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Basic economics concepts

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Introduction to economicsScarcityNormative and positive statementsEconomic modelsCommand and market economiesLesson summary: Introduction to Macroeconomics
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Production possibilities curveOpportunity costIncreasing opportunity costPPCs for increasing, decreasing and constant opportunity costProduction Possibilities Curve as a model of a country's economyLesson summary: Opportunity cost and the PPC
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Comparative advantage, specialization, and gains from tradeComparative advantage and absolute advantageOpportunity cost and comparative advantage using an output tableTerms of trade and the gains from tradeInput approach to determining comparative advantage When there aren't gains from trade Comparative advantage worked exampleLesson summary: Comparative advantage and gains from trade
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Law of demandPrice of related products and demandChange in expected future prices and demandChanges in income, population, or preferencesNormal and inferior goodsChange in demand versus change in quantity demanded Lesson summary: Demand and the determinants of demand
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4 questions
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Law of supplyFactors affecting supplyChange in supply versus change in quantity suppliedLesson summary: Supply and its determinants
Practice
4 questions
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Market equilibriumChanges in market equilibriumChanges in equilibrium price and quantity when supply and demand changeLesson summary: Market equilibrium, disequilibrium, and changes in equilibrium

About this unit

In this unit, you'll learn fundamental economic concepts like scarcity, opportunity cost, and supply and demand. You will learn things like the distinction between absolute and comparative advantage, how to identify comparative advantage from differences in opportunity costs, and how to apply the principle of comparative advantage to determine the basis on which mutually advantageous trade can take place between individuals and/or countries.