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Ch 3: Economics and Business: Help and Review

About This Chapter

The Economics and Business chapter of this College-Level Introduction to Business Help and Review course is the simplest way to master business and economics. This chapter uses simple and fun videos that are about five minutes long, plus lesson quizzes and a chapter exam to ensure students learn the essentials of economics and business.

Who's it for?

Anyone who needs help learning or mastering college business material will benefit from taking this course. There is no faster or easier way to learn college business. Among those who would benefit are:

  • Students who have fallen behind in understanding basic economics or working with gross domestic product
  • Students who struggle with learning disabilities or learning differences, including autism and ADHD
  • Students who prefer multiple ways of learning business topics (visual or auditory)
  • Students who have missed class time and need to catch up
  • Students who need an efficient way to learn about business and economics
  • Students who struggle to understand their teachers
  • Students who attend schools without extra business learning resources

How it works:

  • Find videos in our course that cover what you need to learn or review.
  • Press play and watch the video lesson.
  • Refer to the video transcripts to reinforce your learning.
  • Test your understanding of each lesson with short quizzes.
  • Verify you're ready by completing the Economics and Business chapter exam.

Why it works:

  • Study Efficiently: Skip what you know, review what you don't.
  • Retain What You Learn: Engaging animations and real-life examples make topics easy to grasp.
  • Be Ready on Test Day: Use the Economics and Business chapter exam to be prepared.
  • Get Extra Support: Ask our subject-matter experts any business and economics question. They're here to help!
  • Study With Flexibility: Watch videos on any web-ready device.

Students will review:

This chapter helps students review the concepts in an Economics and Business unit of a standard college-level introduction to business course. Topics covered include:

  • Circular flow of economic activity
  • Capitalism and the free market
  • Socialism, communism and mixed economies
  • The business cycle
  • Consumer price index
  • Recession vs. depression

78 Lessons in Chapter 3: Economics and Business: Help and Review
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.

Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

2. 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.

Competition Within Free Markets: Types & Summary

3. Competition Within Free Markets: Types & Summary

We live in a free market economy, but that doesn't mean there is always free competition. In this lesson, you'll learn about perfectly competitive markets, monopolies, monopolistic markets and oligopolies.

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

4. 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.

Gross Domestic Product: Definition and Components

5. 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?

The Business Cycle: Economic Performance Over Time

6. 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.

Consumer Price Index: Measuring the Cost of Living and Inflation

7. 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?

What are Economic Resources? - Definition, Types & Examples

8. What are Economic Resources? - Definition, Types & Examples

If there are no resources, an economy cannot be sustained. In this lesson, you'll learn what economic resources are, the different types of economic resources, and why they are vitally important. A short quiz follows the lesson.

Economic Resources Flashcards

Economic Resources Flashcards

This flashcard set is an overview of economic resources. There is an overview of types of both human and nonhuman economic resources. Both are needed for businesses and economies to function properly.

Complementary Goods in Economics: Definition & Examples

10. Complementary Goods in Economics: Definition & Examples

Do the sales of one good affect the sales of another? Does the laptop I just purchased have a complementary good? Learn what complementary goods are and read about some easy-to-remember examples.

How to Calculate Economic Profit: Definition & Formula

11. How to Calculate Economic Profit: Definition & Formula

Learn what economic profit is and how it's different from standard accounting profit in this lesson. Find out the formula for calculating economic profit and why it's possible to have a positive accounting profit and a negative economic profit.

Marginal Cost: Definition, Equation & Formula

12. Marginal Cost: Definition, Equation & Formula

Marginal cost is an important concept in business. In this lesson, you'll learn what marginal costs are and their standard formula with some illustrative examples. A short quiz follows the lesson.

Natural Monopoly in Economics: Definition & Examples

13. Natural Monopoly in Economics: Definition & Examples

Find out what a natural monopoly is and why they exist. Learn about some everyday services that you use that are provided by companies that are natural monopolies.

