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The Basic Economic Problem- igcse eco Cheat Sheet (DRAFT) by

Economics Unit 1 cheat notes

This is a draft cheat sheet. It is a work in progress and is not finished yet.

The Nature of the Economic Problem

The Economic Problem: unlimited wants exceeding finite resources.
Scarcity occurs when there are not enough resources to satisfy the wants of the people. Over a period of time wants continue to grow and change.
Economic Goods are goods that require resources to produce and therefore has an opport­unity cost.
Free Goods are goods that are in unlimited in resources and do not require any resources to make it so therefore do not have an opport­unity cost. Ex: sunlight.
 

Factors of Production

Factors of Produc­tion: These are the economic resources of capital, enterp­rise, land and labour [C.E.L.L]
Land: gifts of nature available for produc­tion.
Land is occupa­tio­nally mobile but geogra­phi­cally immobile.
There is risk that renewable resources can be turned into non renewable resources if exploited and over consumed.
The quality of land can be improved by taking care of the enviro­nment.
Capital: Human-made goods used in produc­tion.