Microeconomics Course Outline

Textbook Chapter

Workbook

Activities

Saving Adam Smith

Unit 1: Introduction to Economics

I.                    Basic Economic Concepts

A.     Scarcity

B.     Opportunity Cost

C.     Production Possibilities

D.     Economic Systems

E.      Circular Flow Model

II.                  Characteristics of Capitalism

A.     Private Property

B.     Freedom of Choice

C.     Self-Interest

D.     Competition

E.      Limited Government

F.      Division of Labor

G.     Three Basic Questions

H.     Profits, Normal and Economic

I.        “Invisible Hand”

III.         The U.S. Economy

A.   Household Income

B.   Household Spending

C.   Business Structures

D.   The Role of the Government

 IV.               International Trade

A.   Specialization

B.   Comparative Advantage

C.   Exchange Rates

D.   Barriers to Trade

 

1 & 2

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

5

 

 

 

 

6

 

1.1-2

 

 

 

 

 

1.10-11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.3

 

 

   

 

1-5

 

 

 

 

 

6-11

 

 

 

 

 

 

 

 

 

12-15 

  

Unit 2: Product Markets

I.                    Price Determination

A.     Demand

B.     Supply

C.     Price Determination

II.                  Demand and Supply Elasticity

A.     Demand Elasticity

B.     Supply Elasticity

C.     Cross and Income Elasticity

D.     Government Price Setting

III.                Consumer Behavior

A.     Income/Substitution Effects

B.     Diminishing Marginal Utility

C.     Utility Maximization

IV.               Producer Behavior

A.     Economic Costs/Profits

B.     Short Run Production Function

C.     Short Run Production Costs

D.     Long Run Production Costs

 

 3

 

 

 

20

 

 

 

 

21

 

 

 

22

 

 1.4-9

2.1

 

 

 2.3-5

 

 

 

 2.6-7 & 9

2.2

 

 

 

3.2-5 

 

16-18

 

 

 

 

 

 

 

 

19-22

 

 

 

23-26

 

 

 

 

 

 


 

Unit 3:  Market Structures

I.                    Perfect Competition

A.     Characteristics

B.     Demand for Individual Seller

C.     Profit Maximization

D.     Long Run Equilibrium

E.      Productive/Allocative Efficiency

II.                 Pure Monopoly

A.     Characteristics

B.     Monopoly Demand

C.     Output and Price Determination

D.     Economic Inefficiencies

E.      Price Discrimination

F.      Regulated Monopoly

III.               Monopolistic Competition and Oligopoly

A.     Characteristics of M.C.

B.     Output and Price Determination

C.     Efficiency with M.C.

D.   Characteristics of Oligopoly

E.   Game Theory Model

F.   Oligopolistic Behavior

G.   Efficiency with Oligopoly

IV.                Technological Advance

A.     Innovation and Invention

B.   The Role of Entrepreneurs

C.   R&D and Profit Maximization

D.   Innovation and Market Structure

E.   Technology and Efficiency

F.   Creative Destruction

 

 23

 

 

 

 

 

24

 

 

 

 

 

 

25

 

 

 

 

 

 

 

 

26

(optional chapter)

 

 3.1

3.6-9

 

 

 

 

  3.10-15

 

 

 

 

 

 

3.16-17

 

 

Unit 4:  Resource (Factor) Markets

I.                    Resource Demand

A.     Marginal Productivity

B.     Determinants of Demand

C.     Profit Maximization

II.                 Wage Determination

A.     Productivity and Real Wages

B.     Competitive Labor Market

C.     Monopsony

D.   Labor Unions

E.   Bilateral Monopoly

F.   Minimum Wage

G.  Wage Differentials

H.   Performance Pay

III.               Rents, Interest, and Profits

A.     Economic Rent

B.     Interest

C.     Economic Profit

 

 27

 

 

 

28 

 

 

 

 

 

 

 

 

29

 

 

4.1-2

 

 

 

4.3-7 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Unit 5: Government Regulation of Markets

I.                    The Government and Market Failure

A.     Public Goods

B.     Externalities

C.     Information Failure

II.                 Public Choice Theory and Taxes

A.     Majority Voting

B.   Government Failure

C.   The Tax Burden

D.   Tax Incidence and Efficiency

III.               Antitrust Legislation

A.     Antitrust Laws

B.     Issues and Impacts

C.     Industrial Regulation

D.   Deregulation

E.   Social Regulation

IV.              The Economics of Health Care

A.     The Health Care Industry

B.   Health Care Costs

C.   Health Care Reform

 

30

 

 

 

31 

 

 

 

 

32

(optional chapter)

 

 

 

36

 

5.1-4

2.8

 

 

  5.5-7