Economics is a vast subject with multiple sub-branches. Hence, as a student of A-level economics, you might often wonder about shortlisting a few sections of the subject so that you would not need to drown yourself in the curriculum.
Your prayers are answered as the following sections will shed light on a few concepts of economics that are easy to understand, important, and can help you score good grades as well.
Hence, read on with due diligence
The Concept Of Demand And Supply
As per the opinion of a revered A-level Economics Tutor Online, students preparing for The level economics exam need to be clear about the concept of demand and supply.
Basically, the whole world’s economy is standing tall thanks to this concept.
Details are as follows
The concept of demand and supply applies to free-market economies and it involves coming up with the right prices for goods and services depending on the demand for the same.
One should understand that the price of a good or service needs to be balanced and failure to do that will only drive the target audience away from the product or service thereby rendering the product a failure. This is why a brand or business needs to carry out a lot of market research and find ways to keep production costs or cost of running a service down so that they can make profits, even when the product or service they are offering comes with a reasonable price.
The Concept Of Making The Most Out Of Opportunities
A revered A-level Economics Tutor Online will also advise their students to have a clear understanding of opportunities and ways a business, brand or even a person can make the most out of them.
For instance, a person suddenly comes up with a boatload of money. Now, the person can either choose to keep the money as a fixed deposit and earn a steady interest from the bank or choose to open up a business and become an entrepreneur.
This is known as weighing your opportunity based on the pros and cons it offers. Economists, entrepreneurs, and marketing professionals do this all the time to stay on top of their games.
Irretrievable Or Otherwise Known As The Sunk Cost
Developing a product or a service needs a lot of time, effort, and money. Often, a newly launched product or service may or may not become a success in the market thus forcing the service provider or the brand to stop offering the same. Now the money, time, and effort a brand or business loses on a failed product or service are known as sunk cost or irretrievable cost.
This is yet another concept of economics that is pretty easy to understand.
Conclusion
Another important concept of economics is the trade war. A real-world example is the long-standing trade war between China and the United States. The so-called trade war took off when the Americans initiated a few protective measures and then the Chinese struck back. The result was that none of the two countries suffered any huge impact in their respective economies but their activities surely left the global economy to suffer several consequences. For more details about the trade war between China and the US, be sure to get in touch with a revered online tutor who offers assistance to students of A-level economics, today!
