Principles of Microeconomics

Unit 1 – Welcome to Economics!

Unit 2 – Scarcity and Economic Decision-Making

Unit 3 – Demand and Supply

Unit 4 – Labor and Financial Markets

Unit 5 – Elasticity

Unit 6 – Consumer Choices

Unit 7 – Production Costs and Industry Structure

Unit 8 – Perfect Competition

Unit 9 – Monopoly

Unit 10 – Monopolistic Competition & Oligopoly

Unit 11 – Monopoly and Antitrust Policy

Unit 12 – Environmental Protection & Externalities

Unit 13 – Positive Externalities & Public Goods

Unit 14 – Labor Markets and Income

Unit 15 – Poverty and Economic Inequality

Unit 16 – Risk and Insurance in Economics

Unit 17 – Financial Markets

Unit 18 – Public Economy

Unit 19 – International Trade

Unit 20 – Globalization and Protectionism

## What do you learn in Principles of Microeconomics

Microeconomics digs into how individuals and businesses make decisions in a world of scarcity. You'll explore supply and demand, market structures, consumer behavior, and firm theory. The course covers concepts like opportunity cost, elasticity, and marginal analysis. You'll also learn about market failures, externalities, and government interventions in the economy.

## Is Principles of Microeconomics hard?

Microeconomics can be tricky, especially if you're not a math person. The concepts aren't rocket science, but they do require some logical thinking and graph interpretation. Many students find the material interesting, which helps. The math isn't too intense, mostly basic algebra and some simple calculations. With consistent effort and practice, most students do fine.

## Tips for taking Principles of Microeconomics in college

1. Use [Fiveable Study Guides](https://fiveable.me/cram-mode) to help you cram 🌶️
2. Practice drawing supply and demand graphs until you can do them in your sleep
3. Use real-world examples to understand concepts (e.g., think about elasticity when buying gas)
4. Stay on top of current economic news to see microeconomic principles in action
5. Form a study group to discuss and debate economic policies
6. Master the concept of opportunity cost - it comes up everywhere
7. Watch "The Big Short" for a dramatic look at market failures and information asymmetry
8. Read "Freakonomics" for fun applications of microeconomic principles

## Common pre-requisites for Principles of Microeconomics

1. College Algebra: Covers equations, functions, and graphs. Essential for understanding the mathematical concepts in microeconomics.

2. Introduction to Statistics: Focuses on data analysis and probability. Helps in interpreting economic data and understanding statistical models used in microeconomics.

## Classes similar to Principles of Microeconomics

1. Macroeconomics: Examines the economy as a whole, including topics like inflation, unemployment, and economic growth. It complements microeconomics by providing a broader economic perspective.

2. Game Theory: Explores strategic decision-making in competitive situations. It applies microeconomic principles to analyze how individuals and firms interact in various scenarios.

3. Behavioral Economics: Combines insights from psychology with economic theory. It examines how social, cognitive, and emotional factors influence economic decisions.

4. Environmental Economics: Applies microeconomic principles to environmental issues. It analyzes the economic impacts of environmental policies and the valuation of natural resources.

## Majors related to Principles of Microeconomics

1. Economics: Focuses on the production, distribution, and consumption of goods and services. Students learn to analyze economic data, develop models, and understand complex economic systems.

2. Business Administration: Covers various aspects of managing organizations, including finance, marketing, and operations. Microeconomics provides a foundation for understanding market dynamics and business decision-making.

3. Finance: Concentrates on managing money, investments, and financial systems. Microeconomic principles are crucial for understanding market behavior and financial decision-making.

4. Public Policy: Examines how governments develop and implement policies. Microeconomics helps in analyzing the economic impacts of various policy decisions and understanding market failures.

## What can you do with a degree in Principles of Microeconomics?

1. Financial Analyst: Evaluates investment opportunities and provides financial advice to businesses and individuals. They use microeconomic principles to analyze market trends and make informed predictions.

2. Market Research Analyst: Studies market conditions to examine potential sales of products or services. They apply microeconomic concepts to understand consumer behavior and market dynamics.

3. Economic Consultant: Advises businesses and governments on economic issues. They use microeconomic models to analyze problems and propose solutions in various industries.

4. Policy Analyst: Evaluates the effects of existing policies and proposes new ones. They apply microeconomic principles to assess the impact of policies on different economic actors and markets.

## Principles of Microeconomics FAQs

1. How much math is involved in Microeconomics? While there's some math, it's mostly basic algebra and graph interpretation. You don't need to be a math whiz, but being comfortable with numbers helps.

