• Principles Of Macroeconomics Study Guide
• Principles Of Microeconomics Study Guide
• Principles Of Microeconomics Clep Study Guide
• Principles Of Microeconomics Midterm Study Guide
• Principles Of Microeconomics Study Guide
• Principles Of Microeconomics Study Guide Pdf
• Principles Of Microeconomics Case Study

• Course Introduction

  This course will provide you with a basic understanding of the principles of microeconomics. At its core, the study of economics deals with the choices and decisions we make to manage the scarce resources available to us. Microeconomics is the branch of economics that pertains to decisions made at the individual level, such as the choices individual consumers and companies make after evaluating resources, costs, and tradeoffs.

  When we talk about the economy, we refer to the marketplace or economic system where our choices interact with one another. In this course, we discuss how and why we make economic decisions, and how our choices affect the economy. Think about each of the following units as a building block, where the concepts you learn will enable you to understand the material you discover in the next unit. By the end of this course, you will have a strong grasp on the major issues microeconomists face, including consumer and producer behavior, the nature of supply and demand, the different kinds of markets and how they function, and the welfare outcomes of consumers and producers. We also explore how these formal principles and concepts apply to real-world issues. The scope and emphasis of this course go beyond a general understanding of microeconomics to incorporate the core concepts of the overall field of economics.

  First, read the course syllabus. Then, enroll in the course by clicking 'Enroll me in this course'. Click Unit 1 to read its introduction and learning outcomes. You will then see the learning materials and instructions on how to use them.

• Unit 1: Introduction to Economics

  Before we dive into the principles of microeconomics, we need to define some of the major ideas that lie at the heart of economics. What is the economic way of thinking? What do economists mean when they discuss market structure and the invisible hand? In this unit we identify and define these terms before addressing the driving principles behind microeconomics: the idea that individuals and firms (economic agents) make rational choices based on self-interest. These decisions are necessary, because resources are scarce. In other words, no good or item is infinitely available. We will also introduce a number of economic models, the assumptions and constraints associated with each, and the ways they help us better understand real-life situations.

  Completing this unit should take you approximately 9 hours.

• Unit 2: Supply and Demand

  In this unit we introduce the ceteris paribus assumption, which is crucial to building correlations among economic variables. When using ceteris paribus, we assume that all variables – with the exception of those in explicit consideration – will remain constant. We then examine the supply and demand models and the resulting market equilibrium that occurs where the supply curve and the demand curve intersect. We also explore what causes movements along the curve and the set of factors that cause the curves to shift, affecting both price and quantity, before discussing the meaning and significance of elasticity.

  Next, we explore what happens when a market fails to produce a reasonable equilibrium. This situation typically occurs when either the market is not competitive or complete, or its participants are ill-informed. We evaluate various ways the government can address these failures and begin to understand the intricate relationship between government and economics.

  Completing this unit should take you approximately 18 hours.

• Unit 3: Markets and Individual Maximizing Behavior

  In this unit we examine how markets increase overall welfare via the concepts of consumer and producer surplus. We explore how the concepts of marginal costs and benefits affect a company's decision to make one more, or one less, product.

  We have already learned that, at its most fundamental level, microeconomics is the study of how we make decisions. To expand on this point, we need to distinguish between the either/or and how much decision. This concept is useful when you look more closely at why firms produce certain levels of output, taking opportunity cost and sunk (fixed) cost into consideration.

  This unit concludes with the causes and ramifications of income inequality. While there is much debate about how to address long-term inequality, economists can objectively measure the problem's scope and offer options to manage this economic phenomenon. Protracted poverty and inequality can cause long-term harm to an economy's development.

  Completing this unit should take you approximately 10 hours.

• Unit 4: The Consumer

  In this unit we focus on the individual consumer and the characteristics that compel them (to choose) to spend income on goods and services. The consumer experiences utility – a measure of satisfaction – with every purchase they make, and economists measure this utility to determine a consumer's optimal rate of consumption. The theory of demand is derived from the theory of consumer behavior presented in this unit. We can explain an individual's demand function by two approaches that help illustrate personal preferences: utility analysis and indifference analysis. We explore these concepts more fully in this unit.

  Completing this unit should take you approximately 12 hours.

• Unit 5: The Producer

  In this unit we learn about one of the most important economic agents: the producer. The producer (a company or firm) is responsible for creating the production function (output) and is subject to various cost measures and the results of diminishing returns. We explore these ideas more fully as we delve into the relationship between quantity of input and quantity of output. We will discuss how and why a firm's costs may differ in the short run versus the long run.

  Completing this unit should take you approximately 8 hours.

• Unit 6: Market Structure: Competitive and Non-Competitive Markets

  This unit introduces the concept of perfect competition, an ideal model that serves as a benchmark economists use to analyze real-world market structures. The model of perfect (or pure) competition creates an efficient allocation of resources. However, unregulated markets (which are central to perfect competition) often fail to create desired outcomes in the real world. Economists refer to these situations as examples of imperfect competition.

  Here we study the model of perfect competition and move on to what many consider the antithesis of perfect competition, the monopoly model. We will explore imperfect competition and two models that fall under it: monopolistic competition and oligopoly. We also touch on game theory, when we discuss the prisoner's dilemma model and the Nash equilibrium.

  Completing this unit should take you approximately 23 hours.

• Unit 7: Resource Markets

  In this unit we explore how firms decide how much to use their resources (land, labor, capital, and entrepreneurial ability), which are required to produce a final good, and at what price. We derive the demand for resources from the demand for the final goods used to produce them. For example, if consumer demand for cars increases (the final good), the demand for steel (and every other resource car manufacturers use to build the car) also increases.

