1. Introduction and Supply & Demand

[@brucedemeester8547]

My notes on this lecture for you guys, enjoy. - What is Microeconomics? - Scarcity is what drives microeconomics - Constraint optimization exercises where economic agents (firms or individuals) try to make themselves as well off as possible given their constraints. - It's about trade-offs. How do you make trade-off things to make you as well off as possible. - Opportunity costs is an important concept in microeconomics - Every action or inaction has a cost in that you could've been doing something else instead. - If you buy a shirt, you could've bought pants - If you stayed at home and watched TV, you could've been out working. - Everything you do has a next best alternative you could have done instead. - They get referred to as the dismal science - because their whole point is that nothing is free. There's always a trade-off, there's always an opportunity cost. - your constraint optimization means you're going to have to pass up one thing to do another. - because of Microeconomics, you can understand the decisions that drive our economy. - Supply and Demand model - Models aren't 100% true, but always pretty true, "pretty" being between 10% and 95% true. - The idea is to make a trade-off. We want to write down in our models a set of simplifying assumptions that'll allow us, with a small set of steps, to capture relatively broad phenomena. - To capture those broad phenomena, you want to do it in the most tractable possible way. - Positive analysis - is the study of the way things are - Normative analysis - is the study of the way things should be - Example of eBay auctions - Auctions are a terrific example, they're like the textbook example of a competitive market. Demand comes as a bunch of people going on and bidding. People who want it more, bid more. So you get a demand curve. The higher the price, the fewer people you're getting to bid. Supply is how many units of it are for sale on eBay. You bid until those two meets. And then you have a market equilibrium at that bidding price. - Example: someone offered their kidney for auction. The bidding went nuts. It started at $25,000. It climbed to $5m before the auction was shut down, and eBay wouldn't allow you to sell your bodily parts on eBay. - This raises two questions: - The Positive analysis question: Why did the price go so high? - Because the demand is high (because I'd die without it). Supply is low because not a lot of us are willing to sell their kidneys to eBay. Low supply, high demand led to a higher price. - The Normative analysis question: Should you be allowed to sell your kidneys on eBay? - The standard economics answer to start would be, of course, you should. We're in a world of thousands of people die every year because there's a waiting list for a kidney transplant. And these are people who would happily pay a lot of money to stay alive. Meanwhile, there are hundreds of millions of people walking around with two kidneys who only need one. And many of these people are poor. And lives could be changed by being paid $1m. So this is a transaction that makes both parties better off. So the standard answer would be that you should be able to sell your kidneys on eBay. The question is, why would we want to stop this transaction? - The first type of problem comes out of the category we call: Market failures. And MF are reasons why the market doesn't work in the wonderful way economists like to think it should. For this example, there could be the problem of fraud. People might not be able to tell if they're getting a legit kidney or not. - There could be an example of imperfect information. Do you know what the odds are that you can spend the rest of your life with only one kidney? We ought to know that before we start selling our kidneys. - A second problem is what we call equity or fairness, which is we would end up with a world where only rich people get kidneys. - The third problem has to do with behavioral economics., which is essentially, that people don't always make decisions in the perfectly rational, logical way we'll model them. People make mistakes. - You do the positive analysis to understand the economic framework before you start jumping to drawing conclusions. We have to be disciplined. We have to start with the fundamental economic framework. - Economics at its core is all about how the market knows best, and that basically governments only mess things up. - How freely should a market, should an economy function? - We have a capitalistic economy. And in a capitalistic economy, firms and individuals decide what to produce and consume, may be subject to some rules of the road set by the government. There are some minimum rules of the road to try to avoid fraud or misinformation, but otherwise, we let the dice roll. - The other extreme is a command economy. In this case, the government makes all the production and consumption decisions. The government doesn't just set the rules of the road, the government owns the road. The government says we're going to produce this many cars this year. And people can get them in some way. It could be a lottery, could be waiting in line. We'll allocate how many get produced and who gets them. The government decided how many shirts, cars, TV's, everything decided how much to produce. Problems with this model: - Too many opportunities for corruption when the government controls everything. - It's hard to control human nature. - Adam Smith's invisible hand is that the capitalist economy will manage to distribute things roughly in proportion to what people want. Folks who want a certain kind of car are going to want to get to that kind of car. - Adam Smith's view (the invisible hand view) is that consumers and firms serving their own best interest will do what is best for society. - The fundamental core of the capitalistic view is that consumers and firms serving their own best interests will do what ends up being best for society. - It can lead to outcomes that aren't fair.

