ECON101: Principles of Microeconomics
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, for example, is the economic way of thinking? What do economists mean when they throw around terms like market structure and the invisible hand? This unit will identify and define these terms before addressing the driving principle behind microeconomics: the idea that individuals and firms (economic agents) make rational choices based on self-interest. These decisions are necessary, because all resources are scarce. In other words, no good or item is infinitely available. This unit will also introduce you to 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.