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Ch 7: ILTS Business: Economic Basics

About This Chapter

Let us teach you about basic economics. The video lessons and self-assessment quizzes in this chapter can prepare you to answer questions about economic basics on the ILTS Business, Marketing and Computer Education content area test.

ILTS Business, Marketing and Computer Education - Economic Basics: Chapter Summary

Economic basics is just one of the areas you'll be tested on by the Illinois Licensure Testing System (ILTS) Business, Marketing and Computer Education content area exam. Watching the video lessons in this chapter can introduce you to fundamental concepts of economics, including economic scarcity and the function of choice as well as market supply and demand schedules. Other topics covered in this chapter that can help you prepare for the ILTS exam include the following:

  • Calculating opportunity cost
  • Applying the production possibilities model
  • Shifts in the production possibilities curve
  • Law of the downward sloping demand curve
  • Upward sloping supply curves
  • Calculating market equilibrium
  • How changes in supply and demand affect market equilibrium

ILTS Business, Marketing and Computer Education - Economic Basics Objectives

If you want to work as a business, marketing or computer education teacher at an Illinois public school, you'll need to pass the ILTS Business, Marketing and Computer Education content area test. Offered six times a year, this 125 multiple-choice-question exam is part of the teacher certification process established by the Illinois State Board of Education. The exam is divided into six subareas, including economics, consumer economics and career development, which is likely to include questions on basic economics.

You can watch the videos and complete the self-assessment quizzes in this online chapter on economic basics as you prepare for the ILTS Business, Marketing and Computer Education exam. The quiz questions are modeled after those on the actual ILTS, which can give you a sense of familiarity going into the exam.

11 Lessons in Chapter 7: ILTS Business: Economic Basics
Test your knowledge with a 30-question chapter practice test
Economic Scarcity and the Function of Choice

1. 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.

Opportunity Cost: Definition & Real World Examples

2. Opportunity Cost: Definition & Real World Examples

Learn the most important concept of economics through the use of real-world scenarios that highlight both the benefits and the costs of decisions. Opportunity cost is a simple yet powerful principle that reveals how to make the best economic decisions possible, and it explains why people make the choices they do.

How to Calculate Opportunity Cost

3. How to Calculate Opportunity Cost

Learn the formula that reveals the economic value in any major choice between two possibilities. Every choice involves tradeoffs, and opportunity cost shows you how to measure these tradeoffs.

Applying the Production Possibilities Model

4. Applying the Production Possibilities Model

Producers in the economy use a visual model, called the production possibilities curve, to make the most efficient production decisions and maximize output. Learn how this model reveals the tradeoffs of every production decision with the simplified example of an economy that produces only two goods.

Shifts in the Production Possibilities Curve

5. Shifts in the Production Possibilities Curve

In this lesson you will learn how changes inside an economy lead to changes in the production possibilities of a nation. See how different scenarios from everyday life lead to shifts in the production possibilities curve.

Market Demand Schedule

6. Market Demand Schedule

Demand can often drive the cost up or down for a product or service. In this lesson, you'll discover what demand is, what it looks like, and how market demand schedules are created.

Market Supply Schedule

7. Market Supply Schedule

Supply and demand play big roles in the economy. In this lesson, you'll discover what supply is, how we describe it, and how market supply schedules are created.

The Law of the Downward Sloping Demand Curve

8. The Law of the Downward Sloping Demand Curve

Discover the relationship between the quantity demanded and price of a good or service in a market. This lesson explains why the demand curve is downward sloping and what factors will lead to a shift in demand.

The Upward-Sloping Supply Curve

9. The Upward-Sloping Supply Curve

Discover the relationship between the quantity of a good or service that is produced and its price. This lesson explains the supply side of a market, including the factors that lead to a shift in supply.

How to Calculate Market Equilibrium

10. How to Calculate Market Equilibrium

Supply and demand is an important part of macroeconomics. In this lesson, you'll learn how to calculate the equilibrium price and quantity in a market at the intersection of the supply and demand curves.

How Changes in Supply and Demand Affect Market Equilibrium

11. How Changes in Supply and Demand Affect Market Equilibrium

Learn how the equilibrium of a market changes when supply and demand curves increase and decrease and how different shifts in the curves can affect price.

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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