About This Chapter
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.
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.
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.
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.
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.
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.
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.
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.
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.
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?
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?
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.
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.
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.
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.
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.
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Other chapters within the GACE Middle Grades Social Science (015): Practice & Study Guide course
- European Colonies in North America (1497-1732)
- Important Events Leading to the American Revolution
- Events & Leaders of the American Revolution
- The Making of a Nation after the American Revolution
- The Virginia Dynasty
- Manifest Destiny & American Expansion
- Everyday Life in Antebellum America
- Jacksonian Democracy
- American Civil War & Reconstruction Overview
- Westward Expansion, Industrialization & Urbanization (1870-1900)
- American Imperialism & World War I
- The Progressive Era of the Early 20th Century
- 1920s America
- America and the Great Depression
- U.S. Involvement in World War ll (1941-1945)
- Post-World War ll America (1946-1959)
- The Cold War in America (1950-1973)
- Civil Rights & Other Movements in the US (1954-1973)
- America in the 1970s
- America in the 1980s
- Recent American History (1992-2013)
- The History of Georgia
- Introduction to Government
- American Government
- History of Political Parties in the U.S.
- Latin American History
- Canadian History
- European History: Geography, Colonization, WWI & Russia
- European History: The 1920s & 1930s
- European History: The Rise of Fascism
- European History: World War II
- European History: Post-War Europe
- European History: Cold War Europe
- European History: Integration in Europe after the Soviet Union
- Australian History
- Overview of African History
- Asian History
- GACE Middle Grades Social Science Flashcards