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Principles of Microeconomics
Purpose of Course showclose
The purpose of this course is to provide you with a basic understanding of the principles of microeconomics. At its core, the study of economics deals with the choices and decisions that have to be made in order to manage scarce resources available to us. Microeconomics is the branch of economics that pertains to decisions made at the individual level, i.e. by individual consumers or individual firms, after evaluating resources, costs, and tradeoffs. When we talk about “the economy,” then, we are referring to the marketplace or system in which these choices interact with one another. In this course, we will learn how and why these decisions are made and how they affect one another in the economy.
Each of the following units has been designed as a building block, where the concepts you learn in one unit will enable you to understand the material you discover in the next. By the end of this course, you will have a strong grasp on the major issues that face microeconomists, including consumer and producer behavior, the nature of supply and demand, the different kinds of markets and how they function, and the welfare outcomes of consumers and producers. You will also be able to apply the formal principles you learn to real world issues.
Course Information showclose
Course Designer: Professor Tony Pizur & Dr. Bob McKizzie
Primary Resources: This course is comprised of a range of different free, online materials. In general, this course is built around the basic concepts in microeconomics. There are textbooks, videos, and self-quizzes to help you learn. The following resources are most prominently used:
Requirements for Completion: You are expected to read each unit and the assigned readings and videos provided. Throughout the course, there are quizzes which will enable you to properly frame the assigned material within the overall objectives for the unit and for the course. At the end of the final unit, there is a Final Exam that must be completed. Please note that you will only receive an official grade on your Final Exam. In order to “pass” this course, you will need to earn a 70% or higher on the Final Exam. Your score on the exam will be tabulated as soon as you complete it. If you do not pass the exam, you may take it again.
Time Commitment: This course should take you a total of 123.75 hours to complete. Each unit includes a “time advisory” that lists the amount of time you are expected to spend on each subunit. These should help you plan your time accordingly. It may be useful to take a look at these time advisories and determine how much time you have over the next few weeks to complete each unit and then set goals for yourself. For example, Unit 1 should take you 11.25 hours. Perhaps you can sit down with your calendar and decide to complete subunit 1.1 (a total of 3.25 hours) on Monday night; subunit 1.2 (a total of 3 hours) on Tuesday night, and so forth.
Tips/Suggestions: Economics uses a variety of ways to express ideas. As you study each concept, think about how you might explain the principle using math, words, and/or pictures. Consider how the graphs relate to the words and how much information is contained in them. Be sure to take notes as you go along because the final exam is comprehensive.
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This course features a number of Khan Academy™ videos. Khan Academy™ has a library of over 3,000 videos covering a range of topics (math, physics, chemistry, finance, history and more), plus over 300 practice exercises. All Khan Academy™ materials are available for free at www.khanacademy.org.
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A version of this course is also available in iTunes U.
Preview the course in your browser or view our entire suite of iTunes U courses. |
Learning Outcomes showclose
- Think intuitively about economic problems.
- Identify how individual economic agents make rational choices given scarce resources and will know how to optimize the use of resources at hand.
- Understand some simplistic economic models related to Production, Trade, and the Circular Flow of Resources.
- Analyze and apply the mechanics of Demand and Supply for Individuals, Firms, and the Market.
- Apply the concept of Marginal Analysis in order to make optimal choices and identify whether the choices are “efficient” or “equitable.”
- Apply the concept of Elasticity as a measure of responsiveness to various variables.
- Identify the characteristic differences between various market structures, namely, Perfectly Competitive Markets, Non-Competitive Markets, and Imperfectly Competitive Markets and understand the differences in their operation.
- Analyze how the Demand and Supply technique works for the Resource Markets.
Course Requirements showclose
In order to take this course you must:
√ Have access to a computer.
√ Have continuous broadband Internet access.
√ Have the ability/permission to install plug-ins or software (e.g., Adobe Reader or Flash).
√ Have the ability to download and save files and documents to a computer.
√ Have the ability to open Microsoft files and documents (.doc, .ppt, .xls, etc.).
√ Be competent in the English language.
√ Have read the Saylor Student Handbook.
Preliminary Information
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Principles of Microeconomics
You will be prompted to read sections of this book throughout the course. You may choose to download the text in full now and skip to the appropriate section as prompted by the resource boxes below, or you can simply download the specific sections of the text assigned as you progress through each resource box below.
Reading: Principles of Microeconomics (PDF)
Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee. -
Unit 1: Introduction to Economics: What Is It?
Before we dive into the principles of microeconomics, we need to define some of the major ideas that lie at the heart of economics. What, for example, is “the economic way of thinking”? What do economists mean when they throw around terms like “market structure” and “the invisible hand”? This unit will identify and define these terms before addressing the driving principle behind microeconomics: the idea that individuals and firms (economic agents) make rational choices based on self-interest. These decisions are necessary because all resources are scarce – in other words, no good or item is infinitely available. This unit will also introduce you to a number of economic models, the assumptions and constraints associated with each, and the ways they help us better understand real-life situations.
Time Advisory show close
Learning Outcomes show close
- 1.1 Individual Choice: The Core of Economics
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1.1.1 Scarce Resources, Choices, and Opportunity Costs
Note: The concept of opportunity cost is critical to understanding individual choice because you always have to give up something in order to get another thing. In other words, the real cost of purchasing “good A” is equal to the value of the next best alternative (“good B”) that you give up in order to purchase “good A.” For example, what would you rather be doing instead of studying this course? The task that you have forgone in order to study economics is the opportunity cost of studying economics.
- Reading: biz/ed’s “The Economic Problem” and Principles of Microeconomics: “Chapter 1, Section1: Defining Economics”
Link: biz/ed’s “The Economic Problem” (HTML) and Principles of Microeconomics: "Chapter 1, Section 1: Defining Economics" (PDF)
The Economic Problem is also available in:
MP3
Instructions: Read “The Economic Problem” to learn about the basic problem of scarcity and the difference between "needs” and "wants.” Next, read section 1 in chapter 1 of Principles of Microeconomics to encounter the three fundamental questions that economists face and to learn about “Opportunity Costs.” Go through the three examples presented in the “Try It” section and note how eventually every decision boils down to choosing between competing alternatives.
Reading this chapter should take approximately 1 hour.
Terms of Use: Please respect the copyright and terms of use displayed on the biz/ed website above. The Principles of Microeconomics text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.See a broken link? Please let us know!
- Reading: Russell Roberts’ “Getting the Most Out of Life: The Concept of Opportunity Cost”
Link: Russell Roberts’ “Getting the Most Out of Life: The Concept of Opportunity Cost” (HTML)
Instructions: Please click on the above link to see how the author relates ordinary examples from everyday life to reinforce the concept of opportunity cost.
Reading this article should take approximately 30 minutes.
Note: Russell Roberts is a Professor of Economics at George Mason University and a Research Fellow at Stanford University’s Hoover Institution. He is the Features Editor of the Library of Economics and Liberty and the host of EconTalk.
Terms of Use: Please respect the copyright and terms of use displayed on the web pages above.See a broken link? Please let us know!
- Web Media: Annenberg Learner’s Economics U$A: “Resources and Scarcity”
Link: Annenberg Learner’s Economics U$A: “Resources and Scarcity” (Flash)
Instructions: The above link will bring you to the webpage of an instructional video series on economics. Please click on the “VoD” icon on the right hand side of the first topic, “Resources and Scarcity.”
Watching this video and pausing to take notes should take approximately 1 hour.
Note: This video is 28 minutes long. The website recommends that serious students view the videos at least twice, taking notes the second time around.
Terms of Use: Please respect the copyright and terms of use displayed on the web pages above.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Opportunity Cost”
Link: Khan Academy’s “Opportunity Cost” (YouTube)
Instructions: Please watch the entire lecture, which is about opportunity costs.
Watching this video should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Increasing Opportunity Cost”
Link: Khan Academy’s “Increasing Opportunity Cost” (YouTube)
Instructions: Please watch the entire lecture, which is about increasing opportunity costs.
Watching this video should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Guest Lecture: YouTube: TED Talks: “Bjorn Lomborg Sets Global Priorities”
Link: YouTube: TED Talks: “Bjorn Lomborg Sets Global Priorities” (YouTube)
Instructions: This is an optional lecture and not a requirement of the course. In this unit, you learned that scarce resources underlie every economic decision that is made in society. You also learned that because of these scarce resources, there are trade-offs between alternate choices. In this guest lecture, Bjorn Lomborg advances this idea by discussing some pressing issues that need to be addressed. This talk should help you to identify “the economic way of thinking” which will be elaborated upon in the next subunit.
Watching this lecture should take approximately 20 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. It is attributed to TED and the original version can be found here.See a broken link? Please let us know!
