Topic 1 - The basic economic problem
This unit introduces the fundamental ideas and concepts that underpin the study of economics, including the basic economic problem, factors of production, opportunity cost, and production possibility curves.
Click on the relevant hyperlink to access the InThinking resources for this section of the syllabus:
- Topic 1.1 - The nature of the basic economic problem
- Topic 1.2 - Factors of production
- Topic 1.3 - Opportunity cost
- Topic 1.4 - Production possibility curve (PPC) diagrams
Teachers can click on the section below to see the changes to the new syllabus (first exams 2027).
Teacher only box
Please be aware of the following changes to this topic in the new syllabus, especially when using or referring to resource for the previous course, such as past exam papers.
- Topic 1.1 has been renamed as "The nature of the basic economic problem" (previously called "The nature of the economic problem").
- Topic 1.1.1. now includes "the concept of scarcity" as an explicit learning outcome.
- Topic 1.1.2 (Resource allocation decisions) has been added. This explicitly addresses the three basic economic questions which determine resource allocation: (i) what to produce, (ii) how to produce, and (iii) who to produce for?
- The mobility of the factors of production (previously in Topic 1.2.2) has been removed from the syllabus. The mobility of labour is still covered in the new syllabus (in Topic 3.3.4), i.e., there is no longer the need to teach the mobility of capital, land, and enterprise.
Teachers can also download and use The Arctic Island Survival Game as an introductory activity with students - this is highly recommended to get students engaged and hooked on IGCSE Economics from the outset!
