1. The Economic Problem By the end of this period of work, you: Must know definitions for scarcity, opportunity cost, economic goods, free goods, factor market and renewable resources.Must know definitions for scarcity, opportunity cost, economic goods, free goods, factor market and renewable resources. Must know the relationship between a PPB and opportunity cost.Must know the relationship between a PPB and opportunity cost. Should understand how an economic system attempts to solve the economic problem.Should understand how an economic system attempts to solve the economic problem. Should understand the role of prices in a free market economy.Should understand the role of prices in a free market economy. Could be able to link the economic problem to the current economic crisis.Could be able to link the economic problem to the current economic crisis.

6. Scarcity and Choice 1.What are the 3 problems all societies face? 2.In a market place, why do people aim to maximise their welfare? 3.What is an economic system? 4.In a free market economy, what does a government limit itself to? 5.What is the role of the public sector in a mixed economy? 6.What are the 4 sectors of production? Provide an example for each sector. 7.What is fixed capital? 8.What is working capital? 9.What are the 3 types of wealth? 10.What is a free good?

7. Scarcity and Choice 1.3 problems: 1.What goods and services to produce? 2.How best to produce goods and services 3.Who is to receive goods and services? 2.They have a limited amount of income and they seek to allocate their money in a way that improves their standard of living. 3.A network of organisations used by a society to resolve the basic problem of what, how much, how and for whom to produce. 4.Protecting the property rights of people and businesses using the legal system, and it also seeks to protect the value of money or the value of a currency. 5.The public (or state) sector typically supplies public, quasi-public and merit goods and intervenes in markets to correct perceived market failure. 6.4 sectors of production: 1.Primary eg farming, mining, fishing 2.Secondary eg manufacturing, food processing 3.Tertiary eg services 4.Quaternary eg research and development, IT 7.Machinery, equipment, new technology, factories and other buildings. 8.Stocks of finished and semi-finished goods (or components) that will be either consumed in the near future or will be made into consumer goods ready to buy. 9.3 types of wealth: 1.Financial wealth 2.Marketable wealth 3.Social capital 10.Free goods are not scarce and no cost is involved in consuming them.

11. The Economic Problem By the end of this period of work, you: Must know definitions for scarcity, opportunity cost, economic goods, free goods, factor market and renewable resources.Must know definitions for scarcity, opportunity cost, economic goods, free goods, factor market and renewable resources. Must know the relationship between a PPB and opportunity cost.Must know the relationship between a PPB and opportunity cost. Should understand how an economic system attempts to solve the economic problem.Should understand how an economic system attempts to solve the economic problem. Should understand the role of prices in a free market economy.Should understand the role of prices in a free market economy. Could be able to link the economic problem to the current economic crisis.Could be able to link the economic problem to the current economic crisis.