about this course
This course continues the study of the behavior of individual households, firms and industries
that we undertook in our introductory course.
Here, we explore in more detail how prices affect the basket of goods that consumers purchase
and how prices affect the factors of production that firms employ.
And once again, we will explore the three questions:
"What will be produced?" "How will it be produced?" and "Who will get what is produced?"
what you will learn
Answering those questions leads to interesting insights about life and human behavior
and also raises a few more questions: "Why do some people earn more than others?"
and "Can people on the bottom of the economic ladder climb to the top?
If not, then why not? If so, then how?"
Do workers compete for supply their labor in a perfectly competitive labor market?
If so, then does the current distribution reflect a socially efficient market equilibrium?
If not, then what (if any) is the scope for government intervention in reducing income inequality?