The Economic Problem

Definition: Opportunity cost

The cost of missing out on the next best alternative. Economic goods Goods that are scarce and therefore have an opportunity cost. Free goods Goods that have no opportunity cost, e. G. Air Factor market The market for the factors of production that make other goods and services such as labor or raw materials. Free market economy One in which there is very limited government involvement in providing goods and services. Division of labor Dividing one task into many little ones. Value Judgments Opinions or statements which depend on the views of the individual

Normative statements Opinions that cannot be proven or tested. Positive statements Statements that can be tested against real world data. Factors of Production:

1 . Land [Resources]

2. Labor [Workers

3. Capital [Money or Machinery]

4. Enterprise [Entrepreneurs]

Economic Objectives: Government/ State [Want to give out grants to new businesses as they will create more Jobs and pay a substantial amount of tax which will go into the economy], Consumers [They want good quality and the product/service to be at a good price]

Also some workers will accept a lower pay if other benefits emerge, egg. Healthcare. Firms/ Business [Their main objective is to maximize profits. Also to spend less on raw materials] Prices & Profits have three key functions: 1. Incentive function 2. Rationing function 3. Signaling function When prices rise consumers tend to ration (cut down) their demand. When prices fall consumers extend their demand (an end to rationing). The Production Possibility Boundary (BP) The key problem in economics is that we have to make choices, because there are not enough resources to provide everything we want.

The shortage is known as scarcity. However, if we chose to use the resources to produce one good or service, we cannot use them to produce something else. Giving up the ‘something else’ is called the opportunity cost. If there is no opportunity cost in producing something, it is known as a free good. The resources we can use are divided into four types; land, labor, capital and enterprise. Collectively, they are know as factors of production and the key mechanism in market economics in deciding where they are used is the price mechanism.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with My Homework Geeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
AllEscort
Live ChatWhatsApp
AllEscort