About This Chapter
Introduction to Microeconomics - Chapter Summary and Learning Objectives
Every time you decide to buy something, somewhere an economist is crunching numbers. Well, maybe not, but in the field of microeconomics there's quite a bit of scrutiny paid to the purchasing decisions we make on a daily basis. Use the lessons in this chapter to get an overview of how what we buy factors into economic models used to demonstrate the relationships between consumer demand and the use of resources - such as labor and capital. Lessons in this chapter are designed to teach you about the following:
- Consumer choice and the economic man
- Economic scarcity and the allocation of resources
- Differences between normative and positive economics
- Uses of comparative and absolute advantages
- Examples of economic models and logic pitfalls
|What Is Economics? - Definition & Types||Identify concepts studied in the field of economics, such as economic growth and sustainability.|
|The Importance of Consumer Choice in Economics||Pinpoint the role of consumers in a market economy. Explain the significance of consumer choice in this economic system.|
|Microeconomic Resources: Scarcity & Utility||Get some examples of scarce resources, such as raw goods, land, labor and capital, and learn how their utility relates to the study of economics.|
|Understanding the Challenge of Resource Allocation||Learn how economic systems attempt to allocate resources. Explore the concept of allocative efficiency.|
|What Is the Economic Man? - Concept, Assumptions & Constraints||Examine the roles and behaviors characterizing the economic man in various economic systems.|
|Common Logic Pitfalls in Economics||Identify logical errors found in the study of economics, including the fallacy of composition and the post hoc ergo propter hoc fallacy.|
|Microeconomics vs. Macroeconomics||Differentiate between issues studied in the fields of microeconomics and macroeconomics.|
|Comparing Normative and Positive Economics||Study the differences between normative and positive economics.|
|Comparative and Absolute Advantages in Microeconomics||Explore the roles of comparative and absolute advantages in producers' decision-making processes.|
|An Overview of Economic Models & Uses||Assess the usefulness and accuracy of various economic models.|
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. Productivity: The Economy's Long-Run Growth Engine
Using real-world examples, you'll learn more about what productivity is and four things that determine it within a nation - physical capital, technology, human capital, and natural resources.
7. 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. 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.
13. 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 101: Principles of Microeconomics course
- Supply and Demand in Microeconomics
- Consumer Behavior & Microeconomics
- Producers in Microeconomics
- Business Structures & Barriers to Entry
- Accounting & Economic Costs
- Market Structures in Economics
- Scarce Economic Resource Markets
- Business Technology, Research & Development
- Government Issues in Microeconomics
- Studying for Economics 101