Candidates must be able to demonstrate apt knowledge of the following topics in Basic Economic Problem.
Topic | Candidates should be able to: |
The nature of economic of the problem | • define the economic problem • analyse examples of the economic problem • explain the difference between economic and free goods |
The Factors of Production | • define land, labour, capital and enterprise • explain the characteristics of the factors of production • evaluate the influences on the mobility of the factors of production • evaluate the causes of changes in the quantity and quality of factors of production |
Opportunity Cost | • define opportunity cost • give examples of opportunity cost in different contexts • evaluate the role of opportunity cost in decisions made by consumers, workers, producers and governments when allocating their resources |
Production possibility curve diagrams (PPC) | • define a PPC • draw and interpret a PPC • explain the significance of different points on a PPC • analyse the causes and consequences of movements along and shifts in PPCs |