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Micro

This document provides an overview of microeconomic concepts including the definition of economics, supply and demand, value, scarcity, willingness to pay, prices, opportunity cost, and budget constraints. It outlines the key topics that will be covered in a microeconomics class including notes from class sessions.

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Joshua Rainey
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20 views2 pages

Micro

This document provides an overview of microeconomic concepts including the definition of economics, supply and demand, value, scarcity, willingness to pay, prices, opportunity cost, and budget constraints. It outlines the key topics that will be covered in a microeconomics class including notes from class sessions.

Uploaded by

Joshua Rainey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Microeconomics

1/12/2022 – Final Exam 8:00 am Friday, May 6th

First day of class -Introduction to economic principles/major ideas

No textbook needed for this class.

*Think of a policy that needs changed*

Valuable sources are limited and therefore considered scare; hence, why we need economics.

What is economics?

Study of the allocation of scarce resources in a competitive environment.

What is value?

Value is relative to each individual.

Value=Scarcity+Utility

What is supply and demand?

**

Where does demand come from?

It is what people want and need in the market and how much people
are willing to pay for it.

Marginal willingness to pay – amount someone is willing to pay for something.

How do we decide who gets what In today’s market?

Prices are our method of allocation.

1/14/2022

Why is something expensive?

Because people have a high willingness to pay and because manufacturers have a low marginal
willingness to produce.

1/17/22

Review

Division of labor – everyone does what they are best at.

It is not economically efficient to do everything yourself

Bigger companies target specific markets to compete with groups of companies

Natural result of a free economy - Monopolies


It is not illegal to have a monopoly. It is illegal to engage in noncompetitive activities

1/24/2021

Opportunity Cost

 The value of the best alternative forgone


 It changes depending on the circumstances that come forth
 Reading a book has a particular opportunity cost
 But reading that book changes on a sunny day versus a rainy day.
 Markets: system of exchange of goods and services for what is usually money
 Efficient vs Effective- these are similar and yet not the same
 Both accomplish the goal, but efficient accomplishes this goal with minimal waste, time, and
other resources.
 Risk – probability x consequence
Key Takeaways
 Economics is a social science that examines how people choose among the alternatives available
 Fundamental Questions – What, how and for whom should goods and services be produced
 Every choice has an opportunity cost
 What is the goal of all of the people involved
1/26/2022
Budget Constraints

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