[@liibaanrufaaci]

Not all heroes wear capes.

[@dawei6813]

Too many notes buddy

[@JustJacquieR]

Thanks Bruce.

[@aniketbhakre7765]

Thanks a lot.

[@excursion8046]

thanks so muchhh

[@mofa6936]

I don't know why I like these lectures, it's better than Netflix!

[@pookz3067]

They are good lectures. You know why you like them. It’s not weird to like to learn things in easily digestible, well presented ways like these ocw lectures. Stop trying to present yourself as special for living stuff at least tens of millionsof others also like.

[@mofa6936]

​@@pookz3067 It's just a comment from the heart, no one knows who am I and it will never be revealed ^^, In my community, it's a blessing if you understand English well and it is so hard to find these videos in that simple amazing way, people hate it cause the educators that I know are making them hell to understand, and we are forced to recite things that has no logical relation to each other in our minds to pass the exams, you're smart to know the rest :D

[@andrecorreia4301]

@@pookz3067 You're toxic af

[@andrecorreia4301]

@@mofa6936 Ye man good for you keep learning Pookz was probably having a bad day that's why he felt he needed to throw it to somebody else.

[@lesliebrowne7655]

because it is just what you like

[@kamikazekami6628]

I normally don't write reviews but this course is so freaking amazing that I have to do it. The course is rich in content, yet very easy to understand. Prof. Jonathan Gruber just did an awesome job and thank you guys for sharing these lectures with the rest of the world.

[@muhammadsiddiqui2244]

One of the best teachers in the world. Better than Netflix. Highly Recommended. I have done this complete playlist.

[@M.-.D]

Great work MIT. Open education done right.

[@varungehlot5221]

Thanks to Aaron Swartz?

[@M.-.D]

Varun Gehlot That was a terrible failure of MIT and will forever stain their reputation for many who love science and knowledge.

[@cloudisity]

@@M.-.D are you implying that aaron swartz was a failure? or what mit did was a failure?

[@Abidali786786]

GOD bless you dear

[@ijaharmd6449]

Dee e we@@cloudisity AQ

[@nikocoklat2]

thank you prof Jonathan Gruber and MIT . i'm from indonesia. and i decided to 'trade off' my time by watching your lecture instead of watching Netflix and other crap soap opera. Thats the best thing to explain "opportunity cost" concept

[@Medoca-e8n]

Lol same😂

[@enterestado]

I missed all my long and boring online micro economic classes this semester and I am now binge watching a whole semester of MIT classes. What a good decision I´ve made.

[@MrJuanalfieri]

Impossible to get tired by listening Professor J. Gruber. He has an AMAZING way to teach Micro. Again and again, MIT doing A GREAT JOB with the online community.

[@daphnebailey6223]

I love how he applies everything to current events and stuff we can relate to making it easier to understand.

[@abhinavsrijan8966]

whats the next course after this to take ? i am following hal varians book , thats what required in the entrance exam i am preparing for (quantative econ) , in that respect

[@ivywoodxrecords]

Yeah he exudes his passion it is palpable. Absolutely great.

[@lookingforsomething]

It's interesting watching this having studied economics in the Nordics. The heavy leaning on Adam Smith seems a bit apocryphal. Even referencing Smith so heavily the ie. "invisible hand of the market" etc. in opening lectures, while having touched on the problems of why the "invisible hand" really doesn't work (market imperfections etc.). It's interesting since he says economics is inherently "right wing", without defining right or left wing politics. Having an open market with basic regulations isn't inherently right or left wing according to my definition. Neither is the basis of economics, assignment of value is as relevant to a command economy as it would be to a "capitalistic" economy. The meaning of capitalism as a term varies by definition as well, but having *capital* doesn't really nullify the possibility of having a command economy. Capital is just a mean of exchange.

[@SulemaTrollope]

This is a fun class, if it were me where would I probably spend the whole day, what would you do?

[@abhinavprabhakar455]

5 Things I learnt: - Microeconomics is the study of decision making under scarcity. It is basically a series of constraint optimisation exercises where economic agents (firms or individuals) try to make themselves as well off as possible given their constraints. - Opportunity cost: Every action or inaction has a cost that you could’ve been doing something else instead. - A model is a description between two or more economic variables. Models are never 100% true, but are generally true, about 90 to 95% of the time. George box said, “All models are false but some models are useful.” - Positive analysis is the study of the way things are and normative analysis is the the study of way things should be. We should consider two things to see why something shouldn’t be the way it is: market failures (fraud, imperfect information), equity or fairness and failing to understand that people make mistakes and that their decisions aren’t perfectly rational. - Economics at its core is that the market knows what is best and that governments only mess things up.

