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Ch 1 The Basic Economic Problem: complete notes
Neat, exam-ready notebook-style notes for Ch 1 The Basic Economic Problem, following the Cambridge IGCSE 0455 syllabus. This chapter is part of the complete IGCSE Economics 0455 Complete Notes: All 22 Chapters with Diagrams and Mark Schemes (Cambridge 2027–2029).
Free preview: Ch 1 The Basic Economic Problem notes
A quick look at the chapter from our IGCSE Economics notes. The full chapter notes have the detailed explanations, diagrams and practice questions with answers.
Topics in this chapter
- Examples of the basic economic problem
- 1.1.2 The three basic economic questions
- 1.1.3 Economic goods and free goods
- 1.2.2 Changes in the quantity and quality of factors
- 1.3.2 How opportunity cost influences decisions
- 1.4.2 Points under, on and beyond the PPC
- 1.4.3 Movements along the PPC and opportunity cost
- Consequences of shifts for an economy
“I can” checklist: what you must be able to do
- define the basic economic problem and scarcity, and give examples for consumers, workers, firms and governments
- explain the three basic economic questions
- distinguish economic goods from free goods, with examples
- define the four factors of production and state their rewards
- explain causes of changes in the quantity and quality of each factor
- define opportunity cost, calculate it and explain how it affects decisions
- draw and interpret a PPC; explain points under, on and beyond it
- explain movements along a PPC and increasing opportunity cost
- explain causes and consequences of outward and inward shifts of a PPC
What is inside the full chapter notes
- Concept notes, factor and PPC diagrams, 8 worked examples (calculations and model answers)
- Exam skills for Paper 2; common mistakes from the examiner report
- 20 Paper 1 style multiple-choice questions, explained
- One Section A data-response question and two Section B questions (Paper 2 style), all with full mark schemes
- Quick-reference table, "I can" checklist
What you get in the pack
- All 22 chapters of the Cambridge IGCSE Economics 0455 syllabus (exams 2027–2029): the basic economic problem, demand and supply, elasticity, market failure, money and banking, workers, firms and markets, government policy, growth, unemployment, inflation, development, international trade, exchange rates and the balance of payments
- Every syllabus statement covered in order, with clear notes and economics diagrams drawn for these notes
- Worked examples (calculations and model answers), exam skills and key definitions in every chapter
- Common mistakes taken from Cambridge examiner reports, so you know where marks are lost
- 20 Paper 1 style MCQs per chapter with answers and explanations
- Original exam-style questions in the style of Paper 1 (multiple choice) and Paper 2 (structured questions), with full mark schemes (no past-paper reprints)
- Quick-reference sheet and an "I can" checklist at the end of every chapter
- Colour PDF and a black and white copy of every chapter for printing
- Independent notes; not endorsed by or affiliated with Cambridge University Press & Assessment
All chapters in this pack
- Ch 1 The Basic Economic Problem
- Ch 2 Markets, Demand and Supply
- Ch 3 Price Determination and Price Changes
- Ch 4 Price Elasticity of Demand
- Ch 5 Price Elasticity of Supply
- Ch 6 The Market Economic System and Market Failure
- Ch 7 The Mixed Economic System
- Ch 8 Money, Banking and Households
- Ch 9 Workers
- Ch 10 Firms and Production
- Ch 11 Firms' Costs, Revenue and Objectives
- Ch 12 Types of Markets
- Ch 13 Government Intervention and Fiscal Policy
- Ch 14 Monetary Policy and Supply-side Policy
- Ch 15 Economic Growth
- Ch 16 Employment and Unemployment
- Ch 17 Inflation and Deflation
- Ch 18 Living Standards and Poverty
- Ch 19 Population and Economic Development
- Ch 20 Specialisation, Free Trade and Globalisation
- Ch 21 Foreign Exchange Rates
- Ch 22 The Current Account of the Balance of Payments