C718 Microeconomics Concepts and Videos- Western Governors University

Microeconomics Concepts and Videos
Unit 1: Basic Economic Concepts VIDEO 2.6- Price Controls and Efficiency
UNIT 1 Overview- Introduction  Price Floors and Ceilings
 Scarcity VIDEO 2.7- Consumer and Producers Surplus
 Microeconomics vs. Macroeconomics  CS, PS, and Deadweight Loss
 Positive vs. Normative Economics VIDEO 2.8- Welfare Economics and Trade
 Self-Interest and Incentives  Benefits of Trade
 Marginal Analysis  Tariffs and Quotas
 Opportunity Cost and Trade-offs VIDEO 2.9- Elasticity
 Four Factors of Production  Price Elasticity of Demand
 Capital Goods and Future Growth  The Total Revenue Test
VIDEO 1.1- Production Possibilities Curve VIDEO 2.10- Other Elasticities
 Efficiency  Income Elasticity of Demand
 Straight vs. Bowed PPC  Cross-Price Elasticity of Demand
 Law of Increasing Opportunity Costs  Price Elasticity of Supply
VIDEO 1.2- Shifting the PPC VIDEO 2.11- Excise Taxes
 Shifters of the PPC  Effect of Excise Taxes
VIDEOS 1.3/1.4- Specialization and Trade VIDEO 2.12- Consumer Choice
 Absolute and Comparative Advantage  Marginal Benefit and Marginal Costs
 Terms of Trade  Utility Maximizing Rule
VIDEO 1.5- Comparative Advantage
 Output and Input Questions Unit 3: Costs of Production and Perfect
VIDEO 1.6- Economic Systems
 Free-Market Economy Competition
 Centrally Planned Economy VIDEO 3.1- Diminishing Marginal Returns
VIDEO 1.7- Circular Flow Model  Total Product and Marginal Product
 Product and Factor Markets  Three Stages of Returns
 Private and Public Sector VIDEO 3.2- Long-Run Costs
 Factor Payments  Economies and Diseconomies of Scale
 Transfer Payments VIDEO 3.3- Short-Run Costs of Production
 Fixed Costs, Variable Costs, and Total Cost
 Per-Unit Costs- (AVC, AFC, ATC)
Unit 2: Supply, Demand, and Consumer  Shifts in MC, ATC, AVC, and AFC.
Choice  Marginal Cost and Marginal Revenue
VIDEO 2.1- Demand VIDEO 3.4- Shape of the Cost Curves
 Law of Demand  Why is ATC “U” Shaped
 Substitution Effect and Income Effect VIDEO 3.6- Revenue and Profit
 Law of Diminishing Marginal Utility  Explicit vs. Implicit Costs
 5 Shifters (Determinants) of Demand  Accounting vs. Economic Profit
 Substitutes and Complements  Profit Maximizing Rule (MR=MC)
 Normal Goods vs. Inferior Goods VIDEO 3.7- The Shut Down Rule
VIDEO 2.2- Supply and Equilibrium  Shut Down Rule (P<AVC)
 Law of Supply VIDEO 3.8/3.9- Perfect Competition- Short-Run
 6 Shifters (Determinants) of Supply  Price Takers, Graph for Market and Firm
 Quantity Supplied vs. Supply VIDEO 3.10/3.11- Perfect Competition- Long-Run
VIDEO 2.3/2.4- Shifting Demand and Supply  No Barrier to Entry
 Equilibrium Price and Equilibrium Quantity  Normal Profit
 Disequilibrium: Surplus and Shortage VIDEO 3.12- Perfect Comp and Efficiency
VIDEO 2.5- Double Shifts  Productive Efficiency (P=Min ATC)
 Double Shift Rule  Allocative Efficiency (P= MC) 53

