About This Chapter
Below is a sample breakdown of the Market Structures in Economics chapter into a 5-day school week. Based on the pace of your course, you may need to adapt the lesson plan to fit your needs.
|Day||Topics||Key Terms and Concepts Covered|
|Monday||Perfect competition||Requirements for perfectly competitive markets, the 'invisible hand,' market equilibrium|
|Tuesday||Monopolies and oligopolies||Characteristics of true monopolies, examples of regional monopolies, effects of monopolistic and oligopolistic competition on producers and consumers|
|Wednesday||Major economic powers||Capitalist and socialist economic systems, the GDP of the world's five largest economies|
|Thursday||Command systems||Characteristics of command economic systems, incentive and coordination problems, moral hazard, adverse selection|
|Friday||Game theory||The prisoner's dilemma, the Nash Equilibrium, applications of game theory in economics|
1. Perfect Competition in Economics & Adam Smith's 'Invisible Hand'
In this lesson, you'll learn how consumers and producers interact in a perfectly competitive economic system. You'll also be introduced to how Adam's Smith concept of an 'invisible hand' can help keep such systems in line.
2. What is a Monopoly in Economics? - Definition & Impact on Consumers
In this lesson, you will learn about monopolistic markets and what a monopoly means for producers and consumers. After this lesson, you will understand why the name of one of our all-time favorite board games really makes perfect sense.
3. Understanding Monopolistic Competition in Economics
In this lesson, we'll learn about monopolistic competition. This type of competition can be found in a free market where products are differentiated, but not so differentiated that any single firm has the power to influence market prices.
4. What is an Oligopoly? - Definition & Impact on Consumers
In this lesson, we will discuss a market structure that is actually quite common in the United States, as well as most other industrialized countries: oligopolies. Oligopolies are the market structures that sit somewhere between a monopoly and perfect competition. In this lesson, we will find out how.
5. An Overview of Major Economic Powers of the World
There are 196 countries in the world, meaning there are nearly as many economic systems. While the narrative is often 'capitalism or socialism,' in this lesson we'll learn about how many of the world's largest countries are really somewhere in the middle.
6. Understanding a Command System in Economics
In this lesson, we'll discuss a command system: one of the often tried, but mostly failed, economic systems of the last century. Because it requires an individual or group to make decisions based on who makes what, there are important challenges of a command system.
7. What is Game Theory? - Explanation & Application in Economics
Economics is just as much about consumer and producer behavior as it is about finance or the allocation of resources. With that in mind, this lesson will explain one of the most fundamental tools economists use to frame competitive decision making.
8. Nash Equilibrium & Game Theory
The 2001 movie, 'A Beautiful Mind,' told the story of John Nash, a Nobel Prize-winning economist that theorized the Nash equilibrium. In this lesson, we'll learn about Nash equilibrium by studying game theory.
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