About This Chapter
Praxis Business Education: Economic Allocation of Resources - Chapter Summary
Review the calculations for market equilibrium and opportunity cost in preparation for the test. Revisit the differences between market supply and market demand schedules, experiencing the types of questions that may appear on your exam. Prepare for these topic areas with this economics chapter:
- Effects on market equilibrium caused by changes in supply and demand
- Calculate market equilibrium
- Schedules for market demand and market supply
- Function of choice related to economic scarcity
- Calculate opportunity cost
- Applications for the production possibilities model
- Changes in the production possibilities curve
Put the concept of opportunity cost in perspective through our presentation of real world examples, so that you can excel on your Praxis Business Education test. Take the quiz after each video lesson for immediate feedback.
Praxis Business Education: Economic Allocation of Resources Objectives
The economics portion of your test is composed of about 12 multiple-choice questions, or 10% of the entire, 120-question exam. You can expect to answer questions on the following economics topics:
- Allocation of resources
- Economic systems
- Economic indicators
- Types of market structures
- Effect of various market structures on pricing and quality
- Government roles
In addition to the lessons in this chapter, we have other chapters addressing a variety of economics concepts that will help you prepare for your Praxis Business Education exam.
1. Factors of Production in Economics: Definition, Importance & Examples
The resources that companies use in the production of goods and services are described as the 'factors of production'. Dive into examples to learn the key terms and types of factors (land, labor & capital), and their importance in modern economics.
2. Market Demand Schedule
A market demand schedule is a table used to explain the correlation between the price consumers are willing to pay for something based on the demand for it. Learn about market demand and explore the relationship between demand and price tracked by market demand schedules.
3. Market Supply Schedule
Supply is the amount, or quantity, of a product available for purchase on the market. Explore the relationship between the economy and supply using a real-world example of how to use a market supply schedule to track suppliers' quantity of bananas.
4. How to Calculate Market Equilibrium
Market equilibrium is accomplished when the supplier and the buyer agree on a price. Discover how shortages and surpluses affect market equilibrium, how to calculate market equilibrium, and how to illustrate it graphically.
5. How Changes in Supply and Demand Affect Market Equilibrium
Market equilibrium is affected by changes in supply and demand. Explore how supply and demand curves increase and decrease, how different shifts in the curves can affect price, and what happens when there are simultaneous changes in supply and demand.
6. Economic Scarcity and the Function of Choice
Learn how economic scarcity influences the way decisions are made about managing resources. Explore the basics of economics and discover how the scarcity of resources affects the function of choice, the implications of economic incentives, and how the term economy is defined.
7. What is Relative Price? - Definition & Formula
Relative price is the ratio of the price of a good compared with another good or measure. Learn the definition and formula of relative price, and explore the market and non-market forces that influence resource allocation.
8. Opportunity Cost: Definition & Examples
Opportunity cost is a concept in economics that helps in estimating the value of different choices. Learn about the definition of opportunity cost, benefits, value, and value of time, and why the cost of an opportunity is found in the value of the next best alternative not chosen.
9. How to Calculate Opportunity Cost
Opportunity cost is determined by calculating how much of one product can be produced based on the opportunity cost of producing something else. Learn how to calculate opportunity costs to make efficient economical choices using the production of wheat versus rice as an example.
10. Applying the Production Possibilities Model
The production possibility model illustrates scarcity and efficiency. Explore how opportunity costs affect the production possibility curve and discover why it is bowed outward on a graph.
11. Shifts in the Production Possibilities Curve
The production possibilities frontier model illustrates for a nation's leaders what goods to produce, how to produce them, and for what markets. Explore how shifts in the economy lead to shifts in the production possibilities curve of a country using real-world examples.
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Other chapters within the Praxis Business Education - Content Knowledge (5101): Practice & Study Guide course
- Praxis Business: Accounting
- Praxis Business: Personal Finance
- Praxis Business: Business Finance
- Praxis Business: Foundations of Communication
- Praxis Business: Written & Oral Communication
- Praxis Business: Employment Communication & Career Research
- Praxis Business: Economic Systems & Market Structures
- Praxis Business: Role of the Government in Economics
- Praxis Business: Economic Indicators of Growth
- Praxis Business: Entrepreneurship
- Praxis Business: Information Technology Operations and Concepts
- Praxis Business: Technology Tools
- Praxis Business: Computer Applications
- Praxis Business: Programming & Design
- Praxis Business: Foundations of International Business
- Praxis Business: International Business Environment
- Praxis Business: Contract Law
- Praxis Business: Consumer & Computer Law
- Praxis Business: US Court System
- Praxis Business: Marketing
- Praxis Business: Management
- Praxis: Professional Business Education
- Praxis Business Education: Content Knowledge Flashcards