This work was conceptualized and curated by Rohit Phalke, utilizing the generative capabilities of Google’s Gemini 2.5 Pro as a creative and analytical partner, with direction provided by the Rohit himself.
Peer through the lens of an economist to see a world defined by a single, powerful reality: scarcity. This unit deconstructs the foundational logic of economics, exploring the fundamental problem of infinite wants clashing with finite resources. An investigation into the core tools of the discipline, like the Production Possibility Curve, reveals how societies grapple with the universal questions of what, how, and for whom to produce. By dissecting the nine key concepts that underpin all economic analysis, the inquiry challenges the student to distinguish between objective facts and value judgments. The unit culminates by establishing the essential framework for understanding every economic issue that follows.
learning Objectives
Define the fundamental economic problem of scarcity and explain its relationship to choice and opportunity cost.
Explain the three fundamental economic questions that all societies must answer, using the concept of resource allocation.
Analyse trade-offs, efficiency, and economic growth using the Production Possibility Curve (PPC) model.
Synthesize the nine key concepts of the IB Economics course to understand their interconnected application in real-world issues.
Evaluate economic statements by distinguishing between the objective analysis of positive economics and the value judgments of normative economics.
interdisciplinary connections
Define the fundamental economic problem of scarcity and explain its relationship to choice and opportunity cost.
Explain the three fundamental economic questions that all societies must answer, using the concept of resource allocation.
Analyse trade-offs, efficiency, and economic growth using the Production Possibility Curve (PPC) model.
Synthesize the nine key concepts of the IB Economics course to understand their interconnected application in real-world issues.
Evaluate economic statements by distinguishing between the objective analysis of positive economics and the value judgments of normative economics.
INQUIRY QUESTIONS
factual
Define the fundamental economic problem of scarcity and explain its relationship to choice and opportunity cost.
Explain the three fundamental economic questions that all societies must answer, using the concept of resource allocation.
conceptual
Define the fundamental economic problem of scarcity and explain its relationship to choice and opportunity cost.
Explain the three fundamental economic questions that all societies must answer, using the concept of resource allocation.
debatable
Define the fundamental economic problem of scarcity and explain its relationship to choice and opportunity cost.
Explain the three fundamental economic questions that all societies must answer, using the concept of resource allocation.
contextual lenses
individual
Define the fundamental economic problem of scarcity and explain its relationship to choice and opportunity cost.
Explain the three fundamental economic questions that all societies must answer, using the concept of resource allocation.
local
Define the fundamental economic problem of scarcity and explain its relationship to choice and opportunity cost.
Explain the three fundamental economic questions that all societies must answer, using the concept of resource allocation.
global
Define the fundamental economic problem of scarcity and explain its relationship to choice and opportunity cost.
Explain the three fundamental economic questions that all societies must answer, using the concept of resource allocation.
Rohit Phalke 
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