Basic economics concepts

This course is a part of AP®︎ Macroeconomics, a 9-course Topic series from Khan Academy.

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.

This course contains 6 segments:

Scarcity

Welcome to Economics! In this lesson we'll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us!

Opportunity cost and the Production Possibilities Curve

Learn how the production possibilities curve is used to illustrate scarcity, opportunity costs, and economic growth in this lesson.

Comparative advantage and the gains from trade

When economies specialize based on comparative advantage and trade, they can both benefit. Explore the concepts of comparative advantage, absolute advantage, specialization, and the terms of trade in this lesson.

Demand

Supply

Market equilibrium, disequilibrium, and changes in equilibrium