Chapter 1

  • describe what economists mean by the "economic problem"
  • understand the different factors of production as economic resources 
  • explain how specialisation can be used to address the problem of scarcity 
  • understand the role of markets in allocating scarce resources
  • explain what is meant by opportunity cost
  • explain how production possibility curves can be used to show scarcity, choice and oppurtunity cost
?

Chapter 1

Economics

1 of 25

Chapter 1

1a

2 of 25

Chapter 1

The study of how to allocate scarce resources in the most effective way.

3 of 25

Chapter 1

1b

4 of 25

Chapter 1

Economic problem

5 of 25

Chapter 1

2b

6 of 25

Chapter 1

2a

7 of 25

Chapter 1

How to allocate scarce resources among alternative uses.

8 of 25

Chapter 1

Factors of production

9 of 25

Chapter 1

3a

10 of 25

The resource inputs that are available in an economy for the production of goods and services.

11 of 25

3b

12 of 25

Goods

13 of 25

4a

14 of 25

Tangible products, i.e. products that can be seen and touched, such as cars, food and washing machines.

15 of 25

4b

16 of 25

Services

17 of 25

5a

18 of 25

Intangible products, i.e. products that cannot be seen or touched, such as banking, beauty therapy and insurance.

19 of 25

5b

20 of 25

Land

21 of 25

6a

22 of 25

Natural resources in an economy.

23 of 25

6b

24 of 25

Labour

25 of 25

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »