via R&D) as well as through Marketing.   Clearly, the formula milk industry …

5 Ways Learning Economics Can Help You Become Financially Savvy

GovernorReal World Applications Leave a Comment

2 interesting Straits Times articles in the short span of 1 week. According to a survey conducted by the Organisation for Economic Cooperation and Development (OECD), around 25% of adults in the 20 countries surveyed have low levels of financial literacy, which can lead to poor financial decisions and negative financial outcomes. Please, students of economics, realise you are in …

Real World Economics Applied – Bike Sharing Negative Externality and Singapore’s Policies

GovernorReal World Applications Leave a Comment

A few years ago, it was prevalent. All over Singapore as well as many other cities in the world, bike sharing was the rage. And so were all the bikes strewn on grassland, pedestrian pathways, canals and bus-stops. How awful! One of the negative externality problems with bike sharing services is the issue of “parking clutter”. Since bike sharing services …

Whither Inflation In Singapore?

GovernorReal World Applications Leave a Comment

Whither inflation in Singapore? There are many factors affecting inflation in Singapore today, which is expected to remain high in the 1st half of 2023. We can break them down into Cost Push and Demand Pull causes. (If you are clueless what these mean, check out our Notes on Inflation and Deflation)  Cost push factors include the high food and …

Market Failure Diagrams – Positive & Negative Externality as well as Imperfect Information (Consumer Ignorance)

GovernorReal World Applications Leave a Comment

Perennial headache! “Cher, why my school’s market failure diagrams are so different ah?” “Mr Hong, why different school teachers teach me different diagrams for the same externality ah? “Cher, my new teacher’s diagrams are different from my school notes!!” “I don’t understand my school’s diagrams!” You get the idea…………. So I decided to produce a video and this blog post …