About This Chapter
Theories & Trends in Microeconomics - Chapter Summary
If you need help wrapping your head around the theories and trends in microeconomics, this chapter might be just the resource you need. You'll explore topics including consumer decision-making, behavioral economics, and political economies. Our team of instructors are experts with years of experience in their field, so they know how to make advanced microeconomics theories easy for you to understand. Each lesson goes over a single major concept, allowing you to master all of these topics one concept at a time. Once you have completed the entire chapter, you will possess the skills to:
- Define and discuss consumer choice and preferences
- Share theories about preferences, incentives, and decision-making in economics
- Describe examples of adverse selection
- Compare and contrast moral hazard and adverse selection
- Discuss the principle-agent problem
- Evaluate the applications of behavioral economics
- Differentiate between the local and international political economy
1. Consumer Preferences & Choice in Economics
Why do consumers choose to purchase certain products or services? In this lesson, you will learn what consumer preference assumptions are and how they affect consumer choice in economics.
2. Consumer Theories in Economics: Decision Making, Incentives & Preferences
Really, what do we know about consumers? Considering that there are billions around the world, our knowledge is far from perfect. However, economists have a number of ideas and assumptions about consumers that help inform their theories.
3. Adverse Selection in Economics: Definition & Examples
In this lesson we will look at adverse selection in economics. We will define the term and look at how asymmetric information is related to adverse selection. An example will be provided, followed by a summary and a quiz.
4. Adverse Selection vs. Moral Hazard
In this lesson, we will look at the terms adverse selection and moral hazard. We will define each term and look at some examples to help better explain how adverse selection and moral hazard occur. The lesson will be concluded with a quiz.
5. Principal-Agent Problem in Economics: Definition & Examples
In this lesson, we will learn about the principal-agent problem in economics. We will define the term and look at some examples to better explain the concept before concluding with a summary and a quiz.
6. Behavioral Economics: Definition & Applications
While most of us try to make good decisions, sometimes we are tempted to act on an impulse. In this lesson, we'll learn about a type of economics that studies why we don't always make the decisions that are most beneficial to us.
7. Political Economy: International, Local and Definition
Political economy is the study of how economic forces relate to laws and the political environment, both national and global. This lesson will explore that relationship, aspects of its history, and discuss what is being done with it today.
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Other chapters within the TECEP Microeconomics: Study Guide & Test Prep course
- Basic Economic Concepts
- Supply & Demand in Microeconomics
- Consumers, Producers & Market Efficiency
- Taxation in Microeconomics
- International Trade in Microeconomics
- Public Sector Economics
- Costs in Economics
- Market Structures
- Profit & Capital Allocation
- Labor Market Economics
- TECEP Microeconomics Flashcards