This text provides a strong foundation in microeconomic theory, whether preparing for further study in economics, the social sciences, business, or other disciplines. Designed to help students think like economists, course materials use engaging, real-world examples to explore how individuals and firms make economic choices.

TitlePage
InfoPage
Table of Contents
2: Course Contents
- 2.1: About This Course
- 2.2: Course Contents at a Glance
- 2.3: Learning Outcomes
3: Faculty Resources
- 3.1: Faculty Resources Overview
- 3.2: Pacing
- 3.3: PDF
- 3.4: PowerPoints
- 3.5: Assignments
- 3.6: Problem Sets
- 3.7: Question Banks
- 3.8: I Need Help
4: Module 1: Economic Thinking
- 4.1: Why It Matters: Economic Thinking
- 4.10: Solving Simple Equations
- 4.11: Introduction to Graphs in Economics
- 4.12: Creating and Interpreting Graphs
- 4.13: Interpreting Slope
- 4.14: Types of Graphs
- 4.15: Putting It Together: Economic Thinking
- 4.16: Discussion: Is Economics a Science?
- 4.17: Assignment: Problem Set — Economic Thinking
- 4.2: Introduction to Economics
- 4.3: Understanding Economics and Scarcity
- 4.4: The Concept of Opportunity Cost
- 4.5: Labor, Markets, and Trade
- 4.6: Microeconomics and Macroeconomics
- 4.7: Introduction to Math in Economics
- 4.8: Economic Models
- 4.9: Purpose of Functions
5: Module 2: Choice in a World of Scarcity
- 5.1: Why It Matters: Choice in a World of Scarcity
- 5.10: Rationality and Self-Interest
- 5.11: Marginal Analysis
- 5.12: Positive and Normative Statements
- 5.13: Putting It Together: Choice in a World of Scarcity
- 5.14: Discussion: Making Irrational Choices
- 5.15: Assignment: Guns or Butter?
- 5.16: Assignment: Problem Set — Choice in a World of Scarcity
- 5.2: Introduction to the Cost of Choices
- 5.3: Budget Constraints and Choices
- 5.4: Calculating Opportunity Cost
- 5.5: Learn By Doing: Budget Constraints and Opportunity Cost
- 5.6: Introduction to the Production Possibilities Frontier
- 5.7: The Production Possibilities Frontier
- 5.8: Productive Efficiency and Allocative Efficiency
- 5.9: Introduction to the Economic Way of Thinking
6: Module 3: Supply and Demand
- 6.1: Why It Matters: Supply and Demand
- 6.10: What is Supply?
- 6.11: Factors Affecting Supply
- 6.12: Learn By Doing: Graphing Supply and Demand
- 6.13: Learn By Doing: Supply of Food Trucks
- 6.14: Introduction to Equilibrium
- 6.15: Equilibrium, Surplus, and Shortage
- 6.16: Changes in Equilibrium
- 6.17: Finding Equilibrium
- 6.18: Changes in Supply and Demand
- 6.19: Learn By Doing: Food Trucks and Changes in Equilibrium
- 6.2: Introduction to Economic Systems
- 6.20: Learn By Doing: Calculating Equilibrium
- 6.21: Putting It Together: Supply and Demand
- 6.22: Discussion: Supply and Demand
- 6.23: Assignment: Supply and Demand of Coffee
- 6.24: Assignment: Problem Set — Supply and Demand
- 6.3: Economic Systems
- 6.4: Introduction to Demand
- 6.5: What Is Demand?
- 6.6: Factors Affecting Demand
- 6.7: Learn By Doing: Graphing Demand
- 6.8: Learn By Doing: Demand for Food Trucks
- 6.9: Introduction to Supply
7: Module 4: Applications of Supply and Demand
- 7.1: Why It Matters: Applications of Supply and Demand
- 7.10: Inefficiency of Price Floors and Price Ceilings
- 7.11: Learn By Doing: Consumer and Producer Surplus
- 7.12: Introduction to Labor and Financial Markets
- 7.13: Labor and Financial Markets
- 7.14: Putting It Together: Applications of Supply and Demand
- 7.15: Discussion: Price Controls
- 7.16: Assignment: Price Controls After a Storm
- 7.17: Assignment: Problem Set — Applications of Supply and Demand
- 7.2: Introduction to Price Ceilings and Price Floors
- 7.3: Price Ceilings
- 7.4: Price Floors
- 7.5: Learn By Doing: Shortage and Surplus
- 7.6: A Closer Look at Price Controls
- 7.7: Introduction to Surplus
- 7.8: Trade and Efficiency
8: Module 5: Elasticity
- 8.1: Why It Matters: Elasticity
- 8.10: Price Elasticity of Supply
- 8.11: Introduction to Elasticities in Areas Other Than Price
- 8.13: Introduction to Price Elasticity and Total Revenue
- 8.14: Elasticity and Total Revenue