- Reading: biz/ed’s “The Economic Problem” and Principles of Microeconomics: “Chapter 1, Section1: Defining Economics”
- 1.1.2 Getting to Know Economics
- 1.1.2.1 The Economic Way of Thinking
- 1.1.2.2 Microeconomics versus Macroeconomics
- 1.1.2.3 The Work of an Economist
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1.1.2.4 Normative versus Positive Economics
- Reading: Principles of Microeconomics: “Chapter 1, Sections 2 and 3”
Link: Principles of Microeconomics: “Chapter 1, Sections 2 and 3” (PDF)
Instructions: Read these sections. Please take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter.
Reading these sections should take approximately 1 hour.
Terms of Use: The text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommerical-ShareAlike 3.0 License without attribution as requested by the works original creator or licensee.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 1, Sections 2 and 3”
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1.2 Economic Models
Note: In this subunit, you will examine three introductory models that economists use to analyze the world. These should show you how to “think like an economist.”
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1.2.1 The Production Possibility Frontier
- Reading: Principles of Microeconomics: “Chapter 2, Sections 1 and 2”
Link: Principles of Microeconomics: “Chapter 2, Sections 1 and 2” (PDF)
Instructions: Read these sections. Take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter.
The first section of the chapter introduces you to the four factors of production that are present in the economy: Labor, Capital, Natural Resources, and Entrepreneurship. Using any two factors of production, you can then learn to construct the Production Possibility Frontier (PPF) in a two plane model. Note the economic implications of the downward slope and the bowed-out shape of the PPF curve. Also note the meaning of producing on the curve versus inside the curve. Lastly, think about what it means to move along the curve.
Reading these sections should take approximately 1 hour and 30 minutes.
Terms of Use: The text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the works original creator or licensee.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Production Possibilities Frontier”
Link: Khan Academy’s “Production Possibilities Frontier” (YouTube)
Instructions: Please watch this entire lecture, which is about the production possibilities frontier.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Allocative Efficiency and Marginal Benefit”
Link: Khan Academy’s “Allocative Efficiency and Marginal Benefit” (YouTube)
Instructions: Please watch this entire lecture, which is about allocative efficiency and marginal benefit.
Watching this lecture should take approximately 15 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Economic Growth through Investment”
Link: Khan Academy’s “Economic Growth through Investment” (YouTube)
Instructions: Please watch this entire lecture, which is about economic growth through investment.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 2, Sections 1 and 2”
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1.2.2 Comparative Advantage vs. Absolute Advantage
Note: This model is an application of the Production Possibility Frontier studied in the previous section, albeit in a global set-up. The argument for international trade, specialization, comparative advantage, and the resulting economic growth is brought to light here. The mechanics of comparative advantage will reveal why it would benefit a country to import goods it produces at home.
- Reading: Library of Economics and Liberty: “Comparative Advantage”
Link: Library of Economics and Liberty: “Comparative Advantage” (HTML)
Instructions: Please read the ”Introductions” section and stop before the “Excerpts.” This reading is only an introduction to the topic; it will explain the underlying meaning of the model in a theoretical way. We will formally study the model from a mathematical perspective in the next reading.
Reading this article should take approximately 30 minutes.
About the link: The Library of Economics and Liberty is dedicated to advancing the study of economics, markets, and liberty. It offers a unique combination of resources for students, teachers, researchers, and aficionados of economic thought.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: NetMBA’s “David Ricardo and Comparative Advantage”
Link: NetMBA’s “David Ricardo and Comparative Advantage” (HTML)
Instructions: Before reading the above link, please make sure you remember the concept of Opportunity Cost since it is crucial to understanding how Comparative Advantage is calculated.
Reading this article should take approximately 10 minutes.
Note: This article has been taken from the Internet Center for Management and Business Administration.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 2: Opportunity Costs”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 2: Opportunity Costs” (HTML)
Also available in:
Flash
PPT
Instructions: Please click on the above lecture to review all of the topics we have covered thus far in the course.
Watching this lecture should take approximately 30 minutes.
Note: Principles of Microeconomics was taught by Professor John Kane of the State University of New York at Oswego. Notes from twenty lectures are available here as ordinary Web pages with graphics, as Flash videos with an audio narration, and as PowerPoint presentations.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Comparative Advantage and Absolute Advantage”
Link: Khan Academy’s “Comparative Advantage and Absolute Advantage” (YouTube)
Instructions: Please watch the entire lecture, which is about comparative advantage and absolute advantage.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Comparative Advantage Specialization and Gains from Trade”
Link: Khan Academy’s “Comparative Advantage Specialization and Gains from Trade” (YouTube)
Instructions: Please watch the entire lecture, which is about comparative advantage specialization and gains from trade.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Reading: Library of Economics and Liberty: “Comparative Advantage”
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1.3 The Circular-Flow Diagram
- Lecture: Living Economics’ Macroeconomic Lectures: “Circular Flow”
Link: Living Economics’ Macroeconomic Lectures: “Circular Flow” (Flash)
Instructions: Please click on the Circular Flow tab to hear the lecture on the Circular Flow Diagram. Once you are done, practice drawing the Circular-Flow diagram on your own to test your understanding of the interrelationship between the various sectors of the economy.
Watching this lecture should take approximately 5 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the web pages above.See a broken link? Please let us know!
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 4: Market System”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 4: Market System” (HTML)
Also available in:
PPT
Flash
Instructions: When you click on the link above, you will be directed to a webpage with a list of contents. Please click on “Chapter 4” and read the HTML version of the lecture notes in their entirety. Once you are done, practice drawing the Circular-Flow diagram on your own to test your understanding of the interrelationship between the various sectors of the economy.
Completing this assessment should take approximately 1 hour and 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: Living Economics’ Macroeconomic Lectures: “Circular Flow”
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Assessments for Unit 1
- Assessment: Econ100’s “What is Economics?: Chapter 1” (HTML)
Link: Econ100’s “What is Economics?: Chapter 1” (HTML)
Instructions: Please follow the link to get to the main page of Econ100. Click on the “Quiz” tab on the left hand side menu and then go to Chapter 1 to take the test. The quiz should be a thorough assessment of your understanding of the material covered in this unit.
Completing this assessment should take approximately 45 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Assessment: www.Econ100.com's “The Economic Problem Quiz” (Chapter 3)
Econ100’s “The Economic Problem Quiz: Chapter 3” (HTML)
Instructions: Please follow the link to get to the main page of Econ100. Click on the “Quiz” tab on the left hand side menu and then go to Chapter 3 to take the test. Please attempt all four levels of the quiz for a thorough assessment of your understanding of the material covered in this unit.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Assessment: Econ100’s “What is Economics?: Chapter 1” (HTML)
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Unit 2: Supply and Demand
This unit will first introduce you the ceteris paribus assumption, which is crucial to building correlations between economic variables. When using ceteris paribus, we assume that all variables – with the exception of those in explicit consideration – will remain constant. We will then examine the supply and demand models and the resulting market equilibrium that occurs where the supply curve and the demand curve intersect. We will also look at what causes movements along the curve and the set of factors that cause the curves to shift, affecting both price and quantity, before discussing the meaning and significance of elasticity.
Time Advisory show close
Next, we will take a look at what happens when a market fails to produce a reasonable equilibrium. This situation typically occurs when either the market is not competitive or complete, or its participants are ill-informed. We will evaluate various ways in which the government can address these failures and begin to understand the intricate relationship between government and economics.
Learning Outcomes show close
- Web Media: The Federal Reserve Bank of St. Louis’ “Economic Lowdown Video Companion Series”
Link: The Federal Reserve Bank of St. Louis’ “Economic Lowdown Video Companion Series” (Flash)
Instructions: Please click on the links to episodes 1–3, and watch all three episodes for an overview of supply and demand. The material is available as an audio podcast or as visual media.
Watching all three episodes and pausing to take notes should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Web Media: The Federal Reserve Bank of St. Louis’ “Economic Lowdown Video Companion Series”
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2.1 The Ceteris Paribus Assumption
Note: The Latin phrase “ceteris paribus” means “all other things remaining equal.” Because there are multiple factors influencing any one variable, we apply this assumption in order to segregate the effect that one factor has on the variable in the question, keeping all other factors unchanged. In other words, if we want to examine the effect of one (independent) variable on another (dependent) variable, we need to ensure through the ceteris paribus assumption that the effect of other independent variables on the dependent variable is constant. We will encounter this term quite often in Demand and Supply Models.
- Reading: AmosWeb’s “Ceteris Paribus”
Link: AmosWeb’s “Ceteris Paribus” (HTML)
Instructions: Please click on the link above to learn the formal definition of ceteris paribus. As a practice exercise, identify a variable and list the multiple factors that may be influencing it. For example, say you are planning to request an increase in your salary. What are the factors that influence your salary? Do you think you can attribute the change in your salary to any one of these factors if all of the factors influencing it were simultaneously changing?
Reading this article should take approximately 5 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: AmosWeb’s “Ceteris Paribus”
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2.2 Demand
- Reading: Principles of Microeconomics: “Chapter 3, Section 1: Demand”
Link: Principles of Microeconomics: “Chapter 3, Section 1: Demand” (PDF)
Instructions: Read this section to learn about the theory of demand. Use the data from the text to practice constructing and drawing the demand curve on your own, either on a paper or in Excel. Please take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter. The reading covers 2.2.1-2.2.2. Please read this section on “Demand” in its entirety, including the introduction to Chapter 3.
Reading this section should take approximately 30 minutes.
Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Law of Demand”
Link: Khan Academy’s “Law of Demand” (YouTube)
Instructions: Please watch the entire lecture, which is about the law of demand.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 3, Section 1: Demand”
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2.2.1 The Demand Curve
Note: The demand curve shows the relationship between the price of a good and the quantity demanded at each price. The demand curve is negatively sloped because of the inverse relationship between price and quantity demanded. For example, assuming that the ceteris paribus condition applies, i.e. all other factors affecting demand remain unchanged, if the price of an iPhone drops, what do you think will happen to the demand for the iPhone? Conversely, if the price increases, would more people be buying the iPhone or less?
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2.2.2 Changes in Demand
Note: Pay special attention to “movement along the curve” versus “shifts of the curve.” The former refers to changes in the quantity demanded due to price changes. The latter refers to the breakdown of the ceteris paribus condition. In order to understand shifts in demand curve, you need to know that price remains constant and the shift of the demand curve is in response to changes in other factors that affect demand, including changes in the prices of related goods, changes in income, changes in tastes, and changes in expectations.
The resulting effect is that a rightward shift of the curve indicates an “increase in demand” and signifies that at any given price, consumers demand a larger quantity of the good than before, while a “decrease in demand” refers to a leftward shift of the curve and signifies that at any given price, consumers demand a smaller quantity of the good than before.- Lecture: Khan Academy’s “Price of Related Products and Demand”
Link: Khan Academy’s “Price of Related Products and Demand” (YouTube)
Instructions: Please watch the entire lecture, which is about the price of related products and demand.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Changes in Income, Population, or Preferences”
Link: Khan Academy’s “Changes in Income, Population, or Preferences” (YouTube)
Instructions: Please watch the entire lecture, which is about changes in income, population, or preferences.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy “Normal and Inferior Goods”
Link: Khan Academy’s “Normal and Inferior Goods” (YouTube)
Instructions: Please watch the entire lecture, which is about normal and inferior goods.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Inferior Goods Clarification”
Link: Khan Academy’s “Inferior Goods Clarification” (YouTube)
Instructions: Please watch the entire lecture, which is about inferior goods clarification.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Price of Related Products and Demand”
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2.3 Supply
- Reading: Principles of Microeconomics: “Chapter 3, Section 2: Supply”
Link: Principles of Microeconomics: “Chapter 3, Section 2: Supply” (PDF)
Instructions: Read this section to learn about the theory of supply. Use the data from the text to practice drawing the supply curve on your own, either on paper or in excel. Please read this section on Supply in its entirety. Please take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter. This reading covers sections 2.3.1 and 2.3.2.
Reading this section should take approximately 1 hour and 30 minutes.
Terms of Use: The text was adapted by The Saylor Foundation under a Creative Commons-Attribution-NonCommerical-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Law of Supply”
Link: Khan Academy’s “Law of Supply” (YouTube)
Instructions: Please watch the entire lecture, which is about the law of supply.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 3, Section 2: Supply”
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2.3.1 The Supply Curve
Note: The supply curve is a mirror reflection of the demand curve. You should recognize that the supply curve operates from the firm’s point of view, such that if a product is highly priced, the firm will want to supply more of it. As such, it is a positively sloped curve indicating the positive relationship between price of the good and quantity supplied.
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2.3.2 Changes in Supply
Note: The demand curve is similar to the supply curve in that an “increase” refers to a rightward shift of the curve and signifies that there will be a larger quantity of the good than before; a “decrease in supply” refers to a leftward shift of the curve and signifies that there will be a lesser quantity of the good than before. This section will present the three principal factors that shift the supply curve: changes in input prices, changes in technology, and changes in expectations.
- Lecture: Khan Academy’s “Factors Affecting Supply”
Link: Khan Academy’s “Factors Affecting Supply” (YouTube)
Instructions: Please watch the entire lecture, which is about the factors affecting supply.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Factors Affecting Supply”
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2.4 Market Equilibrium
Note: When left alone, a market will move to equilibrium – in other words, the market price will move to the level at which the quantity supplied equals the quantity demanded. However, this outcome can be both desirable and undesirable for buyers or sellers.
- Reading: Principles of Microeconomics: “Chapter 3, Section 3: Demand, Supply, and Equilibrium”
Link: Principles of Microeconomics: “Chapter 3, Section 3: Demand, Supply, and Equilibrium” (PDF)
Instructions: Read this section to learn how demand and supply interact with one another to determine prices and quantities that may or may not be optimal. Please take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter. This reading covers units 2.4.1-2.4.3.
Reading this section should take approximately 1 hour.
Terms of Use: The text was adapted by The Saylor Foundation under the Creative Commons-Attribution-NonCommerical-ShareAlike 3.0 Licesne without attribution as requested by the work's original creator or licensee.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 3, Section 3: Demand, Supply, and Equilibrium”
-
2.4.1 Market Equilibrium
- Lecture: Khan Academy’s “Market Equilibrium”
Link: Khan Academy’s “Market Equilibrium” (YouTube)
Instructions: Please watch the entire lecture, which is about market equilibrium.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Market Equilibrium”
- 2.4.2 Market Surplus and Shortage
-
2.4.3 Simultaneous Shifts in Supply and Demand
- Lecture: Khan Academy’s “Changes in Market Equilibrium”
Link: Khan Academy’s “Changes in Market Equilibrium” (YouTube)
Instructions: Please watch the entire lecture, which is about changes in market equilibrium.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Changes in Market Equilibrium”
-
2.4.4 Putting Demand and Supply to Work
- Reading: Principles of Microeconomics: “Chapter 4, Section 1: Putting Demand and Supply to Work”
Link: Principles of Microeconomics: “Chapter 4, Section 1: Putting Demand and Supply to Work” (PDF)
Instructions: Read this section to learn about some applications of the demand and supply model.
Reading this section should take approximately 1 hour.
Terms of Use: The text was adapted by The Saylor Foundation under a Creative Commons-Attribution-NonCommerical-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester's Essentials of Microeconomics
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics (PDF)
Instructions: When you click the link above, you will be directed to a page on which you can download the entire book as a PDF. Please read Chapter 2, Sections 2.1-2.3 (pages 12-17) for a mathematical exposition of the demand and supply model.
Reading these sections should take approximately 15 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Assessment: Econ100’s “Demand and Supply Quiz: Chapter 4”
Link: Econ100’s “Demand and Supply Quiz: Chapter 4” (HTML)
Instructions: Please follow the link to get to the main page of Econ100. Click on the “Quiz” tab on the left hand side menu and then go to Chapter 4 to take the test. Please attempt all four levels of the quiz for a thorough assessment of your understanding of the material covered so far in this unit.
Completing this assessment should take approximately 1 hour and 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 4, Section 1: Putting Demand and Supply to Work”
- 2.5 Manipulating the Market
-
2.5.1 Price Controls: Ceilings and Floors
- Reading: Principles of Microeconomics: “Chapter 4, Section 2: Government Intervention in Market Prices: Price Floors and Price Ceilings”
Link: Principles of Microeconomics: “Chapter 4, Section 2: Government Intervention in Market Prices: Price Floors and Price Ceilings” (PDF)
Instructions: Read this section to learn why the government sometimes chooses to control prices. Take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section.
Reading this section should take approximately 45 minutes.
Terms of Use: The text was adapted by The Saylor Foundation under a CreativeCommons-Attribution-NonCommercail-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 4, Section 2: Government Intervention in Market Prices: Price Floors and Price Ceilings”
-
2.5.2 Controlling Quantities
Note: While the market typically controls prices, it can also be manipulated by controlling quantities through Quotas, Licenses, and Wedges. We will now study the results that come about in a market place when general restrictions on quantities are instituted.
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics (PDF)
Instructions: When you click the link above, you will be directed to a page from which you can download the entire book as a PDF. Proceed to Section 2.4, entitled ”Price and Quantity Regulations” (page 17), and review the Price Ceilings and Price Floor analysis. End with Section 2.4.3, entitled “Quantity Regulations” (page 20), pertaining to Quantity Regulations.
Reading this section should take approximately 15 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics
-
2.6 Elasticity
Note: Elasticity is a measure of responsiveness. It measures the percentage change in something based on the percentage change in something else that affects it. For example, “Price Elasticity of Demand” implies the percentage change in quantity demanded for a good due to a percentage change in the price of that good.
