--- title: "Introductory Economics guide and practice โ€” NextStep" description: "What you will learn in Introductory Economics, common challenges, workload and expectations, flashcards, practice questions and vocabulary." url: "https://nextstep-transition.spark.site/courses/intro-economics" site: "NextStep" updated: "2026-11-13" --- [All courses](https://nextstep-transition.spark.site/courses) College ยท Business and economics # Introductory Economics Explore how people and societies make choices with limited resources and how markets and economies interact. [Survival guide](https://nextstep-transition.spark.site/courses/intro-economics#guide)[What to expect](https://nextstep-transition.spark.site/courses/intro-economics#expect)[Flashcards](https://nextstep-transition.spark.site/courses/intro-economics#flashcards)[Practice questions](https://nextstep-transition.spark.site/courses/intro-economics#practice)[Vocabulary](https://nextstep-transition.spark.site/courses/intro-economics#vocab) ## What you will learn - Explain scarcity, trade-offs, and opportunity cost. - Use supply and demand to reason about markets. - Compare costs and benefits of a small change in a decision. - Interpret basic measures such as inflation, unemployment, and output. - Separate economic models, evidence, and value judgments in policy debates. ## Common challenges - ### Graphs tell a causal story Label both axes and state what is held constant. Describe the change in words before drawing it. - ### College pace and unfamiliar reading A survey may move quickly between models and real-world applications. Budget independent reading and problem-solving time rather than relying only on lectures. - ### Movement versus a shift A change in a good's own price causes movement along its demand curve. Other relevant changes, such as income or preferences, can shift demand. - ### Models are useful but limited List a model's assumptions before applying it. Economic reasoning can clarify trade-offs without settling every question about fairness or policy. ## Key concepts Scarcity and opportunity cost Resources and time are limited, so choosing one option means giving up others. Opportunity cost is the value of the next-best alternative forgone. Marginal thinking Many decisions compare the extra benefit of a small change with its extra cost. Past costs that cannot be recovered should not determine the next step. Supply and demand Supply describes quantities sellers are willing to offer at different prices; demand describes quantities buyers are willing and able to buy. The model holds other relevant conditions constant. Equilibrium Market equilibrium occurs where quantity supplied equals quantity demanded. It does not automatically mean an outcome is fair or socially best. Microeconomics and macroeconomics Microeconomics studies choices and individual markets. Macroeconomics studies economy-wide patterns such as inflation, unemployment, and growth. Economic indicators Indicators summarize parts of an economy, such as production or price changes. No single indicator captures every part of well-being. ## How to prepare - Review percentages, ratios, and simple algebraic equations. - Practice plotting a line and interpreting its slope. - Write an everyday choice and identify its next-best alternative. - Read a short economic news explanation and separate measured facts from opinions. ### Study habits that help - Draw each graph from memory and explain what changes and what stays fixed. - Use a concrete example for each new model. - Practice percentage changes with the original value clearly labeled. - Separate a model's prediction from your opinion about whether the outcome is fair. ## What to expect Typical workload Moderate Time outside class Typically about 6โ€“9 hours outside class weekly for a three-credit course; college, instructor, and math emphasis vary. A general college rule of thumb is about 2โ€“3 study hours outside class for each hour in class. Pace Introductory courses build models step by step, though some focus only on microeconomics or only on macroeconomics. How it is usually graded Courses typically use exams, quizzes, problem sets, and sometimes short policy analyses or data assignments. ### Skills that help - Graph interpretation - Quantitative reasoning - Model-based explanation - Reading evidence critically ### What teachers usually expect - Label graphs and explain their assumptions. - Distinguish a change in a curve from movement along it. - Support economic claims with reasoning and relevant evidence. ### Before you start - Colleges commonly expect basic algebra and college-level reading readiness; some courses use placement or an earlier math course. - Check whether the course is a broad survey, microeconomics, or macroeconomics; prerequisites differ by college, so check the college catalog. These are general descriptions of a typical course. Workload, pace and prerequisites differ by school and instructor, so check with your counselor, advisor or the course catalog. ## How it connects to majors - Economics - Business administration - Public policy - Finance - Environmental studies ## Flashcards Card 1 of 10 ## Practice questions Question 1 of 6 You spend an hour at a club meeting instead of your next-best option, working a paid shift. What is the opportunity cost? Every activity you could imagine doingOnly the meeting's room numberNothing, because the meeting is freeThe value of the paid work you gave up ## Vocabulary Scarcity The condition of having limited resources relative to wants. Opportunity cost The value of the next-best alternative given up. Incentive A benefit or cost that can influence a choice. Equilibrium A market situation in which quantity supplied equals quantity demanded. Elasticity A measure of how responsive one variable is to a change in another, using percentage changes. Inflation A sustained increase in an economy's overall price level. Gross domestic product The market value of final goods and services produced within an economy in a period. Externality An effect on others that is not fully included in a market transaction's costs or benefits. ## Related courses - [Algebra 2](https://nextstep-transition.spark.site/courses/algebra-2) - [Introductory Statistics](https://nextstep-transition.spark.site/courses/intro-statistics) - [World History](https://nextstep-transition.spark.site/courses/world-history) [Subject help center](https://nextstep-transition.spark.site/courses/help)[Ask NextStep](https://nextstep-transition.spark.site/chat)