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Ch 1: Economic Concepts & Terminology

About This Chapter

This chapter explores the basic concepts and terminology in the study of economics. These text and video lessons will address microeconomics, macroeconomics, scarcity, capitalism, and more related topics to help deepen your understanding of economics..

Economic Concepts & Terminology - Chapter Summary

The lessons in this chapter provide you with information that covers how economics impacts society and explains the differences between microeconomics and macroeconomics. Consumer choice is highlighted as a large part in the study of economics and the concepts of scarcity and utility are discussed as influential factors in consumer purchases. This chapter also reviews how economic analysis and decisions are affected by the common logic pitfalls.

You'll also see material that covers the major people who influenced the development of economics. Additional video and text lessons focus on economic models as well as economic systems such as capitalism. After you are done studying the concepts discussed in this chapter you should be able to complete the following:

  • Explain the difference between microeconomics and macroeconomics
  • Discuss the concepts of scarcity and utility
  • Describe at least three common logical pitfalls in economics
  • Distinguish positive economics from normative economics and provide examples
  • Explain the limitations of capitalism
  • Identify types of command economic systems

The fun video lessons taught by our professional instructors offer another way to learn the material. The video components of this chapter each have their own lesson transcripts for your viewing. Use the video tags to conveniently and quickly navigate the video portions on which you want to focus more. After completing some of the self-assessment quizzes you will have an idea of your comprehension of the material and be able to plan the rest of your studying accordingly.

10 Lessons in Chapter 1: Economic Concepts & Terminology
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.

Microeconomics vs. Macroeconomics

2. Microeconomics vs. Macroeconomics

In this lesson, we learn how economics touches every aspect of human life. Focusing on the central ideas of scarcity and utility, we see how economics plays out in its two largest fields, microeconomics and macroeconomics.

The Importance of Consumer Choice in Economics

3. The Importance of Consumer Choice in Economics

Nothing makes a business happier than when we buy something they sell - well, maybe when we buy two of what they sell! This lesson explains why smart companies and governments try to understand everything about you to sell you more.

Microeconomic Resources: Scarcity & Utility

4. Microeconomic Resources: Scarcity & Utility

For economics to work, we must assume that resources are scarce and that people will work to secure the greatest utility possible. This lesson explains both scarcity and utility and what they mean for people everywhere.

Understanding the Challenge of Resource Allocation

5. Understanding the Challenge of Resource Allocation

By now, you've probably figured out that all resources are scarce. But how do we allocate resources to make the most of that scarcity? This lesson explains how economists allocate resources, as well as three of the major philosophies influencing such choices.

Common Logic Pitfalls in Economics

6. Common Logic Pitfalls in Economics

Economics is a pretty straightforward subject, but it can be plagued with plenty of logical pitfalls. This lesson discusses swimsuits, mansions, and politicians to explain some of the most common logical fallacies.

Comparing Normative & Positive Economics

7. Comparing Normative & Positive Economics

In most sciences, you can largely ignore opinions. However, in economics, we call opinions normative statements and economists must pay attention to them. This lesson details the differences between normative statements and positive statements.

An Overview of Economic Models & Uses

8. An Overview of Economic Models & Uses

For this lesson on economic models, you won't need any plastic cement or craft knives. That said, a lot of very useful detail can still be captured and portrayed in economic models, as this lesson demonstrates.

Major Figures in the Development of the Field of Economics

9. Major Figures in the Development of the Field of Economics

Economics is a mature discipline, and many minds have shaped the field into what it is today. In this lesson, we'll focus on three economic superstars: Adam Smith, Karl Marx and John Maynard Keynes.

Understanding Socialism, Communism, and Mixed Economies: Comparison & Analysis

10. Understanding Socialism, Communism, and Mixed Economies: Comparison & Analysis

Socialism and communism are alternative economic systems to capitalism. In this lesson, you'll learn some of the key concepts behind these economic systems. You'll also learn about mixed economic systems.

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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