About this course: This course offers an introduction to the functions of individual decision-makers—both consumers and producers—within the larger economic system. Emphasis is on the nature and functions of product markets, the theory of the firm under varying conditions of competition and monopoly, and the role of government in promoting efficiency in the economy. Most people make the incorrect assumption that economics is ONLY the study of money. My primary goal in this course is to shatter this belief. During this course, we will be addressing the above questions as well as many more relating to: -the environment -love and marriage -crime -labor markets -education -politics -sports -business My main goal is to show you the way economists think and how to use this analytical system to answer questions related not only to these and other important human issues, but to anything you end up doing with your life after this class. After all, as you will quickly find out, I believe that everything is economics!
Created by: University of Illinois at Urbana-Champaign
Taught by: Dr. José J. Vázquez-Cognet, Clinical Professor
Department of Economics
| Level | Beginner |
| Commitment | Customizable based on your level of interest |
| Language | English, Subtitles: Spanish, Chinese (Simplified) |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
Course Orientation
You will become familiar with the course, your classmates, and our learning environment. The orientation will also help you obtain the technical skills required for the course.
1 video, 4 readings, 1 practice quiz
- Reading: Syllabus
- Video: Microeconomic Principles at a Glance
- Reading: About the Discussion Forums
- Practice Quiz: Orientation Quiz
- Reading: Updating Your Profile
- Discussion Prompt: Getting to Know Your Classmates
- Reading: Social Media
Introduction and Basic Principles
Welcome to your first week in Microeconomics Principles! As you will quickly see, the things you learn in this class will probably help you see the world in a different way. Economics is not just about money, as you may have incorrectly assumed. On the contrary, as you will learn in this lesson, economics is about how society distributes scarce resources. And, since almost anything in the world is a scarce resource, from fossil fuels to nice guys, we can apply the rules of economics to pretty much anything.
6 videos, 1 reading
- Reading: Week 1 Overview
- Video: 1.1. Welcome to Principles of Microeconomics
- Video: 2.1. What is Economics?
- Video: 2.2. Opportunity Costs
- Video: 2.3. Net Marginal Benefit Principle
- Video: 2.4. The Invisible Hand Principle
- Video: 2.5. Trade
- Discussion Prompt: Week 1 Discussion Questions
Graded: Week 1 Quiz
WEEK 2
Supply and Demand
Welcome to your second week in Microeconomics Principles! This module we will cover the hallmark framework of the field: the supply and demand model. I am sure that if you knew any economics words before enrolling in this course those two words were supply and demand. This module you will finally learn what all the fuss is about.
17 videos, 1 reading
- Reading: Week 2 Overview
- Video: 1.1. What is a Market?
- Video: 1.2. The Market for Romantic Relationships
- Video: 2.1. The Determinants of Demand
- Video: 2.2. The Demand Function, Schedule, and Curve
- Video: 2.3. Introducing Comparative Statistics: Changes in the Price
- Video: 2.4. A Change in Demand, Part 1
- Video: 2.5. A Change in Demand, Part 2
- Video: 3.1. The Determinants of Supply
- Video: 3.2. The Supply Equation, Schedule, and Curve
- Video: 3.3. Price of an Input Changes
- Video: 3.4. A Change in Technology
- Video: 4.1. Supply Surplus, Supply Shortage, and Equilibrium Price
- Video: 5.1. Changes in Demand: Price of Related Goods
- Video: 5.2. Changes in Demand: Consumer Preferences
- Video: 5.3. A Change in Supply
- Video: 5.4. Simultaneous Change in Supply and Demand
- Video: 6.1. Demand and Supply Conclusion
- Discussion Prompt: Week 2 Discussion Questions
Graded: Week 2 Quiz
WEEK 3
Market Efficiency and Government Policies
Welcome to Week 3! Last module we introduced the supply and demand model to explain how free markets work. One of the main concepts we learned about free markets was that they tend to gravitate toward an “equilibrium” price and quantity. This module we will use the same conceptual model to answer one important question: Are free markets the best way to distribute society’s resources?
10 videos, 1 reading
- Reading: Week 3 Overview
- Video: 1.1. Do We Need Silly Products?
- Video: 2.1. What is Consumer Surplus?
- Video: 2.2. Consumer Surplus and the Demand Curve
- Video: 3.1. What is Producer Surplus?
- Video: 3.2. Producer Surplus and the Supply Curve
- Video: 4.1. Total Surplus: The Graphical Argument for Free Markets
- Video: 5.1. Price Ceilings
- Video: 5.2. Price Floors
- Video: 6.1. Could We Reduce the Shortage of Human Organs?
- Video: 6.2. Application: Playoff Tickets and Scalping Laws
- Discussion Prompt: Week 3 Discussion Questions
Graded: Week 3 Quiz
WEEK 4
Elasticities
Welcome to the fourth week! This module we will cover one of my favorite economics concepts: elasticity. It is one of my favorites because of how useful it is to analyze policy implications, as well as its usefulness for business managers. This will be obvious to you when you read one of the discussion topics for this module: Should we legalize marijuana?
