Module One

BASIC ECONOMIC IDEAS AND RESOURCE ALLOCATION

Introduction Icon.png Introduction

This module should be read in conjunction with the Programme of Study.

The Programme of Study lists the topics that are in the module and gives you the relevant page references for your textbook. This module aims to give you more direction as you work through the various topics. It will aim to highlight the most important items in the topic, as well as areas that need particular care. It will also point you towards the resources you should be using.

Remember to double-check the syllabus to make sure you cover all the items that you need to.

Module Overview Icon.png Module Overview

The first module introduces the subject of Economics. It defines the economic problem and the purpose of economic analysis. It is important that you appreciate the purpose of economic models, but also their limitations, when applied to the real world. At this initial stage of your studies, take care to consider how each new concept you learn can be applied to your daily life. While Economics contains much theoretical modelling, it is the application of the theory to the real world that is important to score highly in your examinations.

As you work through the topics in this module and carry out the reading and note-making as directed, please make sure you attempt all the activities in the textbook to test your understanding. You will find the answers to the textbook questions both in the digital textbook to which you have access and in General Resources. 

You will find a glossary on pages 604 to 615 of your textbook. There is also an interactive form of the same glossary provided in the digital textbook. It is very important to keep track of key terms as you work through the course so you can use them in your answers. Highlighting new key terms as come across them will give you an ongoing record of key terms you will need to use in your assignments and learn before the AS exams.

You may also find making flashcards of key terms (with the term on one side and the definition on the other) is a useful revision exercise. It’s a good idea to do this as you work through the modules rather than waiting to the end of the course.

Topics Icon.png Topics

Topic One (1.1): Scarcity, Choice and Opportunity Cost

Topic Two (1.2): Economic Methodology

Topic Three (1.3): Factors of Production

Topic Four (1.4): Resource Allocation in Different Economic Systems

Topic Five (1.5): Production Possibility Curves

Topic Six (1.6): Classification of Goods and Services