Scarcity as the Central Economic Problem

H1 Economics - syllabus 8843, 2026

Original teaching notes

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Learn why limited resources require choices, identify opportunity cost, read a production possibility curve (PPC), and use evidence to make and review a decision.

• What economics studies

  Separate a claim about what happens from a judgement about what should happen.

• Scarcity and resource allocation

  Name the limited resource and the uses competing for it.

• Identify the opportunity cost

  Use the next-best feasible alternative, not every option rejected.

• Read a production possibility curve

  The frontier shows a production limit under stated conditions.

• Calculate opportunity cost on a PPC

  State what is given up and whether your answer is total or per unit.

• Distinguish higher output from higher capacity

  Using existing resources better is different from changing the frontier.

• Compare the objectives of economic agents

  The same choice can look different to consumers, firms and government.

• Decide whether the next step is worthwhile

  Compare additional benefit with additional cost.

• Use information and constraints

  A preferred option is not a real choice if it cannot be carried out.

• Consider effects on other people

  An intended benefit can come with an unintended cost.

• Review a decision when conditions change

  A reasoned decision can change when its evidence or constraints change.