Candidates must be able to demonstrate apt knowledge of the following topics in Basic Economic Problem.

TopicCandidates 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
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

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