About This Chapter
Microeconomics Principles for Business - Chapter Summary
In order to understand contemporary business, it's essential that you spend a significant amount of time studying principles from microeconomics. If you would like to learn about this subject, review this chapter's informative online video lessons.
These videos are a great way to get comprehensive overviews of the major issues pertaining to microeconomics and their relationship to contemporary business. Despite the complexity of this subject, you should have no difficulty understanding these lessons, due to this chapter's convenient online format, which lets you study at your own pace, and the extensive expertise of our lesson instructors. Specific topics you will learn about include:
- Economic scarcity
- The definition and examples of opportunity cost
- Calculating opportunity cost
- The production possibilities model
- The definition and examples of comparative advantage
- Absolute advantage in trade
- Market equilibrium
- Competition within free markets
Upon completing a lesson, test your recollection of that topic's main point by answering the questions found in the lesson's practice quiz. When you have completed all of the lessons, you can review the basic information on the overall subject by taking the chapter's final exam. Keep track of your learning progress through your personal Dashboard.
1. Economic Scarcity and the Function of Choice
Discover the foundation of the social science of economics as we explore the basic economic problem of scarce resources and unlimited wants using key definitions that create a framework for understanding everyday behavior in a nation.
2. Opportunity Cost: Definition & Real World Examples
Learn the most important concept of economics through the use of real-world scenarios that highlight both the benefits and the costs of decisions. Opportunity cost is a simple yet powerful principle that reveals how to make the best economic decisions possible, and it explains why people make the choices they do.
3. How to Calculate Opportunity Cost
Learn the formula that reveals the economic value in any major choice between two possibilities. Every choice involves tradeoffs, and opportunity cost shows you how to measure these tradeoffs.
4. Applying the Production Possibilities Model
Producers in the economy use a visual model, called the production possibilities curve, to make the most efficient production decisions and maximize output. Learn how this model reveals the tradeoffs of every production decision with the simplified example of an economy that produces only two goods.
5. Shifts in the Production Possibilities Curve
In this lesson you will learn how changes inside an economy lead to changes in the production possibilities of a nation. See how different scenarios from everyday life lead to shifts in the production possibilities curve.
6. Comparative Advantage: Definition and Examples
Understand the definition of comparative advantage, using two goods as an example. This key lesson incorporates the basic foundations of economics into one foundational theory explaining what goods and services that people,and nations, should produce and for whom they should produce it.
7. Gains From Trade and the Benefit of Specialization
Explore one of the most widely accepted ideas in economics - the idea that nations benefit from specialization and exchange, reaping gains from trade.
8. Absolute Advantage in Trade: Definition and Examples
In this lesson, you'll learn what absolute advantage is and how to easily identify it within examples of international trade. In addition, you'll learn the important difference between absolute advantage and comparative advantage.
9. Market Equilibrium from a Microeconomics Perspective
Learn about the definition of market equilibrium. Learn how to identify the equilibrium point on a supply and demand graph and discover what causes this point to change in our everyday lives.
10. Microeconomic Shifts in Supply and Demand Curves
Learn about the important forces that can cause the demand and supply curve to shift. Discover how this affects equilibrium and the prices you pay for goods and services.
11. Price Elasticity of Demand in Microeconomics
Discover the definition and formula for price elasticity of demand. See some real-world examples of how it is calculated, and find out what it means for demand of a good to be inelastic or elastic.
12. Cross Price Elasticity of Demand: Definition and Formula
Learn what cross price elasticity of demand means. Find out why business owners and economists like to know cross price elasticity, and discover how to calculate it. See some everyday examples.
13. Competition Within Free Markets: Types & Summary
We live in a free market economy, but that doesn't mean there is always free competition. In this lesson, you'll learn about perfectly competitive markets, monopolies, monopolistic markets and oligopolies.
14. Barriers to Entry in Economics: Definition, Types & Examples
Economic barriers to entry are part of the reason some companies thrive and others fail. Learn what barriers to entry are and why they are so important to understand before entering a specific business or market. Read about some current-day examples.
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Other chapters within the AEPA Business Education (NT309): Practice & Study Guide course
- Organizational Management in Business
- Human Resource Management in Business
- Business Law & Ethics
- Business Accounting Overview
- Personal Finance & Consumer Economics
- Computation & Quantitative Analysis in Business
- Macroeconomics Principles for Business
- International Business & Trade
- Principles of Marketing & Market Research
- Fundamentals of E-commerce
- Entrepreneurship & Business Plans
- Business Communication Fundamentals
- Information Systems in Business
- Business Software
- Career Development in Business
- AEPA Business Education Flashcards