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IGCSE Economics PDF Notes / 1 The basic economic problem PDF Notes
  • 1.1-The-basic-economic-problem.pdf
  • 1.1.2-Resource-allocation-decisions-Add-on-Notes.pdf
  • 1.2-The factors of production.pdf
  • 1.3-Opportunity-cost.pdf
  • 1.4-Production-possibiity-curve.pdf
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1 The basic economic problem PDF Notes / IGCSE Economics Notes


IGCSE Economics The Basic Economic Problem

Scarcity, Choice, Economic Goods and Free Goods

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Click the highlighted blanks to reveal key definitions and ideas.

1 Meaning of the basic economic problem

The economic problem exists because not everyone’s wants can be
________________ satisfied
.
This happens because of
________________ scarcity
.
Scarcity arises because resources are
________________ limited
but wants are unlimited.
Because of scarcity people must make
________________ choices
.

2 Why the economic problem can never be solved

Human wants are
________________ unlimited
.
Resources are
________________ limited
.
Therefore wants
________________ exceed
resources.
Because of this, scarcity will always
________________ exist
.

3 Nature of the problem

Every economy faces the condition of
________________ scarcity
.
Because of scarcity, choices must be
________________ made
.
Economies must decide what to produce, how to produce and for
________________ whom
to produce.

4 Economic goods

Economic goods are goods that are
________________ scarce
relative to demand.
Because they are scarce they usually have a
________________ price
.
Human
________________ effort
is needed to obtain them.
Economic goods therefore involve opportunity
________________ cost
.

5 Free goods

Free goods do not require scarce
________________ resources
.
Therefore they have no opportunity
________________ cost
.
Free goods have utility but no exchange
________________ value
.
Free goods are provided by
________________ nature
.

You need to know:

(a) The basic economic problem is caused by limited resources and unlimited wants.

(b) Scarcity forces individuals and societies to make choices.

(c) The economic problem can never disappear because wants continue to grow.

(d) Every economy must decide what to produce, how to produce and for whom to produce.

(e) Economic goods use scarce resources while free goods do not.

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Course content

1.1 The nature of the basic economic problem Topic Questions
1.2 Factors of production Topic Questions
1.3 Opportunity cost Topic Questions
1.4 Production possibility curve (PPC) diagrams Topic Questions
2.1 The role of markets in allocating resources
2.2.1-Demand
2.3 -Supply
2.4-Price determination
2.5 Price Changes
2.6 Price Elsasticity of Demand
2.7-Price Elasticity of Supply
2.8 Market Economic System
2.9-Market Failure
2.10-Mixed Economic System
3.1 Money and banking Topic Questions
3.2 Households Topic Questions
3.3 Workers Topic Questions
3.4 Firms Topic Questions
3.5 Firms and production Topic Questions
3.6 Firms’ costs, revenue and objectives Topic Questions
3.7 Types of markets Topic Questions
4.1 Government macroeconomic intervention
4.2 Fiscal policy
4.3 Monetary policy
4.4 Supply-side policy
4.5 Economic growth
4.6 Employment and unemployment
4.7 Inflation
5.1 Living standards
5.2 Poverty
5.3 Population
5.4 Differences in economic development between countries
6.1 Specialisation and free trade
6.2 Globalisation and trade restrictions
6.3 Foreign exchange rates
6.4 Current account of the balance of payments
1.1 The nature of the basic economic problem Topic Questions
1.2 Factors of production Topic Questions
1.3 Opportunity cost Topic Questions
1.4 Production possibility curve (PPC) diagrams Topic Questions
2.1 The role of markets in allocating resources Topic Questions
2.2 Demand Topic Questions
2.3 Supply Topic Questions
2.4 Price determination Topic Questions
2.5 Price changes Topic Questions
2.6 Price elasticity of demand (PED) Topic Questions
2.7 Price elasticity of supply (PES) Topic Questions
2.8 Market economic system Topic Questions
2.9 Market failure Topic Questions
2.10 Mixed economic system Topic Questions
3.1 Money and banking Topic Questions
3.2 Households Topic Questions
3.3 Workers Topic Questions
3.4 Firms Topic Questions
3.5 Firms and production Topic Questions
3.6 Firms’ costs, revenue and objectives Topic Questions
3.7 Types of markets Topic Questions
4.1 Government macroeconomic intervention Topic Questions
4.2 Fiscal policy Topic Questions
4.3 Monetary policy Topic Questions
4.4 Supply-side policy Topic Questions
4.5 Economic growth Topic Questions
4.6 Employment and unemployment Topic Questions
4.7 Inflation Topic Questions
5.1 Living standards Topic Questions
5.2 Poverty Topic Questions
5.3 Population Topic Questions
5.4 Differences in economic development between countries Topic Questions
6.1 Specialisation and free trade Topic Questions
6.2 Globalisation and trade restrictions Topic Questions
6.3 Foreign exchange rate Topic Questions
6.4 Current account of the balance of payments Topic Questions
Paper 2 Solutions for Board Exam Papers IGCSE Economics
Topic 3- Microeconomic decision-makers
Topic 1 - The basic economic problem
Topic 2-Factors of production
Topic 5- Microeconomics and macroeconomics
Topic 18-Workers
Topic 19 -Trade unions
Topic 20-Firms
IGCSE Economics Syllabus
IGCSE Economics Glossary and Key-terms
Topic-1-Basic-Economic-Problem Flip Book
Topic -2-The Allocation of Resources Notes Flip Book
Topic 3 Microeconomic decision-makers Flip Book
Topic 4 Govt and the Macroeconomy Flip Book
Topic 5 Economic Development Flip Book
Topic 6 International Trade and Globalisation Flip Book
Topic-1-Basic-Economic-Problem-Nature-of-Economic-Problem
Topic-2-Basic-Economic-Problem-Factors-of-Production
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