! BackMobLabGwartney, Stroup, Sobel, & MacPhearson: Microeconomics: Private and Public Choice
Fdownload

Gains from Trade

Textbook Chapter: Chapter 2 (Microeconomics)

MobLab Game: Comparative Advantage

Key Teaching Points:

  • The distinction between absolute and comparative advantage.
  • Experience first hand the gains from specialization and trade.
  • Differences in opportunity costs lead to mutually beneficial trade.

Supply and Demand in a Competitive Market

Textbook Chapter: Chapter 3

MobLab Game: Competitive Market

Key Teaching Points:

  • The “invisible hand” of the market: how individual profit maximization leads to competitive market equilibrium.
  • Price discovery: the equilibrium market-clearing price results from the valuations of different buyers and costs of different sellers.
  • Gains from trade (i.e., consumer and producer surplus).
  • Shifts in either supply or demand change equilibrium outcomes.

Government Interventions in Competitive Markets

Textbook Chapter: Chapters 4

MobLab Game: Competitive Market

Key Teaching Points:

  • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilp>Key Teaching Points:

    • The “invisible hand” of the market: how individual profit maximization leads to competitive market equilibrium.
    • Price discovery: the equilibrium market-clearing price results from the valuations of different buyers and costs of different sellers.
    • Gains from trade (i.e., consumer and producer surplus).
    • Shifts in either supply or demand change equilibrium outcomes.

    Government Interventions in Competitive Markets

    Textbook Chapter: Chapters 4

    MobLab Game: Competitive Market

    Key Teaching Points:

    • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilp>Key Teaching Points:

      • The “invisible hand” of the market: how individual profit maximizatioitive Market

        Textbook Chapter: Chapter 3

        MobLab Game: Competitive Market

        Key Teaching Points:

        • The “invisible hand” of the market: how individual profit maximizatioitive Market

          Textbook Chapter: Chapter 3

          MobLab Game: Competitive Market

          Key Teaching Points:

          • The “invisible hand” of the market: how individual profit maximization leads to competitive market equilibrium.
          • Price discovery: the equilibrium market-clearing price results from the valuations of different buyers and costs of different sellers.
          • Gains from trade (i.e., consumer and producer surplus).
          • Shifts in either supply or demand change equilibrium outcomes.

          Government Interventions in Competitive Markets

          Textbook Chapter: Chapters 4

          MobLab Game: Competitive Market

          Key Teaching Points:

          • Government interventions (per-unit taxes, subsidies, price ceilings and floors) alter equilibrium outcomes.
          • Equilibrium outcomes do not depend on whether buyers or sellers pay the tax.
          • The difference between tax incidence and who pays the tax.
          • Relative elasticities determine incidence of a tax or subsidy.
          • Excess supply (price floors) and excess demand (price ceilings).
          • The efficiency implications of government interventions.

          Difficult Cases for the Market

          Textbook Chapter: Chapter 5

          MobLab Game: Linear Public Goods

          Key Teaching Points:

          • Highlights the features of public goods: non-rival and non-excludable.
          • Demonstrates the distinction between private and social benefits of public goods.
          • Shows how individual profit maximization leads to the free-rider problem.

          MobLab Game: Market for Lemons

          Key Teaching Points:

          • Experience in a market with asymmetric information
          • Asymmetric information may lead to adverse selection and market failure

          Collective Decision-Making

          Textbook Chapter: Chapter 6

          MobLab Game: Two-Candidate Election

          Key Teaching Points:

          • Understand forces behind the Median Voter Theorem model.
          • Explain clustering by political candidates.
          • Polling-data option allows exploration of policy changes due to new information.

          MobLab Game: Multilateral Bargaining (aka “Zombie Democracy”)

          Key Teaching Points:

          • Understand coalition formation under majority rule
          • Understand how the position of proposer (selected randomly) provides an advantage in distributing resources through the political process.