Absorption Costing: Definition, Formula & Example

14. Absorption Costing: Definition, Formula & Example

In this lesson, we'll learn about absorption costing. We'll define it and learn how to calculate it. The lesson will conclude with an example and lesson summary about absorption costing.

Adverse Selection in Economics: Definition & Examples

15. Adverse Selection in Economics: Definition & Examples

In this lesson we will look at adverse selection in economics. We will define the term and look at how asymmetric information is related to adverse selection. An example will be provided, followed by a summary and a quiz.

Aggregate Demand: Definition & Model

16. Aggregate Demand: Definition & Model

Economists often analyze the total demand for goods and services in an economy. In this lesson, you'll learn about aggregate demand and the model economists use to describe it. You'll also have a chance to take a short quiz.

Aggregate Expenditure: Definition, Function, Components & Formula

17. Aggregate Expenditure: Definition, Function, Components & Formula

In this lesson, we'll start by defining the concept of aggregate expenditure. Then we'll discuss its components and the formula used to calculate it, and look into how aggregate expenditure can be used to analyze the economy of a country.

Aggregate Income: Definition & Formula

18. Aggregate Income: Definition & Formula

Some countries are wealthy and others are not so wealthy. There are a number of methods used to measure the wealth of a country's economy. In this lesson, we will discuss the aggregate income of a country and how it is determined.

Aggregate Supply Curve: Definition & Overview

19. Aggregate Supply Curve: Definition & Overview

Economists often analyze the total supply of goods and services provided by businesses on an economy-wide basis. In this lesson, you'll learn about the aggregate supply curve, including key concepts related to it.

Allocative Efficiency in Economics: Definition & Example

20. Allocative Efficiency in Economics: Definition & Example

In this lesson, we will explore allocative efficiency, including its definition and how it works for the benefit of society. The lesson will conclude with a summary and a brief quiz.

Anticipated Inflation: Definition & Overview

21. Anticipated Inflation: Definition & Overview

Explore how anticipated inflation can contribute to eroding purchasing power over time. Learn about how the average annual inflation rate from 1914 to 2013 was 3.3% and how this can affect consumers and businesses.

Average Product in Economics: Definition & Formula

22. Average Product in Economics: Definition & Formula

In this lesson, we will learn about average product. We will define the term, discover its importance and limitations, and learn the simple formula needed to calculate it.

Barriers to Entry in Economics: Definition, Types & Examples

23. Barriers to Entry in Economics: Definition, Types & Examples

Economic barriers to entry are part of the reason some companies thrive and others fail. Learn what barriers to entry are and why they are so important to understand before entering a specific business or market. Read about some current-day examples.

Calculating Net Exports: Definition & Formula

24. Calculating Net Exports: Definition & Formula

Understanding the impact of imports and exports helps explain the financial health of a country and whether the country is selling more products than it is purchasing. This lesson offers examples to illustrate calculating net exports.

Calculating Price Elasticity of Supply: Definition, Formula & Examples

25. Calculating Price Elasticity of Supply: Definition, Formula & Examples

This lesson covers the concept of price elasticity of supply by defining the concept, providing a formula for calculating the supply elasticity, and discussing the classifications of supply elasticity.

Centrally Planned Economy: Definition, Characteristics & Advantages

26. Centrally Planned Economy: Definition, Characteristics & Advantages

In this lesson, we will determine what is meant by the term 'centrally planned economy.' We'll look at the characteristics and the advantages of this type of economy, and then you can take a quiz to test your knowledge.

Circular Flow Diagram in Economics: Definition & Example

27. Circular Flow Diagram in Economics: Definition & Example

In this lesson, we will look at the basic circular flow diagram. We'll learn who the main actors are and what roles they play. We will also look at some examples.

Circular Flow Model in Economics: Definition & Examples

28. Circular Flow Model in Economics: Definition & Examples

The circular flow model in economics is critical for thriving societies. In this lesson, we will learn about this simplified view of how our economy moves and what causes this continual movement.

Coase Theorem: Definition & Example

29. Coase Theorem: Definition & Example

A Coase theorem is one way to settle disputes. In this lesson we will define the term and examine how it works in theory and in practice. The lesson will conclude with a summary and quiz.

