GED Social Studies Basic Economics Explained Simply
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- Опубліковано 7 жов 2024
- If you’re taking GED social studies, you should know that you may get questions on basic economics. In this video, I’m going to cover the basic concepts you should know for your test, and we’re going to go over the practice questions together to help make what you learn stick.
Economics is very complicated and I’m not an expert. My goal is to teach you what you the main things you should know for the GED
First, what is economics?
-A common misconception is that economics is all about learning how to make money or how to run or business or manage finance or predict the stock market--but that’s not really what economics is.
Very simply put, economics is about scarcity. Scarcity means there’s not enough for everyone.
"Economics is the study of the use of scarce resources which have alternative uses."
-Lionel Robbins
Meet Mark. Mark wants to rent a lakehouse for a family vacation. But when he looks at the prices, he realizes they’re way too high for him to afford. A lot of people would love to rent a lake house, but there aren’t that many lake houses available to rent in the world. Since there’s high demand but few houses, the people who own the houses can charge a lot of money to rent them out.
In other words, there’s a scarce supply of lake houses, but the demand is high.
This brings us to a fundamental concept in economics: supply and demand.
Supply and demand is a critical concept to understand. So I’m now going to introduce 2 general rules of thumb that go along with supply and demand
-People tend to buy more at lower prices and less at higher prices
-Sellers/producers tend to supply more at higher prices and less at lower prices
-Supply and demand is related to price. Prices are like messengers that tell you either good or bad news.
Capital: Anything that can produce income.
-For example, a lake house. the owner of a lake house can rent the lake house out to other people and make an income from that.
-Another example of capital is money.
Businesses invest money to create goods and services, which they can go on to sell to make an income. The actual work people do, which converts capital and materials into products and services is called labor.
-For example, consider a car company
-Car companies invest capital to build warehouses and storefronts, and then they have to hire employees. And then they have to buy car parts to build the cars with. The materials and the parts of the cars are what we called producer goods. On the other had, the cars themselves once they’re ready to be sold are what we call consumer goods.
Sellers bring their goods and services to the buyers through markets.
Markets are systems that match sellers’ goods and services to people seeking to purchase them.
Remember, people tend to buy more at lower prices and less at higher prices
Now suppose someone, lets call her Anne, is shopping for a new hat. Anne goes to a shopping mall. If one store sells the hat Anne wants for $30, but another store in the mall sells the same exact hat for only $20, logically, where do you think Anne is going to buy it? Assuming price is the only factor here, of course she’s going to buy the hat at the lowest price possible. Now, maybe if she’s in a hurry and the line is too long at the $20 store, then maybe she’d spend the extra money and go with the store selling it for 30, but the point here is that generally people want to pay the lowest price possible.
This leads to competition in the marketplace. Sellers/producers must compete with each other to provide the best deal for the consumers. And the best deal isn’t always about price.
-Consider starbucks and dunkin donuts. Coffee is cheaper at dunkin donuts, but some people might prefer to go to starbucks because they like the customer service or the music or the general atmosphere better. Personally, I like Dunkin the best, but that’s just me. But The point is that sellers/producers have to compete to give the best deal to their customers.
-Another topic that you might get questions about is retail vs wholesale:
Retail is when the customer directly buys a good or service.
Wholesale is when a business buys a good or service.
*For an outstanding book on economics, please check out Thomas Sowell's basic economics. I referenced this book while making this video.
This was so helpful !! Thank you so much! You’re a great teacher! Pray for me y’all! I’m taking my test soon!
You're welcome! I'm glad you found this video helpful! Thank you for watching and good luck!
DId you pass?
@SheOnPurpose Did you pass?
Very helpful thank you so much ! Doing my SS test next week and getting ready watching all of your videos on this subject 😊👏🏼🙏🏼
Thank you for watching! Good luck with your test next week! I really appreciate your comments!
Thank You. Very much helped.
You're welcome, thanks for watching!
I’m new to the group I’m taking my test this month!!!!
Thanks for this video I see the basics on social studies and also I passed it Thank you sir! God bless you
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9:57 - Farmers are product manufacturers. They are not the wholesaler.
"Wholesalers are not manufacturers. Their business is distributing the end products. They purchase goods from manufacturers in bulk at a discount and sell to retailers. Wholesalers also provide cost savings to retailers when retailers buy in bulk from the wholesaler."
I need to retake my Social Studies exam in December 24th at 11:00 am EST because I was revoked in my first attempt. I am studying about economics it came in my exam on Last Monday.
how was your test again?did you pass?
@@mehreenshah8196No I was terminated from my exam from HiSET!
@@mehreenshah8196 No
Did you pass ?
Thank you
This helped alot Thank you.
Please answer my question as it important to study Combination, permutation for social studies test …. I know mean ,median and mode important to study them
I've never heard anyone say they got questions on these topics for social studies, but they may come up on math.
@@TestPrepChampions thank you very much
Median is on the test
Thanks, I will use this to help as explain it to my students.
I'm taking my test tomorrow.
I hope it went well for you, thank you for watching
@@TestPrepChampions I passed. I'm so glad I found these videos.
@adalia9893 Any tips on social studies, girl❤would greatly appreciate it
I’m taking my social studies tomorrow I’m scared
How is it?
@@EmanShabib I passed thank you @TestPrepChampions
@@EmanShabib I passed
@@EmanShabibI passed
I see that you passed, congratulations!!! Thank you for watching!
Science please…??
Sure, anything specific you need help with?
@@TestPrepChampions everything I think I need to learn because I have upcoming exam. Thank you
Can you show solving math in science?
I needed a new job since i just got out which i was told to bring a GED last week and that got me stressed out asf till I came across some great comments about deelscafe💯..
What’s a deelscafe??
@@sejalrai6315A scam I've seen around here a lot....