[@anthonycastro5086]

I see most people confuse, the word constraints is term use in economy and is part of the make budget.

[@RaylinRecords]

13:20 Demand Curve is yellow, Supply curve is blue (it's switched in the lecture)

[@dudeihavenocar]

The hero we need, but don't deserve.

[@ilkeuyankerstudent5347]

Glad you said it

[@RaylinRecords]

@@dudeihavenocar lol I really enjoy this professor. He makes microeconomics interesting!!

[@RaylinRecords]

@@ilkeuyankerstudent5347 I was confused for a minute lol

[@ilkeuyankerstudent5347]

@@RaylinRecords same

[@TheTajwaar]

im an economics major student and omfg this guy makes things so fascinating. its not boring at all

[@fahmidchowdhury8664]

what other courses are there?

[@Mohamed-cm3ym]

I suppose you're a Muslim bro... you mustn't use "omfg".

[@abhinandanyadav6831]

@@Mohamed-cm3ym Religious propangandist spotted

[@Mohamed-cm3ym]

​@@abhinandanyadav6831 Would you call the police? :) Islam urges its followers not to leave each other go to hell. Cursing God is one way to go there and I'm here to help.

[@abhinandanyadav6831]

@@Mohamed-cm3ym Nope buddy I will not call the police ,but what it is about Islam that you're an ardent follower of it ,I only see Islam as terror producing outfit ,

[@anonymous.youtuber]

A truly great professor at 34:12 he is perfectly aware of his limitations and delegates to those that are better. 🙏🏻 Respect.

[@laxmanbafna4178]

"Microeconomics was born in this room".-7:10 Yup, you got my attention.

[@StatisticalAnalyticSignal]

But its a Lie. You will redefine "modern" to suit your nonsense.

[@parthasur6018]

I would highly recommend reading "Basic Economics: Theory and Cases" by Attiyeh, Bach, Lumsden as an introduction. Wonderful "programmed learning" type of text book - you need to focus and keep answering questions (fill in the blanks in the text) as you read the book. Answers are at the bottom of the page. There are review questions with answers at the end of each chapter followed by a case study (no answers). Calculus not required. I learnt basic Economics from this book. It is fantastic.

[@annrose6390]

hey is it available online?

[@mortalityisanadventure.1973]

Mankiw's are awesome too. There are solid case studies but there are no answer keys for the reviewing question tho.

[@Bitofmeforyou]

Thank you very much ♥️

[@pepehimovic3135]

@@annrose6390 Did you ever find out? I want to read this too

[@jat1339]

@@Bitofmeforyou hey is that book available online ?

[@TP-kq9ul]

It's free yet I feel that it is more informative and more interested than my current Economics and Finance class that we paid heavy to attend. Great works MIT and thank you so much!

[@Mshine2]

Thats the difference between MIT and everyone else

[@h.s.3883]

Thank you for making this available. I appreciate that it has subtitles. I struggle with hearing and I’m anxious about upcoming classes I’m enrolled in, so I wanted to get a head start. I found some cheat sheets off of Amazon so I can focus on listening to reading the lecture rather than trying to write everything down. Awesome professor and incredible school, thank you so very much.

[@shelchicago8997]

Thank you for donating your knowledge to the world so a middle-age nobody like myself can learn something that I didn’t get to learn in my younger years.

[@soro6669]

Knowledge is free my friend, i know how you feel exactly, i have been there.

[@damienthorne861]

You're not a nobody. Anyone who takes advantage of educational opportunities is definitely someone.

[@krushnadeepsonu3552]

Yes I don't have money to go to these places. Internet is certainly a boon if used correctly.😊

[@Unnanymous]

Damn man you just can't deny Economics is a hell of an interesting course!

[@taxifaninternational7636]

Capitalism and Socialism will be soon replaced by None profit Resource Based Economy which brings all people to prosperity (not part of them). Google Dmitry Bonch Resource Based Economy or watch his channel

[@huzaifakhan8221]

until math walks in....

[@georgemwanza6339]

@@huzaifakhan8221 🤣🤣🤣

[@beetlejuice8147]

@@taxifaninternational7636 resources will alwa ys cost money, why did u write nonprofit?

