Ch 5: Economic Principles

About This Chapter

Watch engaging and informative video lessons in your study of economic principles. Learn about services marketing, economic utilities, economic systems and more.

Economic Principles - Chapter Summary

In this chapter, you can delve into the history of organized labor and learn about the effects of free enterprise on society and business. You'll also take a good look at the roles and importance of global trade, including the forces affecting trade in global markets. By the time you've completed this chapter, you should be able to do the following:

  • Understand logic pitfalls in economics
  • Compare goods and services
  • Explain price elasticity
  • Discuss interactions between business, society and government
  • Define gross domestic product
  • Chart the business cycle
  • Describe global marketing and trade
  • Explain the consumer price index

Experienced instructors teach our brief and informative video lessons, including bolded headings and key words to accentuate the lessons' organization. By completing the short quiz following each lesson, you can discover any areas that might require a little extra work. Lessons also include handy video tags to help locate desired portions of the lessons. Videos come with transcripts in case you prefer to read along.

17 Lessons in Chapter 5: Economic Principles
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.

Common Logic Pitfalls in Economics

2. 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.

Logistics of Goods and Services

3. Logistics of Goods and Services

Logistics management is essential for the proper functioning of a supply chain and for successfully serving customers. In this lesson, you'll learn about the role of logistics in supply chain management and how intermediaries can be used in the process.

Price Elasticity: Understanding Supply and Demand

4. Price Elasticity: Understanding Supply and Demand

Marketing managers need to understand the basics of supply and demand in order to develop the precise price for their product. Inelastic and elastic demand explains how sensitive consumers are to price and how much flexibility it allows the marketing team.

Economic Systems: Formal & Substantive Approaches

5. Economic Systems: Formal & Substantive Approaches

Today's lesson on the substantive versus formal approaches to economics is rather simple to grasp despite the way these names may sound. Learn about these terms and their origin and see some tangible examples of each.

Business, Government & Society: Interactions and Influences

6. Business, Government & Society: Interactions and Influences

Business, government, and society interact and influence each others' specific objectives and goals. In this lesson, you will learn the three different models that can impact how they influence each other.

Government's Non-Regulatory Influence on Business

7. Government's Non-Regulatory Influence on Business

The government's non-regulatory influence on business can be just as effective as regulatory methods. In this lesson, you will learn numerous ways government can impact companies' productivity and profitability.

A Historical Outline of Organized Labor in the United States

8. A Historical Outline of Organized Labor in the United States

In this lesson, you'll learn about the development of organized labor and unions in the United States and their current position in the United States economy. We'll also touch upon federal laws that have been developed regulating and protecting organized labor.

Gross Domestic Product: Definition and Components

9. 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

10. 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?

The Business Cycle: Economic Performance Over Time

11. The Business Cycle: Economic Performance Over Time

Learn the economic terms that describe economic performance over time and how indicators such as unemployment and inflation behave throughout these economic fluctuations.

International Trade Regulations & Restrictions

12. International Trade Regulations & Restrictions

Importing and exporting are vital elements to a healthy U.S. economy. Businesses should be familiar with international laws regarding trade. This lesson defines imports and exports and discusses international trade regulations and restrictions.

The Importance of the Global Market and Global Trade: Role & Advantages

13. The Importance of the Global Market and Global Trade: Role & Advantages

We all need resources, products and service to live and thrive. Sometimes these things are not readily available locally. In this lesson, you'll learn about the importance of international trade and globalization in fulfilling our needs and wants.

Forces that Affect Trade in Global Markets

14. Forces that Affect Trade in Global Markets

The global marketplace is diverse. While diversity provides opportunity, it also provides challenges. In this lesson, you'll learn about the forces that affect trade in the global market. You'll also have a chance to take a short quiz after the lesson.

Hyperinflation, Money Supply and the Consumer Price Index

15. Hyperinflation, Money Supply and the Consumer Price Index

Is there such a thing as too much money? Maybe. What happens when inflation is excessive? This lesson explores what hyperinflation is and how it is connected with the money supply.

Consumer Price Index and the Substitution Bias

16. Consumer Price Index and the Substitution Bias

In this lesson, you'll learn about the Consumer Price Index and how it is measured. You'll also learn why many economists believe that the Consumer Price Index overstates inflation.

Consumer Price Index: Measuring the Cost of Living and Inflation

17. Consumer Price Index: Measuring the Cost of Living and Inflation

In this lesson, you'll learn what the Consumer Price Index is and how it measures changes in the level of prices in an economy. You'll also learn about the important economic concepts of inflation and deflation. Why do prices always seem to be going up?

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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