- Definition of the nature of the economic problem (finite resources and unlimited wants);
- Definition of the factors of production (land, labour, capital, enterprise);
- Definition of opportunity cost and analysis of particular circumstances to illustrate the concept;
- Demonstration of how production possibility curves can be used to illustrate choice and resource allocation;
- Evaluation of the implications of particular courses of action in terms of opportunity cost.
Wednesday, May 08, 2013
Labels: O Level, Study Guide 2013, Theme 01: Basic economic problem: choice and the allocation of resources