[@taxifaninternational7636]

@@beetlejuice8147 In the chrematistics (capitalism, feudalism,slavery) - yes. But in the NRBE - nonprofit resource based economy the money is only used to pay the salaries to the workers who (work) extract and process natural resources. The money is not tied to any commodity. They serve as points. Have you googled Dmitry Bonch. Almost all info about it is on the website and more info about how NRBE works will be added soon.

[@Neander104]

13:32 , 14:20 : beware, the image shown has probably been made afterwards (as "Handouts" for the Course, see the website links), and the colours are reversed (blue-yellow).

[@BohdanMelnychuk]

Yeah, got me confused for a minute

[@jonathanvictorpajaresmoran3126]

yes , i know , thanks ...

[@RaylinRecords]

I was confused about that

[@Neander104]

@@RaylinRecords Indeed! At first I thought that the lecturer could have made a blunder, but that was too unlikely. So I got to the conclusion that the guy who made the various images for the course (J. King), probably in a later moment, just swapped the two colours there.

[@insertnamehere7583]

Tysm

[@aurazero0]

I'm glad Mr Gruber is still teaching this course. I'm using one of this older videos for my lessons and it was again Principles of Micro but 9 years ago. I like his style.

[@NazriB]

Lies again? Hello WWE88

[@neoneoxy]

Am back to share that I passed my intro to econs paper by watching this entire course. CHEERS TO PROF AND MIT!

[@screwsdisciple4819]

the 2010 course gave me an A in my micro economics exam and led me to give the micro economics tutorial at my university for 2 years. really excited to see the 2018 version.

[@analuizasalles]

I cries watching this. I am a course 14 alum, and this has brought me such good memories!!!!!! Thank you MIT!

[@justins7796]

:)

[@jarisstarling6696]

" THIS CLASS IS SO GOOD I'm WATCHING ON KZbin AND I ALMOST RAISED MY HAND TO ANSWER A QUESTION LOL"

[@kaystewart4588]

roflllll

[@sakshamkumar2992]

Me too😂

[@alexkess8506]

Thank you MIT. This is a wonderful public service you offer allowing education to be more accessible.

[@tufail1823]

MIT is doing a great job by providing free videos of classes. Love you for that

[@WorthlessWinner]

I loved Gruber's economics series form a few years back, this will help me remember what i learned from that.

[@Sacred-Heart-of-Jesus829]

Isn't Jonathan Gruber the architect of the very messed up and failed Obamacare? He was recorded on camera as saying "blame it on the stupidity of the American Voter" when they were in a meeting back when Obama was in office. This guy should be sitting in a prison cell! He was paid $400K of our taxpayer dollars to mess up the healthcare system here in the United States. Do the research! He basically did loads of damage to the United States and got away with it! kzbin.info/www/bejne/d5XVlaCjnZyVg9E www.arcfusion.org/magazine/watch/jonathan-gruber-%E2%80%93-architect-obamacare-talks-about-how-white-house-did-it

[@WorthlessWinner]

@@Sacred-Heart-of-Jesus829 - I love how Gruber was talking about how dumb voters are and how they need to be manipulated in his econ course, which was uploaded years before that 'scandal' broke. He just said what everyone in politics thinks - and what's true. Obamacare (and rommneycare which he also made) would've worked if it'd been implemented as intended. Gruber did nothing wrong.

[@aasemahsan]

2:47 What is Microeconomics? -Scarcity -Constrained Optimization - Trade-offs & Opportunity cost *How to study models?* Intuitive level (The mom test) Graphical Mathematical 7:38 Supply & Demand model Water-Diamond (Adam Smith) Supply-Demand graph Positive analysis: How things are Normative analysis: How things should be *(Selling kidneys on eBay)* -Market failure -Incomplete Information -Equity/Fairness -Behavioral economics/Irrationality

[@lowersaxon]

I learned economics from Samuelsons popular textbook in the early 80s. Great economist, great man. Never forget Paul Anthony Samuelson. He was one of if not t h e last generalist in economics. He knew and developed everything: Macro, Micro, History of economics, Econometrics etc. So well done that he reminds the students of MIT‘s founder of modern economics, Samuelson.

[@Attalic]

Samuelson has possibly the worst humanly possible critiques of Marxian economics I've ever seen

[@michaels8297]

I watched his older lectures and loved them, I'm glad he is still teaching

[@eljefe3533]

What are they?

