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Guided Practice
Guided Practice
Directions: Complete the missing information while watching the lesson. Focus on the key economic ideas rather than trying to write everything that is said.
Part 1: What is Economics?
1. Economics is a ______ science that studies how individuals, firms, and governments make choices when dealing with ______ resources.
Example AnswerEconomics is a social science that studies choices made when dealing with scarce resources.
2. Resources are limited, but human wants are ________.
Example AnswerHuman wants are unlimited.
3. This creates the fundamental economic problem of:
Example AnswerScarcity.
4. Every economy must decide:
1. What should be ________?
2. How should goods and services be ________?
3. For whom should goods and services be ________?
1. What should be ________?
2. How should goods and services be ________?
3. For whom should goods and services be ________?
Example Answer1. produced 2. produced 3. produced / who receives the output.
Part 2: Microeconomics and Macroeconomics
5. Classify each example:
| Example | Your Answer |
|---|---|
| A firm deciding what price to charge | |
| Inflation in an economy | |
| A consumer deciding what phone to buy | |
| Government increasing interest rates | |
| The unemployment rate of a country |
Example AnswerFirm price = microeconomics; inflation = macroeconomics; consumer phone choice = microeconomics; interest-rate policy = macroeconomics; national unemployment = macroeconomics.
6. Microeconomics focuses on:
Example AnswerMicroeconomics focuses on individual decision-makers, firms, households and specific markets.
7. Macroeconomics focuses on:
Example AnswerMacroeconomics focuses on the economy as a whole, including inflation, unemployment, growth and government policy.
Part 3: Economics as a Concept-Based Subject
8. Economics is not simply about ________ facts. A concept is an organising idea that can be applied across many different ________.
Example AnswerEconomics is not simply about memorising facts. A concept is an organising idea that can be applied across many different situations.
9. List the nine key concepts introduced in the lesson:
Example AnswerWell-being, interdependence, scarcity, efficiency, choices, intervention, change, equity and sustainability.
10. Choose one economic concept and give a real-world example.
Example AnswerExample: Scarcity — a government has limited money and must choose between spending more on hospitals or schools.
Part 4: Factors of Production
11. Factors of production are the ________ used to produce goods and services. Complete CELL:
| Factor | Meaning / Example |
|---|---|
| Capital | |
| Enterprise | |
| Land | |
| Labour |
Example AnswerFactors of production are the resources used to produce goods and services. Capital = man-made resources; Enterprise = organises production and takes risks; Land = natural resources; Labour = human effort.
12. Capital: Capital includes machines, ________, tools, vehicles and infrastructure. Capital can increase the ________ of labour.
Example AnswerCapital includes machines, factories, tools, vehicles and infrastructure. It can increase the productivity of labour.
13. Enterprise: Entrepreneurs organise ________, ________ and ________. They also take ________ when starting and operating businesses.
Example AnswerEntrepreneurs organise land, labour and capital and take risks.
14. Land: In economics, land means all ________ resources used in production. Give three examples.
Example AnswerLand means natural resources. Examples include water, oil, forests, minerals or agricultural land.
15. Labour: Labour is the ________ effort used to produce goods and services. Give one example of physical work and one example of mental work.
Example AnswerLabour is human effort. Physical example: factory worker. Mental example: teacher, engineer or doctor.
16. The quality of labour can depend upon education, ________ and health.
Example AnswerSkills.
Part 5: Apply It — Making a Pencil
17. Classify each resource:
| Resource | Factor of Production |
|---|---|
| Factory worker | |
| Wood | |
| Graphite | |
| Assembly machine | |
| Person who organises the business |
Example AnswerFactory worker = labour; wood = land; graphite = land; assembly machine = capital; organiser/entrepreneur = enterprise.
18. Why are all four factors necessary for production?
Example AnswerProduction requires the four factors to be combined: natural resources, human effort, man-made equipment and someone to organise them.