14 videos, 1 reading
- Reading: Week 4 Overview
- Video: 1.1. Introduction to Elasticity
- Video: 2.1. Definition and Classifying Price Elasticities of Demand
- Video: 2.2. Price Elasticity of Demand and Revenue
- Video: 2.3. Determinants of Price Elasticity of Demand
- Video: 2.4. Price Elasticities of Demand and the Linear Demand Curve
- Video: 3.1. Income Elasticity of Demand
- Video: 3.2. Cross-Price Elasticity of Demand
- Video: 4.1. Definition of Price Elasticity of Supply
- Video: 4.2. Determinants of Price Elasticity of Supply
- Video: 5.1. Introduction to Per-Unit Taxes
- Video: 5.2. The Distributional Effects of Tax
- Video: 5.3. Taxes and Surplus
- Video: 6.1. Should Black Dog Increase the Price of Their Sandwiches?
- Video: 6.2. Other Applications of Price Elasticity
- Discussion Prompt: Week 4 Discussion Questions
Graded: Week 4 Quiz
WEEK 5
Production and Costs
Welcome to your fifth week! This module we will begin covering the theory of the firm, which will take us basically three modules to finish. Economists call this section of the course, "The Economics of the Lemonade Stand." And that title makes perfect sense, since the concepts we cover can be used by anyone, from someone owning a lemonade stand, to a car manufacturing company, to a hair salon, to a burrito stand, etc.
9 videos, 1 reading
- Reading: Week 5 Overview
- Video: 1.1. Introduction to Production
- Video: 2.1. Demonstration: The Production of Tennis Balls
- Video: 2.2. The Production Process at a Glance
- Video: 2.3. A Numerical Example: Cooks in the Kitchen
- Video: 3.1. Fixed, Variable, and Total Costs
- Video: 3.2. Marginal Costs
- Video: 3.3. Cost Curves
- Video: 4.1. Back to Black Dog
- Video: 4.2. Applications
- Discussion Prompt: Week 5 Discussion Questions
Graded: Week 5 Quiz
WEEK 6
Competitive Output
Welcome to your sixth week! This module we continue our discussion of the firm by focusing on those firms working in a perfectly competitive (or competitive) environment.
10 videos, 1 reading
- Reading: Week 6 Overview
- Video: 1.1. Introduction to Competitive Output
- Video: 2.1. The Maximizing Profit Assumption
- Video: 2.2. The Profit Equation
- Video: 2.3. The Profit Maximizing Rule
- Video: 3.1. Perfect Competition
- Video: 4.1. The Short-run Decision
- Video: 4.2. Long-run Competitive Output
- Video: 4.3. Using the Long-run Equilibrium Model
- Video: 4.4. The Long-run Supply Curve
- Video: 5.1. Conclusion to Competitive Output
- Discussion Prompt: Week 6 Discussion Questions
Graded: Week 6 Quiz
WEEK 7
Firms with Market Power
So, why is it that when you fly the person sitting next to you in the plane probably paid a different price for the ticket than what you paid for it? And why does Starbucks charge so much for its coffee even though you can buy coffee at Dunkin’ Donuts for almost half of that price? This module we are finishing our discussion of the firm by focusing on cases that should be more familiar to you than the perfect competition examples we have been using.
10 videos, 1 reading
- Reading: Week 7 Overview
- Video: 1.1. Pricing with Market Power: An Introduction
- Video: 2.1. Market Structures With Pricing Power
- Video: 2.2. Sources of Market Power
- Video: 3.1. When Marginal Revenue is Less than Price
- Video: 3.2. Marginal Revenue and the Price Elasticity of Demand
- Video: 4.1. Perfect Price Discrimination
- Video: 4.2. Imperfect Price Discrimination
- Video: 4.3. Other Pricing Strategies
- Video: 5.1. The Social Cost of Market Power
- Video: 6.1. Pricing with Market Power: Conclusion
- Discussion Prompt: Week 7 Discussion Questions
Graded: Week 7 Quiz
WEEK 8
Public Goods, Common Resources, and Externalities
And so we have arrived at the last week. This course has gone too fast! This module we will be discussing market failures. A market failure is a situation when the market does not do a good job of distributing resources among members of society. In fact, in all of these cases the market IS the problem.
13 videos, 1 reading
- Reading: Week 8 Overview
- Video: 1.1. Introduction to Public Goods, Common Resources, and Externalities
- Video: 2.1. How to Classify Goods
- Video: 2.2. What Type of Good is This?
- Video: 3.1. The Public Goods Game
- Video: 3.2. Public Goods
- Video: 3.3. Solving the Free Rider
- Video: 4.1. The Tragedy of the Commons
- Video: 4.2. How to Deal with the Tragedy of the Commons
- Video: 5.1. Negative Externalities
- Video: 5.2. Positive Externalities
- Video: 5.3. Private Solutions
- Video: 5.4. Governmental Solutions
- Video: 6.1. Conclusion to Public Goods, Common Resources, and Externalities
- Discussion Prompt: Week 8 Discussion Questions
- Discussion Prompt: Final Reflections
Graded: Week 8 Quiz
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Ratings and Reviews
I loved the course, I would like to publicly express my congratulations to the professor who teaches this course.
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Go ahead and repeat my thanks and congratulations.
This course is very easy to understand and it used a lot of daily life examples to explain the concept.
Great course. Learned a lot!
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