- 8.15: Elasticity, Costs, and Customers
- 8.16: Tax Incidence
- 8.17: Putting It Together: Elasticity
- 8.18: Discussion: Junk Food and Elasticity
- 8.19: Assignment: Elasticity and Tuition
- 8.2: Introduction to Elasticity
- 8.20: Assignment: Problem Set — Elasticity
- 8.3: Elasticity of Demand
- 8.4: Examples of Elastic and Inelastic Demand
- 8.5: Introduction to Calculating Price Elasticity
- 8.6: Calculating Elasticity and Percentage Changes
- 8.7: Calculating Price Elasticities Using the Midpoint Formula
- 8.8: Learn By Doing: Calculating Price Elasticities
- 8.9: Categories of Elasticity
9: Module 6: Utility
- 9.1: Why It Matters: Utility
- 9.10: Introduction to Indifference Curves
- 9.11: Indifference Curve Analysis
- 9.12: Introduction to Behavioral Economics
- 9.13: Behavioral Economics: An Alternative Viewpoint
- 9.14: Putting It Together: Utility
- 9.15: Assignment: Maximizing Utility of Pizzas and Twinkies
- 9.16: Assignment: Problem Set—Utility
- 9.2: Introduction to Utility and Consumer Equilibrium
- 9.3: Consumer Choice and Utility
- 9.4: Marginal Utility versus Total Utility
- 9.5: Rules for Maximizing Utility
- 9.6: Learn By Doing: Maximizing Utility
- 9.7: Introduction to Changes in Consumer Equilibrium
- 9.8: Income Changes and Consumption Choices
- 9.9: The Foundations of the Demand Curve
10: Module 7: Production and Costs
- 10.1: Why It Matters: Production and Costs
- 10.10: Learn By Doing: Average Costs and Curves
- 10.11: Lessons From Alternative Measures of Cost
- 10.12: Introduction to Production and Costs in the Long Run
- 10.13: Production in the Long Run
- 10.14: Long Run Costs and Production Technology
- 10.15: Economies of Scale
- 10.16: The Size and Number of Firms in an Industry
- 10.17: Putting It Together: Production and Costs
- 10.18: Discussion: Diminishing Returns
- 10.19: Assignment: Production and Costs
- 10.2: Introduction to Production
- 10.20: Assignment: Problem Set—Production and Costs
- 10.3: What is Production?
- 10.4: The Production Function
- 10.5: Introduction to Costs in the Short Run
- 10.6: Costs and Profit
- 10.7: Costs in the Short Run
- 10.8: Learn By Doing: Costs in the Short Run
- 10.9: Average Costs and Curves
11: Module 8: Perfect Competition
- 11.1: Why It Matters: Perfect Competition
- 11.10: Entry and Exit Decisions in the Long Run
- 11.11: Learn By Doing: Entry and Exit Decisions in the Long Run
- 11.12: Efficiency in Perfectly Competitive Markets
- 11.13: Putting It Together: Perfect Competition
- 11.14: Discussion: Where’s the Competition in Perfect Competition?
- 11.15: Assignment: Independent Trucking Analysis
- 11.16: Assignment: Problem Set—Perfect Competition
- 11.2: Introduction to Perfect Competition
- 11.3: Perfect Competition
- 11.4: Profit Maximization in a Perfectly Competitive Market
- 11.5: Learn By Doing: Profit Maximization in a Perfectly Competitive Firm
- 11.6: Introduction to Profit in a Perfectly Competitive Firm
- 11.7: Calculating Profits and Losses
- 11.8: The Shutdown Point
- 11.9: Introduction to the Long Run and Efficiency in Perfectly Competitive Markets
12: Module 9: Monopoly
- 12.1: Why It Matters: Monopoly
- 12.10: Price Discrimination and Efficiency
- 12.11: Introduction to Monopoly and Antitrust Policy
- 12.12: Corporate Mergers
- 12.13: Regulating Anticompetitive Behavior
- 12.14: Regulating Natural Monopolies
- 12.15: The Great Deregulation Experiment
- 12.16: Putting It Together: Monopoly
- 12.17: Discussion: Monopoly
- 12.18: Assignment: Price Discrimination
- 12.19: Assignment: Problem Set—Monopoly
- 12.2: Introduction to Monopoly
- 12.3: Monopolies
- 12.4: How Monopolies Form: Barriers to Entry
- 12.5: Introduction to Profit and Losses in Monopolies
- 12.6: Profit Maximization for a Monopoly
- 12.7: Learn By Doing: Profit Maximization for a Monopoly
- 12.8: Computing Monopoly Profits
- 12.9: The Inefficiency of Monopoly
13: Module 10: Monopolistic Competition and Oligopoly
- 13.1: Why It Matters: Monopolistic Competition and Oligopoly
- 13.10: Introduction to Oligopolies
- 13.11: Why do Oligopolies Exist?
- 13.12: Collusion or Competition?
