Fantasy Bob understands that the forthcoming Higher Economics exam paper about to be undertaken by anxious students the length and breadth of Scotland will contain the following questions which may also be of interest to his readers.
- Hotelling's law is an observation in economics that in many markets it is rational for producers to make their products as similar as possible. This is also referred to as the principle of minimum differentiation as well as Hotelling's linear city model. Discuss with reference to the IPL.
- Compare and contrast a Citi Moment of Success with a Royal Bank of Scotland Point of Abject Failure. You may draw attention to the salaries of those involved.
- The number of DLF maximums is approaching record level. Taking account of the laws of supply and demand, what level should be reached before the central bank must consider devaluation?
- Describe Adam Smith's bowling action.