(Original post by Junaid96)
Don't worry about not knowing anything about Economics
any preconceptions you may have will most likely be wrong. We don't look at stocks - no shares, no funky FTSE 100 graphs.
Economics is quite simple really - it is the study of the questions "What should we produce, how should we produce it, and who should we produce it for?"
- Do we produce what is demanded for with money, or what we believe will benefit the world the most (so do we produce burgers or fruit, do we provide healthcare or cigarettes)
- Who for => should private companies be left to sell street lighting? Not really, as when trying to sell it to a neighbourhood no one will want to buy it as they each know that whoever buys it will provide light for the whole area, and won't be able to 'block' the light for some people. Therefore the government has to step in.
- How should we produce it => is it best to have government production means? e.g. the BBC can be controlled to produce quality, suitable products, or do we need private companies to provide competition and push innovation and creativity.
- Why do women buy wedding dresses they will only wear once? Simple - any company trying to rent out wedding dresses would have to stock hundreds of thousands of different dresses to suit all tastes and sizes, and the chances are each single dress will only be rented out once of twice due to ever changing fashion and design. The cost of renting such a specialised garment would therefore likely be more expensive than buying a dress (as there will be extra costs for storing dresses for years before they are rented out again).
- Is it worth investing £1bn into a company which is going to mine a planet full of gold? Nope, as when the gold comes back here, we'll have so much of it that it won't be worth anything. It's not like gold will be a rare valuable substance any more, and you'll have lost all your money.
Economics is all about thinking and common sense - there's NO maths whatsoever in the AS-level. All you have to do is figure out how to sketch rough graphs (no points or plotting, just sketching a diagonal line to show how demand roughly decreases as price goes up) and then find percentage increases in prices within a table (....)
It's also incredibly straightforward in terms of structure - you just learn the book and you're sorted.
Lastly, you'll finally understand the news! The next time the economics editor on BBC talks about injecting £50bn to stimulate investment and consumer expenditure and promote growth in GDP, you'll be able to not only understand them, but critique the policy