1.3.1 - Introductory concepts

Economics as a social science: inability to conduct scientific economics experiments.

Use a - economics as a social science: inability to conduct scientific economics experiments to connect the rule to the data and decision in the question.

This matters because a - economics as a social science: inability to conduct scientific economics experiments determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - economics as a social science: inability to conduct scientific economics experiments to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Economics as a social science: inability to conduct scientific economics experiments is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The development of models in economics based on assumptions.

Use b - development of models in economics based on assumptions to connect the rule to the data and decision in the question.

This matters because b - development of models in economics based on assumptions determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - development of models in economics based on assumptions to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - development of models in economics based on assumptions is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The use of the ceteris paribus assumption in building models and drawing conclusions based on them.

Use c - use of the ceteris paribus assumption in building models and drawing conclusions based to connect the rule to the data and decision in the question.

This matters because c - use of the ceteris paribus assumption in building models and drawing conclusions based determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - use of the ceteris paribus assumption in building models and drawing conclusions based to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - use of the ceteris paribus assumption in building models and drawing conclusions based is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between positive statements and value normative judgements on economic issues. economics.

Use a - distinction between positive statements and value normative judgements on economic to connect the rule to the data and decision in the question.

This matters because a - distinction between positive statements and value normative judgements on economic determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between positive statements and value normative judgements on economic to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between positive statements and value normative judgements on economic is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The role of value judgements in influencing economic decision making and policy.

Use b - role of value judgements in influencing economic decision making and policy to connect the rule to the data and decision in the question.

This matters because b - role of value judgements in influencing economic decision making and policy determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - role of value judgements in influencing economic decision making and policy to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - role of value judgements in influencing economic decision making and policy is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The problem of unlimited wants and finite resources.

Use a - problem of unlimited wants and finite resources to connect the rule to the data and decision in the question.

This matters because a - problem of unlimited wants and finite resources determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - problem of unlimited wants and finite resources to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - problem of unlimited wants and finite resources is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between renewable and non-renewable resources.

Use b - distinction between renewable and non-renewable resources to connect the rule to the data and decision in the question.

This matters because b - distinction between renewable and non-renewable resources determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - distinction between renewable and non-renewable resources to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - distinction between renewable and non-renewable resources is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The link between scarcity and opportunity cost.

Use c - link between scarcity and opportunity cost to connect the rule to the data and decision in the question.

This matters because c - link between scarcity and opportunity cost determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - link between scarcity and opportunity cost to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - link between scarcity and opportunity cost is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between free goods and economic goods.

Use d - distinction between free goods and economic goods to connect the rule to the data and decision in the question.

This matters because d - distinction between free goods and economic goods determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - distinction between free goods and economic goods to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - distinction between free goods and economic goods is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The use of production possibility frontiers to depict: possibility; the maximum productive potential of an economy frontiers; efficient or inefficient allocation of resources; possible and unobtainable production; opportunity cost (using marginal analysis); economic growth and decline.

Use a - use of production possibility frontiers to depict: possibility • the maximum productive to connect the rule to the data and decision in the question.

This matters because a - use of production possibility frontiers to depict: possibility • the maximum productive determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - use of production possibility frontiers to depict: possibility • the maximum productive to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - use of production possibility frontiers to depict: possibility • the maximum productive is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between movements along, and shifts in, production possibility frontiers, and their possible causes.

Use b - distinction between movements along, and shifts in, production possibility frontiers, to connect the rule to the data and decision in the question.

This matters because b - distinction between movements along, and shifts in, production possibility frontiers, determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - distinction between movements along, and shifts in, production possibility frontiers, to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - distinction between movements along, and shifts in, production possibility frontiers, is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between capital goods and consumer goods.

Use c - distinction between capital goods and consumer goods to connect the rule to the data and decision in the question.

This matters because c - distinction between capital goods and consumer goods determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - distinction between capital goods and consumer goods to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - distinction between capital goods and consumer goods is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of capital goods for productivity and economic growth.

Use d - significance of capital goods for productivity and economic growth to connect the rule to the data and decision in the question.

This matters because d - significance of capital goods for productivity and economic growth determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - significance of capital goods for productivity and economic growth to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - significance of capital goods for productivity and economic growth is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The advantages and disadvantages of specialisation and the the role of money division of labour in organising production; Adam Smith's views and financial on the division of labour. markets.

Use a - advantages and disadvantages of specialisation and the the role of money division of to connect the rule to the data and decision in the question.

This matters because a - advantages and disadvantages of specialisation and the the role of money division of determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - advantages and disadvantages of specialisation and the the role of money division of to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - advantages and disadvantages of specialisation and the the role of money division of is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The function of money as a medium of exchange, a measure and store of value, and a method of deferred payment; the significance of these functions for specialisation.

Use b - function of money as a medium of exchange, a measure and store of value, and a method to connect the rule to the data and decision in the question.

This matters because b - function of money as a medium of exchange, a measure and store of value, and a method determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - function of money as a medium of exchange, a measure and store of value, and a method to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - function of money as a medium of exchange, a measure and store of value, and a method is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The role of financial markets:; to facilitate saving; to make funds available to businesses and individuals; to facilitate the exchange of goods and services; to provide forward markets in commodities and currencies; to provide a market for equities.

Use c - role of financial markets: • to facilitate saving • to make funds available to to connect the rule to the data and decision in the question.

This matters because c - role of financial markets: • to facilitate saving • to make funds available to determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - role of financial markets: • to facilitate saving • to make funds available to to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - role of financial markets: • to facilitate saving • to make funds available to is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between free market, mixed and command mixed and economies. command.

Use a - distinction between free market, mixed and command mixed and economies. command to connect the rule to the data and decision in the question.

This matters because a - distinction between free market, mixed and command mixed and economies. command determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between free market, mixed and command mixed and economies. command to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between free market, mixed and command mixed and economies. command is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The advantages and disadvantages of free market and command economies economies.

Use b - advantages and disadvantages of free market and command economies economies to connect the rule to the data and decision in the question.

This matters because b - advantages and disadvantages of free market and command economies economies determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - advantages and disadvantages of free market and command economies economies to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - advantages and disadvantages of free market and command economies economies is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The role of the state in a mixed economy.

Use c - role of the state in a mixed economy to connect the rule to the data and decision in the question.

This matters because c - role of the state in a mixed economy determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - role of the state in a mixed economy to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - role of the state in a mixed economy is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.