1.1.1 Nature and purpose of economic activity. Why did you choose Economics as an A-Level? What other options were there? Why didn’t you choose Economics plus the alternative options?. AQA Econ 1: Markets and market failure. 1.1.1 What you need to know.
Explain how the economic problem can be applied to education in the UK.
Examples of scarcity.
Can you add any recent examples that you have seen in the media?
The central purpose of economic activityis the production of goods and services to satisfy needs and wants.
Economic activity will improve economic welfare, the benefit gained by individuals, firms or society in the production of goods and services.
Needsare those things required that are essential to maintain survival.
Wantsare those things that are desired but not essential to survival.
Economic agents are the individuals and firms that partake in economic activity,the demand for and supply of goods and services.
A free market economyis one where firms decide what goods and services to produce with limited intervention from the government.
Consumptionis the use of a good or a service by a consumer.
Productionis the provision of a good or service by a producer.
Is childcare the same economic activity if undertaken by a parent or paid for in a nursery?
Define the term scarcity.
Define the term economic problem.
Take it in turns to pick a term and explain it to the rest of the group.
In the study of Economics you will learn a lot of new terminology.
Can you pick any two words and explain the relationship between them?