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

Few things affect the day-to-day lives of everyone more than the economy. In this lesson, you'll learn about economics, including some of its foundational topics and concepts. You'll also have a chance to take a quiz after the lesson.

What Is Microeconomics? - Definition & Topics

2. What Is Microeconomics? - Definition & Topics

Learn about microeconomics and a few of the most popular topics that are typically studied in the field, such as supply and demand, opportunity cost, and different forms of competition that exist.

The Importance of Consumer Choice in Economics

3. The Importance of Consumer Choice in Economics

Nothing makes a business happier than when we buy something they sell - well, maybe when we buy two of what they sell! This lesson explains why smart companies and governments try to understand everything about you to sell you more.

Microeconomic Resources: Scarcity & Utility

4. Microeconomic Resources: Scarcity & Utility

For economics to work, we must assume that resources are scarce and that people will work to secure the greatest utility possible. This lesson explains both scarcity and utility and what they mean for people everywhere.

Understanding the Challenge of Resource Allocation

5. Understanding the Challenge of Resource Allocation

By now, you've probably figured out that all resources are scarce. But how do we allocate resources to make the most of that scarcity? This lesson explains how economists allocate resources, as well as three of the major philosophies influencing such choices.

Using Utility in Business Decision Making

6. Using Utility in Business Decision Making

A company should always work to maximize profits, right? Well, yes and no. In this lesson, we look at the idea of utility and see how profits can sometimes come second if something with greater utility is needed.

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

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

Just because the Economic Man doesn't exist doesn't mean that he's not important. This lesson explains how the Economic Man is really quite useful to economists for a variety of reasons.

Common Logic Pitfalls in Economics

8. Common Logic Pitfalls in Economics

Economics is a pretty straightforward subject, but it can be plagued with plenty of logical pitfalls. This lesson discusses swimsuits, mansions, and politicians to explain some of the most common logical fallacies.

Microeconomics vs. Macroeconomics

9. Microeconomics vs. Macroeconomics

In this lesson, we learn how economics touches every aspect of human life. Focusing on the central ideas of scarcity and utility, we see how economics plays out in its two largest fields, microeconomics and macroeconomics.

Comparing Normative & Positive Economics

10. Comparing Normative & Positive Economics

In most sciences, you can largely ignore opinions. However, in economics, we call opinions normative statements and economists must pay attention to them. This lesson details the differences between normative statements and positive statements.

Comparative vs. Absolute Advantage in Microeconomics

11. Comparative vs. Absolute Advantage in Microeconomics

Ever wonder why economies don't just try to do everything themselves and instead rely on trade as such an important idea? This lesson on comparative vs. absolute advantages helps to explain why.

An Overview of Economic Models & Uses

12. An Overview of Economic Models & Uses

For this lesson on economic models, you won't need any plastic cement or craft knives. That said, a lot of very useful detail can still be captured and portrayed in economic models, as this lesson demonstrates.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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