Internal Assessment

Internal assessment 2020

Page 1 of 2
Key concept Understanding in
Scarcity The
relation to thecentral
courseconcept in economics, scarcity, refers to the
to society’s unlimited demand for goods and services.
limited availability of economic
best possible resources
use of scarce relative
or limited resources to
Thus, economics is the study of how to make the
satisfy
Choice Since unlimited
resources arehuman
scarce,needs and wants.
economics is a study of
be satis!ed; this necessitates choice and gives rise
choices. Itdecision-makers
is clear that not all needs and
continually wants
make can between
choices
to the idea of opportunity
consequences of these cost. Economic
competing alternatives, and economics studies the
E"ciencychoices,
E"ciency both
is apresent and concept, determined by
quanti!able
e"ciency refers to making the best possible use of
future.
the ratio of useful
goods output
and servicesto total
thatinput. Allocative
are optimum for
scarce resources to produce the combinations of
society, thus
Equity In contrast minimising
to equality, which resource
describes waste.
situations where
people or di#erent social groups, equity refers to the
economicconcept,
outcomes asare similardi#erent
it means for di#erent
things to di#erent people.
concept
to or idea
inequality, of fairness.
which may apply Fairness
to the is a normative
distribution of
In economics,
economic system,inequity is o$en
inequity interpreted
or inequality to refer
remain
income, wealth or human opportunity.
degree to which markets versus governments Irrespective of
signi!cant
or equality issues both within
in an economy is and between societies. The
should, or are able to, create greater equity
EconomicEconomic
an area of well-being
much debate. is a multidimensional concept
well- standards enjoyed by
relating
It to the level of prosperity and quality of living
being members
● presentof and anfuture
economy.
includes:
● the ability to
IA portfolio
!nancial
● specimen.pdf
security
the ability
meet
to make economic choices
basic needs
● the ability to maintain adequate
permi%ing
There achievement
are broad disparities of in
personal
economic satisfaction
well-
income levels over the long term.
being both within and across nations.
Sustainability Sustainability in economics refers to the ability of
compromising the ability of future generations to meet
the present generation
which the currentto meet its needseconomic
generation’s without activities
their owndepletion
resource needs. It refers to limitingthat
or degradation the will
degree to
negatively
create harmful
increasingly environmental
important outcomes
in all economic involving
analysis as
a#ect future generations. Sustainability is proving
Change An planetary boundaries
understanding of the are pushedoftochange
concept the limit.is
continual state of &ux and economists must be aware
essential in economics. The economic world is in
concept of change is important both in economic theory a
:
 from
of
and
economic
this
the
one
and
continuous empirical
situation
theory,
adapt their
world
economics
and profoundto another.
thinking
that economics
focuses
changeEmpirically,
accordingly.
notstudies.
the
onThe
the
world
at institutional, In
level of
the
that variables
is studied
structural, it by
investigates,
economists but
is always
on their subject
change to
Individuals,technological,
Interdepend- communities economic
and nations andaresocial levels
not self-
and governments, all economic actors, interact with each
ence su"cient.
order Consumers,
to achieve economiccompanies,
goals. Thehouseholds,
greater the workers,
level
other within and, increasingly,
interdependence. across nations economic
In a highly interdependent in
of interaction,
likely to generate themany,
greater willo$en
and be the degree ofeconomic
unintended,
world,
of decisions
possible economic by certain economicof
consequences actors are
interdependence
consequences for other actors. A consideration
is essential
Intervention when
Intervention in conducting economic
economics usually analysis.
refers to
markets are considered the most e"cient mechanism to
governmenttheyinvolvement
may fail to in the workings
achieve certain of markets.
societal While
goals, such as
organise
Failure toeconomic
achieve such activity,
goalsitmay
is recognized
be consideredthat su"cient
equity, economic well-being, or sustainability.
world, there is o$en disagreement among economists
reason for government
government intervention. intervention. In the real debate
There is a considerable
and policymakers on the need for, and extent of,
market.
about the merits of intervention versus the free

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Using the Key
Each of the three commentaries Conceptmust use a di#erent key concept as
published extracts.
a lens through which Marks are received
to analyse the for the extent to which the
links a key
student concept to
recognizes, the article. and
understands For three marks, a key concept is
fully explained.
identi!ed To link
and the be “atolens” this is
the article
should include: probably by using a de!nition, the key concept
● Explaining,

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:
 Key Concepts
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