Chapter 1

Chapter 1

An introduction to economics

1.1  What is economics?

1.2  The basic economic problem of relative scarcity and the need for economic decision making

1.3  The concept and applications of opportunity cost6

1.4 The production possibility curve and its applications       

1.5  The basic economic questions

1.6  The purpose of economic activity and the influence on living standards

1.7  The need for trade-offs and cost-benefit analysis