Ch 36: PLACE Business Education: Fundamentals of Microeconomics

About This Chapter

If you need any help reviewing microeconomics as part of your prep for the PLACE Business Education exam, this chapter has everything you'll need to feel prepared come test day. Use the engaging videos and multiple-choice quizzes as part of your test prep sessions.

PLACE Business Education: Fundamentals of Microeconomics - Chapter Summary

Microeconomics is one of the many topics that may be covered on the PLACE Business Education exam. This chapter covers the following topics:

  • Economic scarcity
  • Opportunity cost
  • The production possibilities model and curve
  • Comparative advantage
  • Benefit of specialization and gains from trade
  • Absolute advantage in trade

Every video lasts less than ten minutes and is accessible at any time - so you can study quickly and efficiently wherever you are. If you need extra help with terminology or concepts, you can skip around to the main topics of any video using each lesson's built-in video tags.

PLACE Business Education: Fundamentals of Microeconomics Chapter Objectives

The PLACE Business Education exam tests your knowledge of five distinct subject areas. One of these subject areas is Economics and Personal Finance, which is where you could find multiple-choice questions about the microeconomic topics covered in this chapter.

Because every lesson is accompanied by an end-of-lesson quiz, you'll have a chance to review each lesson's information. In addition, you'll be able to see what kind of questions may appear on the PLACE Business Education test.

8 Lessons in Chapter 36: PLACE Business Education: Fundamentals of Microeconomics
Test your knowledge with a 30-question chapter practice test
Economic Scarcity and the Function of Choice

1. 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.

Opportunity Cost: Definition & Real World Examples

2. 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.

How to Calculate Opportunity Cost

3. How to Calculate Opportunity Cost

Learn the formula that reveals the economic value in any major choice between two possibilities. Every choice involves tradeoffs, and opportunity cost shows you how to measure these tradeoffs.

Applying the Production Possibilities Model

4. 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.

Shifts in the Production Possibilities Curve

5. 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.

Comparative Advantage: Definition and Examples

6. Comparative Advantage: Definition and Examples

Understand the definition of comparative advantage, using two goods as an example. This key lesson incorporates the basic foundations of economics into one foundational theory explaining what goods and services that people,and nations, should produce and for whom they should produce it.

Gains From Trade and the Benefit of Specialization

7. Gains From Trade and the Benefit of Specialization

Explore one of the most widely accepted ideas in economics - the idea that nations benefit from specialization and exchange, reaping gains from trade.

Absolute Advantage in Trade: Definition and Examples

8. Absolute Advantage in Trade: Definition and Examples

In this lesson, you'll learn what absolute advantage is and how to easily identify it within examples of international trade. In addition, you'll learn the important difference between absolute advantage and comparative advantage.

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

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Other Chapters

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