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
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Chapter 1

Economics

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Chapter 1

1a

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Chapter 1

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

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Chapter 1

1b

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Chapter 1

Economic problem

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Chapter 1

2b

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Chapter 1

2a

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Chapter 1

How to allocate scarce resources among alternative uses.

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Chapter 1

Factors of production

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Chapter 1

3a

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

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3b

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Goods

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4a

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

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4b

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Services

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5a

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

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5b

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Land

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6a

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Natural resources in an economy.

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6b

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Labour

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