- 13.13: Prisoner’s Dilemma
- 13.14: Learn By Doing: Prisoner’s Dilemma
- 13.15: Putting It Together: Monopolistic Competition and Oligopoly
- 13.16: Discussion: Oligopoly
- 13.17: Assignment: Grocery Competition
- 13.18: Assignment: Problem Set—Monopolistic Competition and Oligopoly
- 13.2: Introduction to Monopolistically Competitive Industries
- 13.3: Monopolistic Competition
- 13.4: Introduction to Analyzing and Graphing Monopolistic Competition
- 13.5: Profit Maximization under Monopolistic Competition
- 13.6: Learn By Doing: Profit Maximization Under Monopolistic Competition
- 13.7: Entry, Exit and Profits in the Long Run
- 13.8: Monopolistic Competition and Efficiency
- 13.9: Product Differentiation and Advertising
14: Module 11: Public Goods and Externalities
- 14.1: Why It Matters: Public Goods and Externalities
- 14.10: Command-and-Control Regulation
- 14.11: U.S. Environmental Laws
- 14.12: How Governments Can Encourage Innovation
- 14.13: Market-Oriented Environmental Tools
- 14.14: Learn By Doing: Market-Oriented Environmental Tools
- 14.15: Putting It Together: Public Goods
- 14.16: Discussion: Externalities and Public Goods
- 14.17: Assignment: Public Goods and OER
- 14.18: Assignment: Problem Set—Public Goods and Externalities
- 14.2: Introduction to Public Goods and Externalities
- 14.3: Externalities
- 14.4: Public Goods
- 14.5: Free Riders
- 14.6: Introduction to Positive and Negative Externalities
- 14.7: Positive Externalities and Technology
- 14.8: Negative Externalities: Pollution
- 14.9: Introduction to Government Involvement with Externalities
15: Module 12: Labor Markets
- 15.1: Why It Matters: Labor Markets
- 15.10: Labor Market Power by Employees
- 15.11: Introduction to Discrimination in Labor Markets
- 15.12: Employment Discrimination
- 15.13: Immigration
- 15.14: Putting It Together: Labor Markets
- 15.15: Discussion: Labor Markets
- 15.16: Assignment: Workers and Wages
- 15.17: Assignment: Problem Set—Labor Markets
- 15.2: Introduction to Labor Markets
- 15.3: Labor Markets
- 15.4: The Demand for Labor
- 15.5: Learn By Doing: The Demand for Labor
- 15.6: Introduction to Wages and Employment in Labor Markets
- 15.7: Labor Market Power by Employers
- 15.8: Learn By Doing: Labor Market Power By Employers
- 15.9: Learn By Doing: Workers and Wages
16: Module 13: Income Distribution
- 16.1: Why It Matters: Income Distribution
- 16.10: Government Policies to Reduce Income Inequality
- 16.11: Putting It Together: Income Distribution
- 16.12: Discussion: Wealth and Income Inequality
- 16.13: Assignment: Inequality and Childcare
- 16.14: Assignment: Problem Set—Income Distribution
- 16.2: Introduction to Poverty
- 16.3: How is Poverty Defined and How Widespread is it?
- 16.4: The Poverty Trap
- 16.5: Learn By Doing: The Poverty Trap
- 16.6: The Safety Net
- 16.7: Introduction to the Distribution of Income
- 16.8: Measuring Income Inequality
- 16.9: Causes of Growing Inequality
17: Module 14: Globalization and Trade
- 17.1: Why It Matters: Globalization and International Trade
- 17.10: Introduction to the Trade Barriers and Protectionism
- 17.11: Protectionism
- 17.12: The Tradeoffs of International Trade
- 17.13: Introduction to Trade Policy and Agreements
- 17.14: The Role of the GATT in Reducing Barriers to Trade
- 17.15: Trade Policy: Organizations and Agreements
- 17.16: Putting It Together: Globalization and International Trade
- 17.17: Discussion: Absolute and Comparative Advantage
- 17.18: Assignment: Absolute and Comparative Advantage
- 17.19: Assignment: Problem Set — Globalization and Trade
- 17.2: Introduction to Comparative Advantage
- 17.3: Absolute and Comparative Advantage
- 17.4: Comparative Advantage and the Gains from Trade
- 17.5: Learn By Doing: Comparative Advantage and the Gains from Trade
- 17.6: Learn By Doing: International Trade
- 17.7: Intra-Industry Trade
- 17.8: Demand and Supply Analysis of International Trade
- 17.9: Learn By Doing: Demand and Supply Analysis of International Trade
18: Module 15: Exchange Rates and International Finance
- 18.1: Why It Matters: Exchange Rates and International Finance
- 18.10: Putting It Together: Exchange Rates and International Finance
- 18.11: Discussion: Global Currencies
- 18.12: Assignment: Exchange Rates and International Finance
- 18.13: Assignment: Problem Set — Exchange Rates and International Finance
- 18.2: Introduction to the Foreign Exchange Market
- 18.3: The Foreign Exchange Market
- 18.4: Strengthening and Weakening Currency
- 18.5: Introduction to Exchange Rates and Purchasing Power
- 18.6: Demand and Supply Shifts in Foreign Exchange Markets
- 18.7: Introduction to Exchange Rates and the Trade Balance
- 18.8: Macroeconomic Effects of Exchange Rates
- 18.9: Exchange-Rate Policies
Back Matter
- Index
- Glossary