The Power of Microeconomics: Economic Principles in the Real World

About this course: In this course, you will learn all of the major principles of microeconomics normally taught in a quarter or semester course to college undergraduates or MBA students. Perhaps more importantly, you will also learn how to apply these principles to a wide variety of real world situations in both your personal and professional lives. In this way, the Power of Microeconomics will help you prosper in an increasingly competitive environment. Note that this course is a companion to the Power of Macroeconomics. If you take both courses, you will learn all of the major principles normally taught in a year-long introductory economics college course.

Created by:  University of California, Irvine

• Taught by:  Dr. Peter Navarro, Professor

  Paul Merage School of Business

Commitment 11 hours of videos and quizzes Language English, Subtitles: Ukrainian, Chinese (Simplified) How To Pass Pass all graded assignments to complete the course. User Ratings 4.6 stars Average User Rating 4.6See what learners said Coursework

Each course is like an interactive textbook, featuring pre-recorded videos, quizzes and projects.

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University of California, Irvine Since 1965, the University of California, Irvine has combined the strengths of a major research university with the bounty of an incomparable Southern California location. UCI’s unyielding commitment to rigorous academics, cutting-edge research, and leadership and character development makes the campus a driving force for innovation and discovery that serves our local, national and global communities in many ways.

Syllabus


WEEK 1


Welcome



1 video, 1 reading, 1 practice quiz expand

1. Reading: Syllabus
2. Practice Quiz: Check Your Economics Knowledge (Ungraded)
3. Video: An Introduction to Microeconomics

WEEK 2


An Introduction to Microeconomics



5 videos, 1 reading expand

1. Reading: Module Overview
2. Video: Microeconomics Defined and Three Questions Every Economy Must Answer
3. Video: The Production Possibility Frontier and Opportunity Costs
4. Video: The Fundamental Concepts of Microeconomics and Course Overview
5. Video: Other Reasons for Government Regulation
6. Video: An Overview of Land, Labor, and Capital Markets; Externalities and Public Goods

Graded: An Introduction to Microeconomics

WEEK 3


Supply, Demand and Equilibrium



4 videos, 1 reading expand

1. Reading: Module Overview
2. Video: The Law of Demand, Income/Substitution Effects, and Shift Factors
3. Video: Change in Demand vs. Change in Quantity Demanded; The Market Demand and Supply Curves; Supply Curve Shift Factors
4. Video: Equilibrium; Price Effects of Supply and Demand Curve Shifts; Price Controls and Floors
5. Video: The Market Allocates Goods & Resources- What, For Whom, and How; Some Cool Examples

Graded: Supply, Demand and Equilibrium

WEEK 4


Demand and Consumer Behavior



4 videos, 1 reading expand

1. Reading: Module Overview
2. Video: Consumer Choice and Utility Theory
3. Video: Consumer Optimization and the Equimarginal Principle; Income and Substitution Effects
4. Video: Demand Price Elasticity and its Determinants
5. Video: Price Elasticity and Total Revenue

Graded: Demand and Consumer Behavior

WEEK 5


Supply and Production Theory



6 videos, 1 reading expand

1. Reading: Module Overview
2. Video: Overview of Production Theory and the Production Function
3. Video: Average, Marginal, Variable, and Total Costs; The Marginal Product and Law of Diminishing Return
4. Video: Marginal Cost and Marginal Cost Pricing; The AFC, ATC, and AVC Curves
5. Video: Long Run Cost Analysis and Economies of Scale
6. Video: Diseconomies of Scale, Minimum Efficient Scale, and Natural Monopoly; The Structure-Conduct-Performance Paradigm
7. Video: Accounting Versus Economic Profits; The Price Elasticity of Supply

Graded: Supply and Production Theory

WEEK 6


Perfect Competition



6 videos, 1 reading expand

1. Reading: Module Overview
2. Video: Overview of Industry Structure, Conduct, and Performance
3. Video: Assumptions of Perfect Competition; the P=MR Condition
4. Video: Market Failures that Lead to Imperfect Competition; Externalities and the Public Goods Problem
5. Video: Pricing and Production Rules; P=MR=MC; The Shutdown Rule
6. Video: Long Run Equilibrium; Normal or Zero Economic Profits
7. Video: Allocative vs. Productive Efficiency; Pareto Optimality; Consumer and Producer Surplus and Deadweight Loss

