Ch 1: Basic Economic Concepts

About This Chapter

Prepare for microeconomics exams or to earn course credit by reviewing this chapter on basic economic concepts. These lessons offer an effective and structured approach to studying economics information, and the information is available 24/7 so you can study on your own schedule.

Basic Economic Concepts - Chapter Summary

This chapter provides an extensive overview of the basic economic concepts that are essential to understanding microeconomics. Our instructors break down the chapter into smaller, more manageable lessons on topics like trade-offs and competitive advantage, and each lesson is clearly labeled, so you know precisely which topic you will review. Our instructors make sure to thoroughly explain key words, definitions, major concepts, and formulas. You can check how well you comprehend the information by answering the lesson quizzes before or after each lesson. At the close of the chapter, you should know how to:

  • Define and discuss economics, microeconomics and marginal benefit
  • Describe the formula for running a marginal analysis
  • Discuss how trade-offs, gains from trade, and comparative advantage impact economics
  • Differentiate between positive and normative economics
  • Share the definition and assumptions about the economic man concept
  • Elaborate on the effects and causes of economic interdependence
  • List and describe how the economic thought process works

12 Lessons in Chapter 1: Basic Economic Concepts
Test your knowledge with a 30-question chapter practice test
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.

What Is Microeconomics? - Definition & Topics

2. What Is Microeconomics? - Definition & Topics

Learn about microeconomics and a few of the most popular topics that are typically studied in the field, such as supply and demand, opportunity cost, and different forms of competition that exist.

Marginal Analysis in Economics: Definition, Formula & Examples

3. Marginal Analysis in Economics: Definition, Formula & Examples

In this lesson, we'll discuss marginal analysis, a very important economic concept. It explains how individuals and businesses make decisions regarding commodities. We'll go over the formula and look at examples before concluding the lesson with a quiz.

Marginal Benefit in Economics: Definition & Example

4. Marginal Benefit in Economics: Definition & Example

In this lesson, we'll learn about marginal benefit. We'll define the term and look at some examples. We'll also learn how to calculate marginal benefit.

Trade-Offs in Economics: Definition & Examples

5. Trade-Offs in Economics: Definition & Examples

Learn about trade-offs in economics and why they are important to understand when making good decisions about your time, money and energy. Read about some trade-offs that you make every day, whether you realize it or not.

Comparative Advantage: Definition and Examples

6. Comparative Advantage: Definition and Examples

Understand the definition of comparative advantage, using two goods as an example. This key lesson incorporates the basic foundations of economics into one foundational theory explaining what goods and services that people,and nations, should produce and for whom they should produce it.

Gains from Trade: Definition & Example

7. Gains from Trade: Definition & Example

Sometimes doing everything yourself isn't always the best economic decision. This lesson explains and provides an example, showing how specializing and trading can benefit everyone involved.

Economic Interdependence: Definition, Causes & Effects

8. Economic Interdependence: Definition, Causes & Effects

This lesson will examine the pros and cons of economic interdependence and its definition as well as its causes and effect. We will also look at how economic interdependence happens and observe who ultimately benefits and is hurt by this phenomenon.

What is Positive Economics? - Definition, Methodology & Examples

9. What is Positive Economics? - Definition, Methodology & Examples

Learn about the difference between the science and the art of economics. Find out the difference between positive and normative economics and why it is important to distinguish between them.

Normative Economics: Definition & Examples

10. Normative Economics: Definition & Examples

In this lesson, we'll explore normative economics. We will look at the definition of the term and see how it compares to positive economics. Some examples will be considered.

What Is the Economic Man? - Concept, Assumptions & Constraints

11. What Is the Economic Man? - Concept, Assumptions & Constraints

Just because the Economic Man doesn't exist doesn't mean that he's not important. This lesson explains how the Economic Man is really quite useful to economists for a variety of reasons.

The Economist Thought Process: Policy Advisor & Scientist

12. The Economist Thought Process: Policy Advisor & Scientist

How does an economist think? Are they a scientist or an advisor? This lesson will cover the two faces of an economist, the scientist and policy advisor, providing examples of each.

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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