Economics AS
Level
Unit 1
, Capital Goods – are
Core Concepts which can be used t
produce other good
- Scarcity of Resources as machinery
insufficient amounts to meet all competing Consumer goods –
demands on that resources.
goods which canno
• NOT that there is not a large amounts – just that
that large amount does not meet the demand used to produce oth
- Infinite/Competing Wants goods , such as clot
“wants” being those things we desire after our basic
“needs”
• Therefore, we have to chose how we allocate our
resources for production and consumption.
, Opportunity cost Conscription or Volun
(example age 19-25)
- Conscription – all men age
forced to join the war and w
wage . The opportunity cost
could have been doing othe
The value of the highest valued alternative forgone for the choice that was made. much more money . He wou
higher salary which would d
opportunity cost represents the benefits that could have been gained by taking a the economy.
Conscription is an example o
different decision. All businesses have to make choices - and those choices have equitable for society may no
implications. Opportunity cost measures the cost of a choice made in terms of economically efficient ( high
so less efficient )
the next best alternative foregone or sacrificed.
- Volunteers – the opportun
- Based on the assumption that when we make decisions we make them on the as you would end up with p
basis of ranking the alternatives. volunteering because their n
pays less or they are not a s
• would therefore find it hard
job. This is EFFICIENT as the
- The colours are in a ranked order so choosing red only really effects yellow as it much lower but it is not equ
was the highest valued alternative. The colour blue was never going to be picked.
, Input and
Output
Input Process Output
Low cost input Aim is to add value Aim to prod
and make a profit high priced
• Q = f(inputs) output
• Q output quantity
Output is the res
• f production function an economic pr
• Inputs , factors of production has used inputs
produce a produ
service that is av
sale or use some
Factors of production Capital – machinery , else.
Land equipment, plant (production
Labour plants)
Capital
Enterprise – ability to combine all three
Level
Unit 1
, Capital Goods – are
Core Concepts which can be used t
produce other good
- Scarcity of Resources as machinery
insufficient amounts to meet all competing Consumer goods –
demands on that resources.
goods which canno
• NOT that there is not a large amounts – just that
that large amount does not meet the demand used to produce oth
- Infinite/Competing Wants goods , such as clot
“wants” being those things we desire after our basic
“needs”
• Therefore, we have to chose how we allocate our
resources for production and consumption.
, Opportunity cost Conscription or Volun
(example age 19-25)
- Conscription – all men age
forced to join the war and w
wage . The opportunity cost
could have been doing othe
The value of the highest valued alternative forgone for the choice that was made. much more money . He wou
higher salary which would d
opportunity cost represents the benefits that could have been gained by taking a the economy.
Conscription is an example o
different decision. All businesses have to make choices - and those choices have equitable for society may no
implications. Opportunity cost measures the cost of a choice made in terms of economically efficient ( high
so less efficient )
the next best alternative foregone or sacrificed.
- Volunteers – the opportun
- Based on the assumption that when we make decisions we make them on the as you would end up with p
basis of ranking the alternatives. volunteering because their n
pays less or they are not a s
• would therefore find it hard
job. This is EFFICIENT as the
- The colours are in a ranked order so choosing red only really effects yellow as it much lower but it is not equ
was the highest valued alternative. The colour blue was never going to be picked.
, Input and
Output
Input Process Output
Low cost input Aim is to add value Aim to prod
and make a profit high priced
• Q = f(inputs) output
• Q output quantity
Output is the res
• f production function an economic pr
• Inputs , factors of production has used inputs
produce a produ
service that is av
sale or use some
Factors of production Capital – machinery , else.
Land equipment, plant (production
Labour plants)
Capital
Enterprise – ability to combine all three
