Summary
Microeconomics Summary Week 1
- Course
- Institution
Microeconomics Summary Week 1 including readings
[Show more]
Seller
Followapollinecroc
Reviews received
Content preview
Week 1 :Preparation: Chapter 1 :
Preliminaries
Microeconomics: Branch of economics that deals with the behavior of individual
economic units—consumers, firms, workers, and investors—as well as the markets
that these units comprise.
Macroeconomics: Branch of economics that deals with aggregate economic variables,
such as the level and growth rate of national output, interest rates, unemployment,
and inflation.
Consumer theory: how consumers maximize their well-being by trading off.
Trades off are based on prices faced by consumers, workers and firms.
Positive analysis: Analysis describing relationships of cause/ effect.
Normative analysis: Analysis examining questions of what ought to be/ also added
with value judgments (if involve: micro can’t tell the best policy but can illuminate
some points).
A market is a collection of The market price is prevailing
buyers and sellers that, through their (dominant) in a competitive market
potential or actual interactions, The extent of a market refers to
determine the price of a product or set boundaries of a market, both
of products. geographical and in terms of range of
An industry is a collection of products produced and sold within it.
firms that sell the same or closely Nominal price is the absolute
related products. price of a good, unadjusted for inflation
A market definition is a ≠ the real price is the price of a good
determination of the buyers, sellers, relative to an aggregate measure of
and range of products that should be prices; price adjusted for inflation.
included in a particular market. Consumer price index (CPI) is
Arbitrage: buying at a low price the measure of the aggregate price
on one market and sell at a higher one level.
on another. Producer Price Index (PPI) is the
A perfect competitive market measure of the aggregate price level
has many buyers and sellers, so that for intermediate products and
no single buyer or seller has a wholesale goods.
significant impact on prices.
Chapter 2: The Basics of Supply and
Demand
sh
Chapter 3: Consumer Behavior
The theory of consumer behavior: the explanation of how consumers allocate
incomes to the purchase of different goods and services. Three steps:
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller apollinecroc. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.44. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now