1.1
The nature of the economic problem
Learning objectives By the end of this unit, students should be able to: •
define what is meant by finite resources
•
explain what is meant by unlimited wants
•
give examples of the economic problem in different contexts
•
explain the difference between an economic good and a free good.
Key terms The economic problem; needs; wants; basic needs; unlimited wants; scarcity; finite resources; renewable resources; economic goods; free goods
STARTING POINT The starting point questions place the context of the economic problem at an individual level. Ensure that students know the difference between goods and services before they start these tasks. One approach could be to get the pairs to write their lists on A3 sheets of paper and attach these to the wall so that both you and the students can see the goods and services needed for survival and the goods and services that people would like. It could be useful to run a plenary session to go through the responses to the third question. These responses are likely to centre on limited budgets and having so many things they would like to buy and consume. You can then extend this to business and government. It might be useful to introduce the notion of having to choose and how individuals might come to their buying decisions.
EXPLORING Working in pairs, give students a few minutes to come up with a list of materials needed to make a car. Ensure that the students know what is meant by materials. Nominate pairs to share their lists with the class. Note these down on a whiteboard. The lists are likely to include steel, stainless steel, aluminium, glass, rubber, plastics (polyester, polyurethane, polycarbonate, poly-propylene) leather and cotton. You could ask what the different materials might be used for: •
aluminium for radiators
•
leather for interiors
•
steel for the car body
•
stainless steel for exhausts.
It is useful to have the list on the whiteboard as this will help the pairs with the rest of the questions. Working in the same pairs, give students a few minutes to come up with their responses for questions two, three and four. Nominate pairs to share their responses. •
Question 2: the pairs could say that items such as steel made from iron ore, coal and limestone are likely to run out.
•
Question 3: they are likely to say that natural rubber will not.
•
Question 4: the responses will focus on discussing that the more we consume as a society, the more we hear about how vital ores and minerals are dwindling, so it seems logical to assume that a few may be about to disappear. They are non-renewable resources. This includes things like coal, oil, copper, aluminium and iron. Students could mention that a renewable resource can be used repeatedly and replaced naturally, such as solar energy and timber.
Cambridge IGCSE® Economics Teacher’s Guide
54100_P001_015.indd 1
1
© HarperCollinsPublishers 2018
2/16/18 3:24 PM