1. Economics Basics: Introduction
  2. Economics Basics: What Is Economics?
  3. Economics Basics: Supply and Demand
  4. Economics Basics: Utility
  5. Economics Basics: Elasticity
  6. Economic Basics: Competition, Monopoly and Oligopoly
  7. Economics Basics: Production Possibility Frontier, Growth, Opportunity Cost and Trade
  8. Economic Basics: Measuring Economic Activity
  9. Economics Basics: Alternatives to Neoclassical Economics
  10. Economics Basics: Conclusion

We hope that this tutorial has given you some insight to the economy and the. Let's recap what we've learned in this tutorial:

  • Economics is best described as the study of humans behaving in response to having only limited resources to fulfill unlimited wants and needs.
  • Scarcity refers to the limited resources in an economy. Macroeconomics is the study of the economy as a whole. Microeconomics analyzes the individual people and companies that make up the greater economy.
  • The Production Possibility Frontier (PPF) allows us to determine how an economy can allocate its resources in order to achieve optimal output. Knowing this will lead countries to specialize and trade products amongst each other rather than each producing all the products it needs.
  • Demand and supply refer to the relationship price has with the quantity consumers demand and the quantity supplied by producers. As price increases, quantity demanded decreases and quantity supplied increases.
  • Elasticity tells us how much quantity demanded or supplied changes when there is a change in price. The more the quantity changes, the more elastic the good or service. Products whose quantity supplied or demanded does not change much with a change in price are considered inelastic.
  • Utility is the amount of benefit a consumer receives from a given good or service. Economists use utility to determine how an individual can get the most satisfaction out of his or her available resources.
  • Market economies are assumed to have many buyers and sellers, high competition and many substitutes. Monopolies characterize industries in which the supplier determines prices and high barriers prevent any competitors from entering the market. Oligopolies are industries with a few interdependent companies. Perfect competition represents an economy with many businesses competing with one another for consumer interest and profits.
  • Economists measure economic activity in a nation using gross domestic product (GDP), the rate of unemployment, and inflation.
  • Alternatives to the mainstream theory of economics includes imperfect markets, behavioral economics, heterodox economics, and economic sociology.

Related Articles
  1. Insights

    Explaining Quantity Demanded

    Quantity demanded describes the total amount of goods or services that consumers demand at any given point in time.
  2. Insights

    What Is Elasticity?

    Elasticity measures the relationship between a good and its price based on consumer demand, consumer income, and its available supply. Learn the basics about it here.
  3. Investing

    Price Elasticity Of Demand

    Price elasticity of demand describes how changes in the cost of a product or service affect a company's revenue.
  4. Insights

    Introduction to Supply and Demand

    Learn about one of the most fundamental concepts of economics - supply and demand - and how it relates to your daily purchases.
  5. Insights

    A Practical Look At Microeconomics

    Learn how individual decision-making turns the gears of our economy.
  6. Insights

    What's Demand Elasticity?

    Demand elasticity is the measure of how demand changes as other factors change. Demand elasticity is often referred to as price elasticity of demand because price is most often the factor used ...
  7. Insights

    Economic Growth

    Economic growth happens when the market value of the goods and services in an economy increase in one time period as compared to a prior time period.
Frequently Asked Questions
  1. Which countries have the highest tariffs?

    Find out which countries have the most restrictive import tariffs on international products, based on data collected by the ...
  2. What are some examples of expansionary monetary policy?

    Learn about expansionary monetary policy and how central banks use discount rates, reserve ratios and purchases of securities ...
  3. What is the difference between earnings and profit?

    Read about the differences between a company's earnings and its profit, and learn how the gap between earnings and profit ...
  4. Are dividends considered an asset?

    Find out why dividends are considered an asset for investors, but a liability for the company that issued them. Learn the ...
Trading Center