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Contents - Lessons & Practice

Business · Social Sciences

Principles of Microeconomics 3e

OpenStax book

OpenStax

Principles of Microeconomics 3e

20 lessons

One lesson for each chapter of Principles of Microeconomics 3e, in the book’s order. The lesson teaches what that chapter says you need to know, then checks it.

  1. 1Welcome to Economics!Microeconomics and macroeconomics are two different perspectives on the economy.
  2. 2Choice in a World of ScarcityThe budget constraint, which is the frontier of the opportunity set, illustrates the range of available choices.
  3. 3Demand and SupplyThe equilibrium price and equilibrium quantity occur where the supply and demand curves cross.
  4. 4Labor and Financial MarketsIn the demand and supply analysis of financial markets, the “price” is the rate of return or the interest rate received.
  5. 5ElasticityAn inelastic demand or supply curve is one where a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied.
  6. 6Consumer ChoicesHowever, the additional utility people receive from each unit of greater consumption tends to decline in a pattern of diminishing marginal utility
  7. 7Production, Costs, and Industry StructureWhile accounting profit considers only explicit costs, economic profit considers both explicit and implicit costs
  8. 8Perfect CompetitionPerfect competition means that there are many sellers, there is easy entry and exiting of firms, products are identical from one seller to another, and sellers are price takers
  9. 9MonopolyThese barriers include: economies of scale that lead to natural monopoly; control of a physical resource; legal restrictions on competition; patent, trademark and copyright protection; and practices to intimidate the…
  10. 10Monopolistic Competition and OligopolyMonopolistic competition refers to a market where many firms sell differentiated products.
  11. 11Monopoly and Antitrust PolicyAntitrust laws seek to ensure active competition in markets, sometimes by preventing large firms from forming through mergers and acquisitions, sometimes by regulating business practices that might restrict…
  12. 12Environmental Protection and Negative ExternalitiesAn externality, which is sometimes also called a spillover, can have a negative or a positive impact on the third party.
  13. 13Positive Externalities and Public GoodsNew technology often has positive externalities; that is, there are often spillovers from the invention of new technology that benefit firms other than the innovator.
  14. 14Labor Markets and IncomeProfit maximizing firms employ labor up to the point where the market wage is equal to the firm’s demand for labor.
  15. 15Poverty and Economic InequalityThe poverty rate is what percentage of the population lives below the poverty line, which the amount of income that it takes to purchase the necessities of life determines.
  16. 16Information, Risk, and InsuranceIn goods markets, buyers facing imperfect information about products may depend upon money-back guarantees, warranties, service contracts, and reputation.
  17. 17Financial MarketsCorporate bonds are issued by firms; municipal bonds are issued by cities, state bonds by U.S.
  18. 18Public EconomyLogrolling refers to a situation in which two or more legislators agree to vote for each other’s legislation, which can then encourage pork-barrel spending in many districts
  19. 19International TradeA country has an absolute advantage in those products in which it has a productivity edge over other countries; it can produce more of a product.
  20. 20Globalization and ProtectionismThere are three tools for restricting the flow of trade: tariffs, import quotas, and nontariff barriers.