Economics may have a reputation as a dismal science, but in fact it addresses some of the most fundamental problems we face: How to make the best decision given that resources are limited. You can use the tools of microeconomics to decide how best to spend your income; how best to divide your time among leisure activities; or how many people to hire in the business you run. Life is full of choices. Microeconomics can help you decide how to make them.
Economics can't help you make a selection from this box of chocolates, but can be a vital tool in other decision-making situations. Image courtesy of ninanord on Flickr.
Keywords: Microeconomics; prices; normative economics; positive economics; microeconomic applications.
Before watching the lecture video, read the course textbook for an introduction to the material covered in this session:
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- Lecture 1: Introduction to Microeconomics (00:34:14)
Lecture 1: Introduction to Microeconomics
- Transcript (PDF)
View by Chapter
- What is Microeconomics? (00:08:15)
What is Microeconomics?
- The Role of Prices: Examples (00:04:44)
The Role of Prices: Examples
- Important Distinctions in Economics (00:04:02)
Important Distinctions in Economics
- Positive vs. Normative Analysis of the eBay Kidney Auction (00:10:39)
Positive vs. Normative Analysis of the eBay Kidney Auction
- Everyday Applications of Economics (00:06:30)
Everyday Applications of Economics
This concept quiz covers key vocabulary terms and also tests your intuitive understanding of the material covered in this session. Complete this quiz before moving on to the next session to make sure you understand the concepts required to solve the mathematical and graphical problems that are the basis of this course.
These optional resources are provided for students that wish to explore this topic more fully.
See the [Perloff] companion website for an overview of the main topics covered in the chapter, as well as quizzes, applications, and other related resources.