Welcome to Credit Unit 4
In this final Credit Unit, you will continue your exploration of the market structures where you learn about imperfect competition and the two additional models that fall under it: Monopolistic Competition and Oligopoly. You will also touch upon game theory through the Prisoner’s Dilemma model and a discussion of the Nash Equilibrium.
Next, you will learn about the labor market. You will learn about both the demand and supply of labor. Similar to the general supply and demand model, you will explore the market equilibrium in the labor market and factors that cause both the supply and demand for labor to change.
Finally, you will explore the capital markets and how interest rates are affected by the supply and demand for capital. You will conclude this course with a discussion of how economics can be applied to the management of our scarce environmental resources.
We hope you have enjoyed this introductory economics course and have grown an appreciation for the application of basic principles of microeconomics to real life situations!
Describe and apply marginal principle, principle of opportunity cost, principle of diminishing returns, comparative advantage, and elasticity.
Explain the mechanics of supply and demand and apply the supply and demand model to evaluate markets.
Discuss the efficiency and equity of both competitive and noncompetitive markets and how both are impacted by government intervention.
Explain, compare and contrast, and apply in context each of the basic market structures - i.e. perfect competition, monopoly, oligopoly and monopolistic competition.