Ch 8: Basic Economic Concepts & Economic Systems

About This Chapter

Study the lessons contained in this chapter to brush up on basic economic concepts and terms. Use this resource to prepare for economics class discussions, exams or professional certification testing.

Basic Economic Concepts & Economic Systems - Chapter Summary

From productivity to supply and demand, this chapter focuses on fundamental ideas and concepts in economics. You can review detailed information in short video or text lessons about types of economic systems, facts about consumerism and more.

Some lessons discuss Gross Domestic Product (GDP), the flow of goods, microeconomics, price systems and production factors. After you study this chapter, you should be able to:

  • Describe the basic functions of money
  • List the four factors of production
  • Understand economic scarcity and what influences consumer buying decisions
  • Discuss what influences productivity
  • Define the four types of economic systems
  • Detail the causes and effects of supply and demand
  • Talk about pricing systems and the effects of prices on producers and consumers

Short lessons take only 5-10 minutes to review and can be studied as often as needed to ensure your full understanding of these topics. Access lessons from any device 24/7 and print lesson transcripts to create handy reference materials. Experts are available via a brief online contact form to answer questions you have about the lessons. Measure what you're learned using self-assessment quizzes and a chapter exam.

12 Lessons in Chapter 8: Basic Economic Concepts & Economic Systems
Test your knowledge with a 30-question chapter practice test
The Four Basic Functions of Money

1. The Four Basic Functions of Money

This lesson uses real-world examples to describe the four basic functions that money serves in an economy. These basic functions help to create the foundation of the money system.

Four Factors of Production: Land, Labor, Capital & Entrepreneurship

2. Four Factors of Production: Land, Labor, Capital & Entrepreneurship

In this lesson, you'll learn about the four main economic inputs, known as factors of production, needed to produce all goods and services in an economy: land, labor, capital, and entrepreneurship.

Economic Scarcity and the Function of Choice

3. 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.

Influences on Consumer Buying Decisions: Cultures, Values & More

4. Influences on Consumer Buying Decisions: Cultures, Values & More

External influences are all around us and play a large role in our buying decisions. Watch this video to see how cultures, values and other influences shape our purchases.

Productivity: The Economy's Long-Run Growth Engine

5. Productivity: The Economy's Long-Run Growth Engine

Using real-world examples, you'll learn more about what productivity is and four things that determine it within a nation - physical capital, technology, human capital, and natural resources.

How Real GDP per Capita Affects the Standard of Living

6. How Real GDP per Capita Affects the Standard of Living

Have you ever wondered why some countries are better off than others? In this lesson, explore the concept of real GDP per capita, an economic measure of a nation's standard of living, and discover how population, productivity, and the savings rate effect the standard of living.

Economic Systems: Traditional, Market, Command & Mixed

7. Economic Systems: Traditional, Market, Command & Mixed

The following lesson describes the four types of economic systems that are responsible for all of the buying, selling, and production of goods. A short quiz will follow the lesson to check your understanding of the material.

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

8. 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.

How Changes in Supply and Demand Affect Market Equilibrium

9. How Changes in Supply and Demand Affect Market Equilibrium

Learn how the equilibrium of a market changes when supply and demand curves increase and decrease and how different shifts in the curves can affect price.

Causes of Supply and Demand Changes in Microeconomics

10. Causes of Supply and Demand Changes in Microeconomics

Learn what causes movements along the supply and demand curves. See how market forces work to cause these movements and the important role that price plays in this.

Characteristics of the Price System in a Market Economy

11. Characteristics of the Price System in a Market Economy

Where do prices come from? In this lesson we will learn where prices come from by examining the four principles of pricing; 1) prices are neutral, 2) prices are market driven, 3) prices are flexible, and 4) prices are efficient.

Effects of Prices on Producers and Consumers

12. Effects of Prices on Producers and Consumers

In this lesson, we'll take a look at how prices may affect decision making in producers and consumers. The lesson will also define key terms and concepts related to how pricing affects producers and consumers.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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