What this topic covers
Introduction to Economics has 2 subtopics:
- Main economic groups and factors of production
- The basic economic problem
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GCSE OCR Economics · Topic 1 of 4
Introduction to Economics – GCSE OCR Economics revision notes
Choose a subtopic. Introduction to Economics covers Main economic groups and factors of production and The basic economic problem in GCSE OCR Economics. 6 lessons in 2 subtopics.
Revise Introduction to Economics for GCSE OCR Economics, including Main economic groups and factors of production and The basic economic problem.
6
Lessons
2
Subtopics
Introduction to Economics lessons by subtopic
6 lessons, grouped by subtopic.
Main economic groups and factors of production
- Needs, Wants, and Economic Purpose
- Key Economic Decisions
- Economic Groups and Interactions
- Economic Resources & Factors of Production
The basic economic problem
More in this course
Go back to the full GCSE OCR Economics topic list, or practise this topic with past-paper questions.
Frequently asked questions
What is Introduction to Economics?
Introduction to Economics covers Main economic groups and factors of production and The basic economic problem in GCSE OCR Economics. 6 lessons in 2 subtopics.
What is the circular flow of income?
The circular flow of income is the way money, goods and services constantly move between consumers, producers and the government. The Economic Groups and Interactions notes cover this in full.
What is opportunity cost?
Opportunity cost is the value of the next best alternative forgone as a result of making an economic choice. The Costs, Benefits and Opportunity Cost notes cover this in full.
What is a free market economy?
A free market economy is one where consumer demand and the profit motive decide what to produce, firms choose the most cost-effective methods, and goods and services go to those who can afford to pay at market prices. The Key Economic Decisions notes cover this in full.
What are the four factors of production?
The four factors of production are land, meaning all natural resources; labour, the physical and mental human effort used in production; capital, man-made aids to production such as tools and machinery; and enterprise, the entrepreneur's initiative and risk-taking in combining the other three. The Economic Resources & Factors of Production notes cover this in full.
What are examples of opportunity cost for individuals, firms and governments?
An individual taking a part-time job during term time gains extra income but loses study time; a supermarket choosing to open a new store must delay or abandon an online delivery system; and the UK government allocating a fixed budget across health, education, defence and infrastructure must spend less on one area to spend more on another. The The Basic Economic Problem & Weighing Up Choices notes cover this in full.
What is a planned economy?
A planned, or command, economy is one where the government decides what to produce based on social goals, directs production methods and allocates goods and services, often aiming for equality. The Key Economic Decisions notes cover this in full.
What does capital mean in economics?
Capital in economics means man-made aids to production, such as tools, machinery, factories, vehicles and technology, not money. The Economic Resources & Factors of Production notes cover this in full.
What is the basic economic problem?
The basic economic problem is that resources, meaning land, labour, capital and enterprise, are scarce relative to unlimited human wants. The The Basic Economic Problem & Weighing Up Choices notes cover this in full.