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O/L Unit 1: Basic economic problem: choice and the allocation of resources

Topic #
The economic problem
Define the nature of the economic problem in terms of the conflict between:
• finite resources and
• unlimited wants
The factors of production
Define the four factors of production:
• land
• labour
• capital
• enterprise
Opportunity cost
• Define the concept of opportunity cost
• Analyse particular circumstances to illustrate the concept
Production possibility curves
Demonstrate how production possibility curves can be used to illustrate choice and resource allocation
The implications of courses of action
Evaluate the implications of particular courses of action in terms of:
• opportunity cost

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