,Unit 4: Imperfect Competition  Monopsony Wage and Quantity
VIDEO 4.1- Demand and Marginal Revenue
 MR < Demand
VIDEO 4.2 and 4.7- Monopoly Practice
 Profit-Maximizing Price and Quantity
VIDEO 4.3- Deadweight loss caused by monopoly
 CS, PS, and Deadweight loss
VIDEO 4.4- Elastic vs. Inelastic Range
 Maximizing revenue and elastic range
VIDEO 4.5- Regulating a Monopoly
 Natural Monopoly
 Fair Return Price
 Socially Optimal Price
VIDEO 4.6- Lump Sum vs. Per Unit
 Lump Sum taxes and Per Unit taxes
VIDEO 4.8- Price Discrimination
 Graph for Price Discriminating Monopoly
VIDEO 4.9- Oligopolies and Game Theory
 Game Theory Matrix
VIDEO 4.10- Game Theory Practice
 Dominant Strategy
 Nash Equilibrium
VIDEO 4.11- Kinked Demand Curve Theory
 Kinked Demand Model
VIDEO 4.12 Monopolistic Competition
 Differentiated Products
 Long-Run Equilibrium
 Excess Capacity

Unit 5: Resource Market
VIDEO 5.1-Demand and Supply for Labor
 Derived demand
 Shifters of Labor Demand
 Shifters of Labor Supply
VIDEO 5.2- Minimum Wage
 Minimum Wage
VIDEO 5.2- Perfectly Competitive Market and Firm
 Wage Takers
 Marginal Revenue Product (MRP)
 Marginal Resource Cost (MRC)
VIDEO 5.3- Profit Maximizing
 Profit Maximizing Rule for Labor
VIDEO 5.4- Combining Resources
 Least Cost Rule
VIDEO 5.5- Monopsonies
 Wage Makers
2

,Unit 6: Market Failures and  Government Transfer Payments
Government Involvement VIDEO 6.6- Types of Taxes
VIDEO 6.1- Public  Progressive Taxes
Goods  Regressive Taxes
 Public Goods  Proportional Taxes
 Free-Rider Problem
 Non-Exclusion Micro Key Graphs
 Non-Rivalry (Shared  Production Possibilities Curve
Consumption) VIDEO 6.2- Marginal  Demand and Supply
Social Benefit and Cost  Demand and Supply: Price Controls
 MSB = MSC  Demand and Supply: Excise Tax
VIDEO 6.3- Negative Externalities  Demand and Supply: Trade and Tariffs
 Negative Externalities (Spillover Costs)  Side-by-Side Product Market and Firm
 Marginal Private  Monopoly
Cost VIDEO 6.4- Positive  Price Discriminating Monopoly
Externalities  Monopolistic Competition
 Positive Externalities (Spillover Benefits)  Game Theory Matrix
 Marginal Private  Side-by-Side Resource Market and Firm
Benefit VIDEO 6.5-  Monopsony
Income Distribution  Negative Externality
 Lorenz Curve  Positive Externality
 Gini Coefficient  Lorenz Curve




3

, Microeconomics Unit 1: Basic Economics Concepts
Key Terms- Define the following: 3 Economic Systems
1. Scarcity 1. Centrally Planned Economies


2. Consumer Goods vs. Capital Goods
2. Free-Market Economies (Capitalism)


3.Trade-offs
3. Mixed Economies

4. Opportunity Cost

Production Possibilities Curve (Frontier)
Use the chart to create a PPC to the right. Shoes Calculate the
30 Opportunity Cost:
A B C D E
A→B:
Hats 0 1 2 3 4 25 B→C:
Shoes 30 29 25 15 0
20 E→D:
Label the following three points on the C→A:
graph: 15
X= Unemployment/Inefficiency Y=
Efficient 10
Z= Impossible given current resource
5

0 1 2 3 4 Hats
Constant Opportunity Cost Increasing Opportunity Cost
Why does this occur? Why does this occur?

Draw the graph below Draw the graph below

Bicycles Bikes