- Reading: The Economic Education Group of the Federal Reserve Bank of St. Louis: Scott A. Wolla’s “Higher Gasoline Prices: Temporary or Time to Buy a Hybrid?”
Link: The Economic Education Group of the Federal Reserve Bank of St. Louis: Scott A. Wolla’s “Higher Gasoline Prices: Temporary or Time to Buy a Hybrid?” (PDF)
Instructions: Please click on the link above, select the “September 2012” link on the left side of the webpage, and then select the “PDF of Classroom Edition” link to download this material. Please read through this pamphlet and attempt the questions before viewing the answers. The answers are provided to you as a self-check.
Reading this material and completing these questions should take you approximately 1 hour and 15 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 6: Elasticity”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 6: Elasticity” (HTML)
Available in:
Flash
PPT
Instructions: When you click on the link above, you will be directed to a webpage with a list of contents. Please click on Chapter 6 and read the HTML version of the lecture notes. The material covers all sections in subunit 2.6.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: YouTube: Massachusetts Institute of Technology: John Gruber’s “Lecture 3: Elasticity”
Link: YouTube: Massachusetts Institute of Technology: John Gruber’s “Lecture 3: Elasticity” (YouTube)
Instructions: Please click on the link above and watch this video, focusing on both how elasticity is calculated as well as its potential implications for health care. Consider if you agree or disagree with the possible social and health implications of changing the overall elasticity of demand for national health systems.
Watching this video and pausing to take notes should take approximately 1 hour.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Price Elasticity of Demand”
Link: Khan Academy’s “Price Elasticity of Demand” (YouTube)
Instructions: Please watch the entire lecture, which is about price elasticity of demand.
Watching this lecture should take approximately 15 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “More on Elasticity of Demand”
Link: Khan Academy’s “More on Elasticity of Demand” (YouTube)
Instructions: Please watch the entire lecture, which is about elasticity of demand.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Constant Unit Elasticity”
Link: Khan Academy’s “Constant Unit Elasticity” (YouTube)
Instructions: Please watch the entire lecture, which is about constant unit elasticity.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Total Revenue and Elasticity”
Link: Khan Academy’s “Total Revenue and Elasticity” (YouTube)
Instructions: Please watch the entire lecture, which is about total revenue and elasticity.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “More on Total Revenue and Elasticity”
Link: Khan Academy’s “More on Total Revenue and Elasticity” (YouTube)
Instructions: Please watch the entire lecture, which is about total revenue and elasticity.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Cross Elasticity of Demand”
Link: Khan Academy’s “Cross Elasticity of Demand” (YouTube)
Instructions: Please watch the entire lecture, which is about cross elasticity of demand.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Elasticity of Supply”
Link: Khan Academy’s “Elasticity of Supply” (YouTube)
Instructions: Please watch the entire lecture, which is about elasticity of supply.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Elasticity and Strange Percent Changes”
Link: Khan Academy’s “Elasticity and Strange Percent Changes” (YouTube)
Instructions: Please watch the entire lecture, which is about elasticity and strange percent changes.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Reading: The Economic Education Group of the Federal Reserve Bank of St. Louis: Scott A. Wolla’s “Higher Gasoline Prices: Temporary or Time to Buy a Hybrid?”
- 2.6.1 Price Elasticity of Demand
- 2.6.2 Cross Price Elasticity of Demand
- 2.6.3 Income Elasticity of Demand
-
2.6.4 Price Elasticity of Supply
- Assessment: Econ100’s “Markets in Action Quiz: Chapter 7”
Link: Econ100’s “Markets in Action Quiz: Chapter 7” (HTML)
Instructions: Please follow the link to get to the main page of Econ100. Click on the “Quiz” tab on the left hand side menu and then go to Chapter 7 to take the test. Please attempt all four levels of the quiz for a thorough assessment of your understanding of the material covered in sections 2.5 and 2.6.
Completing this assessment should take approximately 1 hour and 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage aboveSee a broken link? Please let us know!
- Assessment: Econ100’s “Elasticity Quiz: Chapter 5”
Link: Econ100’s “Elasticity Quiz: Chapter 5” (HTML)
Instructions: Please follow the link to get to the main page of Econ100. Click on the “Quiz” tab on the left hand side menu and then go to Chapter 5 to take the test. Please attempt all four levels of the quiz for a thorough assessment of your understanding of the material covered in this unit.
Completing this assessment should take approximately 1 hour and 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Assessment: Econ100’s “Markets in Action Quiz: Chapter 7”
-
End of Unit 2 Review
- Reading: MIT OpenCourseWare: “Principles of Economics Lecture Notes D2-D4”
Link: MIT OpenCourseWare: “Principles of Economics Lecture Notes D2”, “Principles of Economics Lecture Notes D3”, and “Principles of Economics Lecture Notes D4” (PDF)
Instructions: These are optional readings. Please read through the notes in the first link (entitled D2, or “The Basics of Supply and Demand”) for a brief review of the theory covered in subunits 2.1-2.5 as well as the second and third links (entitled D3, or “The Elasticities of Demand,” and D4, or “Price Elasticity of Supply”) to review material studied in subunit 2.6. Note that for the third link, you only need to read the first topic, “Price Elasticity of Supply”.
Reading these sections should take approximately 1 hour.
Terms of Use: The materials above are released under a Creative Commons Attribution-NonCommercial-Share-Alike License 3.0. You can find the original MIT versions of the materials here.See a broken link? Please let us know!
- Reading: MIT OpenCourseWare: “Principles of Economics Lecture Notes D2-D4”
-
Unit 3: Markets and Individual Maximizing Behavior
This unit will examine the ways in which markets increase overall welfare through the concepts of consumer and producer surplus. We will discuss the concepts of marginal costs and benefits and take a look at how they affect a firm’s decision on whether or not to make one more or one less product.
Time Advisory show close
We have already learned that, at its most fundamental level, microeconomics is the study of how we make decisions. To expand on this point, we need to distinguish between the “either/or” decision and the “how much” decision. You will find this concept useful when looking more closely at why firms produce certain levels of output, taking into consideration opportunity cost and sunk (fixed) cost.
Learning Outcomes show close
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3.1 Maximizing in the Market Place
- Reading: Principles of Microeconomics: “Chapter 6, Sections 1 and 2”
Link: Principles of Microeconomics: “Chapter 6, Sections 1 and 2” (PDF)
Instructions: Read section 1 to revisit the concept of Marginal Costs and Benefits within the context of the consumer’s (and the firm’s) maximizing behavior. Proceed to section 2, which defines two new concepts: “Consumer Surplus” and “Producer Surplus.” Please take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter.
Reading these sections should take approximately 1 hour and 30 minutes.
Terms of Use: The text was adapted by The Saylor Foundation under a CreativeCommons-Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee.See a broken link? Please let us know!
- Web Media: YouTube: Saylor Foundation’s “How Much to Produce? The Story of Marginal Revenue and Marginal Costs”
Link: YouTube: Saylor Foundation’s “How Much to Produce? The Story of Marginal Revenue and Marginal Costs” (YouTube)
Instructions: Watch this video about how an apple farmer decides the optimal number of apples to pick. At the end of the video, consider whether or not the government should intervene. Think about which arguments you might make both supporting and disagreeing with the government acting in the market. In 3.2, we will cover specific ways the government might participate in the market.
Watching this video and pausing to take notes should take approximately 5 minutes.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Demand Curve as Marginal Benefit Curve”
LInk: Khan Academy’s “Demand Curve as Marginal Benefit Curve” (YouTube)
Instructions: Please watch the entire lecture, which is about the demand curve as a marginal benefit curve.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Consumer Surplus Introduction”
Link: Khan Academy’s “Consumer Surplus Introduction” (YouTube)
Instructions: Please watch the entire lecture, which is about consumer surplus.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Total Consumer Surplus as Area”
Link: Khan Academy’s “Total Consumer Surplus as Area” (YouTube)
Instructions: Please watch the entire lecture, which is about total consumer surplus.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Producer Surplus”
Link: Khan Academy’s “Producer Surplus” (YouTube)
Instructions: Please watch the entire lecture, which is about producer surplus.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 6, Sections 1 and 2”
-
3.2 When Markets Fail
Note: “Market failure” refers to a situation in which there is an inefficient allocation of goods and services in the market. Inefficient allocation takes place when pure self-interest drives the maximizing behavior of economic agents. Market failure is attributed to the existence of Externalities, Common Property Resources, Public Goods, and Asymmetric Information. Market failure often leads to government intervention designed to drive the market towards efficiency.
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 14: Government and Market Failure”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 14: Government and Market Failure” (HTML)
Available in:
Flash
PPT
Instructions: Please read Professor John Kane's Lecture Notes on Government and Market Failure (Chapter 14) for a brief overview of the topic.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 6, Section 4: Review and Practice”
Link: Principles of Microeconomics: “Chapter 6, Section 4: Review and Practice” (PDF)
Instructions: Read this section for a more detailed look at the topic of market failure.
