The main purpose of economic activity is to provide goods and services to meet needs and wants

The four key economic resources are land, labour, capital and enterprise

Individuals, firms and governments seeks to maximise economic benefits

Firms seek to maximise their profits

The government has four key economic objectives: to have full employment, stable prices, high and sustainable economic growth and a balance of payments equilibrium

All resources are scarce and therefore there needs to be choices about how they are utilised

Opportunity cost is the cost of the next best alternative

Production possibility frontiers show the range of possible combinations of goods in an economy, they allow you to assess the trade offs between the production of different goods

Value judgements are the basis of normative economics and they look at what should happen