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Ch 3: Economics and Business

About This Chapter

Watch video lessons and learn about the common concepts and terms associated with economics and business. Take self-assessment quizzes to make sure you have a solid grasp of key concepts.

Economics and Business - Chapter Summary and Learning Objectives

In this chapter, your instructors will provide you with an overview of basic economics and business, including the key terms most commonly used in both fields. They'll also introduce you to one of the most basic economic models, the circular-flow model. Using engaging, easy-to-understand language and visuals, instructors discuss the different types of economies, including the free-market economies typically associated with capitalism.

If you listen to or watch the news on a regular basis, you've probably heard the words 'depression', 'inflation', and 'recession', and our lessons will explain what those terms actually mean and provide you with a more informed understanding of our own economy. The relationship between a country's fiscal and monetary policies will also be covered. When you're ready to take the self-assessment quizzes at the end of the lessons, you should be able to:

  • Speak the language of business and economics, including key terms and phrases
  • Discuss basic economic models and how buyers and sellers come together in markets
  • Understand Gross Domestic Product (GDP) as the market value of a country's goods and services
  • Understand the business cycle as a means for explaining long-term economic performance

VideoObjectives
What is Economics? - Definition & Types Define the basic terms associated with economics, including economics, the economics of despair and growth, macroeconomics, microeconomics, resource development, and the invisible hand.
Circular Flow of Economic Activity: The Flow of Goods, Services and Resources Discuss production factors, and summarize the flow of goods, services, and resources in the economy.
Competition within Free Markets: Discussion & Quiz Understand how competition works within free markets. Define the following terms: monopolistic competition, monopoly, oligopoly and perfect competition.
Understanding Socialism, Communism, and Mixed Economies: Comparison & Analysis Compare socialism and communism. Analyze the trend toward mixed economies, including command and free-market economies in the discussion.
Gross Domestic Product: Definition and Components Identify and describe the components of the GDP, and understand how each contributes to the total growth of the economy.
The Business Cycle: Economic Performance Over Time Use the business cycle concept to explain economic performance over time, and define the relevant terms.
Consumer Price Index: Measuring the Cost of Living and Inflation Describe inflation and its relationship to the CPI. Explain deflation.

7 Lessons in Chapter 3: Economics and Business
What is Economics? - Definition & Types

1. What is Economics? - Definition & Types

Few things affect the day-to-day lives of everyone more than the economy. In this lesson, you'll learn about economics, including some of its foundational topics and concepts. You'll also have a chance to take a quiz after the lesson.

Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

2. Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

Learn about the simple model used to describe where money goes and what it is exchanged for in a market economy. The circular flow model of economic activity shows you the basic relationships between households, firms and the government.

Competition Within Free Markets: Types & Summary

3. Competition Within Free Markets: Types & Summary

We live in a free market economy, but that doesn't mean there is always free competition. In this lesson, you'll learn about perfectly competitive markets, monopolies, monopolistic markets and oligopolies.

Understanding Socialism, Communism, and Mixed Economies: Comparison & Analysis

4. 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.

Gross Domestic Product: Definition and Components

5. Gross Domestic Product: Definition and Components

Learn how economists measure the total production of an economy using gross domestic product (GDP). This lesson also outlines the components that make up a GDP. How do we calculate the economic value of a nation?

The Business Cycle: Economic Performance Over Time

6. The Business Cycle: Economic Performance Over Time

Learn the economic terms that describe economic performance over time and how indicators such as unemployment and inflation behave throughout these economic fluctuations.

Consumer Price Index: Measuring the Cost of Living and Inflation

7. Consumer Price Index: Measuring the Cost of Living and Inflation

In this lesson, you'll learn what the Consumer Price Index is and how it measures changes in the level of prices in an economy. You'll also learn about the important economic concepts of inflation and deflation. Why do prices always seem to be going up?

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