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    Revision For GCSE Economics Section 1

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    ĞäůťâmVěŕmå
    1) The document provides revision notes on GCSE Economics, covering topics like the fundamental economic problem of scarcity, factors of production (land, labor, capital, enterprise), opportunity cost, and production possibility curves. 2) It defines scarcity as insufficient resources to satisfy everyone's wants and needs, and lists the four factors of production. 3) Opportunity cost is defined as the next best alternative forgone when making a choice, which is never in monetary terms but rather the benefits of the alternative action not taken.

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    Revision For GCSE Economics Section 1

    Uploaded by

    ĞäůťâmVěŕmå
    97 views2 pages
    1) The document provides revision notes on GCSE Economics, covering topics like the fundamental economic problem of scarcity, factors of production (land, labor, capital, enterprise), opportunity cost, and production possibility curves. 2) It defines scarcity as insufficient resources to satisfy everyone's wants and needs, and lists the four factors of production. 3) Opportunity cost is defined as the next best alternative forgone when making a choice, which is never in monetary terms but rather the benefits of the alternative action not taken.

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    igcse 1st section

    Original Title

    Revision for GCSE Economics Section 1

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    1) The document provides revision notes on GCSE Economics, covering topics like the fundamental economic problem of scarcity, factors of production (land, labor, capital, enterprise), opportunity cost, and production possibility curves. 2) It defines scarcity as insufficient resources to satisfy everyone's wants and needs, and lists the four factors of production. 3) Opportunity cost is defined as the next best alternative forgone when making a choice, which is never in monetary terms but rather the benefits of the alternative action not taken.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    97 views2 pages

    Revision For GCSE Economics Section 1

    Uploaded by

    ĞäůťâmVěŕmå
    1) The document provides revision notes on GCSE Economics, covering topics like the fundamental economic problem of scarcity, factors of production (land, labor, capital, enterprise), opportunity cost, and production possibility curves. 2) It defines scarcity as insufficient resources to satisfy everyone's wants and needs, and lists the four factors of production. 3) Opportunity cost is defined as the next best alternative forgone when making a choice, which is never in monetary terms but rather the benefits of the alternative action not taken.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    www.fetsystem.

    com [GCSE ECONOMICS SECTION 1 REVISION NOTES




    F R E E O N L I N E L E C T U R E S & R E V I S I O N M A T E R I A L B Y F E T S Y S T E M

    Page 1
    Nature of the economic problem
    The fundamental economic problem arises due to scarcity
    Scarcity is when there are insufficient resources to satisfy everyones wants and
    needs
    Finite resources and unlimited wants

    Factors of Production
    Land
    Labor
    Capital
    Enterprise

    Land
    Natural occurring resources used for production purpose

    Examples:
    Earth on which mills are built
    Water in which fish is found
    Raw materials used to produce goods

    Labour
    Manual and mental effort to produce or deliver goods and services
    People who are willing or able to work are known as labour work force.

    Examples:
    Clerks
    Computer technician
    level Economics Teacher

    Capital
    Manmade goods to produce other goods and services
    Capital is classified into capital goods and consumer goods

    Examples:
    Machines
    Factories
    Roads
    www.fetsystem.com [GCSE ECONOMICS SECTION 1 REVISION NOTES


    F R E E O N L I N E L E C T U R E S & R E V I S I O N M A T E R I A L B Y F E T S Y S T E M

    Page 2

    Enterprise
    The people who bring the other 3 factors of production together to produce
    goods and services are called entrepreneur. In this process they do the decision
    making and risk taking.

    Opportunity cost
    The next best alternative foregone when a choice is made
    Opportunity cost is never in money value
    Opportunity cost is the benefits which could have been received by taking an
    alternative action.


    Circumstances where opportunity cost is present
    Opportunity cost and consumers
    Opportunity cost and workers
    Opportunity cost and producers
    Opportunity cost and government

    Situations
    Ali can buy a ball or a pen. He decides to buy the pen. The opportunity cost of
    buying the pen is ball.
    Rahul can buy a 1 cd or a burger meal. He decides to buy 1 cd. The opportunity
    cost of buying 1 cd is burger meal

    Situations
    The government of china can either spend $2 million on roads or computer
    technology. It decides on spending on roads. The opportunity cost of the building
    the road is computer technology

    Production possibility curve (PPC)
    It is a graph that shows the different rates of production of two goods and/or
    services that an economy can produce efficiently during a specified period of
    time with a limited quantity of productive resources

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