Basic economic problem
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Introduction
Students learn about the basic economic problem, the fundamental economic question and why and how choices involve opportunity costs and trade-offs. They apply this understanding to decide the opportunity cost and trade-offs of decisions, including government decisions.
Achievement standard
By the end of Year 7, students describe how decisions are made to allocate limited resources to individuals and communities in an economy. They describe the reasons businesses exist and types of businesses, and identify how entrepreneurial characteristics contribute to the success of a business. They describe the reasons individuals choose to work, how they may derive an income and the types of work that exist. Students identify the rights and responsibilities of individuals and businesses in terms of products and services.
Students develop questions to investigate an economic and business issue. They locate, select and organise data and information from sources. They interpret information and data to identify economic and business issues, trends or effects. They develop a response and identify potential costs and benefits. Students use economic and business knowledge, concepts, terms and sources to create descriptions and explanations.
Content descriptions
Economics and Business Knowledge and Understanding
Why opportunity cost exists as decisions are made to allocate limited resources to meet unlimited needs and wants. (AC9HE7K01)
Economics and Business Skills
Develop a response to an economic and business issue, identifying potential costs and benefits. (AC9HE7S04)
Student learning resources
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Basic economic problem
Trade-offs and costs of decisions
Suggested activity sequence
This sequence is intended as a framework to be modified and adapted by teachers to suit the needs of a class group.
- Read the explainer as a class. Alternatively, have students read the explainer individually or in pairs and take note using the Cornell note taking system.
- Clarify any questions students have.
- Students individually complete the worksheet.
- Discuss with students their answers to the questions.