Economics –Foundations
Sub-topic
Economics
Goods & services
Needs & wants
Economic good vs.
free good
Scarcity, Opportunity
Cost & Choice
Three Economic
Questions
Four factors of
Production
Production
Possibilities Curve
SL/HL Core – Assessment Objectives
AO1 – Define “Economics”
Economics is the study of how individuals and societies, experiencing virtually
limitless wants, choose to allocate limited resources to satisfy those wants.
AO2 – Distinguish between goods & services.
AO2 – Distinguish between durable goods and non-durable goods.
AO2 – Distinguish between needs & wants.
AO2 – Distinguish between economic goods & free goods.
AO1 – Define “Scarcity”
AO1 – Define “Opportunity Cost”
AO3 – Examine the relationship between opportunity cost, scarcity, and choice.
(Include a statement that shows the relationship between each of these concepts.)
AO1 – Describe with examples the three economic questions.
1.What should be produced and in what quantities? Ex: Should we produce weapons
or pork? How much deodorant should be produced? (to deal with all of the teenage
boy population)
2.
AO1 – Describe with examples the four factors of production.
Utility
AO4 – Draw a correctly labeled Production Possibilities Curve. (Graphing can be
done using omnigraph-sketcher)
AO3 – Examine the relationship between the PPC and scarcity, choice, and
opportunity cost. (Be sure to explain & show on the diagram how each of
these concepts relates to the PPC)
AO1 – Define “potential output,” and relate to PPC (Relate to PPC means show it
on the PPC graph and explain its position on the graph in words)
AO1 – Define “potential growth,” and relate to PPC
AO2 – Distinguish between potential output and actual output, and relate to PPC.
AO2 – Distinguish between potential growth and actual growth, and relate to
PPC.
AO1 – Define “Utility”
Margin
AO1 – Define the term “Marginal”
Microeconomics vs.
Macroeconomics
Positive vs.
Normative Econ
Ceteris Paribus
AO2 – Distinguish between Microeconomics and Macroeconomics.
Circular Flow Model
Public vs. Private
Sectors
Rationing Systems
Growth vs.
Development
AO2 – Distinguish between Positive and Normative Economics with examples.
AO1 – Define “Ceteris Paribus”
AO1 – Explain the reason Ceteris Paribus is used in economic models.
AO4 – Draw a correctly labeled Circular Flow Model.
AO2 – Explain the Circular Flow Model.
AO3 – Distinguish between the public sector and the private sector with examples.
AO2 – Distinguish between a planned economy and a free-market economy.
AO3 – Compare and contrast the advantages and disadvantages of planned and
free-market economies.
AO2 – Distinguish between economic growth and economic development.
AO1 – Define “sustainable development”