Ch 7: Praxis Business: Economic Allocation of Resources

About This Chapter

Make use of these lessons to prepare for your Business Education Praxis. Review essential topics in economics with the short, user-friendly video lessons and quick, informative quizzes.

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.

9 Lessons in Chapter 7: Praxis Business: Economic Allocation of Resources
Test your knowledge with a 30-question chapter practice test
Market Demand Schedule

1. 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.

Market Supply Schedule

2. 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.

How to Calculate Market Equilibrium

3. How to Calculate Market Equilibrium

Supply and demand is an important part of macroeconomics. 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.

How Changes in Supply and Demand Affect Market Equilibrium

4. 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.

Economic Scarcity and the Function of Choice

5. 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

6. 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

7. 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

8. 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

9. 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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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