MYTUTOR SUBJECT ANSWERS

586 views

What is the basic economic problem?

In economics the main problem we deal with is the fact that there is a finite number of resources on the planet. In other words we don't have an unlimited amount of things. e.g. we will eventually run out of oil and gas.

What are the implications of this? 3 questions come to mind:

1. What to produce with only limited resources?

So for example how much food should be produced? 

2. How to produce?

What factors of production should be used. Should labour be used or machines. How much should be used. 

3. Who should we produce for? 

How doe we distribute these goods that we have made. Should we give goods and services to those who can pay more? or should we use a different allocative system?

The study of economics tries to grapple with these questions through the use of models. These models help us simplify the real world in order to be able to make judgements and predictions; hopefully allowing us to answer some of these questions.

Thomas K. IB Economics tutor, A Level Economics tutor, GCSE Economics...

1 year ago

Answered by Thomas, who has applied to tutor A Level Economics with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

60 SUBJECT SPECIALISTS

£20 /hr

Dan W.

Degree: Economics and Accounting (Bachelors) - Bristol University

Subjects offered:Economics, Maths

Economics
Maths

“I achieved top grades whilst juggling cricket at a high level. I’ve tutored for Young Einstein Tuition & been a Peer Mentor to those facing personal issues”

£20 /hr

Edward L.

Degree: Philosophy, Politics and Economics (Bachelors) - Kings, London University

Subjects offered:Economics, Religious Studies

Economics
Religious Studies

“Undergraduate studying PPE at King's College London and economics prize winner helping tutor for economics. ”

£22 /hr

Julia L.

Degree: Economics L100 (Bachelors) - Durham University

Subjects offered:Economics, Sociology+ 2 more

Economics
Sociology
Russian
Maths

“Hi! My name is Julia, and I am Durham University student. I have just been through the stress of A level exams - I've been in your shoes, so now, my goal is to make your exam time as smooth and painless as it can be. I can help you wi...”

About the author

£20 /hr

Thomas K.

Degree: Philosophy, Politics, Economics (Bachelors) - Oxford, St Anne's College University

Subjects offered:Economics, Maths+ 3 more

Economics
Maths
History
Government and Politics
.TSA. Oxford.

“About me:I am from London and currently in my first year at Oxford studying Philosophy, Politics and Economics. I have always been fascinated in current affairs which lead to me becoming interested in the social sciences as an academ...”

MyTutor guarantee

You may also like...

Posts by Thomas

What is the basic economic problem?

What's the difference between the mean, median and mode?

Other A Level Economics questions

What is inflation?

Using the data and your knowledge of economics, to what extent do you agree that cuts to direct taxation would benefit growth and living standards in the UK? Justify your answer.

What are negative externalities?

What two policies can the government employ to influence economic growth and inflation?

View A Level Economics tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok