This course is the first of a series of a year-long course in economic reasoning designed for undergraduate students. The goal of this course is to introduce student to the application of the principles of microeconomic analysis to policy questions. Upon completion of the course, you should be able to understand basic economic analysis of public policy and be able to apply the principles of economics to these policies.
Of course, to apply economic principles to public policy, we first need to master the tools that economists use. Microeconomics studies the allocation of scarce resources among individual agents. Examples of such agents include consumers, firms, or workers. The allocation of resources is determined by interactions in markets. The course will focus on how markets work. In particular, we will see how agents, such as buyers and sellers, are able to interact in such a way that mutually beneficial exchanges are possible. As we analyze various market scenarios, we will ask what role government intervention into the market may play, and whether such intervention is necessary.