Unit 1: Basic Economic Concepts
Intro powerpoint Do You Think Like an Economist
Powerpoint for unit Basic Economic Concepts
Unit 2 part 1: Supply and Demand, Consumer Choice and Production Costs
Unit Outline
- 1. Market equilibrium
- 2. Determinants of supply and demand
- 3. Price and quantity controls
- 4. Elasticity
- a. Price, income, and cross-price elasticities of demand
- b. Price elasticity of supply
- 5. Consumer surplus, producer surplus, and market efficiency
- 6. Tax incidence and deadweight loss
- 1. Total utility and marginal utility
- 2. Utility maximization: equalizing marginal utility per dollar
- 3. Individual and market demand curves
- 4. Income and substitution effects
- 1. Production functions: short and long run
- 2. Marginal product and diminishing returns
- 3. Short-run costs
- 4. Long-run costs and economies of scale
- 5. Cost minimizing input combination
Unit 2 part 2: Firm Behavior and Market Structures
Unit Outline
- a. Accounting versus economic profits
- b. Normal profit
- c. Profit maximization: MR=MC rule
- a. Profit maximization
- b. Short-run supply and shutdown decision
- c. Behavior of firms and markets in the short run and in the long run
- d. Efficiency and perfect competition
- a. Sources of market power
- b. Profit maximization
- c. Inefficiency of monopoly
- d. Price discrimination
- e. Natural monopoly
- a. Interdependence, collusion, and cartels
- b. Game theory and strategic behavior
- a. Product differentiation and role of advertising
- b. Profit maximization
- c. Short-run and long-run equilibrium
- d. Excess capacity and inefficiency
Unit 3: Factor Markets
Unit Outline
Unit 4: Role of Government and Market Failures
Unit Outline
- 1. Marginal social benefit and marginal social cost
- 2. Positive externalities
- 3. Negative externalities
- 4. Remedies
- 1. Public versus private goods
- 2. Provision of public goods
- 1. Antitrust policy
- 2. Regulation
- 1. Equity
- 2. Sources of income inequality