Ch 1: Intro to Microeconomics

About This Chapter

Watch this chapter for a thorough introduction to microeconomics. The materials in this chapter give you an extra resource to help you make sense of even the most complicated topics so you can complete your homework more easily.

Intro to Microeconomics - Chapter Summary

In economics, you learn that a multitude of factors can affect the flow of money, services, and goods in the country. This chapter focuses on the factors that tend to affect individuals, which is most commonly referred to as microeconomics. In this introductory chapter, each of the lessons guide you through all of the major concepts. Our chapter menus make it easy for you to locate the specific lesson topic you need to review. Whether you watch all of the lessons in the chapter or only a few is up to you, and you can go back to our materials as much as you need. After you go through the entire chapter, you should be prepared to do the following:

  • Describe the function and purpose of economics
  • Identify the main characteristics of microeconomics
  • Analyze the reasons why customer choice is so vital
  • Define utility and scarcity in relationship to resources
  • Examine resource allocation and the challenges that may arise
  • Explain how the decision making process uses utility
  • Point out the constraints, assumptions, and concept of the economic man
  • Assess how the typical pitfalls in logic can impact economics
  • Compare macroeconomics and microeconomics
  • Summarize the differences between positive and normative economics
  • Measure absolute advantage versus comparative advantage
  • Establish the most common economic models and their uses

12 Lessons in Chapter 1: Intro to Microeconomics
Test your knowledge with a 30-question chapter practice test
What is Economics? - Definition & Types

1. What is Economics? - Definition & Types

Economics involves allocating resources to meet peoples' needs and desires for goods and services. Explore the definition and types of economics including microeconomics and macroeconomics and learn about growth vs. sustainability.

What Is Microeconomics? - Definition & Topics

2. What Is Microeconomics? - Definition & Topics

Microeconomics is the field of economics that analyzes the economic behaviors and decisions of individuals and organizations. Learn the definition of microeconomics, and explore common topics in microeconomics, including elasticity, supply, and demand.

The Importance of Consumer Choice in Economics

3. The Importance of Consumer Choice in Economics

Producers exhaust many resources to understand consumer choice because economics depends on the consumer to work. Explore the importance of consumer choice, typical assumptions about the consumer and why businesses care in this lesson.

Microeconomic Resources: Scarcity & Utility

4. Microeconomic Resources: Scarcity & Utility

Microeconomics deals with the state of resources and the allocation of resources based on the decisions of individuals and firms. Learn about the purpose of microeconomics, and the concepts of scarcity and utility.

Understanding the Challenge of Resource Allocation

5. Understanding the Challenge of Resource Allocation

How scarce something is and how useful it is to someone is fundamental to how economies allocate resources. Learn why economists place so much significance on scarcity and utility and identify the three main standards, or philosophies, of resource allocation. Understanding scarcity and utility is key to understanding the challenge of resource allocation. Explore why resources are allocated, how resources are allocated, systems for allocating resources in this lesson.

Using Utility in Business Decision Making

6. Using Utility in Business Decision Making

In economics, utility refers to something's value and usefulness. Learn about using utility in business decision making. Review what utility is and explore how businesses can be driven by utility, including upgrading a business' efficiency and other real-life examples of pursuing utility.

What Is the Economic Man? - Concept, Assumptions & Constraints

7. What Is the Economic Man? - Concept, Assumptions & Constraints

The 'Economic Man', also known as homo economicus, refers to a rational person pursuing self-interested goals for personal gains or satisfaction. Learn about the concept, assumptions, and constraints of the Economic Man, and explore what an Economic Man can do.

Common Logic Pitfalls in Economics

8. Common Logic Pitfalls in Economics

In economics, pitfalls can lead to incorrect conclusions, which may be used to make poor economic decisions and policies. Learn about common logic pitfalls in economics, including causation vs. correlation, bias, loaded terminology, and other fallacies.

Microeconomics vs. Macroeconomics

9. Microeconomics vs. Macroeconomics

Economics can be divided into two categories, which are microeconomics and macroeconomics, depending on the scale of the subject of study. Learn about economics and the differences and similarities between microeconomics and macroeconomics.

Comparing Normative & Positive Economics

10. Comparing Normative & Positive Economics

In economics, the normative branch seeks fairness in economics, while the positive branch focuses on trends and events in economics. Explore comparisons of normative and positive economics. Review facts vs. opinions, examine positive and normative analyses, and consider normative and positive economics in action.

Comparative vs. Absolute Advantage in Microeconomics

11. Comparative vs. Absolute Advantage in Microeconomics

In microeconomics, an absolute advantage refers to an advantage in a given time frame, and comparative advantages include the factor of opportunity costs between businesses. Explore examples of how these are calculated and applied to economics and business practices.

An Overview of Economic Models & Uses

12. An Overview of Economic Models & Uses

Economic models are condensed examples of economic properties that are used to analyze and predict economic variables. Explore models of microeconomics, and note where these models fail in predicting all influential variables.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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