Summary of Micro Unit 1 Summary (Updated Version)

00:00:00 - 00:30:00

In this video, the key concepts in microeconomics are summarized. These include scarcity, economic systems, production possibilities curve, cost-benefit analysis, and marginal analysis. The video then goes on to discuss the basics of microeconomics and macroeconomics. Finally, practice exercises are provided on each of these concepts.

• 00:00:00 This video provides a quick summary of the key concepts in microeconomics. These concepts include scarcity, economic systems, production possibilities curve, cost-benefit analysis, and marginal analysis. The video then goes on to discuss the basics of microeconomics, which is the study of small economic units. Macroeconomics, on the other hand, is the study of the big picture in the economy, such as inflation, unemployment, and gross domestic product. The video then provides practice exercises on each of these concepts.
• 00:05:00 In this video, the key graph is introduced and explained. It shows the different types of economies, and the ways in which they are regulated.
• 00:10:00 The production possibilities curve is a model that shows the alternative ways we can use our scarce resources. It shows the trade-offs betweenscarcity opportunity cost efficiency. It also shows how the opportunity cost for producing one good gets bigger as we produce more of that good.
• 00:15:00 The video introduces the concept of absolute and comparative advantage, and shows how the United States has an absolute advantage in the production of sugar and wheat. It then explains how to calculate comparative advantage, and demonstrates the effects of trade on the production possibilities curve.
• 00:20:00 In this video, Clifford explains how to calculate comparative advantage using the per unit opportunity cost. In an input question, Canada and Mexico have an absolute advantage in the production of planes and cars, respectively. However, in an output question, Canada has an absolute advantage in the production of phones. The quick and dirty is a useful method for quickly calculating comparative advantage in a simple manner.
• 00:25:00 The video discusses the concept of terms of trade, which is an agreement between two countries about the conditions under which each will benefit from trade. The example given is of one week's worth of sugar being traded for one and a half Brazilian radios. Kenya has an absolute advantage in pineapples and India has a comparative advantage in radios, meaning that India has a lower opportunity cost when it comes to producing pineapples. India can give up one radio to get two pineapples, while Kenya can only give up three pineapples to get one radio. In order to calculate terms of trade, the student must first understand the concept of cost-benefit analysis. This video provides a brief overview of the concept and then provides a practice question and answer. The student is then taught how to calculate terms of trade using the quick and dirty method. If the student is able to calculate terms of trade correctly, they are then able to compare and contrast the advantages and disadvantages of countries when it comes to trade.
• 00:30:00 This video discusses the concept of marginal utility, which is a key concept in economics. Marginal utility is the extra satisfaction you get from consuming an additional unit of a good or service. To calculate marginal utility, you need to understand the terms "point of satisfaction" and "marginal cost." Marginal utility is maximized when the point of satisfaction equals the marginal cost. This video also provides a practice question and answer section to help you learn and understand these concepts.