About This Chapter
Fundamentals of Economics & Capitalism - Chapter Summary
This study resource helps you refresh and strengthen your understanding of economic and capitalist fundamentals. The chapter begins by outlining definitions of essential economic vocabulary and explaining core concepts including supply, demand and scarcity. You'll also study the origins of modern capitalism and understand how it relates to the free market. Upon completion of this chapter, you should be able to:
- Define different types of economics
- List economic vocabulary terms
- Assess microeconomic shifts in supply and demand curves
- Outline the basic economic problem of scarcity
- Calculate economic profit
- Recognize examples of capitalism
- Understand the origins of modern capitalism
- Describe the relationship between capitalism and the free market
- Know the rules of American politics in terms of democracy, constitutionalism and capitalism
Our expert economics instructors design each lesson to be straightforward, engaging and typically less than ten minutes long. This way, you can be sure you're studying the most important information as quickly as possible. Lesson transcripts and self-assessment quizzes are available to enhance your studying experience and help you retain the economic concepts you learn. You can go through the chapter in sequence or find specific topics on your course Dashboard. Interactive video timelines allow you to jump to specific topics. You can study these lessons whenever you have free time on a computer, tablet or smartphone.
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.
2. Economics Vocabulary & Definitions
Understanding even the most basic economic lesson can be a challenge without a fundamental understanding of some common terms. In this lesson, we'll define some of the often used words in the study of an economy.
3. Microeconomic Shifts in Supply and Demand Curves
Learn about the important forces that can cause the demand and supply curve to shift. Discover how this affects equilibrium and the prices you pay for goods and services.
4. What is the Basic Economic Problem of Scarcity?
Why do we have to make choices and trade-offs? Why does it cost money to produce and consume the goods society wants? The answer is scarcity. Through this lesson, you will gain a better understanding of the concept of scarcity and why it forces us to make decisions and trade-offs everyday.
5. 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.
6. What is Capitalism? - Definition & Examples
This lesson explains what capitalism is and gives several examples to help illustrate how capitalism is executed in the business world. After completion of the lesson, take the quiz to gauge your learning.
7. Origins of Modern Capitalism
In this lesson, we will learn about the origins of modern capitalism. We will see how the modern capitalist system developed, and we will highlight key themes.
8. 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.
9. The Rules of American Politics: Democracy, Constitutionalism & Capitalism
In this lesson, we will explore the three rules of American politics: democracy, constitutionalism, and capitalism. We will define each rule and see how it works to keep the political system running smoothly.
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