Part 6: Factor Incomes
19. Complete the relationships:
| Factor | Income |
|---|---|
| Labour | |
| Land | |
| Capital | |
| Enterprise |
Example AnswerLabour → wages; Land → rent; Capital → interest; Enterprise → profit.
Part 7: Circular Flow of Income
20. The simple circular flow model shows the relationship between ________ and ________.
Example AnswerHouseholds and firms.
21. Households provide factors of ________ to firms. Firms pay households wages, ________, ________ and ________.
Example AnswerHouseholds provide factors of production. Firms pay wages, rent, interest and profit.
22. Firms use the factors of production to produce ________ and ________. Households use their income to purchase this output from firms.
Example AnswerFirms produce goods and services, which households buy using their incomes.
23. List three unrealistic assumptions of the simple circular flow model.
Example AnswerExample assumptions: only households and firms exist; households spend all income; no government; no banks; no international trade.
Part 8: Leakages and Injections
24. A leakage ________ money from the circular flow. List the three leakages.
Example AnswerA leakage removes money. The three leakages are taxes, savings and imports.
25. An injection ________ money into the circular flow. List the three injections.
Example AnswerAn injection adds money. The three injections are government spending, investment and exports.
26. If injections are greater than leakages, economic activity tends to ________. If leakages are greater than injections, economic activity tends to ________.
Example AnswerIf injections exceed leakages, activity expands. If leakages exceed injections, activity contracts.
Part 9: Scarcity and Sustainability
27. Scarcity exists because resources are ________ while human wants are ________.
Example AnswerResources are limited while human wants are unlimited.
28. Sustainability means meeting people's needs today without reducing the ability of ________ generations to meet their own needs.
Example AnswerFuture generations.
29. Give two examples of sustainability problems discussed in the lesson.
Example AnswerExamples include overfishing, deforestation, climate change and overuse of fossil fuels.
30. Why does scarcity make sustainability an economic issue?
Example AnswerBecause scarce natural resources used today may not be available in the future, societies must balance current benefits with long-term needs.
Part 10: Economic Systems
31. Free market economy: Most decisions are made by ________ and ________ through the price mechanism. Government intervention is relatively ________.
Example AnswerConsumers and producers make most decisions through the price mechanism, with relatively little government intervention.
32. Planned economy: The ________ makes the major decisions about what, how and for whom to produce.
Example AnswerThe government.
33. Mixed economy: A mixed economy combines ________ forces with government ________. Most countries today operate as ________ economies.
Example AnswerMarket forces + government intervention. Most countries are mixed economies.
34. Give one possible advantage and one possible disadvantage of a market economy.
Example AnswerPossible advantage: competition can encourage innovation and efficiency. Possible disadvantage: inequality or market failure.
35. Give one possible advantage and one possible disadvantage of a planned economy.
Example AnswerPossible advantage: greater equality or provision of essential public services. Possible disadvantage: inefficiency or limited consumer choice.
Part 11: Opportunity Cost
36. Opportunity cost is the value of the ________ best alternative ________ when a decision is made.
Example AnswerThe next best alternative forgone.
37. You can spend Saturday either working for ¥500 or going on a day trip. You choose the day trip. What is your opportunity cost?
Example Answer¥500 of wages that could have been earned.
38. If a government uses scarce resources to build more hospitals, what might it have to give up?
Example AnswerPossible answers include education, defence or infrastructure spending.
Part 12: Free Goods vs Economic Goods
39. Free goods: Free goods are naturally ________ and have no opportunity cost. Give two examples.
Example AnswerFree goods are naturally abundant and have no opportunity cost. Examples: sunlight, fresh air or seawater.
40. Economic goods: Economic goods are ________. Producing or consuming them creates an ________ cost because resources could have been used elsewhere.
Example AnswerEconomic goods are scarce and therefore involve an opportunity cost.
