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Ch 8: ILTS Business: The US Economy

About This Chapter

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

ILTS Business, Marketing and Computer Education - The U.S. Economy: Chapter Summary

If you're a prospective teacher studying for the Illinois Licensure Testing System (ILTS) Business, Marketing and Computer Education content area exam, check out this chapter on the U.S. economy. Through its series of brief video lessons, you can learn about major features of the U.S. economy, as well as capitalism and the free market. Other lessons in this chapter cover the following topics:

  • Private property
  • Economic incentives
  • The GDP deflator and the consumer price index
  • Effects of inflation on suppliers and demanders
  • Defining and measuring the unemployment rate
  • The business cycle
  • Recession vs. depression
  • How real GDP per capita affects the standard of living
  • The economy's long-run growth engine
  • How human and physical capital affect productivity

ILTS Business, Marketing and Computer Education - The U.S. Economy Objectives

To earn certification as a business, marketing or computer education teacher in Illinois, you'll have to pass the ILTS Business, Marketing and Computer Education content area test. This 125 multiple-choice-question exam covers six subareas. The U.S. economy is likely to be a point of focus in the subarea on economics, consumer economics and career development.

We have worked with experienced professional educators to develop the video lessons in this chapter on the U.S. economy. To get the most out of each lesson, you might start by taking the self-assessment quiz so you know which topics you need to pay special attention to. After watching the video, take the quiz again to make sure you fully understand the material that was covered.

15 Lessons in Chapter 8: ILTS Business: The US Economy
Test your knowledge with a 30-question chapter practice test
Capitalism and the Free Market: Definition & Limitations

1. 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.

Consumer Price Index: Measuring the Cost of Living and Inflation

2. 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?

The GDP Deflator and Consumer Price Index

3. The GDP Deflator and Consumer Price Index

Have you ever wondered how inflation is measured? This lesson will compare and contrast two of the indicators used to measure inflation - the consumer price index and the GDP deflator.

Effects of Inflation on Suppliers and Demanders

4. Effects of Inflation on Suppliers and Demanders

In this lesson, you'll discover who benefits and who suffers from a sustained increase in prices within an economy. We'll cover the effects of expected and unexpected inflation on savers/creditors and borrowers/debtors.

Defining and Measuring the Unemployment Rate

5. 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.

Why the Unemployment Rate Decreases and Increases

6. Why the Unemployment Rate Decreases and Increases

Policymakers, investors, and consumers watch the monthly unemployment rate with great interest. In this lesson, you'll learn what factors influence the unemployment rate and why the rate can change rapidly from month to month.

Rational Expectations in the Economy and Unemployment

7. Rational Expectations in the Economy and Unemployment

This lesson provides an overview of the theory of rational expectations and then applies it to the labor market, fiscal policy and monetary policy. In the lesson, you'll learn more about expectations and outcomes in a world where people want to maximize profit.

Full Employment GDP: Definition and Examples

8. Full Employment GDP: Definition and Examples

In this lesson, you'll learn about an economy that is in balance. The full employment level of GDP is when economic output is at its highest sustainable level, when unemployment is at its most efficient level and when inflation is neither rising nor falling.

The Business Cycle: Economic Performance Over Time

9. 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.

Recession vs. Depression: Definitions and Differentiation

10. 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.

Economic Growth: How to Raise a Nation's Potential Output

11. Economic Growth: How to Raise a Nation's Potential Output

Learn the truth about long run economic growth, including how economists define and illustrate an increase in the potential output of a nation through change in real GDP.

How Real GDP per Capita Affects the Standard of Living

12. How Real GDP per Capita Affects the Standard of Living

Have you ever wondered why some countries are better off than others? In this lesson, explore the concept of real GDP per capita, an economic measure of a nation's standard of living, and discover how population, productivity, and the savings rate effect the standard of living.

Productivity: The Economy's Long-Run Growth Engine

13. 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.

Investment in Human Capital and Productivity

14. Investment in Human Capital and Productivity

This lesson explores the education, knowledge and skills of the labor force - what economists call human capital - including how it affects productivity and economic output.

Physical Capital: Definition and Effects on Productivity

15. Physical Capital: Definition and Effects on Productivity

This lesson explains what physical capital is and why it's important to an economy. Using real-world examples, you'll see how it relates to the process of producing goods and services, which is a major foundation of economic growth.

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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