About This Chapter
U.S. and World Economies - Chapter Summary
Explore components of the U.S. economic system and review the relationship between international economies through this chapter's video lessons. Topics of discussion include the following:
- Economic scarcity and the function of choice
- Opportunity cost: definition and real world examples
- Aggregate supply and aggregate demand (AS-AD) model
- Pricing cost: what motivates mark-up and break-even pricing
- Economic systems: command, traditional and market
- Components and operation of the U.S. economic system
- The Federal Reserve System
- Structures, processes and relationships of international economies
Each video lesson on U.S. and world economies was developed by an experienced professional educator to be brief yet thorough. You can watch the videos in their entirety or use the provided video tags to jump to main points. Also, each lesson features a written transcript, in case you learn better by reading. Most of these transcripts feature hyperlinks that lead to other lessons, where you can further explore key terms and concepts.
You can measure your understanding of the presented materials through the self-assessment quizzes that accompany each video. You might gain the most from these quizzes by taking them before watching the videos, which can help you identify areas where you need to pay extra attention, as well as after viewing, to make sure you've fully absorbed the information.
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. Circular Flow of Economic Activity: The Flow of Goods, Services & Resources
Learn about the simple model used to describe where money goes and what it is exchanged for in a market economy. The circular flow model of economic activity shows you the basic relationships between households, firms and the government.
4. Gross Domestic Product: Definition and Components
Learn how economists measure the total production of an economy using gross domestic product (GDP). This lesson also outlines the components that make up a GDP. How do we calculate the economic value of a nation?
5. The Four Basic Functions of Money
This lesson uses real-world examples to describe the four basic functions that money serves in an economy. These basic functions help to create the foundation of the money system.
6. Three Types of Unemployment: Cyclical, Frictional & Structural
If you've ever lost your job after the holiday season, you've experienced at least one type of unemployment. In this lesson, explore the three types of unemployment including cyclical, frictional, and structural using real-world examples.
7. 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.
8. 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.
9. Aggregate Supply and Aggregate Demand (AS-AD) Model
Supply and demand models are useful for examining the behavior of one good or market, but what about looking at a whole economy? Luckily, the aggregate supply and aggregate demand model lets us do just that.
10. Pricing Cost: What Motivates Mark-up and Break-Even Pricing
The marketing mix consists of the four Ps (product, place, promotion and price). The marketing manager has to decide what type of pricing strategy to use for the overall marketing plan. The options depend on how cost is determined.
11. Consumer Price Index: Measuring the Cost of Living and Inflation
In this lesson, you'll learn what the Consumer Price Index is and how it measures changes in the level of prices in an economy. You'll also learn about the important economic concepts of inflation and deflation. Why do prices always seem to be going up?
12. What is the Federal Reserve System?
Have you ever wondered why interest rates go up and down, seemingly at random? Of course you have! Discover what the Federal Reserve is, what its goals are and how those goals are achieved in this introductory lesson explaining the central bank of the United States.
13. Fiscal Policy Tools: Government Spending and Taxes
Discover the three main tools the government uses to address recessionary and inflationary economies - what economists call fiscal policy. Find out how these tools are used to help the economy in different situations.
14. Fiscal Policy and the Effects on Unemployment
Review what fiscal policy is and how the two key components of fiscal policy can be used to influence unemployment. Find out when and how fiscal policy can be used and why it is so important.
15. Understanding the Progressive Tax Code
In this lesson, learn what a progressive tax code is, how to recognize it, and what the alternatives are. Then, learn the differences between the three tax codes: progressive, regressive and proportional. Finally, learn how sales tax would impact progressivity.
16. Achieving Trade Balance: Trade Deficit and Surplus Examples
Find out what trade balance, trade deficit, and trade surplus are. Learn about some recent examples that help clarify trade deficit and surplus. Explore what countries have a surplus and what countries have a deficit.
17. Foreign Currency Exchange: Supply and Demand for Currency
In this lesson, you'll learn why money from different countries has different values of exchange. We'll cover the supply and demand for currencies and how changes in supply and demand can affect the exchange rates between currencies.
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Other chapters within the ILTS Social Science - History (246): Test Practice and Study Guide course
- Research Sources, Methods & Technologies
- Analyzing & Interpreting Social Science Inquiry
- U.S. Government and Political Systems
- Cultural & Physical Geography
- Human Behavior & Development
- Structure of Society & Social Interaction
- World Religions
- Westward Expansion, Industrialization & Urbanization (1870-1900)
- Prehistory & Early Civilizations
- History of the Ancient Near East
- Contributions & History of Ancient Greece
- Hellenism & Athens
- The Roman Republic Rises
- History of the Fall of Rome
- History of the Dark Ages
- Early Middle Ages Overview
- Overview of the Medieval Warm Period
- Overview of the High Middle Ages
- Overview of the Late Middle Ages
- History of the Renaissance
- The Age of Exploration & Discovery
- The Reformation Across Europe
- History of the Elizabethan Era
- Overview of Colonialism
- Overview of World War I
- Overview of World War II
- Early American Civilizations
- Settling North America & the Colonies
- Important Events Leading to the American Revolution
- Events & Leaders of the American Revolution
- The Making of a Nation after the American Revolution
- The Virginia Dynasty
- Jacksonian Democracy
- Everyday Life in Antebellum America
- Manifest Destiny & American Expansion
- Buildup to the American Civil War
- The American Civil War
- After the Civil War: Reconstruction
- The Progressive Era of the Early 20th Century
- American Imperialism & World War I
- 1920s America
- America and the Great Depression
- World Events & Politics After World War II (1946-1959)
- Events & Presidents During the Cold War (1950-1973)
- Civil Rights & Other Movements in the US (1954-1973)
- America in the 1970s
- ILTS Social Science - History Flashcards