  Completing this unit should take you approximately 3 hours.

• Study Guide

  This study guide will help you get ready for the final exam. It discusses the key topics in each unit, walks through the learning outcomes, and lists important vocabulary. It is not meant to replace the course materials!

• Course Feedback Survey

  Please take a few minutes to give us feedback about this course. We appreciate your feedback, whether you completed the whole course or even just a few resources. Your feedback will help us make our courses better, and we use your feedback each time we make updates to our courses.

  If you come across any urgent problems, email contact@saylor.org or post in our discussion forum.

• Certificate Final Exam

  Take this exam if you want to earn a free Course Completion Certificate.

  To receive a free Course Completion Certificate, you will need to earn a grade of 70% or higher on this final exam. Your grade for the exam will be calculated as soon as you complete it. If you do not pass the exam on your first try, you can take it again as many times as you want, with a 7-day waiting period between each attempt.

  Once you pass this final exam, you will be awarded a free Course Completion Certificate.

1. Principles of microeconomics senior contributing authors steven a. Greenlaw, university of mary washington timothy taylor, macalester college.
2. This study guide helps you review basic concepts of microeconomics in preparation for the College-Level Examination Program (CLEP) Principles of Microeconomics exam through a series of bite-sized.

Whether you’re studying macroeconomics, microeconomics, or just want to understand how economies work, we can help you make sense of dollars. × Principles of Microeconomics Study Set 1. Questions (22 Quizzes, 11656 Questions ) Quizzes. Quiz 1 439 Questions. Ten Principles of Economics.

Principles Of Macroeconomics Study Guide

The Principles of Microeconomics CLEP exam covers material that is usually taught in a one-semester undergraduate course in introductory microeconomics, including economic principles that apply to the behavioral analysis of individual consumers and businesses. You will be required to apply analytical techniques to hypothetical as well as real-world situations and to analyze and evaluate economic decisions. You’re expected to demonstrate an understanding of how free markets work and allocate resources efficiently, how individual consumers make economic decisions to maximize utility, and how individual firms make decisions to maximize profits. You must be able to identify the characteristics of the different market structures and analyze the behavior of firms in terms of price and output decisions. You should also be able to evaluate the outcome in each market structure with respect to economic efficiency, identify cases in which private markets fail to allocate resources efficiently, and explain how government intervention fixes or fails to fix the resource allocation problem. It is also important to understand the determination of wages and other input prices in factor markets, and be able to analyze and evaluate the distribution of income.

The exam contains approximately 80 questions to be answered in 90 minutes.

Questions on the Principles of Microeconomics exam require test takers to demonstrate one or more of the following abilities.

• Understanding of important economic terms and concepts
• Interpretation and manipulation of economic graphs
• Interpretation and evaluation of economic data
• Application of simple economic models

The subject matter of the Principles of Microeconomics exam is drawn from the following topics. The percentages next to the main topics indicate the approximate percentage of exam questions on that topic.

Basic Economic Concepts (8%–14%)

• Scarcity, choice, and opportunity cost
• Production possibilities curve
• Comparative advantage, specialization, and trade
• Economic systems
• Property rights and the role of incentives
• Marginal analysis

The Nature and Functions of Product Markets (55%–70%)

15%–20% Supply and demand

• Market equilibrium
• Determinants of supply and demand
• Price and quantity controls
• Elasticity
• Price, income, and cross-price elasticities of demand
• Price elasticity of supply
• Consumer surplus, producer surplus, and market efficiency
• Tax incidence and deadweight loss

5%–10% Theory of consumer choice

• Total utility and marginal utility
• Utility maximization: equalizing marginal utility per dollar
• Individual and market demand curves
• Income and substitution effects

Principles Of Microeconomics Study Guide

10%–15% Production and costs

• Production functions: short and long run
• Marginal product and diminishing returns
• Short-run costs
• Long-run costs and economies of scale
• Cost minimizing input combination

23%–33% Firm behavior and market structure

Profit

• Accounting versus economic profits
• Normal profit
• Profit maximization: MR=MC rule

Perfect competition

• Profit maximization
• Short-run supply and shut-down decision
• Firm and market behaviors in short-run and long-run equilibria
• Efficiency and perfect competition

Monopoly

• Sources of market power
• Profit maximization
• Inefficiency of monopoly
• Price discrimination

Oligopoly

• Interdependence, collusion, and cartels
• Game theory and strategic behavior

Principles Of Microeconomics Clep Study Guide

Monopolistic competition

• Product differentiation and role of advertising
• Profit maximization
• Short-run and long-run equilibrium
• Excess capacity and inefficiency

Factor Markets (8%–14%)

• Derived factor demand
• Marginal revenue product
• Labor market and firms’ hiring of labor
• Market distribution of income

Market Failure and the Role of Government (10%–16%)

Principles Of Microeconomics Midterm Study Guide

Externalities

Principles Of Microeconomics Study Guide

• Marginal social benefit and marginal social cost
• Positive externalities
• Negative externalities
• Remedies

Public goods

Principles Of Microeconomics Study Guide Pdf

• Public versus private goods
• Provision of public goods

Public policy to promote competition

• Antitrust policy
• Regulation

Income distribution

• Equity
• Sources of income inequality

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Credits4Less’ Principles of Microeconomics study guide will leave you fully prepared to pass your Principles of Microeconomics CLEP exam. Our study guide is broken down to match the exact make up of the actual CLEP exam with each unit containing a set of cheat sheet notes and dozens of practice questions.

Principles Of Microeconomics Case Study

1. Study guides that match the actual exam’s breakdown

2. Units that contain cheat sheet notes and practice questions

3. Hundreds of practice questions

4. Review your answers and learn from your mistakes