[@michaels8297]

@@eljefe3533 he gave the same micro course but from 2012. It’s on MIT ocw’s website and KZbin channel

[@aurazero0]

@@eljefe3533 kzbin.info/www/bejne/sHesc2tjaJWMnqM&ab_channel=MITOpenCourseWare

[@abbysmith1148]

I love that I can go for a run and absorb this information at the same time. What a well-organized, clear and useful lecture!

[@steve_perks7]

I'm a PPE undergrad at Warwick and I've really been struggling to get interested in economics at all, this first lecture by MIT is way more engaging than anything I've seen so far!

[@anshika7758]

Below are timestamps: 1. Introduction and Supply & Demand Introduction to the Course and Professor 00:00 Teaching Style and Responsibilities 00:55 Engagement and Gender-Neutral Language 01:40 Defining Microeconomics 02:26 Coverage of Irrationality 03:08 Importance of Opportunity Cost 04:08 The Dismal Science and Trade-offs 04:55 Economics as Constrained Optimization 05:52 Microeconomics as Applied Engineering 06:42 Simplified Models in Economics 07:39 Teaching with Simplifying Assumptions 08:40 Understanding Models at Multiple Levels 09:40 Adam Smith and the Water-Diamond Paradox 10:34 Supply and Demand Scissors 11:30 Introduction to Market for Roses 12:23 Demand and Supply Curves 13:24 Deriving the Supply Curve 14:24 Market Equilibrium 15:10 Positive vs. Normative Analysis 16:07 eBay Auctions as a Competitive Market 17:14 Positive Analysis of Kidney Auction 18:03 Normative Analysis of Kidney Auction 18:48 Regulation and Market Failures 19:52 Challenges of Imperfect Information 20:42 Equity and Fairness in Kidney Allocation 21:42 Black Market and Fraud 22:36 Behavioral Economics and Decision-Making 23:23 Challenges of Evaluating Trade-offs 24:13 Positive vs. Normative Analysis 24:58 Economics and the Role of Government 25:41 The Capitalistic Economy and Inequality 26:22 Challenges of Inequality and Regulation 27:18 The Command Economy 28:12 Challenges of Command Economies 29:03 in Capitalism 29:54 The Invisible Hand and Economic Efficiency 30:51 Demand and Utility Maximization 31:42 Market Equilibrium and Market Failures 32:31 Course Structure and Problem Sets 33:17 Mathematics and Supply and Demand 34:03

[@19Borneo67]

Keep teaching this. From what I read on the interwebs the message isn't getting through to everyone. The amount of economic stuff that I hear everyday that flies in the face of good ol' supply & demand is stunning.

[@andrewlai9472]

Did my Master's in Economics next door to MIT at Northeastern University decades ago. This lecture brought vivid memories of great Economics lectures by superb Professors who made this subject so damn interesting. This is a subject one can apply to every day life.

[@dwaipayanroy3232]

nice ..what are u doing now ?

[@lindythinks]

It's really good to watch these lectures so I can be motivated in high school

[@umapathimm2221]

Super.

[@ahsanulhaque4811]

I am a CS graduate, I don't know why I clicked this video, but I just love it.

[@ShyamalEcon]

I'm a practicing economist and work in policy and this course is brilliant! Helping people understand welfare maximising and trade-offs made to get there are so many people that think this reality doesn't apply to "them", and yet...

[@savi5634]

Phenomenal professor. Hope to be somewhat like him in the future

[@paulimbert9266]

As a third year undergrad in Economics at Sorbonne University in Paris, this video was relaxing to watch. Currently on holidays soon to start again I needed a refresher on basic economics. The professor is very concise through the explanations it was a pleasure listening to him. Of course, especially for the classical theory of market, lots of assumptions are to be made including the most notable one being the theory of rationality. It's both a good & bad thing that we aren't always rational ! Economics has not be taught enough has anything but the laws of the universe, people need to understand we humans are supposed to get ahead of Economics, understand how we got here today & why we can chose a better world.🙂

[@AnushaJ-n7k]

If not economics what else would u be studying? Which is more static, realistic, sound and rational?

[@pandorabox127f2]

This materials helps me to understand about my subjects, thank you for uploading this material, and the method of teaching approaches is epic

[@kavindyadevasinghe5472]

Amazing lecture! He’s one of those teachers that can make anything interesting. Anyone else have an aneurysm when the graph came on? They are labeled correctly but I think the colours are the opposite of what he’s showing his students.

