The Principles of Microeconomics course was developed through the Ohio Department of Higher Education OER Innovation Grant. This work was completed and the course was posted in December 2019. The course is part of the Ohio Transfer Assurance Guides and is also named OSS004. For more information about credit transfer between Ohio colleges and universities, please visit: www.ohiohighered.org/transfer.Content ContributorsKen Fah                                             Ohio Dominican UniversityJohn Fiske                                         Ohio Dominican UniversityJoe Nowakowski                                Muskingum UniversityLibrarianNathan Wolfe                                     Kenyon CollegeReview TeamMolly Cooper                                     Ohio State University Subbu Kumarappan                          Ohio State University ATI 

This topic presents an evaluation of the effect on competition of scale economies, and acquisitions and mergers.  It also covers methods of measuring market concentration as well as a discussion of possible policy measures designed to limit the damage from concentration.

This lesson discusses why and how consumers make certain choices.  Based on standard neoclassical theory, students are introduced to the concept of utility, budget constraints, and indifference curves.  Given market prices and utility information, students will understand the implicit thought processes that lead to total utility maximization.  In cases when individual behaviors do not adhere to the predictions of standard economic theory, the lesson employs behavioral economics to explain how and when consumer choices might be different under certain conditions including limited information, psychological pricing, bounded rationality, nudges, and loss aversion. 

In this topic, students will be introduced to the concept of elasticity.  They’ll learn about price elasticity of demand and price elasticity of supply, about their determinants and how to calculate it.  They’ll be introduced to some applications of price elasticity.  They’ll also learn about two other important elasticity measures, cross-price elasticity and income elasticity.  

In this topic, students will be introduced to imperfect competition.  They’ll learn about monopolistic competition and oligopoly, about their characteristics are and about how they differ from perfect competition and monopoly.  They’ll also focus on the importance of the key features of monopolistic competition, product differentiation and advertising; and the key features of oligopoly, mutual interdependence, collusion and the game-theoretic approach to strategy.     

This topic examines income inequality, poverty, and discrimination in the U.S. and around the world. The focus is on the U.S. with comparative discussion on other select nations. It provides evidence on poverty trends and a discussion on the causes of poverty. It also provides evidence on income distribution and a discussion on the causes of income inequality. The impact of discrimination on wage earnings is examined. There is an emphasis on policy measures to address poverty and income inequality. 

In this topic, students will be introduced to the elements of international trade. They’ll learn about the gains from trade and how they arise. They’ll learn the difference between absolute and comparative advantage and why comparative advantage is the key to profitable trade. They’ll also be exposed to the types of trade restrictions imposed by governments and the usual justifications for those restrictions.            

In this opening topic, students will be introduced to the fundamentals of economics including some important concepts and terms that they’ll use throughout the course. They’ll begin by learning about the basic problem in economics and how that problem is solved under different economic systems, including the market system. They’ll also be introduced to the idea of an economic model.     

In this topic, students will be introduced to the concept of market failure and learn about its two prime examples, the presence of externalities and the provision of public goods. The concept of externalities will be explained through the use of examples such as environmental protection and technological innovation. The resources identified below also include a brief coverage of market efficiency, which would usually be covered elsewhere, if the instructor wishes to review.     

This topic introduces the features of the market for labor, a factor of production.  It examines the factors that determine the demand for labor and supply of labor.  Equilibrium employment and wages under different assumptions of output and labor market structure are presented.  It considers the potential consequences of the minimum wage for workers and employers.  Current developments in US labor markets including labor unions, and their implications for trends in wages and earnings are explored.