1.1 Nature of the basic economic problem
Topic 1.1 - The nature of the basic economic problem
This section of the Cambridge IGCSE Economics (0455) syllabus covers the following topics:
| Section | Topic | Guidance |
| 1.1.1 | Finite resources and infinite wants | Definition of the basic economic problem The concept of scarcity Examples of the basic economic problem in the context of: (i) consumers, (ii) workers, (iii) producers/firms, and (iv) governments |
| 1.1.2 | Resource allocation decisions | The three basic economic questions which determine resource allocation: (i) what to produce?, (ii) how to produce?, and (iii) who to produce for? |
| 1.1.3 | Economic goods and free goods | The difference between economic goods and free goods |
Click on the relevant hyperlink below to access additional InThinking resources for this section of the syllabus.
- Topic 1.1 - Glossary of key terms
- Topic 1.1 - Review questions
- Topic 1.1 - True or False Quiz
- Topic 1.1 Quizlet
- Topic 1.1 - Paper 1 Exam Practice Questions
Note that in much of Economic analysis, the “ceteris paribus” assumption applies.
Ceteris paribus is a Latin phrase meaning "all other things being equal," used when isolating the effect of one variable in economic analysis.
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