Unit 1: Introduction and Basic Concepts
This unit provides an overview of basic economic concepts. We begin with a definition of economics and then move to apply its basic tools of analysis. Next, supply and demand is considered from a theoretical standpoint and then is quantified. The unit closes with a discussion of government intervention and how it affects the market.
As you work through this unit, consider the economic objectives of individuals, firms, and the government. Think about how the three interact in a shared economic space. Remember to maintain an objective viewpoint about all economic analysis and reflect on the quantitative methods developed to support economic theory.
Completing this unit should take you approximately 14 hours.
Upon successful completion of this unit, you will be able to:
- explain the standard theory in microeconomics at an intermediate level;
- explain and use the basic tools of microeconomic theory, and apply them to help address problems in public policy; and
- synthesize the impact of government intervention in the market.
1.1: Definition of Economics
Read this chapter. Think about how economists frame their analysis and the kinds of tools they use. Consider how opportunity cost and a cost-benefit analysis relate to each other.
Listen to this lecture.
1.2: Supply and Demand
Read this chapter. Think about how a change in demand or supply is different from a change in quantity demanded or supplied.
Listen to lectures 1 and 2.
1.3: Elasticity
Read this chapter. Consider how elasticity is applied by business economists and its usefulness as a practical economic tool.
Listen to Chapter 6, parts I through V (lectures 31–36).
1.4: Government and the Market
Read this chapter. Ponder who wins and loses when a tax law is adjusted. How might special interest groups influence tax laws?
Listen to Lecture 15.
Watch this video. The associated spreadsheet for this video is the 2nd one in the workbook you can download here. You should explore the various changes caused by taxation and its effect on elasticity.
Unit 1 Assessment
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.