Collusion in Economics: Definition & Examples

30. Collusion in Economics: Definition & Examples

In this lesson we will explain the act of collusion. We will look at different factors that affect the legality of the term and break down a real life scenario. A lesson summary and quiz will follow.

Demerit Goods: Definition & Examples

31. Demerit Goods: Definition & Examples

In this lesson we will look at demerit goods. We will define these goods, provide examples, and relate them to a real life example. The lesson will conclude with a summary and a quiz.

Economic Determinism and Karl Marx: Definition & History

32. Economic Determinism and Karl Marx: Definition & History

Understand the economic theories of Karl Marx, known as economic determinism, and how it related to historical materialism, the mode of production, the means of production, and Marxism.

Economic Efficiency: Definition & Examples

33. Economic Efficiency: Definition & Examples

In this lesson, we will learn what economic efficiency means. We will then look at some factors that help define this type of economy. Lastly, we will use some examples to better understand economic efficiency.

Economic Fluctuations: Definition & Model

34. Economic Fluctuations: Definition & Model

Economies go up, and economies go down. In this lesson, you'll learn about economic fluctuations, including what they are as well as look at the dominant model.

Economic Loss: Definition & Rule

35. Economic Loss: Definition & Rule

This lesson will discuss economic loss and how it may affect individuals and organizations. The lesson will give a definition of economic loss, outline the types of economic loss, and then give details on how it may arise and how it may be addressed.

Economic Output: Definition & Overview

36. Economic Output: Definition & Overview

Economic output is one of the most important economic measures for a country. In this lesson, you'll learn what economic output is as well as some related concepts.

Economic Rent: Definition & Example

37. Economic Rent: Definition & Example

Learn what economic rent is and if you have ever paid or received it. Find out why it is important to understand and how it differs from the normal 'rent' that you are familiar with. Check out the examples and take a short quiz to see what you have learned.

Economic Slowdown: Definition & Overview

38. Economic Slowdown: Definition & Overview

Economies fluctuate up and down. Sometimes economies will speed up, and sometimes they will slow down. In this lesson, you'll learn about economic slowdowns and their role in the business cycle.

Economic Stabilization Policy: Definition & Overview

39. Economic Stabilization Policy: Definition & Overview

Economies rise, economies fall, and governments try to keep them steady. In this lesson, you'll learn about the major economic policies governments implement to try to smooth over violent economic fluctuations.

Economic Systems: Definition, Types & Examples

40. Economic Systems: Definition, Types & Examples

In this lesson, you'll learn about the three major forms of economic systems, including planned, market, and mixed market economies. You'll also explore the five factors of production and the roles they play in the exchange of products or services.

Economies of Scale: Definition, Benefits & Examples

41. 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.

Economies of Scope: Definition & Examples

42. Economies of Scope: Definition & Examples

In this lesson we will explore economies of scope. We will then learn about how economies of scope occur and how they are beneficial for companies. The lesson will be concluded with a summary and quiz.

Economist Milton Friedman: Theories & Monetary Policy

43. Economist Milton Friedman: Theories & Monetary Policy

Milton Friedman was a highly celebrated American economist and a strong proponent of the free market system. Let's take a look at some of his contributions to the field of economics.

Elasticity of Supply: Definition & Formula

44. Elasticity of Supply: Definition & Formula

Is a product in high demand? Or are consumers not concerned about inventory amounts? Elasticity of supply explains how availability of a product affects consumer behavior. This lesson explains how elasticity of supply works.

Factors of Production in Economics: Definition, Importance & Examples

45. Factors of Production in Economics: Definition, Importance & Examples

In this lesson, you'll learn about factors of production in economics, including their definition, their importance, and some examples. You'll also have a chance to take a short quiz.

Fiat Money: Definition, History & Examples

46. Fiat Money: Definition, History & Examples

The United States dollar, as well as other major currencies, is valuable only because someone says it is. In this lesson, you'll learn about fiat money and its history. You'll also have a chance to take a short quiz.