Reading this section should take approximately 30 minutes.
Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Rent Control and Deadweight Loss”
Link: Khan Academy’s “Rent Control and Deadweight Loss” (YouTube)
Instructions: Please watch the entire lecture, which is about rent control and deadweight loss.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Minimum Wage and Price Floors”
Link: Khan Academy’s “Minimum Wage and Price Floors” (YouTube)
Instructions: Please watch the entire lecture, which is about minimum wage and price floors.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Taxation and Dead Weight Loss”
Link: Khan Academy’s “Taxation and Dead Weight Loss” (YouTube)
Instructions: Please watch the entire lecture, which is about taxation and dead weight loss.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Percentage Tax on Hamburgers”
Link: Khan Academy’s “Percentage Tax on Hamburgers” (YouTube)
Instructions: Please watch the entire lecture, which is about a percentage tax on hamburgers.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Taxes and Perfectly Inelastic Demand”
Link: Khan Academy’s “Taxes and Perfectly Inelastic Demand” (YouTube)
Instructions: Please watch the entire lecture, which is about taxes and perfectly inelastic demand.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Taxes and Perfectly Elastic Demand”
Link: Khan Academy’s “Taxes and Perfectly Elastic Demand” (YouTube)
Instructions: Please watch the entire lecture, which is about taxes and perfectly elastic demand.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Negative Externalities”
Link: Khan Academy’s “Negative Externalities” (YouTube)
Instructions: Please watch the entire lecture, which is about negative externalities.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Taxes for Factoring in Negative Externalities”
Link: Khan Academy’s “Taxes for Factoring in Negative Externalities” (YouTube)
Instructions: Please watch the entire lecture, which is about taxes for factoring in negative externalities.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Positive Externalities”
Link: Khan Academy’s “Positive Externalities” (YouTube)
Instructions: Please watch the entire lecture, which is about positive externalities.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Tragedy of the Commons”
Link: Khan Academy’s “Tragedy of the Commons” (YouTube)
Instructions: Please watch this entire lecture, which is about the tragedy of the commons.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Assessment: biz/ed’s “Quiz on Market Failure”
Link: biz/ed’s “Quiz on Market Failure” (HTML)
Instructions: Please take this quiz to assess your understanding of market failure.
Completing this assessment should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Assessment: Econ100’s “Market Failure and Public Choice Quiz: Chapter 18”
Link: Econ100’s “Market Failure and Public Choice Quiz: Chapter 18” (HTML)
Instructions: Please follow the link to get to the main page of Econ100. Click on the “Quiz” tab on the left hand side menu and then go to Chapter 18 to take the test. Please attempt levels 1 and 3 of the quiz for a thorough assessment of your understanding of the material covered in this unit.
Completing this assessment should take approximately 45 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 14: Government and Market Failure”
-
Unit 4: The Consumer
This unit will focus on the individual consumer and the characteristics that compel a consumer (to choose) to spend income on goods and services. The consumer experiences utility – a measure of satisfaction – with every purchase he/she makes, and economists measure that utility in order to find a consumer’s optimal rate of consumption. The Theory of Demand is derived from the Theory of Consumer Behavior presented in this section. An individual's demand function can be explained by two approaches that help illustrate personal preferences: Utility Analysis and Indifference Analysis. We will explore these concepts more fully in this unit.
Time Advisory show close
Learning Outcomes show close
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4.1 The Rational Consumer
- Lecture: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 7: Consumer Choice”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 7: Consumer Choice” (HTML)
Also available in:
Flash
PPT
Instructions: Please view this lecture and read the accompanying lecture notes.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 7, Sections 1 and 2”
Link: Principles of Microeconomics: “Chapter 7, Sections 1 and 2” (PDF)
Instructions: Read the first two sections in Principles of Microeconomics including the Introduction, “Analysis of Consumer Choice”. Please take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter. This reading covers sections 4.1.1-4.1.5.
Reading these sections should take approximately 1 hour and 30 minutes.
Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.See a broken link? Please let us know!
- Guest Lecture: YouTube: TED Talks: “Sheena Iyengar on the Art of Choosing”
Link: YouTube: TED Talks: “Sheena Iyengar on the Art of Choosing” (YouTube)
Instructions: This is an optional lecture and not a requirement of the course. Please listen to this guest lecture in which the speaker talks about her ground-breaking research on how people make choices and explains attitudes towards their decisions.
Watching this lecture should take approximately 30 minutes.
Terms of Use: This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. It is attributed to TED and the original version can be found here.See a broken link? Please let us know!
- Lecture: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 7: Consumer Choice”
- 4.1.1 Marginal Utility, Budget Constraints and Utility Maximization
- 4.1.2 Deriving the Individual Demand Curve
- 4.1.3 Deriving the Market Demand Curve
- 4.1.4 The Income Effect and The Substitution Effect
-
4.1.5 Normal Goods and Inferior Goods
- Optional Reading: Boise State University: R. Larry Reynolds' PowerPoint Modules for Principles of Microeconomics: “Chapter 9: Consumer Behavior”
Link: Boise State University: R. Larry Reynolds’ Principles of Microeconomics: “Chapter 9: Consumer Behavior” (PDF)
Instructions: This is an optional reading. You can read this chapter for a lucid graphical exposition of Utility Analysis.
Reading this section should take approximately 1 hour.
Terms of Use: The linked material above has been reposted by the kind permission of R. Larry Reynolds of Boise State University, and can be viewed in its original form here. Please note that this material is under copyright and cannot be reproduced in any capacity without explicit permission from the copyright holder.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Marginal Utility”
Link: Khan Academy’s “Marginal Utility” (YouTube)
Instructions: Please watch the entire lecture, which is about marginal utility.
Watching this lecture should take approximately 15 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Deriving Demand Curve from Tweaking Marginal Utility per Dollar”
Link: Khan Academy’s “Deriving Demand Curve from Tweaking Marginal Utility per Dollar” (YouTube)
Instructions: Please watch the entire lecture, which is about deriving the demand curve from tweaking marginal utility per dollar.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Budget Line”
Link: Khan Academy’s “Budget Line” (YouTube)
Instructions: Please watch the entire lecture, which is about the budget line.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Optional Reading: Boise State University: R. Larry Reynolds' PowerPoint Modules for Principles of Microeconomics: “Chapter 9: Consumer Behavior”
-
4.2 Consumer Preferences and Consumer Choice
- Reading: Principles of Microeconomics: “Chapter 7, Section 3: Indifference Curve Analysis: An Alternative Approach to Understanding Consumer Choice”
Link: Principles of Microeconomics: “Chapter 7, Section 3: Indifference Curve Analysis: An Alternative Approach to Understanding Consumer Choice” (PDF)
Instructions: Read this section to learn about “indifference analysis.”
Reading this section should take approximately 1 hour.
Terms of Use: The text was adapted by The Saylor Foundation under a Creative Commons-Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 3: Consumer Theory”
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 3: Consumer Theory” (PDF)
Instructions: When you click the link above, you will be directed to a page from which you can download the entire book as a PDF. Scroll down to “Chapter 3: Consumer Theory” on page 21. This reading will cover subunits 4.2.1-4.2.2.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 7, Section 3: Indifference Curve Analysis: An Alternative Approach to Understanding Consumer Choice”
- 4.2.1 Consumer Theory
- 4.2.1.1 Budget Lines and Marginal Rate of Transformation
- 4.2.1.2 Indifference Curves
- 4.2.1.3 Marginal Rate of Substitution
-
4.2.1.4 Indifference Curve for Substitutes and Complements
- Lecture: Khan Academy’s “Equalizing Marginal Utility per Dollar Spent”
Link: Khan Academy’s “Equalizing Marginal Utility per Dollar Spent” (YouTube)
Instructions: Please watch the entire lecture, which is about equalizing marginal utility per dollar spent.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Types of Indifference Curves”
Link: Khan Academy’s “Types of Indifference Curves” (YouTube)
Instructions: Please watch the entire lecture, which is about the types of indifference curves.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “First Degree Price Discrimination”
Link: Khan Academy’s “First Degree Price Discrimination” (YouTube)
Instructions: Please watch the entire lecture, which is about first degree price discrimination.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Equalizing Marginal Utility per Dollar Spent”
-
4.2.2 Utility Maximization
Note: The Optimal Consumer choice in the Indifference Curve Analysis is determined by the “Tangency Condition” between the MRT and the MRS.
