What is Economics?

Micro – How Economists Think

In this course, Professor Avinash Dixit (Princeton University) discusses how economists think. In the first module, we look at what economics is. After this, we explore the forces of supply and demand. Then, we look at what macroeconomics is and how it differs from microeconomics. In the fourth module, we look more closely at market failure. After this, we look at the specific market failure of public goods. Finally, we conclude the course by summing up how economists think.

What is Economics?

In this module, we look at what economics is. In particular, we focus on: (i) the central problem of economics - scarcity; (ii) how different methods and institutions for making decisions about scarcity have different advantages and drawbacks; (iii) what economics is not; (iv) two prominent economic systems, including command economies and price mechanism economies; and (v) some qualifications and caveats when it come to studying economics, such as the contest between theory and practice.