← Economics syllabus

EnglandEconomics

1.1-1.3 The economic problem and resource allocation

4 dot points across 4 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

Who are the main economic groups, and how do their decisions depend on one another?

The role of the main economic groups (consumers, producers and government) and how they are interdependent in a market economy.
An OCR J205 answer on the three main economic groups (consumers, producers and government), the decisions each makes, and how they depend on one another through the circular flow of income.
9 min answer →

What resources does an economy use to produce goods and services, and what reward does each earn?

The four factors of production (land, labour, capital and enterprise), how they are combined to produce, and the reward to each.
An OCR J205 answer on the four factors of production (land, labour, capital and enterprise), the reward earned by each, and how their quantity and quality set an economy's productive potential.
9 min answer →

What is a market, and how do the three sectors of production turn resources into finished goods?

What a market is, the primary, secondary and tertiary sectors of production, and how markets and the price mechanism allocate scarce resources.
An OCR J205 answer on what a market is, the primary, secondary and tertiary sectors of production, and how the price mechanism allocates scarce resources between competing uses.
9 min answer →

Why must every society make choices about what to produce?

The basic economic problem of scarcity, the difference between needs and wants, opportunity cost, and why choices must be made by consumers, producers and government.
An OCR J205 answer on the basic economic problem: scarcity, needs versus wants, opportunity cost, and why consumers, producers and government must all make choices.
9 min answer →