Unlock your academic success with our professional essay writing services today!

Coursepivot has top writers to help with your assignments

Economic Problems Summary

The economizing problem rotates around the allocation of the various resources among competing wants. This is because of

  • Unlimited wants
  • Limited resources

Resources and factor payments.

The various resources include,

  • Land. This is the space, it is a natural resource and is paid in rent.
  • Capital. This is a physical asset in the production, it is paid in interest.
  • Labor. This are the skills, ability, knowledge and the effort exerted by the people in production.
  • Entrepreneurship. The economic agent who creates the enterprise, paid in profit.

Full employment.

Natural rate of unemployment and down time for normal maintenance .

Unemployment is when there is utilization of resource in a less manner than what is consistent with full employment.

Economic efficiency.

Consist of three components

  • Allocative efficiency-measured using a concept known as parapeto  superiority.
  • Technical efficiency-for a given output you minimize the cost.
  • Full employment-for a system to be economically efficient then this is  required.

Allocation of resources. Implies that decision must be made ,

Choice is costly but there is an opportunity cost.

The production possibility curve. is a model used to show choices.

Inefficiency, unemployment, and underemployment.  Inefficiency is the violation of the production possible.

Economic growth. This is the  shift to the right of the production possibility curve . this can only happen if,

  • There is more revenue
  • better technology

Economic system. Rarely exists in a pure form, classification of the system is based in the dominant characteristics.

  • pure capitalism-private ownership of production activity.
  • command- government make the decision with force of law.
  • Traditional-based on social mores or ethics.
  • Communism-everyone shares equally in the output of the society in large.
  • Socialism-maximizes individual welfare based on perceived needs.
  • Mixed system-contains elements of more than one system for example the United States of America.


Define production
Using resources to make and sell goods and services to satisfy consumer wants

What is the input and output in production/productive activity
The input are resources to productive activities, and goods and services are the outputs or products

What are the factors of production? Give examples for each
Capital: Machinery, capital goods, and finance, man made resources
Enterprise: A firm, or entrepreneurs to combine the factors of production, who have the business know-how, to run and organize the production process
Labor: Human resources, manual labor, provide physical and mental effort
Land: Natural resources-seas, rivers, minerals, forests, deserts, chemicals/gases from the air, fertile soil, coal/oil, and animals

What is a free good?
Resources that are not scarce, such as air (but it isnt quite because as pollution rises etc)

What is a basic need?
A need is an essential good, that we need for survival, such as clean water, food and shelter

What is consumption?
Using up goods and services to satisfy our needs and wants

What are the people that buy goods and services called and what is their spending?
Consumers, consumption expenditure

What is exchange in the modern economy?
In order to obtain goods and services they can’t produce themselves, like crops for a normal city goer, they must engage in trade/exchange by going to work to earn money, then exchanging this money for g and s.

What is a consumer good, and what are the sub types
Consumer good is a good that satisfies consumers wants.
Consumer durable good: A good that lasts a relatively long time, a.k.a car, furniture, computer
Non-durable good: Goods that perish quickly, food, drinks, matches

What is a consumer service?
People doing stuff for us like medical services, health care, police

What are capital goods? Why are they known as investments?
Goods that used in production to make other goods, usually tools and machinery like screwdrivers. Or roads, power stations and factory buildings. They;re known as investments bc firms can use them to produce g and s and it will help increase production + help the economy grow

What is a public good?
Its a non excludable good, you can’t stop people from benefiting from it even if they don’t pay. They’re provided by the government because everyone benefits from them but people might not pay for them, and no private firm wants to produce these goods because they;re unprofitable.

Examples of public goods
Street lighting, the police, law and order, defense-public sector stuff

What are Merit goods
Goods and services that the government provide for free to consumers as they think that consumers will benefit from them, and to benefit the economy. Such as healthcare and education.

How are public goods and merit goods payed for?
TAX from people’s incomes. We’re the tax payers

What economic problem is choosing how resources are used related to
Scarce resources have alternative uses, or opportunity cost

What is opportunity cost?
The benefit of the next best alternative foregone. There will always be a conflict of interests as some group of people won’t get what they wanted.

An example of opportunity cost
In everything from buying goods and services to allocating resources. A plot of land could be used for farming by a company which could have been used for building a new school. the benefit foregone is the children’s education or whatever

What is a production possibility curve look like, and what does it show
Its an outward bending curve sloping downwards. The combined maximum output of two products or groups of products a firm or an economy can produce efficiently with existing resources and technology. How much of two things a company can produce.

Why do some people have greater choice?
Usually, people in MEDC’s, with higher incomes have access to more available resources in their countries

How to Order a Custom Paper on Coursepivot in Three Simple Steps

Step 1: Sign up or log in to your account on Course Pivot

  • Visit our website, coursepivot.com, and either sign up for a free account using your email address and username or log in to your existing account. By visiting our website, you gain access to a platform dedicated to providing exceptional essay writing services.
  • Whether you are a new user or a returning customer, you can easily create an account or log in to your existing one, enabling you to enjoy the benefits of our website and its features.

Step 2: Fill out the order form with your requirements

  • Once you are logged in, navigate to the order form page to start filling in the details of your order.
  • If you need any assistance during this process, our support team is readily available to help. Simply send an inquiry to our support team, and they will promptly respond to address your concerns and provide guidance.
  • On the order form page, you will be prompted to enter your question's title, description, and category. This information helps us understand the scope of your essay and ensure that we assign the most suitable writer for your task.
  • Additionally, you will be asked to select the deadline, paper format, line spacing, and total budget for your order. These choices enable us to deliver a custom-written essay that meets your specific requirements.
  • Once you have filled in all the necessary details, click the 'submit' button to proceed to the next step.

Step 3: Wait for order delivery and review your paper

  • After you have submitted your order, our support team will promptly match it with the best writer available, considering their expertise in the relevant subject area.
  • The assigned writer will then begin working on your essay, ensuring thorough research, high-quality writing, and adherence to your specifications.
  • Once the writer has completed the essay, it will undergo a comprehensive review by our quality team to ensure its accuracy, coherence, and overall excellence. The finalized paper will be delivered to you via email before the agreed-upon deadline, allowing you sufficient time for review.
  • Upon receiving the paper, you have the option to accept it and rate your writer based on your satisfaction. If you feel any revisions are necessary, you can request them at any time until you are fully content with the delivered work.
  • Our dedicated support team is always available to address any concerns or modifications you may require.
  • By following this three-step process, you can easily submit an order on our essay writing website, CoursePivot.com, and receive a high-quality, customized essay that meets your academic needs.

Homework help and research paper assistance

Order custom essays from top writers today and get a professional paper delivered to your email on time. Coursepivot has top tutors and writers at your service.

Order Now