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Questions for each level of learning

The OpenStax version of Principles of Microeconomics further expands on Taylor’s original end of chapter materials by offering four types of end-of-module questions for students.

  • Self-Checks: Are analytical self-assessment questions that appear at the end of each module. They “click–to-reveal” an answer in the web view so students can check their understanding before moving on to the next module. Self-Check questions are not simple look-up questions. They push the student to think a bit beyond what is said in the text. Self-Check questions are designed for formative (rather than summative) assessment. The questions and answers are explained so that students feel like they are being walked through the problem.
  • Review Questions: Have been retained from Taylor’s version, and are simple recall questions from the chapter and are in open-response format ( not multiple choice or true/false). The answers can be looked up in the text.
  • Critical Thinking Questions: Are new higher-level, conceptual questions that ask students to demonstrate their understanding by applying what they have learned in different contexts. They ask for outside-the-box thinking, for reasoning about the concepts. They push the student to places they wouldn’t have thought of going themselves.
  • Problems: Are exercises that give students additional practice working with the analytic and computational concepts in the module.

Updated art

Principles of Microeconomics includes an updated art program to better inform today’s student, providing the latest data on covered topics.

Corporate profits after tax (adjusted for inventory and capital consumption)

sample image
Since 2000, corporate profits after tax have mostly continued to increase each year, save for a substantial decrease between 2008 and 2009 as a result of the Great Recession. (Source: http://research.stlouisfed.org/fred2)

About our team

Senior contributing author

Timothy Taylor, Macalester College
Timothy Taylor has been writing and teaching about economics for 30 years, and is the Managing Editor of the Journal of Economic Perspectives , a post he’s held since 1986. He has been a lecturer for The Teaching Company, the University of Minnesota, and the Hubert H. Humphrey Institute of Public Affairs, where students voted him Teacher of the Year in 1997. His writings include numerous pieces for journals such as the Milken Institute Review and The Public Interest , and he has been an editor on many projects, most notably for the Brookings Institution and the World Bank, where he was Chief Outside Editor for the World Development Report 1999/2000, Entering the 21st Century: The Changing Development Landscape . He also blogs four to five times per week at http://conversableeconomist.blogspot.com. Timothy Taylor lives near Minneapolis with his wife Kimberley and their three children.

Senior content expert

Steven A. Greenlaw, University of Mary Washington
Steven Greenlaw has been teaching principles of economics for more than 30 years. In 1999, he received the Grellet C. Simpson Award for Excellence in Undergraduate Teaching at the University of Mary Washington. He is the author of Doing Economics: A Guide to Doing and Understanding Economic Research , as well as a variety of articles on economics pedagogy and instructional technology, published in the Journal of Economic Education , the International Review of Economic Education , and other outlets. He wrote the module on Quantitative Writing for Starting Point: Teaching and Learning Economics , the web portal on best practices in teaching economics. Steven Greenlaw lives in Alexandria, Virginia with his wife Kathy and their three children.

Senior contributors

Eric Dodge Hanover College
Cynthia Gamez University of Texas at El Paso
Andres Jauregui Columbus State University
Diane Keenan Cerritos College
Dan MacDonald California State University San Bernardino
Amyaz Moledina The College of Wooster
Craig Richardson Winston-Salem State University
David Shapiro Pennsylvania State University
Ralph Sonenshine American University

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Bryan Aguiar Northwest Arkansas Community College
Basil Al Hashimi Mesa Community College
Emil Berendt Mount St. Mary's University
Zena Buser Adams State University
Douglas Campbell The University of Memphis
Sanjukta Chaudhuri University of Wisconsin - Eau Claire
Xueyu Cheng Alabama State University
Robert Cunningham Alma College
Rosa Lea Danielson College of DuPage
Steven Deloach Elon University
Debbie Evercloud University of Colorado Denver
Sal Figueras Hudson County Community College
Reza Ghorashi Richard Stockton College of New Jersey
Robert Gillette University of Kentucky
George Jones University of Wisconsin-Rock County
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Mark Owens Middle Tennessee State University
Sonia Pereira Barnard College
Brian Peterson Central College
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Robert Rycroft University of Mary Washington
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Hans Schumann Texas AM
Gina Shamshak Goucher College
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Mark Witte Northwestern
Chiou-nan Yeh Alabama State University

Ancillaries

OpenStax projects offer an array of ancillaries for students and instructors. Please visit http://openstaxcollege.org and view the learning resources for this title.