Part 13: Production Possibilities Curve (PPC)
41. The PPC shows the different combinations of ________ goods or services that an economy can produce when its resources are fully and ________ employed.
Example AnswerTwo goods or services; fully and efficiently employed.
42. List the four basic assumptions of the PPC model.
Example AnswerFixed quantity of resources; only two products; unchanged technology; all resources used efficiently.
43. Complete the chain:
Scarcity → ________ → Opportunity Cost → Efficiency → Economic Growth
Scarcity → ________ → Opportunity Cost → Efficiency → Economic Growth
Example AnswerScarcity → Choice → Opportunity Cost → Efficiency → Economic Growth.
Part 14: Reading a PPC
44.
| Position | Meaning |
|---|---|
| On the PPC | |
| Inside the PPC | |
| Outside the PPC |
Example AnswerOn = productive efficiency; Inside = unemployment/inefficient use of resources; Outside = currently unattainable.
45. Why can an economy at a point inside the PPC increase production without necessarily sacrificing another good?
Example AnswerBecause some resources are unemployed or inefficiently used, output can rise by using existing resources better.
Part 15: Movement Along a PPC
46. Moving along a PPC represents a ________. If an economy produces more raspberries, it must sacrifice some ________ production.
Example AnswerA movement along the PPC represents a choice. More raspberries requires sacrificing strawberry production.
47. Complete the chain:
Scarce resources → ________ must be made → More of Good A → ________ of Good B → Opportunity cost
Scarce resources → ________ must be made → More of Good A → ________ of Good B → Opportunity cost
Example AnswerScarce resources → choices must be made → more of Good A → less of Good B → opportunity cost.
Part 16: PPC Shape
48. A straight-line PPC represents ________ opportunity cost. Why?
Example AnswerA straight-line PPC represents constant opportunity cost because resources are equally suited to producing either good.
49. A bowed-out PPC represents ________ opportunity cost because resources are ________.
Example AnswerA bowed-out PPC represents increasing opportunity cost because resources are specialised.
50. As production shifts toward one good, why must increasingly larger quantities of the other good be sacrificed?
Example AnswerAs resources are transferred, increasingly less suitable resources must be used, so larger amounts of the other good are sacrificed.
Part 17: Actual Economic Growth
51. Actual economic growth can occur when an economy moves from a point ________ the PPC toward a point ________ the PPC.
Example AnswerFrom a point inside the PPC toward a point on the PPC.
52. This can happen when unemployment ________ or existing resources are used more ________.
Example AnswerUnemployment falls; resources are used more efficiently.
53. Does the PPC itself shift during actual economic growth? Explain.
Example AnswerNo. Productive capacity has not changed; the economy is simply using existing resources more fully or efficiently.
Part 18: Potential Economic Growth
54. An outward shift of the PPC represents an increase in productive ________.
Example AnswerProductive capacity.
55. Give three possible causes of an outward shift of the PPC.
Example AnswerExamples: more resources, better-quality resources, improved education/skills, new machinery or technological advances.
56. An outward shift represents ________ economic growth.
Example AnswerPotential economic growth.
Final Review
57. Complete the chain:
Unlimited wants + Limited resources → ________ → Choices → ________ Cost → PPC → Efficiency & Economic ________
Unlimited wants + Limited resources → ________ → Choices → ________ Cost → PPC → Efficiency & Economic ________
Example AnswerUnlimited wants + limited resources → scarcity → choices → opportunity cost → PPC → efficiency & economic growth.
58. Exit Question: In 2–3 sentences, explain why scarcity is the starting point of economics.
Example AnswerScarcity is the starting point because resources are limited while wants are unlimited. This forces individuals, firms and governments to make choices, and every choice creates an opportunity cost.
Learning Questionnaire
Economics Student Learning Questionnaire
Your answers will help me design Economics lessons that help you learn better.