[@Ninjanugets123]

him dropping the line about modern economics being created in that room was crazy, but makes so much sense (as an ex engineer)

[@water6856]

Hi, Currently , I'm a student of The College of Economics in Viet Nam and I'm appreciate about this course. MIT is doing a great job by sharing free lectures for all students around the world, and yeah ,it easy to understand . I love it💯💯💯😍😍😍

[@arniie5288]

I'm a math student currently in second year, but watching these videos makes me want to re-learn economics!

[@Akihikoo_]

Flushed

[@Kishan31468]

Completed MS in mathematics working in AI domain. Always fascinated about econ and finance. Learning both simultaneously. All thanks to OCW.

[@cat-.-]

May I suggest you guys two awesome channels, one is Unlearning Economics, the other is Money&Macro.

[@canxi110]

The professor is much older than in the latest video I saw when I was freshman. Now I am a junior, and I still love microeconomics because him and my own teacher in my university.

[@haohao5880]

After graduated from University for more than two years, I pick up Microeconomics through this course, many thanks to Professor Gruber

[@AnushaJ-n7k]

Coming to lectures reading textbooks beforehand is a great way to appreciate concepts better!

[@johnwig285]

I am glad to see John Gruber is still teaching. Kuddos to MIT for not resorting to any PR stunts by throwing this man under the bus after Gruber's controversial comments on some show, but he was just being real & telling the truth abt how ppl vote their politicians. At least MIT didnt do what Obama did to him.

[@realhumphreyappleby]

True mu friend. Academia really is a much better place than politics

[@realhumphreyappleby]

@trublu97 what he did was actually objectively bad

[@Sacred-Heart-of-Jesus829]

Really??!! Isn't Jonathan Gruber the architect of the very messed up and failed Obamacare? He was recorded on camera as saying "blame it on the stupidity of the American Voter" when they were in a meeting back when Obama was in office. This guy should be sitting in a prison cell! He was paid $400K of our taxpayer dollars to mess up the healthcare system here in the United States. Do the research! He basically did loads of damage to the United States and got away with it! kzbin.info/www/bejne/d5XVlaCjnZyVg9E www.arcfusion.org/magazine/watch/jonathan-gruber-%E2%80%93-architect-obamacare-talks-about-how-white-house-did-it

[@realhumphreyappleby]

@@Sacred-Heart-of-Jesus829 I think the word research doesn't look good with a KZbin link with it

[@Nill757]

@@realhumphreyappleby Right, don’t believe your lying eyes via video of the man’s own comments because ‘KZbin” something.

[@tafouktinou7854]

Thank you for recording these lectures and making them free. I am studying to succeed in my retakes, you are of immense help.

[@izzyklett2065]

amazing proffesor, l learn more voluntarily watching these videos than I do in classes I have to take and do school work for.

[@AThomasKent]

Huge fan that I can comment on your guy’s stuff. Thanks for posting these videos!! MIT, you guys are truly awesome

[@Sacred-Heart-of-Jesus829]

Isn't Jonathan Gruber the architect of the very messed up and failed Obamacare? He was recorded on camera as saying "blame it on the stupidity of the American Voter" when they were in a meeting back when Obama was in office. This guy should be sitting in a prison cell! He was paid $400K of our taxpayer dollars to mess up the healthcare system here in the United States. Do the research! He basically did loads of damage to the United States and got away with it! kzbin.info/www/bejne/d5XVlaCjnZyVg9E www.arcfusion.org/magazine/watch/jonathan-gruber-%E2%80%93-architect-obamacare-talks-about-how-white-house-did-it

[@kirangwagodfrey3834]

The law of demand and supply, otherwise is a fragile law between natural and artificial phenomena. For example, when an engineer at MIT desgin a device and prove utility, depending on its intensity, it can absolutely change economic environment. This turns attention to new demand and supply sources to a certain extent.

[@hahm99]

0. Individuals and firms’ decisions & constrained optimization ... 1. Supply and demand .. equilibrium 2. Positive vs. normative 16:40

[@justins7796]

bruh my life is a series of bad choices for opportunity costs

[@shook3487]

Yes😭

[@Sacred-Heart-of-Jesus829]

Isn't Jonathan Gruber the architect of the very messed up and failed Obamacare? He was recorded on camera as saying "blame it on the stupidity of the American Voter" when they were in a meeting back when Obama was in office. This guy should be sitting in a prison cell! He was paid $400K of our taxpayer dollars to mess up the healthcare system here in the United States. Do the research! He basically did loads of damage to the United States and got away with it! kzbin.info/www/bejne/d5XVlaCjnZyVg9E www.arcfusion.org/magazine/watch/jonathan-gruber-%E2%80%93-architect-obamacare-talks-about-how-white-house-did-it

[@demolazer]

@@Sacred-Heart-of-Jesus829 I'm not sure the US healthcare system could be any more messed up. At least with Obamacare it made sure many more people had insurance who wouldn't without the changes made.

