Cambridge IGCSE Economics — The Basic Economic Problem

Led by Adam Smith Simulacrum

The opening module of IGCSE Economics — scarcity, factors of production and their rewards, opportunity cost, and PPC diagrams including movements and shifts. Taught by Adam Smith Simulacrum.

1. Module 1

   The Basic Economic Problem: Scarcity, Factors and Opportunity Cost

   Led by Adam Smith Simulacrum

   The question

   What is the basic economic problem, and how does it shape every decision made by consumers, workers, firms and governments? Adam Smith Simulacrum covers the concept of scarcity and its examples for all four economic actors; economic goods versus free goods; the three resource allocation questions; the four factors of production (land, labour, capital, enterprise) and their rewards (rent, wages, interest, profit); the causes of changes in quantity and quality of factors; opportunity cost with examples for each actor; and the full PPC diagram — drawing, points inside/on/beyond the curve, movements along the curve, and outward and inward shifts.

   Outcome

   The student can define the basic economic problem; explain scarcity; define all four factors of production and their rewards; apply opportunity cost to decisions; and draw, label and interpret PPC diagrams. (Module 1 — The Basic Economic Problem)

   Sub-units

   1. ○ 1.1 Scarcity, Wants and the Three Economic Questions Open this unit → ✓ ↻
   2. ○ 1.2 Factors of Production and Their Rewards Open this unit → ✓ ↻
   3. ○ 1.3 Opportunity Cost and the PPC Open this unit → ✓ ↻
   Begin the course → Print certificate of completion