Financial Leverage: Definition, Formula & Calculation

47. Financial Leverage: Definition, Formula & Calculation

New investors often have trouble understanding how their stock can earn a higher return than the company that issued the stock earned. The answer is financial leverage, which is explained in this lesson.

Financing Activities: Definition & Examples

48. Financing Activities: Definition & Examples

This lesson provides an explanation of what a banker is looking for, and the thought process, when attempting to determine whether to extend credit to a small business. It identifies and explains the Five C's of credit which is the foundation for securing a loan.

Free Enterprise Economy: Definition & Examples

49. Free Enterprise Economy: Definition & Examples

Our economic system has a major impact on how society functions. It determines how we feel and how we act. They say, 'Money makes the world go round.' Let's take a look at the free enterprise economy and see why that is.

Free Market: Definition, Advantages & Examples

50. Free Market: Definition, Advantages & Examples

This lesson explains what a free market system is, the basics of how it affects consumers and business owners, and offers some basic examples of businesses in a free market system.

Frictional Unemployment: Definition & Examples

51. Frictional Unemployment: Definition & Examples

Not all unemployment is involuntary. In this lesson, you'll learn about frictional unemployment and be provided some examples to illustrate it. You'll also have a chance to take a short quiz after the lesson to reinforce your knowledge.

GDP Deflator: Definition, Formula & Example

52. GDP Deflator: Definition, Formula & Example

In this lesson, we will be discussing the GDP deflator. It's an effective method that is used to measure price changes over time within an economy. We'll go into more depth about the concept and illustrate an example of how it is calculated.

Price Discrimination: Definition, Types & Examples

53. Price Discrimination: Definition, Types & Examples

This lesson defines types of price discrimination. We'll use several scenarios to explore the use of price discrimination in the real world.

Price Elasticity of Demand: Definition, Formula & Example

54. Price Elasticity of Demand: Definition, Formula & Example

This lesson will provide a clear definition of price elasticity of demand, show you step-by-step how to calculate it using the formula, and why this formula is important to a firm when setting prices. Afterwards, check out the quiz.

Price Floor in Economics: Definition & Examples

55. Price Floor in Economics: Definition & Examples

This lesson will discuss the economic concept of the price floor, and its place in current economic decisions. It will provide key definitions and examples to assist with illustrating the concept.

Price Level in Economics: Definition & Equation

56. Price Level in Economics: Definition & Equation

In this lesson, we'll learn about price level in economics. We'll define the term, learn how it changes, determine a popular way to measure it, and then learn how to calculate it.

Price Stability in Monetary Policy: Definition & Overview

57. Price Stability in Monetary Policy: Definition & Overview

Monetary policy is implemented to control the rate of change in the general price level in an economy. In this lesson, you'll learn how monetary policy can help stabilize prices. You'll also have a chance to take a short quiz.

Price Volatility: Definition & Calculation

58. Price Volatility: Definition & Calculation

In this lesson, you will learn about price volatility in the stock market. We'll go over how to calculate price volatility and how to interpret that calculation to help you with investment opportunities.

Principal-Agent Problem in Economics: Definition & Examples

59. Principal-Agent Problem in Economics: Definition & Examples

In this lesson, we will learn about the principal-agent problem in economics. We will define the term and look at some examples to better explain the concept before concluding with a summary and a quiz.

Producer Price Index: Definition & Formula

60. Producer Price Index: Definition & Formula

In this lesson, you will become familiar with the Producer Price Index (PPI). You will see how the PPI can predict increases in consumer prices, and learn how to calculate a basic PPI before using it to predict inflation.

Producer Surplus: Definition, Formula & Example

61. Producer Surplus: Definition, Formula & Example

In this lesson, we'll explore the concept of producer surplus. By defining what it means, learning the formula, and looking at examples, we'll gain a better understanding of producer surplus.

Product Adaptation: Definition & Examples

62. Product Adaptation: Definition & Examples

Product adaptation is often essential for successful international sales. In this lesson, you'll learn what product adaptation is, some of its key concepts, and be provided some examples. A short quiz follows the lesson.

