About This Chapter
Basic Terms & Concepts of Economics - Chapter Summary
The lessons in this chapter provide an overview of the basic terms and concepts of economics. You can review theories behind consumption and how the production possibilities curve works. You can also gain an understanding of perfect competition in economics. After completing the chapter, you should be prepared to:
- Define economics
- Explain scarcity and the function of choice
- Discuss the production possibilities curve
- Describe how the distribution of economic activities is determined
- Provide examples of medium of exchange in economics
- List common ways to increase consumption
- Explain Adam Smith's concept of 'invisible hand'
- Discuss reasons why entrepreneurship is important
Each lesson comes with a brief quiz to determine how much of the content you can remember. You can study all of the lessons or just focus on specific topics. Make the most of this resource by printing the quiz in worksheet form to study offline.
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. 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.
3. Production Possibilities Curve: Definition & Examples
In this lesson, we will learn about the production possibilities curve. We'll explore key terms and look at a graph showing how the production possibilities curve functions. The lesson will conclude with a summary and a quiz.
4. Distribution Patterns of Economic Activities
After watching this video, you should be able to describe what determines the distribution of economic activities, both historically and currently. A short quiz will follow.
5. Medium of Exchange in Economics: Definition & Examples
In this lesson, we will explain the term, medium of exchange. We will look at how money is the typical form of medium of exchange and how it functions. We will close with a summary and a quiz.
6. What is Consumption in Economics? - Definition & Theory
Learn what consumption is and how you participate every day in this activity. Find out why it is important and what variables drive the theories behind consumption. Discover some common ways to increase consumption.
7. Perfect Competition in Economics & Adam Smith's 'Invisible Hand'
In this lesson, you'll learn how consumers and producers interact in a perfectly competitive economic system. You'll also be introduced to how Adam's Smith concept of an 'invisible hand' can help keep such systems in line.
8. Entrepreneurship & the Economy: Definition & Importance
Entrepreneurs fill a vitally important role in market economies. In this lesson, you'll learn about the importance of entrepreneurship, different types of entrepreneurs and how they add value to an economy.
9. Market Supply & Demand Schedules
In this lesson, we explore the economic market's laws of supply and demand and the schedules that economists create to tabulate the amount of goods demanded or supplied at certain prices across the entire economy.
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