Economics Help for Students

On this website, Economics Help, there are many economic essays and resources which you can read to gain an increased knowledge of economics.

Also view UK Economics Blog for latest developments

What is Economics?

ECONOMICS …

is the study of how society decides:

  • ¨ What
  • ¨ For whom
  • ¨ How to produce…

Example: The price of oil

An increase in the price of oil affects

¨ What to produce
¨ less oil-intensive products
¨ How to produce
¨ less oil-intensive techniques
¨ For whom to produce
¨ oil producers have more buying power, importers have less

Scarcity forces choices to be made

Opportunity cost

¨ a crucial concept in economic analysis
¨ the quantity of other goods that must be sacrificed to obtain another unit of a good

The operation of markets

¨ Market
¨ a shorthand expression for the process by which
¨ households’ decisions about consumption of alternative goods
¨ firms’ decisions about what and how to produce
¨ and workers’ decisions about how much and for whom to work
¨ are all reconciled by adjustment of prices

Resource allocation

¨ Resource allocation is crucial for a society
¨ and is handled in different ways in different societies, e.g.:
¨ Command economy
¨ Mixed economy
¨ Free market

Normative and Positive Economics

Positive economics deals with objective explanation
¨ e.g. if a tax is imposed on a good its price will tend to rise

Normative economics offers prescriptions based on value judgements
¨ e.g. a tax SHOULD be imposed on tobacco to discourage smoking

Micro and Macro

Microeconomics
¨ offers a detailed treatment of individual economic decisions about particular commodities

Macroeconomics
¨ emphasizes the interactions in the economy as a whole