About This Chapter
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the Economics: High School course
- Supply and Demand in Microeconomics
- Business Organizations & Decision Making
- Scarcity, Choice, and the Production Possibilities Curve
- The Federal Government & the American Economy
- Demand, Supply and Market Equilibrium
- Macroeconomic Equilibrium
- Aggregate Demand and Supply
- Microeconomics & Consumer Behavior
- Producers & Production in Microeconomics
- Economic Market Structures
- Comparative Advantage, Specialization and Exchange
- Scarce Economic Resource Markets Basics
- Measuring the Economy
- Inflation Measurement and Adjustment
- The Government & Microeconomics
- Understanding Unemployment
- Inflation and Unemployment
- Economic Growth and Productivity
- Money, Banking and Financial Markets
- Central Bank and the Money Supply
- Fiscal and Monetary Policies
- Foreign Exchange and the Balance of Payments
- Inflows, Outflows, and Restrictions