This midterm study guide for SOCIOL 173 at UCLA combines information from class notes and assigned readings to create a thorough review resource. It covers essential topics such as economic sociology, behavioral economics, organizational decision-making, and the role of the state in market institut...
Microeconomics studies individual markets, firms, and transactions between consumers and
producers. Unlike sociology, psychology, and anthropology, which focus on broader human
behavior and cultural practices, economics specifically deals with how resources are allocated
and how markets function.
For example, the telecommunications industry has seen a dramatic change in pricing, where
once it cost the inflation-adjusted equivalent of $12 for a three-minute long-distance phone call
in the 1960s, and now with the internet, people can make unlimited calls for free. This shift in
pricing reflects how microeconomic principles shape real-world consumer behavior and market
evolution.
Micro-Economics Concepts
Low vs High-Valued Uses: This concept refers to how resources are used in ways that bring the
most benefit or value. Opportunity cost plays a big role here—it’s what you give up by
choosing one option over another. So, if a resource (like oil) can be used in different ways, you
want to allocate it to the option that brings the highest return or value.
- For example, during the 2020 oil price war, Saudi Arabia and Russia lowered their oil
prices to hurt North American oil producers (who had higher costs). By doing this, they
chose to sell their oil cheaply in the short term to drive out competition and dominate the
market in the long run. They sacrificed short-term profit (low-value use) for future
market control (high-value use).
Low vs High-Cost Providers: Low-cost providers can offer goods at a lower price, allowing
them to dominate markets. For example, McDonald's uses self-checkout kiosks to substitute
labor, which reduces costs and helps the company provide cheaper meals than restaurants relying
on traditional cashiers.
Demand Curves: The demand curve illustrates how consumers’ willingness to purchase changes
as the price shifts. In the 1870s, the high cost of sending a telegram ($15 adjusted for inflation)
restricted its use to high-value communications. As communication became cheaper (e.g.,
texting), demand for lower-value uses increased.
Supply Curves: The supply curve reflects how much producers are willing to sell at various
prices. Fracking technology shifted the supply curve for oil and natural gas by lowering
production costs, allowing companies to increase supply at any given price.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper grantgeyerhahn. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €4,86. Je zit daarna nergens aan vast.
