At a glance
This topic introduces students to the nature of economics through exploring some key underlying concepts, including the idea that economics is a social science, positive and normative economic statements, the economic problem of scarcity and production possibility frontiers. Students will also consider the advantages and disadvantages of specialisation and the division of labour in organising production and in the production of goods and services to trade. Specialisation means there is a need to exchange and this is why students will explore the functions of money. Students are also introduced to the different ways economies can organise themselves in terms of free market, command and mixed economies. Students are required to distinguish between the three and consider the advantages and disadvantages of each.