          Sellers and Incentives

          Textbook Chapter: Chapter 9

          MobLab Game: Production, Entry & Exit

          Key Learning Objectives:

          • Short-run profit maximization involves thinking at the margin.
          • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

          MobLab Survey: Mental Accounting: Sunk Costs

          Key Learning Objectives:

          • Surplus maximization requires ignoring sunk costs.
          • Easier said than done!

          Monopoly & Oligopoly

          Textbook Chapter: Chapter 11

          MobLab Game: Cournot (with Group Size=1)

          Key Teaching Points:

          • Monopolies restrict output in order to increase price.
          • The tension between the quantity price effects of increased output.

          MobLab Game: Cournot

          Key Teaching Points:

          • The underlying logic of the Cournot model: how market price is determined by aggregate output.
          • The equilibrium outcomes of Cournot competition.
          • Repeat interaction and communication may lead to collusive behavior.

          Labor Markets

          Textbook Chapter: Chapters 12&13

          MobLab Game: Simple Labor Market

          Key Teaching Points:

          • When a perfectly competitive
          • Polling-data option allows exploration of policy changes due to new information.

          MobLab Game: Multilateral Bargaining (aka “Zombie Democracy”)

          Key Teaching Points:

          • Understand coalition formation under majority rule
          • Understand how the position of proposer (selected randomly) provides an advantage in distributing resources through the political process.

          Sellers and Incentives

          Textbook Chapter: Chapter 9

          MobLab Game: Production, Entry & Exit

          Key Learning Objectives:

          • Short-run profit maximization involves thinking at the margin.
          • In the long-run equilibrium of a competitive market with identical firms, all firms earn zero economic profits.

          MobLab Survey: Mental Accounting: Sunk Costs

          Key Learning Objectives:

          • Surplus maximization requires ignoring sunk costs.
          • Easier said than done!

          Monopoly & Oligopoly

          Textbook Chapter: Chapter 11

          MobLab Game: Cournot (with Group Size=1)

          Key Teaching Points:

          • Monopolies restrict output in order to increase price.
          • The tension between the quantity price effects of increased output.

          MobLab Game: Cournot

          Key Teaching Points:

          • The underlying logic of the Cournot model: how market price is determined by aggregate output.
          • The equilibrium outcomes of Cournot competition.
          • Repeat interaction and communication may lead to collusive behavior.

          Labor Markets

          Textbook Chapter: Chapters 12&13

          MobLab Game: Simple Labor Market

          Key Teaching Points:

          • When a perfectly competitivethe distinction between private and social benefits of public goods.
          • Shows how individual profit maximization leads to the free-rider problem.

          MobLab Game: Market for Lemons

          Key Teaching Points:

          • Experience in a market with asymmetric information
          • Asymmetric information may lead to adverse selection and market failure

          Collective Decision-Making

          Textbook Chapter: Chapter 6

          MobLab Game: Two-Candidate Election

          Key Teaching Points:

          • Understand forces behind the Median Voter Theorem model.
          • Explain clustering by political candidates.
          • the distinction between private and social benefits of public goods.
        • Shows how individual profit maximization leads to the free-rider problem.

        MobLab Game: Market for Lemons

      • The underlying logic of the Cournot model: how market price is determined by aggregate output.
      • The equilibrium outcomes of Cournot competition.
      • Repeat interaction and communication may lead to collusive behavior.

      Labor Markets

      Textbook Chapter: Chapters 12&13

      MobLab Game: Simple Labor Market

      Key Teaching Points:

      • When a perfectl
      • The underlying logic of the Cournot model: how market price is determined by aggregate output.
      • The equilibrium outcomes of Cournot competition.
      • Repeat interaction and communication may lead to collusive behavior.

      Labor Markets

      Textbook Chapter: Chapters 12&13

      MobLab Game: Simple Labor MarketobLab Game: Bubbles and Crashes

      Key Teaching Points:

      • Highlights the determinants of an asset’s value: income generated and resale value.
      • Shows how asset bubbles may develop even with complete information.
      1. 14th Edition