Graded: Perfect Competition

WEEK 7


Monopoly and Monopolistic Competition



4 videos, 1 reading expand

1. Reading: Module Overview
2. Video: Why Study Imperfect Competition; Monopoly’s Pricing Rule
3. Video: Regulating Monopolies and the P=AC Rule; X-efficiency Under Cost-Plus Pricing; Schumpeter Argument for Monopoly
4. Video: Monopolistic Competition; Concentration Ratios; Mutual Dependence Recognized and Collusion
5. Video: Comparing Monopolistic and Perfect Competition; Non-Price Competition and Product Differentiation

Graded: Monopoly and Monopolistic Competition

WEEK 8


Oligopoly and Strategic Behavior



6 videos, 1 reading expand

1. Reading: Module Overview
2. Video: Oligopoly Defined and Sources of Oligopoly
3. Video: Market Power and Strategic Interaction; Cooperative Versus Non-Cooperative Behavior; Explicit Collusion
4. Video: Tacit Versus Explicit Collusion; Forms of Tacit Collusion; Models of Oligopoly Conduct
5. Video: Joint Profit Maximization Model; Why Cartels Can Fail
6. Video: The Price Leadership Model; The Kinked Demand Curve Model
7. Video: Game Theory and the Prisoner’s Dilemma; The Nash Equilibrium

Graded: Oligopoly and Strategic Behavior

WEEK 9


Land and Rent



5 videos, 1 reading expand

1. Reading: Module Overview
2. Video: Introduction to Land and Rent; Factor Prices
3. Video: How Land is Priced; Rent Versus Economic Rent
4. Video: The “Corn Wars” and Theory of Ricardian Rents; Property Rights
5. Video: Henry George’s Single Tax Movement; Efficiency of a Land Tax
6. Video: Determinants of the Price of Land and Rents; Rent Seeking

Graded: Land and Rent

WEEK 10


The Labor Market and Wage Determination



6 videos, 1 reading expand

1. Reading: Module Overview
2. Video: What Determines the Wage Rate? Unions and “Company Towns”
3. Video: The Derived Demand For Labor; The Marginal Productivity Theory of Resource Demand; The Profit Maximizing Rule; MRC=W
4. Video: Productivity, Wages and Product Prices
5. Video: Issues in Labor Force Participation; Substitution and Income Effects and the Backward Bending Curve; Immigration
6. Video: Wages Under Differing Market Structures; Monopoly, Monopsony, and Labor Unions; Labor Immobility; Role of Unions
7. Video: Factors Affecting Wage Differentials; Compensating Differentials; Quasi-Rents; Human Capital; Immobilities;, Non-Competing Groups

Graded: The Labor Market and Wage Determination

WEEK 11


The Capital Market, Interest, and Profits



6 videos, 1 reading expand

1. Reading: Module Overview
2. Video: Capital Analysis in the Real World; Three Categories of Capital Goods; Interest Rate Defined; Rate of Return
3. Video: Depreciation; Theory of Loanable Funds; Two Interest Rate Functions
4. Video: How Shifts in Demand and Supply Affect Interest Rates; Investment Analysis Over Time; Net Present Value; Perpetuities
5. Video: NPV In the Real World; NPV Equation
6. Video: Real World Applications of NPV
7. Video: Interest Rates In The Real World; Factors Determining Interest Rates

Graded: The Capital Market, Interest, and Profits

WEEK 12


Public Goods and Externalities



7 videos, 1 reading expand

1. Reading: Module Overview
2. Video: Why Markets Fail and Government’s Role
3. Video: Public Vs. Private Goods; Non-rival Consumption; Non-excludability; Free Rider Problem
4. Video: Economic Efficiency and Public Goods; Market Demand for Public Goods
5. Video: Benefit-Cost Analysis and the Decision Rule
6. Video: Negative and Positive Externalities
7. Video: Graphical Analysis of Externalities; Coase Theorem and Property Rights; Tort System
8. Video: Direct Government Intervention; Pigouvian Taxes and Subsidies; Internalizing Externalities

Graded: Public Goods and Externalities

WEEK 13


Final Exam



1 reading expand

1. Reading: Learning Resources

Graded: Final Exam