Work through the list without notes. If you cannot do a statement, follow its link, then come back. Guide = study guide; Practice = practice questions.
Understanding
- I can define scarcity as limited resources compared with unlimited wants. (Guide: “What scarcity means”; Practice Q1)
- I can explain why every economy and every person faces scarcity, including rich countries. (Guide: “What scarcity means”; Practice Q3, Q7(b))
- I can define economic resources and name the four factors of production. (Guide: “Economic resources: the four factors of production”)
- I can tell a free good apart from a good that simply has a zero price. (Guide: “Scarce goods and free goods”; Practice Q3)
- I can explain the difference between scarcity and a shortage. (Guide: “Scarcity and shortage are different”; Practice Q1, Q7(c))
Skills
- I can classify any item as land, labour, capital or entrepreneurship, or say that it is not an economic resource. (Guide: Worked example 1; Practice Q2, Q4, Q6(a))
- I can explain why money is not capital in economics. (Guide: “Economic resources: the four factors of production”; Practice Q2, Q6(b))
- I can use simple data to show that wants are greater than the resources available. (Guide: Worked example 2; Practice Q5(a)–(b))
Reasoning
- I can explain how scarcity forces individuals, firms and governments to make choices. (Guide: “How scarcity forces choices”)
- I can describe the trade-off in a given choice: what is gained and what is given up. (Guide: Worked example 2; Practice Q5(c))
- I can explain why finding more resources reduces scarcity but does not end it. (Guide: the Check in Worked example 2; Practice Q7(b))
All ticked? Move on to Topic 1.2, Opportunity Cost and the Production Possibilities Curve, or return to the course roadmap.