Subjects
Maths
Chemistry
Biology
English Language
History
Responding to change (a2 only)
Infection and response
Homeostasis and response
Energy transfers (a2 only)
Cell biology
Organisms respond to changes in their internal and external environments (a-level only)
Biological molecules
Organisation
Substance exchange
Bioenergetics
Genetic information & variation
Inheritance, variation and evolution
Genetics & ecosystems (a2 only)
Ecology
Cells
Show all topics
Britain & the wider world: 1745 -1901
1l the quest for political stability: germany, 1871-1991
The cold war
Inter-war germany
Medieval period: 1066 -1509
2d religious conflict and the church in england, c1529-c1570
2o democracy and nazism: germany, 1918-1945
1f industrialisation and the people: britain, c1783-1885
1c the tudors: england, 1485-1603
2m wars and welfare: britain in transition, 1906-1957
World war two & the holocaust
2n revolution and dictatorship: russia, 1917-1953
2s the making of modern britain, 1951-2007
World war one
Britain: 1509 -1745
Show all topics
6
0
Jayden Barrett
09/12/2025
Economics
Economic methodology and the economic problem
245
•
9 Dec 2025
•
Jayden Barrett
@jayden_bar12
Economics is all about understanding how societies deal with unlimited... Show more
Ever wondered how economists make sense of the complex world around us? They use specific tools and assumptions to study economic behaviour. Ceteris paribus is a fancy Latin term meaning "all other things being equal" - it's like pressing pause on everything else so economists can focus on one factor at a time.
Economics involves two types of statements that you'll encounter constantly. Positive statements are facts that can be tested with evidence - think "unemployment rose by 2% last year." Normative statements contain opinions and value judgements - like "the government should reduce taxes." Spotting the difference between these is crucial for your exams.
The whole point of economic activity is producing goods and services that satisfy what people need and want. This requires the four factors of production: land (natural resources), labour (workers), capital (machinery and buildings), and enterprise (entrepreneurs who take risks).
Resources aren't infinite though. We've got renewable resources like solar energy that replenish themselves, and non-renewable resources like oil that run out once used. This scarcity creates the fundamental economic challenges we'll explore.
Key Insight: Understanding the difference between positive and normative statements will help you analyse economic arguments more critically - a skill that's useful far beyond economics class!
Here's where economics gets real - we live in a world where people want everything but can't have it all. Scarcity is the basic economic problem: unlimited wants meet limited resources, forcing us to make choices. Every choice comes with a cost.
Opportunity cost is arguably the most important concept in economics. It's not just about money - it's the value of whatever you give up when making a decision. Choose to spend Saturday studying? Your opportunity cost might be missing a brilliant day out with friends.
Production possibility frontiers (PPF) are graphs that show the maximum combinations of two goods an economy can produce when using all resources efficiently. These diagrams reveal trade-offs - producing more of one thing means less of another. Points inside the curve show inefficiency, while points outside are currently impossible.
The law of diminishing returns explains why PPF curves bow outward. When you keep adding more of one resource (like workers) while others stay fixed, each additional unit becomes less productive. Think of cramming too many students into one classroom - eventually, adding more just creates chaos rather than better learning.
Exam Tip: PPF diagrams are exam favourites! Practice drawing them and explaining what different points mean - it's a guaranteed way to pick up marks.
Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
You can download the app from Google Play Store and Apple App Store.
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
App Store
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
Jayden Barrett
@jayden_bar12
Economics is all about understanding how societies deal with unlimited wants but limited resources. This section covers the fundamental tools and concepts that economists use to analyse real-world problems and make sense of how economies work.
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Ever wondered how economists make sense of the complex world around us? They use specific tools and assumptions to study economic behaviour. Ceteris paribus is a fancy Latin term meaning "all other things being equal" - it's like pressing pause on everything else so economists can focus on one factor at a time.
Economics involves two types of statements that you'll encounter constantly. Positive statements are facts that can be tested with evidence - think "unemployment rose by 2% last year." Normative statements contain opinions and value judgements - like "the government should reduce taxes." Spotting the difference between these is crucial for your exams.
The whole point of economic activity is producing goods and services that satisfy what people need and want. This requires the four factors of production: land (natural resources), labour (workers), capital (machinery and buildings), and enterprise (entrepreneurs who take risks).
Resources aren't infinite though. We've got renewable resources like solar energy that replenish themselves, and non-renewable resources like oil that run out once used. This scarcity creates the fundamental economic challenges we'll explore.
Key Insight: Understanding the difference between positive and normative statements will help you analyse economic arguments more critically - a skill that's useful far beyond economics class!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Here's where economics gets real - we live in a world where people want everything but can't have it all. Scarcity is the basic economic problem: unlimited wants meet limited resources, forcing us to make choices. Every choice comes with a cost.
Opportunity cost is arguably the most important concept in economics. It's not just about money - it's the value of whatever you give up when making a decision. Choose to spend Saturday studying? Your opportunity cost might be missing a brilliant day out with friends.
Production possibility frontiers (PPF) are graphs that show the maximum combinations of two goods an economy can produce when using all resources efficiently. These diagrams reveal trade-offs - producing more of one thing means less of another. Points inside the curve show inefficiency, while points outside are currently impossible.
The law of diminishing returns explains why PPF curves bow outward. When you keep adding more of one resource (like workers) while others stay fixed, each additional unit becomes less productive. Think of cramming too many students into one classroom - eventually, adding more just creates chaos rather than better learning.
Exam Tip: PPF diagrams are exam favourites! Practice drawing them and explaining what different points mean - it's a guaranteed way to pick up marks.
Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
You can download the app from Google Play Store and Apple App Store.
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
6
Smart Tools NEW
Transform this note into: ✓ 50+ Practice Questions ✓ Interactive Flashcards ✓ Full Mock Exam ✓ Essay Outlines
Explore key concepts in microeconomics with this comprehensive summary covering positive and normative statements, the factors of production, and the basic economic problem of scarcity. Ideal for A-level students preparing for exams, this resource provides clear explanations and examples to enhance understanding of economic principles.
EconomicsExplore key concepts of scarcity, economic systems, and the factors of production in this comprehensive summary. This resource covers the nature of economic activity, the role of specialization, and the impact of different economic systems on resource allocation. Ideal for students seeking to grasp foundational economic principles and their real-world applications.
EconomicsExplore the fundamental concepts of economic scarcity, resource allocation, and opportunity cost. This summary covers the nature of economic problems, types of goods and services, and the role of economic agents. Ideal for students seeking clarity on economic methodology and decision-making processes. Key topics include economic goods, trade-offs, and the free-rider problem.
EconomicsExplore the fundamental concepts of the economic problem, including scarcity, opportunity cost, and trade-offs. This summary covers key questions such as what to produce, how to produce, and for whom to produce, essential for Edexcel AS/A Level Economics. Ideal for students seeking clarity on economic principles.
EconomicsExplore the core concepts of economics, including the nature of economic systems, the problem of scarcity, and resource allocation. This summary covers key topics such as positive and normative statements, opportunity cost, and the factors of production. Ideal for A Level Edexcel A students seeking a comprehensive understanding of economic principles.
EconomicsExplore key concepts in economics, including the economic problem, opportunity cost, and resource allocation. This summary covers essential topics for A-Level students, focusing on economic systems, factors of production, and the nature of economics as a social science.
EconomicsApp Store
Google Play
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
Sociology