Introduction to Economics and the Economic Problem

What the resources cover

This unit is about the basic economic problem: wants are unlimited, resources are scarce, so choices must be made. The flashcard deck Economics Cie runs through goods, services, wants, needs, scarcity, free goods and opportunity cost. The mind map Economics Chapters 1.1-1.2 covers the factors of production: land, labour, capital and enterprise. The mind map Introduction to Economics starts from the origin of the word, from the Greek for household management, and moves on to early thinkers.

Where to start

Begin with a broad map, such as Introduction to Economics or The Economic Problem, to see how the ideas link. Then read the slides Introduction to AS Microeconomics, which define opportunity cost with a government spending example. Next, move to Production Possibility Diagrams, which explains that the boundary shows the maximum possible output from a fixed set of resources and technology.

Using quizzes and maps together

Once you have the ideas, test them. The notes Economics - MCQ L1 Intro ask what all economic questions are about and what an economist means by scarcity. The quiz EC201 Final Exam opens with the difference between normative and positive statements. After each attempt, return to the matching map and look at the points you missed. Past paper style questions, such as defining opportunity cost or explaining a production possibility frontier with a diagram, are in the notes on Section 1 past paper questions.

Exams and levels

The resources mention A-level Economics, GCSE Economics, IGCSE Economics, IB Economics, AP Microeconomics, AP Macroeconomics, CSEC Economics and HKDSE, alongside university course quizzes. Most of the material is at school level, with a good share for university students.

Where it sits

This unit belongs to the Foundations of Economics strand in Economics. Choose one resource that suits you today, then build your own flashcards from the terms you find hardest.