About This Chapter
Economic Concepts & Systems - Chapter Summary
The entertaining lessons in this chapter provide in-depth analyses of various economic concepts and systems. Review these lessons to gain full comprehension of topics like economic scarcity, opportunity cost, monopoly in economics, trade barriers and currency appreciation and depreciation. Once you've finished this chapter, you will be ready to do the following:
- Define and discuss the universal goals of economics
- Share examples of the circular flow model in economics
- Exhibit knowledge of aggregate supply and demand
- Explain socialism, communism and mixed economies
- Discuss the theories of John Maynard Keynes, Adam Smith and Karl Marx
- Provide examples of pure, monopolistic and oligopoly competition
- Compare and contrast absolute and comparative advantage
- Describe capitalism, globalization and free trade since 1990
You can tailor your study of this chapter to your personal needs and schedule. Choose the lessons that cover topics you need to work on, or feel free to examine them all for a more comprehensive review. Assess your comprehension by taking short lesson quizzes, and get a broader review of the chapter by taking the practice exam. If you develop questions while examining the lessons, be sure to submit them via the Dashboard.
1. Economics: Definition & Universal Goals
From rising prices to debates on pollution, there is plenty of evidence that there's simply not enough for everyone. Economics is the applied science that tackles this issue, and this lesson explains how.
2. Economic Scarcity and the Function of Choice
Discover the foundation of the social science of economics as we explore the basic economic problem of scarce resources and unlimited wants using key definitions that create a framework for understanding everyday behavior in a nation.
3. Opportunity Cost: Definition & Real World Examples
Learn the most important concept of economics through the use of real-world scenarios that highlight both the benefits and the costs of decisions. Opportunity cost is a simple yet powerful principle that reveals how to make the best economic decisions possible, and it explains why people make the choices they do.
4. Circular Flow Model in Economics: Definition & Examples
The circular flow model in economics is critical for thriving societies. In this lesson, we will learn about this simplified view of how our economy moves and what causes this continual movement.
5. Understanding Aggregate Supply & Demand
In this lesson, we explore aggregate supply and aggregate demand. In addition, we discover how economists represent these terms on a graph, using the AS/AD model.
6. Understanding Socialism, Communism, and Mixed Economies: Comparison & Analysis
Socialism and communism are alternative economic systems to capitalism. In this lesson, you'll learn some of the key concepts behind these economic systems. You'll also learn about mixed economic systems.
7. John Maynard Keynes: Economic Theory & Overview
Only the most influential thinkers in a discipline have an entire field named after them. In this lesson, you'll learn about one such economist - John Maynard Keynes. After the lesson, you can test your understanding with a short quiz.
8. Comparing the Theories of Adam Smith & Karl Marx
Adam Smith and Karl Marx are perhaps two of the best known social and economic thinkers in history. Find out more about each man's theory on the economy and capitalism.
9. Pure Competition: Definition, Characteristics & Examples
This lesson discusses pure competition. The way that pure competition affects sellers and consumers is explained, as well as examples of pure competition.
10. Monopolistic Competition: Definition, Theory, Characteristics & Examples
A market economy relies on competition in order to be successful. There are multiple forms of competition. This lesson discusses monopolistic competition, which is competition based on product differentiation.
11. Oligopoly Competition: Definition & Examples
In this lesson we will explain what a competitive oligopoly is. We will then look at some prominent characteristics of an oligopoly as well as look at some examples.
12. What is a Monopoly in Economics? - Definition & Impact on Consumers
In this lesson, you will learn about monopolistic markets and what a monopoly means for producers and consumers. After this lesson, you will understand why the name of one of our all-time favorite board games really makes perfect sense.
13. Differentiating between Comparative and Absolute Advantage
International trade is embraced by countries due to many benefits. In this lesson, we will discuss the differences between comparative and absolute advantage and the importance of specializing in production.
14. Currency Appreciation & Depreciation: Effects of Exchange Rate Changes
Find out how changes in the exchange rate can affect the economy and your own individual situation. Discover how these currency changes can increase and decrease your purchasing power and standard of living.
15. Globalization, Capitalism & Free Trade since 1990
In this lesson, we explore the growth of capitalism and free trade since 1990. We'll also examine the globalization spurred by the removal of tariffs and trade barriers.
16. Trade Barriers: Impacts on Prices & Demand
All countries desire trade as a way of increasing their wealth, but very often they want it on their own terms. This lesson looks at the trade barriers that many countries establish, as well as the effects of such limitations.
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