- Lecture: Khan Academy’s “Optimal Point on Budget Line”
Link: Khan Academy’s “Optimal Point on Budget Line” (YouTube)
Instructions: Please watch the entire lecture, which is about the optimal point on a budget line.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Optimal Point on Budget Line”
-
4.2.3 Demand
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 4: Demand”
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 4: Demand” (PDF)
Instructions: When you click the link above, you will be directed to a page from which you can download the entire book as a PDF. Scroll down to “Chapter 4: Demand” on page 34 and read the chapter in its entirety.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 4: Demand”
- 4.2.3.1 Individual Demand and Engel Curve
- 4.2.3.2 Market Demand
-
4.2.4 Elasticity
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 5: Elasticity”
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 5: Elasticity” (PDF)
Instructions: When you click the link above, you will be directed to a page from which you can download the entire book as a PDF. Scroll down to “Chapter 5: Elasticity” on page 38, and read the chapter in its entirety.
Reading this article should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 5: Elasticity”
- 4.2.4.1 Price Elasticity
- 4.2.4.2 Income Elasticity
-
4.2.4.3 Cross Price Elasticity
- Activity: Dr. Sanjay Paul’s “Gimme Interaction! Utility Maximization in a Nutshell”
Link: Dr. Sanjay Paul’s “Gimme Interaction! Utility Maximization in a Nutshell” (HTML)
Instructions: Please make use of these three interactive online exercise sets to better understand the concepts in Utility Theory. You will need a paper and pen to practice sketching the graphs. The first two exercises will enable you to draw the Budget Constraint (BC) and Indifference Curves (IC) based on the values of the parameters you have chosen. Change the values of the original parameters to see how the BC and IC also change. As you go along, ask why these shifts might be occurring. In the last exercise, you will combine the BC and IC to determine optimization. Please ensure you answer the questions at the end of each exercise.
Completing this activity should take approximately 2 hours.
Note: These interactive exercises were prepared and presented by Dr. Sanjay Paul for the Midwest Conference on Student Learning in Economics: Innovation, Assessment and Classroom Research in Akron, Ohio on November 7, 2003.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Assessment: Econ100’s “Utility and Demand Quiz: Chapter 8” and “Possibilities, Preferences and Choices Quiz: Chapter 9”
Link: Econ100’s “Utility and Demand Quiz: Chapter 8” and “Possibilities, Preferences and Choices Quiz: Chapter 9” (HTML)
Instructions: Please follow the link to get to the main page of Econ100. Click on the “Quiz” tab on the left hand side menu and then go to Chapters 8 and 9 to take the quizzes.
Completing this assessment should take approximately 3 hours.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Activity: Dr. Sanjay Paul’s “Gimme Interaction! Utility Maximization in a Nutshell”
-
End of Unit 4 Review
- Reading: MIT OpenCourseWare: “Principles of Economics Lecture Notes D5-D7”
Link: MIT OpenCourseWare: “Principles of Economics Lecture Notes D5” (PDF), “Principles of Economics Lecture Notes D6” (PDF), and “Principles of Economics Lecture Notes D7” (PDF)
Instructions: These are optional readings. You may go through these notes if you wish to review topics covered in this unit in a more mathematical way by clicking on the links above.
Reading these notes should take approximately 1 hour and 30 minutes.
Terms of Use: The articles above are released under a Creative Commons Attribution-NonCommercial-Share-Alike License 3.0. You can find the original MIT version of this article here.See a broken link? Please let us know!
- Reading: MIT OpenCourseWare: “Principles of Economics Lecture Notes D5-D7”
-
Unit 5: The Producer
In this unit, we will learn about one of the most important economic agents: the producer. The producer (firm) is responsible for creating the production function (output) and is subject to various cost measures as well as the results of diminishing returns. We will explore these ideas more fully as we delve into the relationship between quantity of input and quantity of output and discuss how and why a firm’s costs may differ in the short-run versus the long-run.
Time Advisory show close
Learning Outcomes show close
- Reading: Principles of Microeconomics: “Chapter 8: Production and Cost”
Link: Principles of Microeconomics: “Chapter 8: Production and Cost” (PDF)
Instructions: Read this chapter, including the Introduction. Take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter. This reading covers sections 5.1 and 5.2.
Reading these sections should take approximately 2 hours.
Terms of Use: The text was adapted by The Saylor Foundation under a Creative Commons-Attribution-NonCommerical-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 7: Production” and “Chapter 8: Costs”
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 7: Production” and “Chapter 8: Costs” (PDF)
Instructions: This reading is optional. It will provide you with mathematical analysis of the topics below. When you click the link above, you will be directed to a page from which you can download the entire book as a PDF. Scroll down to “Chapter 7: Production” on page 51 and then to “Chapter 8: Costs” on page 60.
Reading this section should take approximately 45 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Assessment: biz/ed’s “Quizzes on Firms”
Link: biz/ed’s “Quizzes on Firms” (HTML)
Instructions: When you have completed the readings for this unit, please take the following quizzes: “Firms: Short Run Costs”, “Firms: Production”, and “Firms: Long Run Costs”.
Completing this assessment should take approximately 2 hours.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 8: Production and Cost”
- 5.1 The Short Run
- 5.1.1 The Short Run Production Function
- 5.1.1.1 Total Product
- 5.1.1.2 Average Product
- 5.1.1.3 Marginal Product
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5.1.1.4 The Law of Diminishing Marginal Returns
- Lecture: Khan Academy’s “A Firm’s Marginal Product Revenue Curve”
Link: Khan Academy’s “A Firm’s Marginal Product Revenue Curve” (YouTube)
Instructions: Please watch the entire lecture, which is about a firm’s marginal product revenue curve.
Watching this lecture should take approximately 15 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Economic Profit vs. Accounting Profit”
Khan Academy’s “Economic Profit vs. Accounting Profit” (YouTube)
Instructions: Please watch the entire lecture, which is about economic profit versus accounting profit.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Depreciation and Opportunity Cost of Capital”
Link: Khan Academy’s “Depreciation and Opportunity Cost of Capital” (YouTube)
Instructions: Please watch the entire lecture, which is about depreciation and the opportunity cost of capital.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “A Firm’s Marginal Product Revenue Curve”
- 5.1.2 Costs in the Short Run
- 5.1.2.1 Total Costs
- 5.1.2.2 Average Costs
- 5.1.2.3 Marginal Cost
-
5.1.2.4 Relationship Between Product Curves and Cost Curves
- Lecture: Khan Academy’s “Fixed, Variable, and Marginal Cost”
Link: Khan Academy’s “Fixed, Variable, and Marginal Cost” (YouTube)
Instructions: Please watch the entire lecture, which is about fixed, variable, and marginal cost.
Watching this lecture should take approximately 15 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Visualizing Average Costs and Marginal Costs as Slope”
Link: Khan Academy’s “Visualizing Average Costs and Marginal Costs as Slope” (YouTube)
Instructions: Please watch the entire lecture, which is about visualizing average costs and marginal costs as a slope.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Marginal Cost and Average Total Cost”
Link: Khan Academy’s “Marginal Cost and Average Total Cost” (YouTube)
Instructions: Please watch the entire lecture, which is about marginal cost and average total cost.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Marginal Revenue and Marginal Cost”
Khan Academy’s “Marginal Revenue and Marginal Cost” (YouTube)
Instructions: Please watch the entire lecture, which is about marginal revenue and marginal cost.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Marginal Revenue Below Average Total Cost”
Link: Khan Academy’s “Marginal Revenue Below Average Total Cost” (YouTube)
Instructions: Please watch the entire lecture, which is about marginal revenue below average total cost.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Fixed, Variable, and Marginal Cost”
- 5.2 The Long Run
- 5.2.1 The Firm's Production Decision
- 5.2.2 Costs in the Long Run
-
5.2.3 Economies of Scale
- Lecture: Khan Academy’s “Long-Term Supply Curve and Economic Profit”
Link: Khan Academy’s “Long-Term Supply Curve and Economic Profit” (YouTube)
Instructions: Please watch the entire lecture, which is about the long-term supply curve and economic profit.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Long-Term Supply Curve and Economic Profit”
-
End of Unit 5 Review
- Reading: MIT OpenCourseWare: “Principles of Economics Lecture Notes D10-D14”
Link: MIT OpenCourseWare: “Principles of Economics Lecture Notes D10”, “Principles of Economics Lecture Notes D11”, “Principles of Economics Lecture Notes D12”, “Principles of Economics Lecture Notes D13”, and “Principles of Economics Lecture Notes D14” (PDF)
Instructions: These are optional readings. Please click on the links above to review producer theory and to take a look at how production functions and cost functions can be derived mathematically.
Reading these sections should take approximately 1 hour and 15 minutes.
Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike License 3.0. You can find the original MIT version of this article here.See a broken link? Please let us know!
- Reading: MIT OpenCourseWare: “Principles of Economics Lecture Notes D10-D14”
-
Unit 6: Market Structure: Competitive and Non-competitive Markets
This unit will introduce the concept of perfect competition, an “ideal” model that serves as a benchmark against which real-world market structures are analyzed. Also known as the model of “pure competition,” perfect competition results in an efficient allocation of resources. In the real world, however, unregulated markets (which are central to perfect competition) may fail to create desired outcomes for a number of reasons. Economists refer to these situations as examples of imperfect competition.
