Topic One (1.1): The Economic Problem
Introduction
This topic’s big question is: What does ‘The nature of the economic problem’ mean?
What do I need to know?
- Definitions and examples of the economic problem in the contexts of consumers, workers and government
- The difference between economic goods and free goods
Read
This topic covers pages 2-5 of your coursebook. Start by reading your book so that you have a basic understanding and then complete the following activities:
Tasks
Survival activity
This activity will introduce the key concepts of this unit.
Imagine you have been shipwrecked on an island!
Task 1 – Answer these questions
- You can carry three items onto the island with you from your ship. What three items are you going to take?
- What other resources are you going to need to survive?
- What problems do you think you will face?
Task 2 – Findings from Task 1
Consider:
- What was the basic problem(s) that you had?
- Did you have to make any sacrifices/choices?
Task 3 – Conclusion
- Could you survive and why?
Interact
Complete the following worksheet on the Economic Problem and Resources:
COMPLETE – Topic 1.1 Worksheet Download COMPLETE – Topic 1.1 Worksheet
Links
Watch this YouTube video (until 2:28), which explains the Basic Economic Problem:
Now read this resource from The Curious Economist, which will help you with your understanding of scarcity:
READ – What is scarcity? (The Curious Economist) Links to an external site.
Extension
Economic and free goods - life below water
Have a read through these two websites:
READ – Addressing Unsustainable Fishing (WWF) Links to an external site.
READ – The Great Pacific Garbage Patch (The Ocean Clean-Up) Links to an external site.
Consider the issue of fishing; these questions will help you:
- Who owns the fish in the oceans?
- Can we keep on fishing ‘forever’?
- Are fish a ‘free’ economic good?
Write answers to these questions, using what you learnt from your research.