About This Chapter
MTEL Business: Basic Concepts of Microeconomics - Chapter Summary
With its text and video lessons, this chapter will review the basic concepts of microeconomics. While some topics may be fresh in your memory, you could also accumulate new facts. The more you review, the better you could perform when answering related questions on the MTEL Business examination. The lessons emphasize monopoly markets, the possibilities model, microeconomic resources and marginal cost. Expand your knowledge of the Four Factors of Production and examine the early microeconomics theories of well-known philosophers and scholars. Your completion of this chapter could mean that you're able to:
- Explain the history and timeline of economics
- Discuss the circular flow model of economic activity
- Understand scarcity and utility as they relate to microeconomic resources
- Define and give examples of opportunity cost, marginal cost, marginal opportunity cost and diminishing marginal utility
- Interpret a production possibilities model
- Discuss the factors that contribute to the production possibilities curve
- Learn about free markets and monopolistic competition
Prepare for the MTEL Business examination's questions on microeconomics by studying this chapter's text and video lessons. Begin by exploring all of the videos, which are short, animated and entertaining. Studying is made easy because you can watch these video lessons online when you have time in your schedule. Utilize a laptop or a tablet as well as wired technology. If you have questions about microeconomics, go to the Dashboard and use the ask-an-expert function. Multiple-choice quizzes ensure that you're comprehending the chapter's concepts.
MTEL Business: Basic Concepts of Microeconomics Chapter Objectives
Subarea III, Economics, is where you will find questions to determine your knowledge of the fundamentals of microeconomics on the MTEL Business exam. Opportunity costs, marginal costs and the circular flow of economic activity are just a few of the topics that are addressed on this section of the computer-administered examination, which includes seven subareas in all. The Economics subarea has 13-15 multiple-choice questions, and it's the equivalent of 11% of the test weighting. Altogether, you must give accurate answers to 100 multiple-choice questions and two open-response assignments.
1. What is Economics? - Definition & Types
Few things affect the day-to-day lives of everyone more than the economy. In this lesson, you'll learn about economics, including some of its foundational topics and concepts. You'll also have a chance to take a quiz after the lesson.
2. 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.
3. Microeconomic Resources: Scarcity & Utility
For economics to work, we must assume that resources are scarce and that people will work to secure the greatest utility possible. This lesson explains both scarcity and utility and what they mean for people everywhere.
4. 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.
5. 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.
6. 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.
7. Diminishing Marginal Utility: Definition, Principle & Examples
Diminishing marginal utility is an important concept in economics and helps explain consumer demand. In this lesson, we will explore this topic, look at some real-world examples, and end with a quiz.
8. Marginal Opportunity Cost: Definition & Formula
This lesson reviews marginal opportunity costs. Marginal opportunity costs are explained and illustrated in two easy-to-understand examples with real-life applications.
9. Marginal Cost: Definition, Equation & Formula
Marginal cost is an important concept in business. In this lesson, you'll learn what marginal costs are and their standard formula with some illustrative examples. A short quiz follows the lesson.
10. Competition Within Free Markets: Types & Summary
We live in a free market economy, but that doesn't mean there is always free competition. In this lesson, you'll learn about perfectly competitive markets, monopolies, monopolistic markets and oligopolies.
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- MTEL Business: Basics of Business Math
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