Microeconomic Principles: Decision Making Under Scarcity
This course introduces you to microeconomics, the field of economics that studies decision-making behaviors of consumers and firms when scarcity constrain their choices. The constrained decision-making principle is a major building block of modern economics and is the central concept around which this course is built.
This course will help you understand decisions that are made in the face of constraints, such as the everyday transactions you make in the marketplace. As a consumer, you must consider your overall income when making a purchase, but business managers must take into account the presence of competitors in the marketplace when deciding on the price to charge you for a product.
The course is divided into four parts:
- In part I, you’ll gain an understanding of how consumers make decisions on the types and quantities of goods to purchase.
- In part II, you’ll learn how managers decide how much to produce, the price to set for their products, and the amounts and types of inputs to buy.
- In part III, the focus will be on the interaction between consumers and producers and the concepts of equilibrium and efficiency.
- The final part of this course focuses on market distortions that are introduced by governments, such as taxes and tariffs, or those that result from the nature of the products produced or consumed.
You will learn:
- Consumer and producer theory
- The concepts of equilibrium and efficiency and the many ways that consumers and firms interact
- The concept of efficiency and how it relates to market structure
- Ability to analyze the effects of policies and other forms of market distortions