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Ch 24: Introduction to Economics

About This Chapter

Use video lessons to refresh your knowledge of foundational concepts and terms in economics. Study trade balance, market schedules, economic systems and measurements of the gross domestic product.

Introduction to Economics - Chapter Summary

This chapter's video lessons will help you review the basics of economics. You'll study economic systems, market supply, market demand and production factors, among many other important concepts. Our professional instructors also extensively cover gross domestic product, or GDP; study its components as well as which items are excluded from it. You will take a look at needs and wants from an economic perspective as well. After completing the chapter, you should be able to:

  • Identify the types of economic systems
  • Explain how market supply and demand schedules are created
  • Recognize the link among net exports, capital flows and trade balance
  • Understand the impact of trade restrictions on foreign labor
  • Describe how supply and demand impact market equilibrium
  • Tell the difference between nominal GDP and real GDP
  • Calculate real GDP and real GDP growth rates
  • Define economic scarcity and list the four factors of production

To assess how well you understand these economic concepts, take the multiple-choice quizzes that are included with each lesson. Before testing your knowledge, however, be sure to check out our study tools. The fun and short video lessons contain tags so that you can easily rewatch major points as necessary. We also provide lesson transcripts, which may have links to other relevant text lessons with details on key terms.

15 Lessons in Chapter 24: Introduction to Economics
Test your knowledge with a 30-question chapter practice test
Economic Systems: Traditional, Market, Command & Mixed

1. Economic Systems: Traditional, Market, Command & Mixed

The following lesson describes the four types of economic systems that are responsible for all of the buying, selling, and production of goods. A short quiz will follow the lesson to check your understanding of the material.

Economic Needs and Wants: Definition & Concept

2. Economic Needs and Wants: Definition & Concept

Everybody needs certain things, and everybody wants certain things. In this lesson, you'll learn about needs and wants from an economic perspective and explore different ethical considerations.

Market Demand Schedule

3. 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

4. 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.

Net Exports, Capital Flows and Trade Balance

5. Net Exports, Capital Flows and Trade Balance

Learn what net exports and balance of trade are, how they are calculated, and what influences them. Explore what capital flows are in relation to net exports and trade balance and the importance of these monies in an economy.

Trade Restrictions and Foreign Labor

6. Trade Restrictions and Foreign Labor

Discover why trade restrictions are sometimes used to combat cheap foreign labor. Learn about outsourcing, job protection, and infant industry strategies.

How Changes in Supply and Demand Affect Market Equilibrium

7. 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.

Gross Domestic Product: Using the Income and Expenditure Approaches

8. Gross Domestic Product: Using the Income and Expenditure Approaches

In this lesson, you will learn how economists measure gross domestic product using two different methods - the income approach and the expenditure approach.

Gross Domestic Product: Definition and Components

9. Gross Domestic Product: Definition and Components

Learn how economists measure the total production of an economy using gross domestic product (GDP). This lesson also outlines the components that make up a GDP. How do we calculate the economic value of a nation?

Gross Domestic Product: Items Excluded from National Production

10. Gross Domestic Product: Items Excluded from National Production

In this lesson, you'll gain a better understanding of what the gross domestic product is by exploring things that are excluded from it. Why do we count some items in the GDP but not others?

Gross Domestic Product: Nominal vs. Real GDP

11. Gross Domestic Product: Nominal vs. Real GDP

Watch this video and you'll learn the difference between nominal GDP and real GDP with the help of a memorable story about a competition between twin brothers.

Gross Domestic Product: How to Calculate Real GDP

12. Gross Domestic Product: How to Calculate Real GDP

Learn how to adjust economic output for inflation using real GDP. This calculation enables economists to remove the effect of rising prices and more accurately compare economic output from multiple years.

How to Calculate Real GDP Growth Rates

13. How to Calculate Real GDP Growth Rates

How can you tell how much the economy is really growing from year to year? In this lesson, you'll discover the formulas economists use to calculate real GDP growth rates and draw conclusions about real economic growth.

Economic Scarcity and the Function of Choice

14. 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.

Four Factors of Production: Land, Labor, Capital & Entrepreneurship

15. Four Factors of Production: Land, Labor, Capital & Entrepreneurship

In this lesson, you'll learn about the four main economic inputs, known as factors of production, needed to produce all goods and services in an economy: land, labor, capital, and entrepreneurship.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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