Ch 4: Measuring the Economy: Help and Review

About This Chapter

The Measuring the Economy chapter of this College-Level Principles of Macroeconomics Help and Review course is the simplest way to master measuring the economy. This chapter uses simple and fun videos that are about five minutes long, plus lesson quizzes and a chapter exam to ensure students learn the essentials of measuring the economy.

Who's it for?

Anyone who needs help learning or mastering college economics material will benefit from taking this course. There is no faster or easier way to learn college economics. Among those who would benefit are:

  • Students who have fallen behind in understanding the circular flow of economic activity or working with the gross domestic product
  • Students who struggle with learning disabilities or learning differences, including autism and ADHD
  • Students who prefer multiple ways of learning business topics (visual or auditory)
  • Students who have missed class time and need to catch up
  • Students who need an efficient way to learn about measuring the economy
  • Students who struggle to understand their teachers
  • Students who attend schools without extra business learning resources

How it works:

  • Find videos in our course that cover what you need to learn or review.
  • Press play and watch the video lesson.
  • Refer to the video transcripts to reinforce your learning.
  • Test your understanding of each lesson with short quizzes.
  • Verify you're ready by completing the Measuring the Economy chapter exam.

Why it works:

  • Study Efficiently: Skip what you know, review what you don't.
  • Retain What You Learn: Engaging animations and real-life examples make topics easy to grasp.
  • Be Ready on Test Day: Use the Measuring the Economy chapter exam to be prepared.
  • Get Extra Support: Ask our subject-matter experts any question about measuring the economy. They're here to help!
  • Study With Flexibility: Watch videos on any web-ready device.

Students will review:

This chapter helps students review the concepts in a Measuring the Economy unit of a standard college-level principles of macroeconomics course. Topics covered include:

  • Circular flow of economic activity
  • Gross domestic product
  • Investment vs. investments in economics

15 Lessons in Chapter 4: Measuring the Economy: Help and Review
Test your knowledge with a 30-question chapter practice test
Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

1. Circular Flow of Economic Activity: The Flow of Goods, Services & Resources

Learn about the simple model used to describe where money goes and what it is exchanged for in a market economy. The circular flow model of economic activity shows you the basic relationships between households, firms and the government.

Gross Domestic Product: Using the Income and Expenditure Approaches

2. 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

3. 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

4. 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?

Investment vs. Investments in Economics

5. Investment vs. Investments in Economics

Discover the important difference between investment in economics and investments that individuals make by saving out of their income. This lesson defines and outlines the basic components of gross private domestic investment.

The Taylor Rule in Economics: Definition, Formula & Example

6. The Taylor Rule in Economics: Definition, Formula & Example

In this lesson, you'll find out how central banks use the Taylor rule in economics. You'll have the chance to become familiar with some key definitions, learn how to use a formula to apply the Taylor rule, and try your hand at a real-life sample calculation.

What is Economics? - Definition, History, Timeline & Importance

7. What is Economics? - Definition, History, Timeline & Importance

Learn about what economics is and how it influences your everyday life. Find out who some of the biggest names in economics are and some of the key variables that are responsible for all the economic activity and business you experience.

What is Elasticity in Economics? - Definition, Theory & Formula

8. What is Elasticity in Economics? - Definition, Theory & Formula

In this lesson, we'll discuss elasticity in economics, including its definition, the different types of elasticity, and their effect on the business market. We'll also use a real-life example and learn how to use simple formulas to calculate elasticity of demand.

What is Macroeconomics? - Definition & Principles

9. What is Macroeconomics? - Definition & Principles

Macroeconomics is one of the major subdivisions in the study of economics. In this lesson, you'll learn what it is, why it's important and its major principles. You'll also have a chance to take a short quiz after the lesson.

What Is Microeconomics? - Definition & Topics

10. What Is Microeconomics? - Definition & Topics

Learn about microeconomics and a few of the most popular topics that are typically studied in the field, such as supply and demand, opportunity cost, and different forms of competition that exist.

Input-Output Model

11. Input-Output Model

Companies need to meet the demands of their customers. This means not only being able to understand what they want and need, but also being able to use incoming factors to make the products. In this lesson, we will learn all about this relationship known as an input-output model.

Benjamin Graham: Biography, Education & Books

12. Benjamin Graham: Biography, Education & Books

In this lesson, you will learn about the early life, investing career, books, and legacy of Benjamin Graham - the 'founding father' of security analysis.

The Intelligent Investor by Benjamin Graham Summary

13. The Intelligent Investor by Benjamin Graham Summary

In this lesson, you will learn about Benjamin Graham's book, ''The Intelligent Investor'' which provides ordinary investors with practical advice on how to make security investments. Today the book is famous for introducing two concepts into the investing profession: the allegorical Mr. Market and the concept of margin of safety.

Expected Utility: Theory & Formula

14. Expected Utility: Theory & Formula

This lesson will introduce expected utility theory. It states that under conditions of uncertainty, the correct choice between alternatives is the one that maximizes utility. An illustration, formula and calculation will follow.

Prospect Theory in Economics: Definition & Example

15. Prospect Theory in Economics: Definition & Example

In this lesson, we'll discuss prospect theory. We'll go through a thought experiment similar to the ones the theory's developers fell for when they were vetting the idea in the late 1970s. Then, we'll look at examples of prospect theory and discuss its implications.

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

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support