Title
(4) How Economists Think and Analyze III: Marginal Analysis
Topic Category
Introduction
Publication Date
2011
Keywords
Economic Methodology, Economic Modeling Procedures, Economic Thinking, Marginalism, Maximizing, Self Interest, Markets and Exchange, Marginal Benefits, Marginal Costs
Abstract
This provides a summary of the general analytic methodology used in economics. It discusses the key assumptions associated with the "economic way of thinking." It discusses scarcity, simplification, maximizing behavior, market exchange and the concept of "marginalism." It introduces the key economic decision rule of balancing marginal benefits against marginal costs.
Recommended Citation
Crane, Steven E., "(4) How Economists Think and Analyze III: Marginal Analysis" (2011). Principles of Microeconomics. Paper 64.
http://epublications.marquette.edu/microecon_learning/64
Run Time
3:50
Primary Discipline
Economics
Skills Delivered
Ability to explain the general economic modeling process. Ability to explain key economics concepts of marginalism, maximizing behavior, and the constraining influence of competition in markets. Ability to explain how there can be mutual gains from exchange in a market transaction.
Rigor Level
2000
Prerequisites
Previous Think and Analyze Videos