Course
Micro-Economic Principles
The economic way of thinking — how prices, property rights, and incentives coordinate a world of scarcity, and why so many policies produce results their authors never intended.
Overview
About the course.
Microeconomics is the study of how scarce things get put to use — how individuals, firms, and policymakers respond to incentives and constraints, and how prices and property rights coordinate their choices without anyone directing the whole. The course builds that reasoning step by step: opportunity cost, thinking at the margin, the gains from voluntary exchange, and how competition, profits, and losses move resources to their highest-valued uses. Throughout, we judge policies by their consequences rather than their intentions, and ask of every outcome: who pays, and in what form?
The same tools explain far more than markets. We turn them on the policies that shape markets — price controls, taxes, minimum wages, occupational licensing, antitrust — and treat politics itself as a marketplace, where concentrated benefits and dispersed costs explain why measures persist even when they fail their stated goals. The emphasis is on plain cause-and-effect reasoning and real-world examples, not formal apparatus.
The course is organized as a series of short, self-contained readers — one per topic, in sequence below. Each is written to stand on its own, with the figures and tables built in.
Topics
The course, topic by topic.
Read in order or jump to a topic. More are added as they're finalized.
- Lecture 1: The Economic Way of Thinking
- Lecture 2: Demand and Marginal Personal Worth
- Lecture 3: Elasticity and the Applications of Demand
- Lecture 4: Gains from Exchange
- Lecture 5: Markets and Coordination
- Lecture 6: Price Controls
- Lecture 7: Who Really Pays? Taxes, Subsidies, and Elasticity
- Lecture 8: Property Rights and Externalities
- Lecture 9: Public Goods, Commons, and Institutional Choice
- Lecture 10: Marginal Analysis, Production, and Costs
- Lecture 11: Specialization and Exchange
- Lecture 12: The Competitive Firm: How a Price-Taker Decides
- Lecture 13: Taxes, Time, and the Quasi-Rent
- Lecture 14: Market Power I: Price-Searchers and How They Price
- Lecture 15: Market Power II: Antitrust and Regulation
- Lecture 16: Firms: Organization, Contracts, and Governance
- Lecture 17: Factor Markets and Labor, Part A: What an Extra Worker Is Worth
- Lecture 18: Factor Markets and Labor, Part B: Coalitions and Constraints
- Lecture 19: Present Value and the Interest Rate
- Lecture 20: Capital Values and Profit
- Lecture 21: Risk, Return, Diversification, and Insurance
- Lecture 22: Financial Markets, Futures, and Uncertainty