Introduction to Microeconomics

1. Intro to Micro: Demand and Supply

Austrian Economics Overview

01/21/2010Audio/Video
Microeconomics is concerned with the actions of individuals. The focus of macroeconomics is entire sectors of the economy.

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2. Value

Austrian Economics OverviewValue and Exchange

01/21/2010Audio/Video
Why is it that things like bread and water which have high use values are cheap while on the other hand luxury items like diamonds are very expensive? This paradox was not solved until it became understood that people choose only a marginal unit - this loaf or this diamond.

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3. The Determination of Prices

Austrian Economics OverviewPrices

01/22/2010Audio/Video
Price is determined by the equilibrium price and the equilibrium quantity. If your good is not selling, you lower the price. If your goods fly off the shelves you are selling too cheaply and you raise prices.

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4. Price Controls in the Oil Industry

Austrian Economics OverviewInterventionismPrices

02/11/2010Audio/Video
The disappearance of oil has been forecast every decade. Prices were overlooked. When the price is high it is more profitable to look for oil. Total reserves on the ground are higher than they were in 1890.

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5. Minimum Price Controls

Austrian Economics OverviewInterventionismPrices

02/11/2010Audio/Video
Thou shalt not sell a certain product or service below a certain price, e.g. wheat, cotton, corn, cheese, sugar. This will result in an artificial unsold permanent surplus, as it does in the American farm situation.

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6. Government Licensing of Industry and Minimum Wage

Big GovernmentAustrian Economics OverviewInterventionism

02/11/2010Audio/Video
The peanut butter crunch was in 1980. Crop acreage and production was cut down by 45% by government price support, import quotas, and cartelizing of the industry. The price of peanuts more than tripled.

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7. Mid-Term Review and The Theory of the Firm

Austrian Economics OverviewCapital and Interest TheoryProduction Theory

02/11/2010Audio/Video
The objective of the corporate firm is to maximize profits and avoid losses - the same objective of the free market. But the costs are paid out before the income comes in. Stockholders will sell stock to shake up the managers.

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8. The Firm

Austrian Economics Overview

02/11/2010Audio/Video
Business men must make sure they can cover their costs by incoming revenue. The production function will yield a certain quantity of a product. The firm considers marginal costs and average costs to weigh where along the demand curve production is.

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9. Monopoly and Competition

Austrian Economics OverviewMonopoly and CompetitionProduction Theory

02/11/2010Audio/Video
The words monopoly and competition have been changed. Competition meant rivalry or competing, either active or potential. Businesses do not like this. Monopoly meant a grant of privilege by the government. It now means falling demand curve.

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10. Government Cartels

Big GovernmentAustrian Economics OverviewInterventionism

02/11/2010Audio/Video
The only cartels that have lasted have been government cartels. There is no essential difference between a cartel and an ordinary corporation or partnership. Not even the De Beers cartel is all powerful.

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