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1.1.3 The economic problem
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Scarcity and choice

Scarcity and choice

Flow diagram showing finite factors of production leading to scarcity, choices, and opportunity cost for consumers, producers, and government

Scarcity is the fundamental economic problem: resources are finite, but human wants are effectively unlimited. Because an economy cannot produce everything people want, every consumer, producer and government must make choices about how to allocate resources.

1.1.3 The economic problem Lesson

  1. A Level
  2. /Economics
  3. /1.1.3 The economic problem

Step-by-step lessons covering Edexcel A A Level Economics 1.1.3 The economic problem for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.