Cambridge IGCSE and O Level Economics Revision notes, from the course that used the "Cambridge IGCSE and O Level Economics Study and Revision Guide 2nd edition"
Top-quality notes with a lot of detail for every topic will be the best choice when starting the course or preparing for your final exams...
Thank you for downloading those Revision Notes, this is the first document out of
the 3. This document will contain ways to revise for economics and section 1
notes only.
This document contains:
- Ways to revise for Economics Cambridge IGCSE and O Level
- Section 1: The basic economic problem
1. The nature of the economic problem
2. The factors of production
3. Opportunity cost
4. Production possibility curve
, Secti on 1: The basic economic problem
1. The nature of the economic problem
There's no limit to peoples wants, but there's a limit to resources
Thus the resources are scarce
Scarcity is the situation
where there are not unlimited limited
wants resources scarcity
enough resources to
satisfy everyone’s needs or wants
The basic economic problem – concern about
how best to allocate scarce resources in order to satisfy people’s needs and wants
It exists in every economy
Economics is the study of how resources are allocated to satisfy the unlimited needs and wants
Economic agents are:
o Individuals or households
o Firms
o The government
3 basic questions asked by economic agents:
o What to produce?
o How to produce it?
o For whom to produce it?
Private sector – refers to the economic sector of private individuals and firms; the main aim is to
earn profit
Public sector – refers to the activity directly involving the government; the main aim is to provide
a service
Goods – physical, tangible items
Services – non-physical, thus intangible items
Needs – goods and services which are essential for survival:
o Food
o Water
o Shelter (clothing)
Wants – goods and services which are not essential, but desired by different economic agents
Economic goods are products that require resources to produce it -> they have an opportunity
cost
A free good does not require resources to make it, this doesn’t have an opportunity cost
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller m1crowav. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £2.99. You're not tied to anything after your purchase.
