Analysis of the behavior of individual economic agents, including consumer behavior and demand, producer behavior and supply, price and output decisions by firms under various market structures, factor markets, market failures, and international trade.

Meets NCTC Core Curriculum Requirement

Upon completion, students will be able to:

  • Explain the role of scarcity, specialization, opportunity cost, and cost/benefit analysis in economic decision-making.
  • Identify the determinants of supply and demand; demonstrate the impact of shifts in both market supply and demand curves on equilibrium price and output
  • Summarize the law of diminishing marginal utility; describe the process of utility maximization.
  • Calculate supply and demand elasticities, identify the determinants of price elasticity of demand and supply, and demonstrate the relationship between elasticity and total revenue.
  • Describe the production function and the Law of Diminishing Marginal Productivity; calculate and graph short-run and long-run costs of production.
  • Identify the four market structures by characteristics; calculate and graph the profit maximizing price and quantity in the output markets by use of marginal analysis.
  • Determine the profit maximizing price and quantity of resources in factor markets under perfect and imperfect competition by use of marginal analysis.
  • Describe governmental efforts to address market failure such as monopoly power, asymmetric information, externalities, and public goods.
  • Identify the benefits of free trade using the concept of comparative advantage

Grade Basis: L
Credit Hours: 3
Lecture hours: 48.0