Can anyone help get my head round economics? Watch

benjipcane_no
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I'm struggling getting my head round economics.

I'm doing the edexcel specification - when reading through the books, I find it difficult to understand the concepts.

Can anyone help me look at the subject in a different light?

What is the main basis of economics? Whats it about in a nutshell? Can anyone sum it up in one go?

I think it really will help big time.

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sammyrj
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This might sound a bit airy-fairy, but underneath it all economics is about happiness

What exactly are you struggling with. Any specifics?
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jonny0679
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yes it is indeed, keep up the good work benjiman mate
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02mik_e
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economics is all about theory, once you get your head around this it will make things a lot easier for you. Economics in a nutshell is: resources are scarce, but wants are infinite (the basic economic problem).
Just learn your diagrams and your defintions and you will find things easier, trust me. Also try and do past papers.

Michael
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MeAndBubbles
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Economics is about applying a particular methodology, mostly calculus in trying to understand human behaviour within the field of economic activity.
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benjipcane_no
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(Original post by sammyrj)
This might sound a bit airy-fairy, but underneath it all economics is about happiness

What exactly are you struggling with. Any specifics?
I find some of the concepts difficult to understand in real terms. For instance: "The proportion of extra income that is spent on consumer goods is called the marginal propensity to consume (MPC)".

I look at that sentence and can't think how I can match that to the real world. Am I doomed?

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cool beans
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(Original post by benjipcane_no)
I find some of the concepts difficult to understand in real terms. For instance: "The proportion of extra income that is spent on consumer goods is called the marginal propensity to consume (MPC)".

I look at that sentence and can't think how I can match that to the real world. Am I doomed?

It's just a frame of mind that you need to get used to, you're not doomed.

For instance, the above sentence is just about how much a person will spend of their income. Say they earn £100 a week, if their MPC is 0.8, they'll spend 80% of that i.e £80. Obviously, this is theoretical, so in reality, a person would not spend exactly 80% of their income a week or whatever..
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trm90
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Unfortunately economics uses a lot of irritable jargon that only unnecessarily complicates things you'll study (despite the fact it's 'formal'), it's always a lot easier to dumb down the words first and then it'll make sense; though, try not to memorise concepts with dumbed down words because exams expect you to use economic terminology.
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adrenaline1989
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I always find that, like with anything, it takes time to understand the concept/methodology, and once you've mastered it in terms of you're understanding, then you can go and apply it to anything new that you've learnt. Economics, a subject at the beginning that had me completely baffled. I could barely grasp the most basic concept, nevertheless having sat there for a countless hours, reading the most basic concepts, it suddenly dawned upon me that everything would make sense.

Like somebody else mentioned, in economics, wants are infinite, but resources are scarce. How they are allocated depends entirely upon how the government plans its expenditure, and how markets allocate their goods to each competing need. Any attempt to correct this misallocation of resources - (which incidentally is a good definition for 'market failure) can result (from a governments perspective) in government failure. Whereby in trying to correct the orginial market problem, a further one has been intrododuced at the expense of the consumers. This may be called 'allocative inefficiency'.

Just keep reading the basics, and read from a variety of economics sources, as well as periodicals, and any magazines that have anything related to economics as a subject or the markets/firms/organisation.

Wish you the best of luck
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Overmars
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(Original post by benjipcane_no)
What is the main basis of economics? Whats it about in a nutshell? Can anyone sum it up in one go?
Common sense.
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Mustard-man
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Supply and demand.
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Rob_dob
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(Original post by Mustard-man)
Supply and demand.
^^

Pretty much that, with a bit on the side.
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Fusion
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Incentives and rationality
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