Ch 1: Fundamental Concepts of Macroeconomics

About This Chapter

This chapter is designed to improve your comprehension of fundamental concepts of macroeconomics. Enjoy 24/7 online access to engaging lessons, multiple-choice quizzes and a practice exam as you work to excel on a test or earn course credit.

Fundamental Concepts of Macroeconomics - Chapter Summary

If you need help understanding fundamental concepts of macroeconomics, you've reached the right place! This chapter is filled with bite-sized lessons you can view at home or on-the-go to study types of economic systems, income distribution and inequality in the U.S., the circular flow of economic activity and more. Feel free to navigate these lessons in any order and visit them as often as needed. Any questions that arise about specific lesson topics can be submitted to our experts. Test your knowledge of fundamental concepts of macroeconomics by taking mini quizzes and a practice exam. By the end of this chapter, you will be able to:

  • Define macroeconomics and discuss its major principles
  • Share the definition and examples of an economic model
  • Give real world examples of opportunity cost
  • Explain the economic problem of scarce resources and discuss the function of choice
  • List factors that define economic efficiency
  • Describe Adam Smith's The Wealth of Nations as the theoretical basis for capitalism
  • Interpret economic graphs and explain shifts in supply and demand curves
  • Identify and describe factors of production in economics
  • Provide the definition of factor mobility and explain its relationship to economic success
  • Discuss key concepts of the global marketplace

11 Lessons in Chapter 1: Fundamental Concepts of Macroeconomics
Test your knowledge with a 30-question chapter practice test
What is Macroeconomics? - Definition & Principles

1. What is Macroeconomics? - Definition & Principles

Macroeconomics is one of the major subdivisions in the study of economics. In this lesson, you'll learn what it is, why it's important and its major principles. You'll also have a chance to take a short quiz after the lesson.

What is an Economic Model? - Definition & Example

2. What is an Economic Model? - Definition & Example

Economic models are used by economists to communicate current economic conditions - causes and effects on the future of the economy. This lesson will present economic models, definitions, and examples to help bring clarity to the issue.

Economic Scarcity and the Function of Choice

3. 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.

Economic Efficiency: Definition & Examples

4. 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.

Adam Smith's The Wealth of Nations: Summary & Concept

5. Adam Smith's The Wealth of Nations: Summary & Concept

In the same year Thomas Jefferson wrote the Declaration of Independence, Scottish philosopher and economist Adam Smith published a book called 'The Wealth of Nations.' Over 200 years later, Smith's work stands as the theoretical basis for capitalism.

Types of Economic Systems: Traditional, Command, Market & Mixed

6. Types of Economic Systems: Traditional, Command, Market & Mixed

Just like there are different political systems, there are also vastly different economic systems. This lesson introduces the differences between traditional, command, market, and mixed economies.

Interpreting Supply & Demand Graphs

7. Interpreting Supply & Demand Graphs

Learn how to interpret economic graphs showing supply and demand curves. Explore the reasons that supply and demand curves shift in and out and how that affects price and quantity.

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

8. 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.

Factors of Production in Economics: Definition, Importance & Examples

9. 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.

Income Distribution and Inequality in the US

10. Income Distribution and Inequality in the US

While the United States is the richest country in the world when measured by GDP, it drops to #7 when measured by income per capita. In this lesson, we'll learn about the distribution of income in the United States, and how it has changed over time.

The Global Marketplace: Definition & Overview

11. The Global Marketplace: Definition & Overview

We have been on the fast track to a global market, but are we there yet? In this lesson, we will define global market and discuss some of its key concepts. A short quiz follows the lesson.

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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