Session Overview
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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.
Session Activities
Readings
Before watching the lecture video, read the course textbook for an introduction to the material covered in this session:
Lecture Videos
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View by Chapter
- What is Microeconomics? (00:08:15)
- The Role of Prices: Examples (00:04:44)
- Important Distinctions in Economics (00:04:02)
- Positive vs. Normative Analysis of the eBay Kidney Auction (00:10:39)
- Everyday Applications of Economics (00:06:30)
Check Yourself
Concept Quiz
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.