GANDHI SCHOOL ANCOL

ECONOMICS REVISION 2022 – 2023

Name: Grade:
Case Study:
Imagine you alone have the power to decide how best to use scarce resources in your country. Below is
a series of choices you can make. You can choose to relocate resources from one use to another and in
so doing produce less of one good or service and more of the other. What will you choose and why?
When making your choices think about how your decisions may affect economic welfare, and how they
could affect the consumers and producers of your chosen goods or services
Choice? Your choice, and why?
More housing or more
farmland?

More cars or more buses

and trains?

More nuclear power

stations or more wind
turbines to generate
electricity?

More health care or more

education?

More cigarettes or more

cakes?

Example exam questions:

1. Define the terms scarcity and opportunity cost, using examples.

2. Discuss, with examples, how decisions on government expenditure might illustrate the concept of
opportunity cost.

Case :2
The following headline appeared in UK newspapers in 2017: ‘More resources must be devoted to the
National Health Service’. This would involve making some difficult choices of the basic economic
problem.

a. Define the basic economic problem.

b. Explain and contrast how resources are allocated to different uses in market and mixed economic
systems.

c. Using a production possibility curve diagram, analyse why choices have to be made to allocate
resources.

d. Discuss whether an economy would benefit from an increase in resources allocated to healthcare.

Concepts for Revision:

1.. Consumption, Capital goods, free goods, economic goods
2. Concept of FOP’s
3. Concept of OPPC.
4. Concept of PPC
5. Factor rewards & Factors mobility
6. Concept of Price Mechanism
7. Whole concepts of Supply & Demand and its factors
8. Concept of PES & PED with diagrams
9. Concept of Market Failure
10. Indirect taxes & Subsidies
11. Functions & characteristics of Money
12. Concept of Commercial Banks
13. Concept of Central Bank
14. Concepts of Spending
15. Concepts of Borrowing
16. Trade Unions & its functions
17. Concept of Division of Labour
18. Industrial disputes and actions
19. Classification of business
20. Mergers, Takeovers & acquisitions including economies and diseconomies of scale