4.1+The+Basic+Economic+Problem

Introductory activities: Get into groups of 4 or 5 and open the following attachment. You then have 15-20 minutes to complete the task. At the end each group will be asked to explain your answers. Do you think all the wants of people in the UK can be met by the National Health Service ?

[|NHS activity]

Now read the following article. Why are these people's needs not being met. What is required to solve this problem?



What is the difference between Wants and Needs?

List your top 5 wants:

Is there a limit to our wants?

Plenary Activity: 

Then click on the link below to identify the fundamental problem that we study in Economics. [|The Economic problem]

[|factors of Production]

FOP Video

Activity: Download this file and complete the activity. Remember money is not a Factor of Production 

Goods and Services

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">[| Opportunity cost]

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Now after making notes on Opportunity cost here is an activity for you to identify the different opportunity costs stakeholders have through making choices.

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Illustrating Opportunity cost using Production Possibility Curves

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px; line-height: 0px; overflow: hidden;">media type="custom" key="18530862"



Extension Activity



<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Now a quick test to check you understand these basic concepts:

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">

<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">What is a market? <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;"> <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">Basic economic decisions <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 16px;">



<span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 18px;">And now the next big idea.....
 * <span style="font-family: 'Trebuchet MS',Helvetica,sans-serif; font-size: 18px;">The allocation of resources: how the market works; market failure