Part 1: About You
1. How do you feel about studying Economics?
2. Have you studied Economics before?
Part 2: Economics Interests
3. Which Economics topics interest you?
Choose up to 3.
Part 3: How You Learn Best
4. How do you learn best?
5. When Economics is difficult, what helps you most?
6. How confident are you in Economics?
1 10
1 10
7. Which part of Economics writing is hardest?
Part 4: Classroom Preferences
8. What makes a lesson interesting?
9. What makes you lose attention?
Part 5: Your Goals
10. Why are you studying Economics?
11. What do you want to improve?
Part 6: Your Ideas
12. What is one thing you want to understand about Economics?
13. What worries you about Economics?
14. What can your Economics teacher do to help you learn better?
15. Tell me one interesting thing about you.
16. If you could ask an economist one question, what would you ask?
Economics Worksheet
— Independent Practice
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📈 Production Possibilities Curve (PPC)
Question 1
Define the term opportunity cost.
AnswerOpportunity cost is the value of the next best alternative forgone when a choice is made.
Question 2
a) Moving from point A to B
AnswerMoving from A to B means producing more of Good X and less of Good Y. The opportunity cost is the amount of Good Y forgone.
b) Moving from point B to C
AnswerMoving from B to C means producing even more of Good X and even less of Good Y. Opportunity cost increases as resources become less suited to producing Good X.
c) Moving from point E to F
AnswerMoving from E to F means producing more of Good Y and less of Good X. Opportunity cost is the amount of Good X forgone.
d) Moving from point F to G
AnswerMoving from F to G means producing even more of Good Y and even less of Good X. Opportunity cost increases because resources are less suited to Good Y.
Question 3
a) Economic efficiency
AnswerA point on the PPC represents productive efficiency – resources are fully and efficiently employed.
b) Unemployment of resources
AnswerA point inside the PPC represents unemployment or inefficient use of resources.
c) Impossible/unattainable output
AnswerA point outside the PPC is currently unattainable with existing resources and technology.
d) Economic growth
AnswerAn outward shift of the PPC represents economic growth – an increase in productive capacity.
Question 4
Distinguish between moving from D to E compared with moving from F to H.
AnswerMoving from D to E is a movement along the PPC – a trade-off between two goods. Moving from F to H is an outward shift of the PPC – economic growth (both goods can increase).
Question 5
Explain why Diagram 2 has a concave PPC.
AnswerDiagram 2 has a concave (bowed-out) PPC because resources are not equally suited to producing both goods. As production shifts toward one good, increasingly larger amounts of the other good must be sacrificed (increasing opportunity cost).
Question 6
Add a new PPC to Diagram 2 showing advancements in technology to produce manufactured goods only.
AnswerThe PPC shifts outward on the manufactured goods axis only. The intercept for manufactured goods increases, while the intercept for agricultural goods stays the same.
🔄 Circular Flow of Income
Question 1
List and label the two unnamed sectors.
AnswerThe two sectors are: Financial sector (banks) and Government sector (public sector).
Question 2a
List the two missing leakages.
AnswerSavings and taxes. (The third leakage is imports).
Question 2b
Define one leakage.
AnswerA leakage is any withdrawal of money from the circular flow of income, e.g., savings (households save instead of spending), taxes (government takes income), or imports (money leaves the country).
Question 3a
List the two missing injections.
AnswerInvestment and government spending. (The third injection is exports).
Question 3b
Define one injection.
AnswerAn injection is any addition of money into the circular flow of income, e.g., investment (firms spending on capital goods), government spending, or exports (money coming into the country).
Question 4
List the rewards for labour and capital.
AnswerLabour receives wages. Capital receives interest.
Question 5
Explain the relationship between the circular flow of income model and the key concept "interdependence".
AnswerThe circular flow shows interdependence: households rely on firms for goods and income, firms rely on households for labour and spending. Leakages and injections show how different sectors (households, firms, government, banks, foreign) are all connected – a change in one affects the others.
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