ECONOMICS
Unit 1: The Behaviour of Consumers and Businesses
Area of Study 1: Thinking like an economist
Outcome 1
- On completion of this unit the student should be able to describe the basic economic problem, discuss the role of consumers and businesses in the economy and analyse the factors that influence decision making.
Key knowledge
Introductory concepts
- the concept and applications of opportunity cost.
Consumers
- the traditional economic viewpoint of consumer behaviour such as rationality, ordered preferences, informed decision making and marginal benefits from consumption
- economic factors that may influence economic decisions made by consumers such as: external influences on economic decision making for example, culture, marketing, and government.
Key skills
- define key economic concepts and terms and use them appropriately
- gather and synthesise information from a wide range of sources to assess the effect of economic decisions on relevant stakeholders
- evaluate the costs and benefits associated with a range of economic decisions