Time Advisory show close
In this unit, we will first study the Model of Perfect Competition and then move on to what may be considered the antithesis of perfect competition, the Monopoly Model. We will then learn about imperfect competition and the two models that fall under it: Monopolistic Competition and Oligopoly. We will also touch upon game theory through the Prisoner’s Dilemma model and a discussion of the Nash Equilibrium.
Learning Outcomes show close
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6.1 Perfect Competition
- Reading: Principles of Microeconomics: “Chapter 9: Competitive Markets for Goods and Services”
Link: Principles of Microeconomics: “Chapter 9: Competitive Markets for Goods and Services” (PDF)
Instructions: Read this chapter, including the introduction. Understanding the model of Perfect Competition is crucial to your understanding of the more complicated and realistic models that will be studied next. Please take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter. This reading covers subunits 6.1.1-6.1.4.
Reading this chapter should take approximately 2 hours and 30 minutes.
Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.See a broken link? Please let us know!
- Web Media: The Open University: Economics Network’s “Online Tutorial on Investigating Perfect Competition”
Link: The Open University: Economics Network’s “Online Tutorial on Investigating Perfect Competition” (Flash)
Instructions: Please go through this 35-minute tutorial to examine a model of a firm in a perfectly competitive market. With the help of demand curves, revenue curves, and cost curves, the tutorial will also teach you how demand in the market affects firm behavior and how an industry supply curve can be derived from the model of the perfectly competitive firm.
Watching this tutorial should take approximately 45 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 9: Perfect Competition” and “Chapter 10: Market Interventions and Welfare Effects”
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 9: Perfect Competition” and “Chapter 10: Market Interventions and Welfare Effects” (PDF)
Instructions: This reading is optional. When you click the link above, you will be directed to a page from which you can download the entire book as a PDF. Scroll down to “Chapter 9: Perfect Competition” on page 68 for information pertaining to subunits 6.1.1-6.1.3, then move on to “Chapter 10: Market Interventions and Welfare Effects” on page 77 for subunit 6.1.4.
Reading these chapters should take approximately 45 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 9: Competitive Markets for Goods and Services”
- 6.1.1 Characteristics of the Model
- 6.1.2 The Model in the Short Run
- 6.1.3 The Model in the Long Run
- 6.1.4 Welfare Analysis
-
End of Unit 6.1 Review
- Lecture: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 10: Perfect Competition”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 10: Perfect Competition” (HTML)
Also available in:
Flash
PPT
Instructions: This set of lecture notes provides not only a review of this model, but a guide to the elements you need to know in order to understand the model. You should have a thorough understanding of this simplistic model before proceeding onto more complicated (and realistic) models.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Perfect Competition”
Link: Khan Academy’s “Perfect Competition” (YouTube)
Instructions: Please watch the entire lecture, which is about perfect competition.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Assessment: Econ100’s “Perfect Competition Quiz: Chapter 12”
Link: Econ100’s “Perfect Competition Quiz: Chapter 12” (HTML)
Instructions: Please follow the link to get to the main page of Econ100. Click on the “Quiz” tab on the left hand side menu and then go to Chapter 12 to take the test. Please attempt all levels of the quiz for a thorough assessment of your understanding of the material covered in this section.
Completing this assessment should take approximately 1 hour and 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 10: Perfect Competition”
-
6.2 Non-Competitive Markets: Monopoly
- Reading: Principles of Microeconomics: “Chapter 10: Monopoly”
Link: Principles of Microeconomics: “Chapter 10: Monopoly” (PDF)
Instructions: Read this chapter to understand the characteristics, workings, and effects of the monopoly model. Take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter. This reading covers subunits 6.2.1-6.2.3.
Reading this chapter should take approximately 2 hours.
Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 10: Monopoly”
- 6.2.1 Characteristics of the Model
- 6.2.2 Working of the Model
- 6.2.3 Effects of the Model
-
6.2.4 Price Discrimination
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 12: Price Discrimination”
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 12: Price Discrimination” (PDF)
Instructions: When you click the link above, you will be directed to a page from which you can download the entire book as a PDF. Scroll down to “Chapter 12: Price Discrimination” on page 85 to see how monopolists can potentially use their unique place in an industry to charge different prices to different consumers – in other words, how they indulge in "Price Discrimination.”
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 11: Monopoly”
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 11: Monopoly” (PDF)
Instructions: When you click the link above, you will be directed to a page from which you can download the entire book as a PDF. Scroll down to “Chapter 11: Monopoly” on page 80 for a brief exposition of the Monopoly model.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 11: Monopoly”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 11: Monopoly” (HTML)
Also available in:
Flash
PPT
Instructions: This set of lecture notes provides a comparison between the two extreme forms of markets studied thus far in terms of analysis.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Monopoly Basics”
Link: Khan Academy’s “Monopoly Basics” (YouTube)
Instructions: Please watch the entire lecture, which is about monopoly basics.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Review of Revenue and Cost Graphs for a Monopoly”
Link: Khan Academy’s “Review of Revenue and Cost Graphs for a Monopoly” (YouTube)
Instructions: Please watch the entire lecture, which is about revenue and cost graphs for a monopoly.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Monopolist Optimizing Price (Part 1): Total Revenue”
Link: Khan Academy’s “Monopolist Optimizing Price (Part 1): Total Revenue” (YouTube)
Instructions: Please watch the entire lecture, which is about monopolist optimizing price and total revenue.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Monopolist Optimizing Price (Part 2): Marginal Revenue”
Link: Khan Academy’s “Monopolist Optimizing Price (Part 2): Marginal Revenue” (YouTube)
Instructions: Please watch the entire lecture, which is about monopolist optimizing price and marginal revenue.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Monopolist Optimizing Price (Part 3): Dead Weight Loss”
Link: Khan Academy’s “Monopolist Optimizing Price (Part 3): Dead Weight Loss” (YouTube)
Instructions: Please watch the entire lecture, which is about monopolist optimizing price and dead weight loss.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Assessment: biz/ed’s “Quiz on Monopoly”
Link: biz/ed’s “Quiz on Monopoly” (HTML)
Instructions: Please take this quiz to assess your understanding of Monopoly.
Completing this assessment should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 12: Price Discrimination”
-
6.3 Imperfect Competition
Note: We have studied two extreme forms of market structure – one with infinite producers (perfect competition) and one with a single producer (monopoly). Realistically, within the spectrum of these two models, the vast majority of firms exist in an imperfectly competitive setting where at least one firm is a price setter. We will now study two other broad categories in the world of imperfect competition: one in which many firms compete (monopolistic competition – for example, the market for restaurants in a city) and another in which few firms compete (oligopoly – for example, the cell phone industry).
-
6.3.1 Monopolistic Competition
- Reading: Principles of Microeconomics: “Chapter 11, Section 1: Monopolistic Competition: Competition Among Many”
Link: Principles of Microeconomics: “Chapter 11, Section 1: Monopolistic Competition: Competition Among Many” (PDF)
Instructions: Read the introduction to the chapter before reading section 1. Please take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter. This reading covers subunits 6.3.1.1-6.3.1.3.
Reading this section should take approximately 30 minutes.
Terms of Use: This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-Share-Alike 3.0 License without attribution as requested by the work’s original creator or licensee.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 15: Monopolistic Competition”
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 15: Monopolistic Competition” (PDF)
Instructions: This is an optional reading. When you click the link above, you will be directed to a page from which you can download the entire book as a PDF. Scroll down to Chapter 15 on page 102 to learn about Monopolistic Competition.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 11, Section 1: Monopolistic Competition: Competition Among Many”
- 6.3.1.1 Characteristics of the Model
- 6.3.1.2 Monopolistic Competition in the Short Run
-
6.3.1.3 Monopolistic Competition in the Long Run
- Lecture: Khan Academy’s “Oligopolies and Monopolistic Competition”
Link: Khan Academy’s “Oligopolies and Monopolistic Competition” (YouTube)
Instructions: Please watch the entire lecture, which is about oligopolies and monopolistic competition.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Monopolistic Competition and Economic Profit”
Link: Khan Academy’s “Monopolistic Competition and Economic Profit” (YouTube)
Instructions: Please watch the entire lecture, which is about monopolistic competition and economic profit.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Assessment: AmosWeb’s “Monopolistic Competition Quiz”
Link: AmosWeb’s “Monopolistic Competition Quiz” (HTML)
Instructions: Please click on the “Quiztastic” icon from the top menu bar. From the “Select a Topic” option, choose “Monopolistic Competition” and then click on “Retrieve Test” to get to the test page.
Completing this assessment should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Oligopolies and Monopolistic Competition”
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6.3.2 Oligopoly
- Reading: Principles of Microeconomics: “Chapter 11, Section 2: Oligopoly: Competition Among the Few”
Link: Principles of Microeconomics: “Chapter 11, Section 2: Oligopoly: Competition Among the Few” (PDF)
Instructions: This reading covers both topics under subunit 6.3.2 However, please skip the section “Measuring Concentration in Oligopoly” and proceed straight to “The Collusion Model.” Please take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These should be your goals as you read through the chapter.