2. Can I apply Microeconomics to my personal life? Absolutely! Microeconomics can help you make better decisions about budgeting, career choices, and even negotiating prices.

3. Are there any online resources to supplement my learning? Yes, plenty! Websites like Khan Academy and Coursera offer free microeconomics courses, and there are tons of YouTube channels dedicated to explaining economic concepts.

Economics

1.1 What Is Economics, and Why Is It Important?

1.2 Microeconomics and Macroeconomics

1.3 How Economists Use Theories and Models to Understand Economic Issues

1.4 How To Organize Economies: An Overview of Economic Systems

2.1 How Individuals Make Choices Based on Their Budget Constraint

2.2 The Production Possibilities Frontier and Social Choices

2.3 Confronting Objections to the Economic Approach

3.1 Demand, Supply, and Equilibrium in Markets for Goods and Services

3.2 Shifts in Demand and Supply for Goods and Services

3.3 Changes in Equilibrium Price and Quantity: The Four-Step Process

3.4 Price Ceilings and Price Floors

3.5 Demand, Supply, and Efficiency

4.1 Demand and Supply at Work in Labor Markets

4.2 Demand and Supply in Financial Markets

4.3 The Market System as an Efficient Mechanism for Information

5.1 Price Elasticity of Demand and Price Elasticity of Supply

5.2 Polar Cases of Elasticity and Constant Elasticity

5.3 Elasticity and Pricing

5.4 Elasticity in Areas Other Than Price

6.1 Consumption Choices

6.2 How Changes in Income and Prices Affect Consumption Choices

6.3 Behavioral Economics: An Alternative Framework for Consumer Choice

7.1 Explicit and Implicit Costs, and Accounting and Economic Profit

7.2 Production in the Short Run

7.3 Costs in the Short Run

7.4 Production in the Long Run

7.5 Costs in the Long Run

8.1 Perfect Competition and Why It Matters

8.2 How Perfectly Competitive Firms Make Output Decisions

8.3 Entry and Exit Decisions in the Long Run

8.4 Efficiency in Perfectly Competitive Markets

9.1 How Monopolies Form: Barriers to Entry

9.2 How a Profit-Maximizing Monopoly Chooses Output and Price

10.1 Monopolistic Competition

10.2 Oligopoly

11.1 Corporate Mergers

11.2 Regulating Anticompetitive Behavior

11.3 Regulating Natural Monopolies

11.4 The Great Deregulation Experiment

12.1 The Economics of Pollution

12.2 Command-and-Control Regulation

12.3 Market-Oriented Environmental Tools

12.4 The Benefits and Costs of U.S. Environmental Laws

12.5 International Environmental Issues

12.6 The Tradeoff between Economic Output and Environmental Protection

13.1 Investments in Innovation

13.2 How Governments Can Encourage Innovation

13.3 Public Goods

14.1 The Theory of Labor Markets

14.2 Wages and Employment in an Imperfectly Competitive Labor Market

14.3 Market Power on the Supply Side of Labor Markets: Unions

14.4 Bilateral Monopoly

14.5 Employment Discrimination

14.6 Immigration

15.1 Drawing the Poverty Line

15.2 The Poverty Trap

15.3 The Safety Net

15.4 Income Inequality: Measurement and Causes

15.5 Government Policies to Reduce Income Inequality

16.1 The Problem of Imperfect Information and Asymmetric Information

16.2 Insurance and Imperfect Information

17.1 How Businesses Raise Financial Capital

17.2 How Households Supply Financial Capital

17.3 How to Accumulate Personal Wealth

18.1 Voter Participation and Costs of Elections

18.2 Special Interest Politics

18.3 Flaws in the Democratic System of Government

19.1 Absolute and Comparative Advantage

19.2 What Happens When a Country Has an Absolute Advantage in All Goods

19.3 Intra-Industry Trade between Similar Economies

19.4 The Benefits of Reducing Barriers to International Trade

20.1 Protectionism: An Indirect Subsidy from Consumers to Producers

20.2 International Trade and Its Effects on Jobs, Wages, and Working Conditions

20.3 Arguments in Support of Restricting Imports

20.4 How Governments Enact Trade Policy: Globally, Regionally, and Nationally

20.5 The Tradeoffs of Trade Policy

Browse all Principles of Microeconomics Key Terms

About Us

Resources

Stay Connected

© 2024 Fiveable Inc. All rights reserved.

AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.

About Us

Resources

© 2024 Fiveable Inc. All rights reserved.

AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.

Back

Next