[@loriechase4101]

Hahaha..Im right there with you

[@MuskanKumari-qp8ym]

Hii..I am from India and taken Economics as my graduation major subject...by this lecture I have learnt so many stuffs that my college is not able to provide... Thanking you for helping me to braoden my mind..!❤

[@lilixiong5339]

Thank you Professor! May I point out a small verbal slip at 13:35, it is should be "a yellow, downward-sloping line is the demand curve"

[@myythandle5]

It is completely okk cuz everyone understood it already, as he read out Curve 's name

[@dizzyhitman_007]

yeah just noticed that...common mistake.

[@Mshine2]

I caught it too thank you, for confirming that it wasnt just me!

[@ila9063]

The thing I would like to clarify with regards to this lecture is that it is absolutely possible to engage with normative questions irrespective of one’s understanding of positive analysis. Ethicists do that all the time and they are the authorities on normative analysis. Additionally, Smith’s invisible hand only exists in theory as we have heavy government intervention in practice. There is no evidence to suggest that a free market leads to equitable outcomes which is probably why we have said government intervention. I think, for everyone listening to these lectures, it’s important to question the normative assumptions underlying economic theories and models. Obviously, I’m sure the lecturer is aware of all this and there is only so much one can cover in a lecture.

[@ivosilva2796]

Thanks MIT for sharing the content. Open content is the way to go :)

[@tejaswinikarnale]

1.What's microeconomics? Micro economics is the study of how individuals and firms make decisions in a world of Scarcity. A series of constrained optimisation exercises Where The individuals and the firms strive to make themselves much well as they can in the presence of constraints. It is about trade-offs how to trade of things to make yourself as well possible. It is also the idea of the notion of opportunity cost. Economics is generally termed as dismal science. 2.Supply and Demand. An economics model is a description between two or more economic variables by simplifying assumptions. George box : all models r wrong but some r useful.

[@immanueljohn2410]

Thankyuuu

[@CADable]

World's best teaching hub🖤

[@Sacred-Heart-of-Jesus829]

Isn't Jonathan Gruber the architect of the very messed up and failed Obamacare? He was recorded on camera as saying "blame it on the stupidity of the American Voter" when they were in a meeting back when Obama was in office. This guy should be sitting in a prison cell! He was paid $400K of our taxpayer dollars to mess up the healthcare system here in the United States. Do the research! He basically did loads of damage to the United States and got away with it! kzbin.info/www/bejne/d5XVlaCjnZyVg9E www.arcfusion.org/magazine/watch/jonathan-gruber-%E2%80%93-architect-obamacare-talks-about-how-white-house-did-it

[@BSGSV]

Flashbacks of college days. Some good, some bad. I can't help but think how much better suited I am today to process and absorb these materials at this late stage of life than I was back in my 20s.

[@RiyaRoy-nw4xf]

Sir I r too brilliant ..I never see such teacher like you ..tq soo much sir ..luv from India Bihar 🇭🇺

[@bhaskarkumar2479]

From Bihar too... Agreed

[@mayankjha9651]

From bihar too

[@RiyaRoy-nw4xf]

From which place ?

[@mayankjha9651]

@@RiyaRoy-nw4xf kgg

[@mayankjha9651]

@@RiyaRoy-nw4xf where r you from

[@victormanuelfonsecasanchez9610]

Hello. I am pleasantly surprised at how similar the contents of this subject are in that prestigious university and the content I received at my university in Cuba. It makes me think of the effort my professors made to teach us the state of the art in economics. It is a privilege and an honor to be able to attend this course even remotely.

[@purity4554]

Economics is Economics, it does not matter where you are in the world.

[@musicwithoutanyboundaries]

Such a stupendous lecture live recoreded! I hope they continue doing this for a while! 📀🎞🎦

[@arifalam8887]

i just loved the way he always look for the questions from the audience ... complete teacher he is 👍

[@brumby518]

Wow, the teaching content and quality at MIT are sensational. I went to the wrong uni

[@ЛенаМазур-ж4й]

Интим

[@chatriksaund]

The best possible lecture out there on micro economics

[@realhumphreyappleby]

Awesome to see this course being covered again

[@JeonAbdelbari]

I really like the way this teacher talks 😁

[@harshjoshi7949]

These are the good lecturers i can easily understand and learn from this channel

[@forexsanjose6090]

The description of difference between models and laws was excellent.