Protectionist: Definition & Policies

63. Protectionist: Definition & Policies

In this lesson we will learn about the term protectionist. We will learn what it is and why it is utilized. We will also learn about the policies of protectionism. The lesson will be concluded with a summary and a quiz.

Public Good in Economics: Definition, Theory & Examples

64. Public Good in Economics: Definition, Theory & Examples

Have you ever gone to the mall when there was a power outage at your house or gone into a nice cool cafe on a hot day to beat the heat? This lesson defines and discusses the theory of public goods. You will learn what public goods are and how to identify them.

Pure Competition: Definition, Characteristics & Examples

65. Pure Competition: Definition, Characteristics & Examples

This lesson discusses pure competition. The way that pure competition affects sellers and consumers is explained, as are examples of pure competition.

Random Walk in Economics: Definition & Theory

66. Random Walk in Economics: Definition & Theory

In this lesson we will discuss the concept of 'random walk' in economics. We will define the term and look at some exceptions. We will consider why random walk is important and then conclude with a summary and a quiz.

Real GDP Per Capita: Definition & Formula

67. Real GDP Per Capita: Definition & Formula

There are many different ways that economists measure a nation's wealth. In this lesson, you'll learn the definition and meaning of one such metric - real GDP per capita. After the lesson you can check your understanding with a short quiz.

Real GDP: Definition & Formula

68. Real GDP: Definition & Formula

National economies are measured by the value of the goods and services they produce. In this lesson, you'll learn about real gross domestic product, how it's related to a nation's production, and how it's calculated.

Rent Seeking in Economics: Definition, Theory & Examples

69. Rent Seeking in Economics: Definition, Theory & Examples

In this lesson we will learn about rent seeking. We will define the term, and learn where it originated. Next we will look at some examples and finally conclude the lesson with a summary and a quiz.

Resource Market: Definition & Overview

70. Resource Market: Definition & Overview

Businesses cannot provide goods or services if they don't have resources. In this lesson, you'll learn about the resource market and related concepts.

Returns to Scale in Economics: Definition & Examples

71. Returns to Scale in Economics: Definition & Examples

The aim of this lesson is to present ''returns to scale'' as it is used in an economic context. The lesson will provide a definition of key terms, as well as some cause and effect relationships.

What is Throughput? - Definition & Process

72. What is Throughput? - Definition & Process

Products move through various steps during production. In order for a company to keep track of the time it takes to arrive at a finished good, they use a method known as throughput. In this lesson, we will define the term and learn the process.

Calculating Throughput Using a Formula

73. Calculating Throughput Using a Formula

Throughput calculations allow managers to better understand how efficiently they are manufacturing goods or conducting services. It is a simple formula that gives several important metrics in the operations environment.

Capitalism and the Free Market: Definition & Limitations

74. Capitalism and the Free Market: Definition & Limitations

Capitalism is an economic system that has played a dominant part in building the world in which we currently live. In this lesson, you'll learn about some key concepts of capitalism, as well as its limitations.

Defining and Measuring the Unemployment Rate

75. Defining and Measuring the Unemployment Rate

You've probably heard about the unemployment rate, especially given how high it was in the 2008 recession. Find out how economists define unemployment, what the unemployment rate is, and how to calculate it in this lesson.

Productivity: The Economy's Long-Run Growth Engine

76. Productivity: The Economy's Long-Run Growth Engine

Using real-world examples, you'll learn more about what productivity is and four things that determine it within a nation - physical capital, technology, human capital, and natural resources.

Recession vs. Depression: Definitions and Differentiation

77. Recession vs. Depression: Definitions and Differentiation

Discover the real differences between recession and depression, including how economists actually define the two terms and when they have happened in the past.

How Fiscal Policy and Monetary Policy Affect the Economy

78. How Fiscal Policy and Monetary Policy Affect the Economy

Governments often intervene in their economies in an attempt to maintain economic stability. In this lesson, you'll learn about fiscal and monetary policies, including what effect they can have on a national economy. A short quiz follows.

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