AS ECONOMICS ESSAY PLANS
Compilation of essay plans
Made by:
Roxanne Tan
,INDEX
NO CHAPTER PAGE
1 Basic Economic Problem 2
2 The Microeconomy 14
3 Government Microeconomic Intervention 25
4 The Macroeconomy 35
5 Government Macroeconomic Intervention 50
6 International Trade 54
1
Made by: Roxanne Tan
,CHAPTER 1: Basic Economic Problem
Question Essay Plan
Basic Economic AO1: Scarcity
Problem and three - Finite amount of resources to satisfy unlimited wants
questions faced - Wants include needs and desires
by all economies AO2:
- Scarcity is known as the basic economic problem because it
occurs among the poor as well as the rich.
- Applies to all because there will never be enough of everything
that people want
- Because of scarcity, choices have to be made
Scarcity -> Three basic questions all economies must answer:
1) What to produce?
- What mix of commodities to produce and in what quantity
2)How to produce?
- Method of production
- Capital V.S. Labour intensive
3) For Whom to produce?
- Target market
- Whether everybody gets an equal share
The basic AO1: Scarcity
economic - Finite amount of resources to satisfy unlimited wants
problem, and how - Wants include needs and desires
it links to choices AO2:
and opportunity - Scarcity is known as the basic economic problem because it
cost occurs among the poor as well as the rich.
- Applies to all because there will never be enough of everything
that people want
- Because of scarcity, choices have to be made
Scarcity -> Choices of resource allocation has to be made
- Choose between competing uses
Choices -> Opportunity cost
Opportunity cost:
- cost of the next best alternative foregone as a result of
choosing
- Opportunity cost of the want satisfied is the want sacrifice
- Can be illustrated with a PPC
2
Made by: Roxanne Tan
, Division of labour AO1: Division of labour
and how it affects - Process of production broken down into series of tasks
labour - Enables workers to specialise in particular task
productivity
AO2:
DOL explanation:
- Split up into a number of tasks
- Workers concentrate on one or a few tasks
- E.g. garment manufacturing
Benefits of DOL:
- More efficient (higher output, lower costs)
o Repetition leads to perfection (fewer mistakes)
- Increases speed and productivity
o Higher reward for firms
AO3:
DOL might not always be beneficial, disadvantages of DOL:
- Causes workers to be bored – more mistakes
o When doing something repeatedly – workers become
bored, less motivated and hence more mistakes
- Overspecialisation
o May cripple nation / firm if there is a sudden fall in
DD / resource depletion
How to overcome?
- Incentivise workers to motivate them
- E.g. promotion / bonus
3
Made by: Roxanne Tan
Compilation of essay plans
Made by:
Roxanne Tan
,INDEX
NO CHAPTER PAGE
1 Basic Economic Problem 2
2 The Microeconomy 14
3 Government Microeconomic Intervention 25
4 The Macroeconomy 35
5 Government Macroeconomic Intervention 50
6 International Trade 54
1
Made by: Roxanne Tan
,CHAPTER 1: Basic Economic Problem
Question Essay Plan
Basic Economic AO1: Scarcity
Problem and three - Finite amount of resources to satisfy unlimited wants
questions faced - Wants include needs and desires
by all economies AO2:
- Scarcity is known as the basic economic problem because it
occurs among the poor as well as the rich.
- Applies to all because there will never be enough of everything
that people want
- Because of scarcity, choices have to be made
Scarcity -> Three basic questions all economies must answer:
1) What to produce?
- What mix of commodities to produce and in what quantity
2)How to produce?
- Method of production
- Capital V.S. Labour intensive
3) For Whom to produce?
- Target market
- Whether everybody gets an equal share
The basic AO1: Scarcity
economic - Finite amount of resources to satisfy unlimited wants
problem, and how - Wants include needs and desires
it links to choices AO2:
and opportunity - Scarcity is known as the basic economic problem because it
cost occurs among the poor as well as the rich.
- Applies to all because there will never be enough of everything
that people want
- Because of scarcity, choices have to be made
Scarcity -> Choices of resource allocation has to be made
- Choose between competing uses
Choices -> Opportunity cost
Opportunity cost:
- cost of the next best alternative foregone as a result of
choosing
- Opportunity cost of the want satisfied is the want sacrifice
- Can be illustrated with a PPC
2
Made by: Roxanne Tan
, Division of labour AO1: Division of labour
and how it affects - Process of production broken down into series of tasks
labour - Enables workers to specialise in particular task
productivity
AO2:
DOL explanation:
- Split up into a number of tasks
- Workers concentrate on one or a few tasks
- E.g. garment manufacturing
Benefits of DOL:
- More efficient (higher output, lower costs)
o Repetition leads to perfection (fewer mistakes)
- Increases speed and productivity
o Higher reward for firms
AO3:
DOL might not always be beneficial, disadvantages of DOL:
- Causes workers to be bored – more mistakes
o When doing something repeatedly – workers become
bored, less motivated and hence more mistakes
- Overspecialisation
o May cripple nation / firm if there is a sudden fall in
DD / resource depletion
How to overcome?
- Incentivise workers to motivate them
- E.g. promotion / bonus
3
Made by: Roxanne Tan
