About This Chapter
CSET Business - Economic Concepts: Chapter Summary
An understanding of common economic terms, as well as knowledge of basic concepts and theories in relation to economics both in the U.S. and abroad, can help you excel on the California Subject Examinations for Teachers (CSET) Business Subtest II. If you're unfamiliar with these subjects, or if you just need a refresher going into the exam, our economic concepts chapter could be just what you're looking for. Topics covered by the video lessons in this chapter include the following:
- The flow of goods, services and resources
- Economic scarcity and the function of choice
- Definition and real world examples of opportunity cost
- Shifts in the production possibilities curve
- Calculating opportunity cost
- Applying the production possibilities model
- Microeconomics vs. macroeconomics
CSET Business - Economic Concepts Objectives
If you want to earn certification as a secondary school business teacher in California, you'll need to succeed on the CSET Business Single Subject Exam. This exam is divided into three parts that gauge your proficiency in various areas of business. Specifically, the CSET Business Subtest II covers accounting, finance and economics. Approximately 40% of the subtest's 40 multiple-choice questions focus on economics. You'll also answer one constructed-response question related to economics. This question should take approximately 10-15 minutes to complete.
Watching the video lessons and taking the self-assessment quizzes in this chapter on Economic Concepts can help ready you for the CSET Business Subtest II. The lessons can be watched multiple times - and you can take the quizzes as often as you'd like - to ensure that you have each concept down before taking your certification exam.
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.
2. 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.
3. 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.
4. Shifts in the Production Possibilities Curve
In this lesson you will learn how changes inside an economy lead to changes in the production possibilities of a nation. See how different scenarios from everyday life lead to shifts in the production possibilities curve.
5. How to Calculate Opportunity Cost
Learn the formula that reveals the economic value in any major choice between two possibilities. Every choice involves tradeoffs, and opportunity cost shows you how to measure these tradeoffs.
6. Applying the Production Possibilities Model
Producers in the economy use a visual model, called the production possibilities curve, to make the most efficient production decisions and maximize output. Learn how this model reveals the tradeoffs of every production decision with the simplified example of an economy that produces only two goods.
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Other chapters within the CSET Business Subtest II (176): Practice & Study Guide course
- CSET Business - Accounting Principles
- CSET Business - Principles of Finance
- CSET Business - Personal Finance
- CSET Business - Microeconomics
- CSET Business - Macroeconomics: General Concepts
- CSET Business - Macroeconomics: Unemployment & Inflation
- CSET Business - Macroeconomics: Money, Federal Reserve System & Banking
- CSET Business - Macroeconomics: Fiscal and Monetary Policy
- CSET Business - International Economics
- CSET Business Subtest 2 Flashcards