Economics and Business Lesson 1

- Economics explores how individuals, groups, businesses and government interact with each
other in markets. It focuses on how resources are allocated to meet needs and wants.
- Business explores how producers interact with consumers by providing goods and services
that meet their needs and wants. It focuses on the skills that contribute to business success.

Test criteria

Thoroughly explains ECB and provides insightful justification.

Insightful interpretation and analysis of data and information.

Key questions

- How do participants in the global economy interact?

- How does creating a competitive advantage benefit business?

Glossary

Circular flow of income model – a model that provides a simplified representation of the complex
workshops of an economy and depicts the interdependence between the various sectors of the
economy and the flows between them

Gross domestic product (GDP) – The total value of all goods and services produced in a country in a
period of time