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
In this lesson, you'll learn about factors of production in economics, including their definition, their importance, and some examples. You'll also have a chance to take a short quiz.
2. Market Demand Schedule
Demand can often drive the cost up or down for a product or service. In this lesson, you'll discover what demand is, what it looks like, and how market demand schedules are created.
3. Market Supply Schedule
Supply and demand play big roles in the economy. In this lesson, you'll discover what supply is, how we describe it, and how market supply schedules are created.
4. How to Calculate Market Equilibrium
Supply and demand is an important part of microeconomics. In this lesson, you'll learn how to calculate the equilibrium price and quantity in a market at the intersection of the supply and demand curves.
5. How Changes in Supply and Demand Affect Market Equilibrium
Learn how the equilibrium of a market changes when supply and demand curves increase and decrease and how different shifts in the curves can affect price.
6. 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.
7. What is Relative Price? - Definition & Formula
This lesson will define the concept of a relative price and demonstrate a relative pricing formula. We will also discuss the role of relative prices in the allocation of resources in economics.
8. 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.
9. 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.
10. 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.
11. 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.
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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