Ch 63: Basic Economic Terms & Concepts

About This Chapter

Our professional instructors narrate lessons on basic economic concepts and terms in this chapter. Made up of short video lessons and multiple-choice self-assessment quizzes, this resource is ideal for use when prepping for an important exam or term paper.

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.

7 Lessons in Chapter 63: Basic Economic Terms & Concepts
Test your knowledge with a 30-question chapter practice test
Economic Scarcity and the Function of Choice

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.

Opportunity Cost: Definition & Real World Examples

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.

Specialization in Economics: Definition & Concept

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.

What is Marginal Utility? - Definition, Theory, Formula & Example

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.

What is Elasticity in Economics? - Definition, Theory & Formula

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.

Economies of Scale: Definition, Benefits & Examples

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.

Law of Diminishing Returns: Definition & Examples

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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