Ch 1: Microeconomics Basics

About This Chapter

Review the short lessons in this overview of microeconomics to enhance your preparations for an upcoming exam, strengthen your grades or secure course credits. Our expert instructors clearly explain the microeconomics topics you need to know and short quizzes are available to assess your comprehension of this subject.

Microeconomics Basics - Chapter Summary

This comprehensive chapter enables you to examine the basics of microeconomics. Explore entertaining lessons that provide in-depth analyses of microeconomic resources, economic productivity, the economic man, common logic pitfalls in economics and more. Review these lessons as short videos or full transcripts. When ready, check your understanding by taking lesson quizzes and a chapter exam. All resources are available around-the-clock via any computer or mobile device with Internet access. Once you've completed this chapter, you will be able to:

  • Define economics and microeconomics
  • Explain the importance of consumer choice in economics
  • Discuss the challenge of resource allocation
  • Use utility in business decision making
  • Differentiate between microeconomics and macroeconomics
  • Compare and contrast normative and positive economics
  • Describe differences between comparative and absolute advantage in microeconomics
  • Examine various economic models and uses

13 Lessons in Chapter 1: Microeconomics Basics
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.

Microeconomic Resources: Scarcity & Utility

3. 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.

The Importance of Consumer Choice in Economics

4. 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.

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.

Productivity: The Economy's Long-Run Growth Engine

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.

Using Utility in Business Decision Making

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.

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

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.

Common Logic Pitfalls in Economics

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.

Microeconomics vs. Macroeconomics

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.

Comparing Normative & Positive Economics

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.

Comparative vs. Absolute Advantage in Microeconomics

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.

An Overview of Economic Models & Uses

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.

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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