Reading this section should take approximately 45 minutes.
Terms of Use: The text was adapted by The Saylor Foundation under a Creative Commons-Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee.See a broken link? Please let us know!
- Reading: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 14: Oligopoly”
Link: Bookboon.com: Krister Ehlester’s Essentials of Microeconomics: “Chapter 14: Oligopoly” (PDF)
Instructions: This is an optional reading. When you click the link above, you will be directed to a page from which you can download the entire book as a PDF. Scroll down to Chapter 14 on page 96 to learn about Oligopoly.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Oligopolies, Duopolies, Collusion, and Cartels”
Link: Khan Academy’s “Oligopolies, Duopolies, Collusion, and Cartels” (YouTube)
Instructions: Please watch the entire lecture, which is about oligopolies, duopolies, collusion, and cartels.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Assessment: AmosWeb’s “Oligopoly Quiz”
Link: AmosWeb’s “Oligopoly Quiz” (HTML)
Instructions: Please take the above quiz on oligopoly to test your understanding of the subject.
Completing this assessment should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Principles of Microeconomics: “Chapter 11, Section 2: Oligopoly: Competition Among the Few”
- 6.3.2.1 Game Theory
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6.3.2.2 Nash Equilibrium
- Lecture: Khan Academy’s “Prisoners’ Dilemma and Nash Equilibrium”
Link: Khan Academy’s “Prisoners’ Dilemma and Nash Equilibrium” (YouTube)
Instructions: Please watch the entire lecture, which is about the Prisoners’ Dilemma and the Nash Equilibrium.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “More on Nash Equilibrium”
Link: Khan Academy’s “More on Nash Equilibrium” (YouTube)
Instructions: Please watch the entire lecture, which is about the Nash Equilibrium.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Why Parties to Cartels Cheat”
Link: Khan Academy’s “Why Parties to Cartels Cheat” (YouTube)
Instructions: Please watch the entire lecture, which is about why parties to cartels cheat.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Game Theory of Cheating Firms”
Link: Khan Academy’s “Game Theory of Cheating Firms” (YouTube)
Instructions: Please watch the entire lecture, which is about game theory of cheating firms.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Prisoners’ Dilemma and Nash Equilibrium”
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Assessment for Unit 6
- Assessment: The Open University: Economics Network’s Assessment Materials: “DD202: Microeconomics: Check Your Understanding”
Link: The Open University: Economics Network’s Assessment Materials: “DD202: Microeconomics: Check Your Understanding” (Java)
Instructions: Please take the above quiz and attempt all twelve questions to test your understanding of the material covered in Unit 6.
Completing this assessment should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Assessment: The Open University: Economics Network’s Assessment Materials: “DD202: Microeconomics: Check Your Understanding”
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End of Unit 6 Review
- Reading: MIT OpenCourseWare: “Principles of Economics Lecture Notes D22-D29”
Link: MIT OpenCourseWare: “Principles of Economics Lecture Notes D22-D29” (PDF)
Instructions: These are optional readings. Please click on the link above and then scroll down and download the PDFs numbered D22-D29 to review the theory learned in this unit.
Reading these notes should take approximately 2 hours and 30 minutes.
Terms of Use: The article above is released under a Creative Commons Attribution-NonCommercial-Share-Alike License 3.0. You can find the original MIT version of this article here.See a broken link? Please let us know!
- Reading: MIT OpenCourseWare: “Principles of Economics Lecture Notes D22-D29”
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Unit 7: Resource Markets
This unit outlines how firms decide how much they will use their resources (which include land, labor, capital, and entrepreneurial ability – all of which are required to produce the final good) and at what price. The demand for resources is derived from the demand for the final goods that are produced with them. For example, if the demand for automobiles (the final good) were to increase, the demand for steel (and any other resource used in the production of the auto) would also increase.
Time Advisory show close
Learning Outcomes show close
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7.1 Overview
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 15: Resource Markets”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 15: Resource Markets” (HTML)
Also available in:
Flash
PPT
Instructions: When you click on the link above, you will be directed to a webpage with a list of contents. Please click on Chapter 15 and read the HTML version of the lecture notes in its entirety. This reading will cover subunits 7.1.1-7.1.3.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 15: Resource Markets”
- 7.1.1 Market Demand and Supply
- 7.1.2 Individual Firm's Demand under Perfect Competition
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7.1.3 Imperfectly Competitive Markets for Factors of Production
- Lecture: Khan Academy’s “Adding Demand Curves”
Link: Khan Academy’s “Adding Demand Curves” (YouTube)
Instructions: Please watch the entire lecture, which is about adding demand curves.
Watching this lecture should take approximately 5 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Lecture: Khan Academy’s “Adding Demand Curves”
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7.2 The Labor Market
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 16: Labor Markets”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 16: Labor Markets” (HTML)
Also available in:
Flash
PPT
Instructions: When you click on the link above, you will be directed to a webpage with a list of contents. Please click on Chapter 16 and read the HTML version of the lecture notes in their entirety.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Assessment: Econ100’s “Labor Markets Quiz: Chapter 16”
Link: Econ100’s “Labor Markets Quiz: Chapter 16” (HTML)
Instructions: Please follow the link to get to the main page of Econ100. Click on the “Quiz” tab on the left hand side menu and then go to Chapter 16 to take the test. Please attempt all levels of the quiz for a thorough assessment of your understanding of the material covered in this section.
Completing this assessment should take approximately 1 hour and 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Lecture: Khan Academy’s “How Many People to Hire Given the MPR Curve”
Link: Khan Academy’s “How Many People to Hire Given the MPR Curve” (YouTube)
Instructions: Please watch the entire lecture, which is about how many people to hire given the marginal product revenue curve.
Watching this lecture should take approximately 10 minutes.
Terms of Use: This video is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike License 3.0. It is attributed to the Khan Academy.See a broken link? Please let us know!
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 16: Labor Markets”
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7.3 Capital and Financial Markets
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 17: Capital and Financial Markets”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 17: Capital and Financial Markets” (HTML)
Also available in:
Flash
PPT
Instructions: When you click on the link above, you will be directed to a webpage with a list of contents. Please click on Chapter 17 and read the HTML version of the lecture notes in their entirety.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 17: Capital and Financial Markets”
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7.4 Land and the Market for Natural Resources
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 18: The Land Market and Natural Resources”
Link: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 18: The Land Market and Natural Resources” (HTML)
Available in:
Flash
PPT
Instructions: When you click on the link above, you will be directed to a webpage with a list of contents. Please click on Chapter 18 and read the HTML version of the lecture notes in their entirety.
Reading this chapter should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: Professional Educational Organization International: John Petroff’s Microeconomics: “Chapter 8”
Link: Professional Educational Organization International: John Petroff’s Microeconomics: “Chapter 8” (PDF)
Instructions: You will likely find the examples in the above material useful to understanding the concepts in this subunit.
Reading this chapter should take approximately 1 hour.
Terms of Use: The articles above are released under a Creative Commons Attribution-Share-Alike License 3.0. You can find the original Professional Educational Organization International version of these articles here.See a broken link? Please let us know!
- Assessment: AmosWeb’s “Resource Market Quiz”
Link: AmosWeb’s “Resource Market Quiz” (HTML)
Instructions: Please click on the “Quiztastic” icon from the top menu bar. From the “Select a topic” option, choose “Resource Market” and then click on “Retrieve Test” to get to the test page.
Completing this assessment should take approximately 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Assessment: Econ100’s “Demand and Supply in Resource Markets Quiz: Chapter 15”
Link: Econ100’s “Demand and Supply in Resource Markets Quiz: Chapter 15” (HTML)
Instructions: Please follow the link to get to the main page of Econ100. Click on the “Quiz” tab on the left hand side menu and then go to Chapter 15 to take the test. Please attempt all levels of the quiz for a thorough assessment of your understanding of the material covered in this section.
Completing this assessment should take approximately 1 hour and 30 minutes.
Terms of Use: Please respect the copyright and terms of use displayed on the webpage above.See a broken link? Please let us know!
- Reading: State University of New York at Oswego: Professor John Kane’s Lecture Notes on ECON 101: “Chapter 18: The Land Market and Natural Resources”
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Final Exam
- Final Exam: The Saylor Foundation’s “ECON101 Final Exam”
Link: The Saylor Foundation’s “ECON101 Final Exam”
Instructions: You must be logged into your Saylor Foundation School account in order to access this exam. If you do not yet have an account, you will be able to create one, free of charge, after clicking the link.See a broken link? Please let us know!
- Final Exam: The Saylor Foundation’s “ECON101 Final Exam”
Unit Outline show close
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