Ch 4: Basics of Measuring the Economy

About This Chapter

Support your studies in an economics or social studies course by referring to the video lessons contained in this short chapter. You will learn about measuring economic growth that can help you study for class exams, review material for class discussions or prepare for college entrance exams.

Basics of Measuring the Economy - Chapter Summary

What is the Gross Domestic Product (GDP)? What does 'investment' refer to in relation to economics? These are topics you can expect to learn more about when you use this chapter. These lessons provide overviews of economic resources, production, goods and services and contain definitions and examples that clarify and simplify this information. Upon completion of this chapter, you should have developed or reinforced the following abilities:

  • Relate details about the circular flow of economic activity model
  • Use the expenditure approach to measure economic growth
  • Identify the components of the Gross Domestic Product
  • List elements not included in the GDP
  • Differentiate between an intermediate and a final good
  • Explain the difference between investment and investments in economics

Taught by instructors with backgrounds in teaching economics and finance, these lessons provide short bits of information and take only 5-10 minutes to review. You can watch videos on any device, at any time, and even print transcripts to use as handy reference guides. Measure how much you have learned by taking self-assessment quizzes for each lesson and track your progress on your Dashboard.

5 Lessons in Chapter 4: Basics of Measuring the Economy
Test your knowledge with a 30-question chapter practice test
Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

1. 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.

Gross Domestic Product: Using the Income and Expenditure Approaches

2. Gross Domestic Product: Using the Income and Expenditure Approaches

In this lesson, you will learn how economists measure gross domestic product using two different methods - the income approach and the expenditure approach.

Gross Domestic Product: Definition and Components

3. 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?

Gross Domestic Product: Items Excluded from National Production

4. Gross Domestic Product: Items Excluded from National Production

In this lesson, you'll gain a better understanding of what the gross domestic product is by exploring things that are excluded from it. Why do we count some items in the GDP but not others?

Investment vs. Investments in Economics

5. Investment vs. Investments in Economics

Discover the important difference between investment in economics and investments that individuals make by saving out of their income. This lesson defines and outlines the basic components of gross private domestic investment.

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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