Economics Questions Thread

[chasej]

Just wondering for those who have finished 1-4, I have gone through Unit 1 completely, and am just wondering if it is worth going through all of Unit 2? Or going straight to Unit 3, in other words it is worth / relevant for me to learn Unit 2 content for 3/4?

Unit 3 is going to repeat unit 1 and 2 to be honest. I recommend you just start at unit 3.

[abcdqdxD]

Just wondering for those who have finished 1-4, I have gone through Unit 1 completely, and am just wondering if it is worth going through all of Unit 2? Or going straight to Unit 3, in other words it is worth / relevant for me to learn Unit 2 content for 3/4?

Are you in year 11?

[chasej]

Are you in year 11?

Iirc they're doing 3/4 next year without 1/2. Pretty sure they're 2014 grad.

[Politics]

Iirc they're doing 3/4 next year without 1/2. Pretty sure they're 2014 grad.

Yeap, 2014 Grad.

[abcdqdxD]

Yeap, 2014 Grad.

Start at unit 3 and learn it very very very very well. Make sure you understand why things work the way they do, don't fall into the trap of trying to rote-learn. Conceptual understanding is vital in this subject.

Also, I wouldn't recommend starting unit 4 until May at the earliest. So don't get too carried away over the holidays.

Good luck!

[millie96]

How does the free operation of the market system (or price system) normally allocate resources efficiently among competing uses?

[unihigh1]

In the free market system, supply of and demand for control the market. So if there is high demand for a certain product, it is likely to lead to a shift of the demand curve to the right, leading to an increase in the equilibrium price. This may see producers more inclined to reallocate resources to produce the item that there is the greatest demand for, in order to maximise profit margins. This therefore increases allocative efficiency, as society's needs and wants are maximised through the supply of goods and services that they demand more of.

If you want me to explain any questions about economics further please don't hesitate to PM me.

[chasej]

Thereby goods and services are allocated between competing uses using the market mechanism where consumers determine levels of demand for goods and services, which set relative prices, and hence effect business's willingness/ability/desire to produce in one area or another.

Important to note that relative prices are set by the free forces of both demand and supply, not just demand.

Edit: Why was 90% of my post removed? Wtf

[abcdqdxD]

Important to note that relative prices are set by the free forces of both demand and supply, not just demand.

Edit: Why was 90% of my post removed? Wtf

Hey sorry, pressed modify instead of quote

[chasej]

Hey sorry, pressed modify instead of quote

Is it possible to get the post back?

[abcdqdxD]

Is it possible to get the post back?

unfortunately not

[Politics]

"The price of eggs would be expected to increase given a fall in wheat production"

I feel like this is a pretty simple question, however i do not really understand the correlation between the two, can anyone give me a hand and explain how the supply and demand for eggs would change?

[abcdqdxD]

"The price of eggs would be expected to increase given a fall in wheat production"

I feel like this is a pretty simple question, however i do not really understand the correlation between the two, can anyone give me a hand and explain how the supply and demand for eggs would change?

Yeah it is a bit ambiguous. Probably not the best example of supply and demand, so ignore it. The question is assuming people will consume more eggs (higher demand, higher price) if wheat becomes less readily available (which is debatable).

[HawthornM8]

"The price of eggs would be expected to increase given a fall in wheat production"

I feel like this is a pretty simple question, however i do not really understand the correlation between the two, can anyone give me a hand and explain how the supply and demand for eggs would change?

LMFAO WHAT? I'm not exactly a redneck chicken breeder but from my vast experience in watching cartoons, it looks as though mother chickens who 'pop out' eggs are often sitting on a hay stack ... One of the major ingredients/components of hay can be wheat. A cost increase of wheat (due to a rise in wheat scarcity) could then in turn affect redneck chicken breeders chickens comfort if they were to take away that hay, so they would have to pay more to get that wheat. To equal out their loss, due to having to pay more money for their factors of production, the price of eggs would rise (law of supply) because I think eggs would be considered inelastic demand (which I think means the demand will always be there regardless of the price because it is a necessity like water and rent) because it is a commonplace household item and it the fall in wheat production would effect all egg suppliers.

A lot of that is probably wrong with me trying to be a smart ass - I think the correlation between the two is pretty stupid.

[chasej]

LMFAO WHAT? I'm not exactly a redneck chicken breeder but from my vast experience in watching cartoons, it looks as though mother chickens who 'pop out' eggs are often sitting on a hay stack ... One of the major ingredients/components of hay can be wheat. A cost increase of wheat (due to a rise in wheat scarcity) could then in turn affect redneck chicken breeders chickens comfort if they were to take away that hay, so they would have to pay more to get that wheat. To equal out their loss, due to having to pay more money for their factors of production, the price of eggs would rise (law of supply) because I think eggs would be considered inelastic demand (which I think means the demand will always be there regardless of the price because it is a necessity like water and rent) because it is a commonplace household item and it the fall in wheat production would effect all egg suppliers.

A lot of that is probably wrong with me trying to be a smart ass - I think the correlation between the two is pretty stupid.

The question is too ambitious and specific and not worth worrying about it my opinion. But if I had to answer that would have been my logic also.

In my opinion, you've been to harsh on chicken farmers, they do a good job.