About This Chapter
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the UExcel Introduction to Macroeconomics: Study Guide & Test Prep course
- Government Failure in Macroeconomics
- Demand, Supply & the Economic Market
- Role of Government in Macroeconomics
- National Income Accounting Overview
- Unemployment & the Economy
- Basic Concepts of Inflation
- Measurements of Inflation
- The Business Cycle & Economics
- Aggregate Demand in Economics
- Fiscal Policy in Economics
- Budgets & National Debt
- Understanding Monetary Policy
- Fundamentals of Money
- Understanding the Federal Reserve System
- Supply-Side Policy & Policy Comparisons
- UExcel Introduction to Macroeconomics Flashcards