About This Chapter
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Anyone who needs help learning or mastering college macroeconomics material will benefit from taking this course. There is no faster or easier way to learn the subject. Among those who would benefit are:
- Students who have fallen behind in understanding economic scarcity or working with opportunity cost
- Students who struggle with learning disabilities or learning differences, including autism and ADHD
- Students who prefer multiple ways of learning economics (visual or auditory)
- Students who have missed class time and need to catch up
- Students who need an efficient way to learn about scarcity, choice and the production possibilities curve
- Students who struggle to understand their teachers
- Students who attend schools without extra economics learning resources
How it works:
- Find videos in our course that cover what you need to learn or review.
- Press play and watch the video lesson.
- Refer to the video transcripts to reinforce your learning.
- Test your understanding of each lesson with short quizzes.
- Verify you're ready by completing the Scarcity, Choice and the Production Possibilities Curve chapter exam.
Why it works:
- Study Efficiently: Skip what you know, review what you don't.
- Retain What You Learn: Engaging animations and real-life examples make topics easy to grasp.
- Be Ready on Test Day: Use the Scarcity, Choice and the Production Possibilities Curve chapter exam to be prepared.
- Get Extra Support: Ask our subject-matter experts any scarcity, choice or production possibilities curve question. They're here to help!
- Study With Flexibility: Watch videos on any Web-ready device.
Students will review:
This chapter helps students review the concepts in a Scarcity, Choice and the Production Possibilities Curve unit of a standard college-level principles of macroeconomics course. Topics covered include:
- Economic scarcity and the function of choice
- How to calculate opportunity cost
- Applying the production possibilities model
- Shifts in the production possibilities curve
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.
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.
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.
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.
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.
6. Labor Rate Variance: Definition & Formula
Labor variances are the differences between the planned and actual costs of labor as they relate to a project. This lesson will go over the two types or labor variances and take you through the formula for computing them.
7. Transactions Costs in Economics: Definition, Theory & Examples
In this lesson, we'll discuss transactions costs and their role in contributing to the economy. Our discussion will include definitions of key terms, the theory of transaction costs, and the different types of transaction costs.
8. What is Agglomeration in Economics? - Definition, Process, Theory & Effects
This lesson explores the clustering of businesses and resources known in economics as agglomeration, including a definition of the concept along with a discussion of the underlying theory and process.
9. Who is Paul Krugman? - Economic Theory & Overview
Modern economic theory began with Adam Smith nearly 300 years ago. While many of his theories still apply, the field of economics has changed. Thanks to new economists like Paul Krugman, our understanding of economics can develop with the discipline.
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Other chapters within the Introduction to Macroeconomics: Help and Review course
- Comparative Advantage, Specialization and Exchange: Help and Review
- Demand, Supply and Market Equilibrium: Help and Review
- Measuring the Economy: Help and Review
- Inflation Measurement and Adjustment: Help and Review
- Understanding Unemployment: Help and Review
- Aggregate Demand and Supply: Help and Review
- Macroeconomic Equilibrium: Help and Review
- Inflation and Unemployment: Help and Review
- Economic Growth and Productivity: Help and Review
- Money, Banking, and Financial Markets: Help and Review
- Central Bank and the Money Supply: Help and Review
- Fiscal and Monetary Policies: Help and Review
- Foreign Exchange and the Balance of Payments: Help and Review
- Inflows, Outflows, and Restrictions: Help and Review
- Government & the Economy: Help and Review
- The U.S. Economic System