Questions & Answers

An economy exprerience inflation when?
Odirile Reply
given a table of weeks worked and numbers of goods produced per week. help to culculate margin.
Odirile
there is a persistent rise in general prices and purchasing power of money decreses
khatoon
The taste of preferences of consumers will drive demand
Marisol Reply
Explanation about law of demand
Marisol Reply
The price of the good or service meaning?
Marisol
What is consumer expectation?
Marisol
Any other explanation?
Marisol
marisol u share your explaination pls
OK
The law of demand states that all other things being equal the higher the price of a commodity the lower the quantity of the same commodity demanded inversely. This implies that anytime there is an increment on a price of certain commodity the demand of the same commodity decline.
Nana
consumer expectations are the households view point regarding the market changes. If people are expecting a positive change in the market their Marginal Propensity to Consume will increase and vive versa.
arshad
Marisol are you okay with my explanation?
Nana
yes. thankyou.
Marisol
welcome
Nana
what are the determinants of demand and explain each?
Marisol Reply
what is the price of the good or services meaning?
Marisol
marzi tumhari
Aryan
lol
Aryan
khud par le
Aryan
Define microeconomics and macroeconomics..
Odirile Reply
In free market economy who market resources?
Odirile
Can you please explain how GDP is calculated?
Odirile
yes GDP meas all product produced in Economy first the country have to calculate all goods produced then we have to see the market value of goods at final stage we have to mutliple final goods to their market price we get GDP
Wani
what is consumer expectation?
Marisol
suppose country are producing 10 goods price of per good is $1 therefore GDP = 10 good × $1 =$ 10
Wani
Thank you for the answers @Wani
Odirile
most welcome odirile
Wani
what is the price of the good or service?
Marisol Reply
suppose price of per good is (ice-cream) is 5 the consumer are ready for buying 2 goods(2 ice creams) if price will increase from 5 to 10 per good then the consumer will demand only one good or one ice-cream because price is increased and his income is limited
Wani
what is income buyer?
Marisol
in law of demand we assume some factors constant some factors are income taste future preference constant
Wani
what is price of related goods or services?
Marisol
suppose your income per month is 10, 000 and your needs satisfied by these 10,000 if price of good will increase you need more than 10,000 to satisfy your needs that is why we says at higher price demand of goods decrease
Wani
What is the taste of preferences of consumers will drive demand?
Marisol
suppose you are eating pizza and u fell its taste good you will buy more pizza this called taste we assume in law of demand that taste of goods remain Same
Wani
related goods are either complementary goods are substitute goods
Wani
what is Consumer expectation?
Marisol
relationship between price and quantity? about the law of demand
Marisol Reply
P⬆️ Qd⬇️
DNA
what is law of demand?
Marisol
If Prince increases, Quantity demand will decrease and vice versa. So relationship b/w price and demand is inverse. There are some exceptions also. Like complementary goods and substitute goods.
DNA
any other answers? thankyou anyways. Twas a big help.
Marisol
the law of demand states that, "conditional on all else being equal, as the price of a good increases, quantity demanded decreases; conversely, as the price of a good decreases, quantity demanded increases".
DNA
law of demand says when price of good increase there demand will decrease and vice versa in short law of demand show negative relationship between price and demand of goods
Wani
All other factors like income, taste, preference, season shall remain constant
DNA
Rohi g Bilkul sahi farmov veh!
DNA
law of demand not apply on Griffen goods and luxurious goods
Wani
sir will u plz explain me why we add Griffen goods in aggregate demand no body explain me this question
Wani
definition of monopoly
Odirile
monopoly is a form of market where there is only one supplier , supplying the product . in other words monopoly means only one industry or enterprise are selling the product
Wani
what is monopolistic
Odirile
what are the determinants of demand and explain each?
Marisol
monopolistic competition is a form of market where there are many sellers selling differentiated product
Wani
bravo
Aryan
answer
Aryan
determinants of demand are 1.income :- if income of a person increase its demand for products will increase 2 . price :- if price of product increase there demand will decrease and vice versa 3. taste :- if buyer feels taste of product good then his demand for that product will increase
Wani
there are 5 determinants of demand?
Marisol
yes another one is if there customer are more in Economy more good will be demand
Wani
and what is the last one? I mean the fifth one?
Marisol
the other one is related goods related goods are either substitute goods are complementary goods if goods are substitute then if price of good will increase then demand for its substitute will increase
Wani
thankyou ❤️
Marisol
What is the concept of rationality in economics
Odirile Reply
Remuneration 10000 Net trade surplus 8000 Provision for depreciation 500 Indirect taxation 700 subsides 1000 Net factor payments 500 using information above calculate: 1GDP at factor cost 2GDP at market Price 3GNP at market price 4National income
Odirile
rationality simply means that you will always go for best choice in the available set of choice.
Rahul
which actions would most likely shift the production possibilities frontier outwards?
Odirile
what is consumer expectation in economics?
Marisol
the factory that cause shift to PPC are labour force, price of inputs. use of technology etc.
Wani
Marisol where from you
Wani
thankyou for the answers.
Marisol
From the Philippines Sir.
Marisol
most welcome marisol
Wani
a. Assume that Good X is a Giffen good, illustrate and explain the income and substitution effects for a decrease in the price of good X.
Thulisa Reply
as price of good X(assume as Griffen good) decrease income of the consumer increase , consumer will demand other goods rather than the Griffen goods thus at lower prices of good X it's demand will decrease.
Wani
what is law of demand
Hugo Reply
what is the law of demand
Hugo
What is the law of demand
Hugo
just considering the relationship between price and quantity, holding other factors constant.
Donation
when the price of a commodity increases, it's demand will decrease. and when the price of a commodity decreases, it's demand will increase, other things remaining the same or constant. That is called Law of Demand.
Azka
other things remained constant there is inverse relationship between price and quantity demand i .e when price of a commodity increased the demand of quantity will decrease and vice- versa.
khatoon
right @KhatoonNafisa
Azka
Other answers about the law of demand and how it relates between the price and quantity?
Marisol
sir define me prison of delima
Ibrahim Reply
it is a paradoxical situation, where two individuals acts for their self interest but don't achieve the optimal point.
Rahul
gays why we add Griffen goods in aggregate demand as we know Griffen goods have positive relationships that means if price increase demand of goods also increase .but in aggregate demand there is a negative relationship between price and aggregate output.
Wani
what is the concept of rationality in economics?
Odirile
explain the determinants of derive demand?
what financial market is all about
Emmanuel Reply
What happens to the ppf curve due to following events a) A relaxation of policies allowing more foreign direct investment into the country b) Increasing the minimum wage level c) A decrease in expenditure on research and development d) An increase in the retirement age
luvi Reply
is truly
Ibrahim
Discuss various from the imperfect competition
ZuBaIr Reply
hi how do get your workers to be more competitive
Margaret
hey where from you all
Wani
kashmir
Ahmad

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Source:  OpenStax, Microeconomics. OpenStax CNX. Aug 03, 2014 Download for free at http://legacy.cnx.org/content/col11627/1.10
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