Economics Fundamentals

What economics studies, the scarcity problem that makes it necessary, and the models used to describe an economy as a whole.

• 1.1What Is Economics?Meet the central problem of economics: unlimited wants against limited resources, and the choices that follow.8 min
• 1.2Why Do We Need Economics?Why scarce time, money and resources make economic thinking necessary for individuals, businesses and governments.7 minFinish 1.1 first
• 1.3Factors of ProductionThe four resources every business needs — land, labour, capital and enterprise — and the reward each one earns.10 minFinish 1.1 first
• 1.4Economic Resources and Resource AllocationScarcity, efficiency and rational choice, and how different economic systems decide who gets what.8 minFinish 1.1 first
• 1.5Economic SystemsTraditional, command, market and mixed economies, and the capitalism-versus-socialism debate behind them.10 minFinish 1.1 first
• 1.6The Production Possibility CurveReading points on, inside and outside the PPC, and what makes the curve shift in or out.10 minFinish 1.1 first
• 1.7The Circular Flow of IncomeHow money, goods and resources move between households, firms and government, and what adds to or leaks from the flow.7 minFinish 1.1 first

Demand, supply, and the price mechanism that brings the two together.

• 2.1DemandThe demand curve, and what shifts it.10 minComing soon
• 2.2SupplyThe supply curve, and what shifts it.10 minComing soon
• 2.3Market EquilibriumHow price and quantity settle, and what happens when they do not.10 minComing soon
• 2.4The Price MechanismRationing, signalling and incentives, and why prices carry information.10 minComing soon

Why governments intervene in a market, and the trade-offs that follow when they do.

• 3.1The Role of GovernmentWhy governments intervene, and the trade-offs when they do.10 minComing soon