About This Chapter
Basic Economic Terms & Concepts - Chapter Summary
As you work through this engaging chapter, you'll review basic economic terms and concepts. These include opportunity cost, economies of scale and marginal utility, among others. This chapter is designed to help you understand how to:
- Detail economic scarcity and the function of choice
- Define opportunity cost and give real-world examples
- Explain the concept of specialization in economics
- Outline the theory and formula of marginal utility
- Discuss the formula for elasticity in economics
- Identify the benefits of economies of scale
- Provide the definition and examples of the law of diminishing returns
You don't need to be overwhelmed by these concepts when you have help from this chapter. Each video outlines these concepts in generally ten minutes or less. If you need any help along the way, contact one of our experts through the Dashboard to get your questions answered.
1. 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.
2. 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.
3. Specialization in Economics: Definition & Concept
How does one increase productivity? Why do nations focus on producing certain goods over others and then trade? These questions are addressed in the discussion of specialization in economics.
4. What is Marginal Utility? - Definition, Theory, Formula & Example
Utility is an essential economic concept that explains the satisfaction in consumption. This lesson explains marginal utility, how it is calculated, and its usefulness. Then you'll be able to test your newfound knowledge with a quiz.
5. What is Elasticity in Economics? - Definition, Theory & Formula
In this lesson, we'll discuss elasticity in economics, including its definition, the different types of elasticity, and their effect on the business market. We'll also use a real-life example and learn how to use simple formulas to calculate elasticity of demand.
6. Economies of Scale: Definition, Benefits & Examples
If you've ever wondered how Wal-Mart can sell items so cheaply, it's because of economies of scale. In this lesson, you'll learn about economies of scale and their benefits. A short quiz follows the lesson.
7. Law of Diminishing Returns: Definition & Examples
How does a farmer determine how much fertilizer to use? How many baristas are needed in a cafe? In this lesson, you will learn how the law of diminishing returns impacts expected output per unit of input.
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Other chapters within the NES Social Science (303): Practice & Study Guide course
- Reading & Research Skills
- Historiography & World History
- Early Civilizations in Egypt, Mesopotamia & the Near East
- The Legacy of Ancient Greece & Rome
- Early Indian Civilization
- Early Chinese Civilization
- Ancient Japan & Southeast Asia
- Early Civilizations in Africa & the Americas
- The Spread of Islam & The Byzantine Empire
- Europe after the Decline of the Roman Empire
- Overview of Global Religions
- The European Renaissance & Protestant Reformation
- The Scientific Revolution & the European Enlightenment
- European Expansion from 1450-1650
- Industrialization in Europe
- Major Political Developments from 1350-1871
- Impacts of European Imperialism
- Causes & Consequences of World War I
- Causes & Consequences of World War II
- Causes & Consequences of the Cold War
- Developments in East Asia, Latin America, Africa & the Middle East since 1945
- Changes in Europe after World War II
- Contemporary Global Challenges
- The Precontact Period & Settling North America
- Causes & Consequences of the American Revolution
- The Evolution of National & State Governments
- Major Figures in U.S. History from the Precontact Period-1789
- Political & Constitutional Developments from 1789-1877
- Westward Expansion, Economic Growth & U.S. Foreign Relations from 1789-1877
- Major Antebellum Reform Movements & Key Reformers
- Sectionalism & the American Civil War
- The Reconstruction Period
- Settlement of the Trans-Mississippi West
- The Growth of the Industrial Economy in the U.S.
- The American Progressive Era
- American Imperialism & Rise to International Power
- The 1920s in the U.S.
- Causes & Effects of the Great Depression
- U.S. Foreign Policy since World War II
- Major U.S. Political Events & Developments since 1945
- U.S. Economic Developments since 1946
- Major U.S. Social Developments since 1945
- Major Social & Political U.S. Movements During the Postwar Period
- Basic Geographic Terms & Concepts
- Geographic Reference Sources, Tools & Technologies
- Physical Features of the Earth
- Characteristics of World Geography
- Elements of Weather & Climate
- Human Societies & the Environment
- Characteristics of Human Systems
- Basic Political Science Terms & Concepts
- Political Theorists & Figures in Political Science
- Systems of Government
- Key Political Documents
- Significance of Landmark U.S. Supreme Court Decisions
- U.S. Electoral System & Political Process Participation
- U.S. Citizenship Rights & Responsibilities
- Levels of U.S. Government
- Microeconomics Concepts & Laws
- Interpreting Economic Information
- Operation of Business Firms
- Fundamentals of Consumer Economics
- Fundamentals of Personal Finance
- Economic Institutions & Groups
- Unemployment, Inflation & Deflation
- NES Social Science Flashcards