[@curryeater259]

Nice to see Gruber is still teaching. What lecture is on Obamacare?

[@WorthlessWinner]

Probably gonna be mentioned in the last lecture, since it's titled "health economics"

[@Sacred-Heart-of-Jesus829]

Isn't Jonathan Gruber the architect of the very messed up and failed Obamacare? He was recorded on camera as saying "blame it on the stupidity of the American Voter" when they were in a meeting back when Obama was in office. This guy should be sitting in a prison cell! He was paid $400K of our taxpayer dollars to mess up the healthcare system here in the United States. Do the research! He basically did loads of damage to the United States and got away with it! kzbin.info/www/bejne/d5XVlaCjnZyVg9E www.arcfusion.org/magazine/watch/jonathan-gruber-%E2%80%93-architect-obamacare-talks-about-how-white-house-did-it

[@shilpalad-sankpal3859]

Some random KZbin Macro got me here. I don't even google Economics. But Dr Gruber, your humour shines through, and probably the first time I have bothered to understand what the term Microeconomics means.

[@xuanyidu3259]

amazing course by a passionate professor

[@meenalsawant7764]

well i missed my 2 classes in this course in another school and opened to get some knowledge and these videos are really simple and easy for understanding.

[@debashishbramha]

Fantastic!! More Videos.Profs have high energy and full clarity about what he is teaching .MIT MOOC is very popular in India and Indian students.

[@meshooshekoo7209]

Positive analysis :- the study of the way things are. Normative analysid :- the study of how things should be.

[@2367J]

3:25 starts

[@sanctusaudiobooks1229]

thanks dude

[@Proj_Null]

i found this during the end of my semester, i'll watch this after my exams again

[@paulpaquin6575]

That was an amazing class. So important to understand.

[@crzoficial]

Free Knowledge!! Thank you

[@guth6839]

In Economics what duration of time is Short- Term, Medium - Term and Long -Term ?

[@samanstead9131]

Studying economics at UWE and the teacher is insufferable so now im here and the comparison in teachers in monumental to my studying. Appreciate it.

[@kanishgarg1570]

My school's online eco. Class was going on And i preffered to attend this one, putting that on mute..

[@krishnaDas-ce1df]

Hahaha😂

[@badgalhirixo]

literally me rn hahaha

[@strodriguez85]

My Econ professor has a thick Nigerian accent and it's hard to understand anything he says. So glad I found these lectures

[@tanishkKatiyar-xn7on]

I am indian but i like these classes because his teaching method is so amazing

[@billertype17]

I'm studying economics and this lecture is amazing. I think I picked the wrong uni

[@Sacred-Heart-of-Jesus829]

Isn't Jonathan Gruber the architect of the very messed up and failed Obamacare? He was recorded on camera as saying "blame it on the stupidity of the American Voter" when they were in a meeting back when Obama was in office. This guy should be sitting in a prison cell! He was paid $400K of our taxpayer dollars to mess up the healthcare system here in the United States. Do the research! He basically did loads of damage to the United States and got away with it! kzbin.info/www/bejne/d5XVlaCjnZyVg9E www.arcfusion.org/magazine/watch/jonathan-gruber-%E2%80%93-architect-obamacare-talks-about-how-white-house-did-it

[@mushtaqahmedmeer5350]

I adore Prof. Jonathan Gruber. He is remarkable man indeed! I love to meet him.

[@jannedrumsit]

This makes me want to study in MIT... but damn my math sucks.

[@appleman2590]

I have different issue, I’m really good at maths but my bank account sucks

[@jamilcartagenaruiz6678]

@@appleman2590 AJAJAJA YOUR CREDIT SCORE SUCKS STEVEE

[@appleman2590]

@@jamilcartagenaruiz6678 man you are the first person in about 10 years that I have this account, who spotted and joked about my nick, even though I often have 1k+ likes on my comments😂

[@cam1066]

Same my maths is poor lol but economics concepts are really interesting

[@appleman2590]

@@cam1066 they are, I’m know studying engineering, but I’m gonna change my profile to economics, cause it’s much more interesting

[@meghrajuppar4522]

This lecture was just awesome. For someone like me who is studying economics masters from a well known university; Karnataka University Dharwad. This Professor just places things in place.

[@ishanmallik9154]

At 14:33, does he mix up Demand and supply curves ? Im really confused ?

[@santoshacharya3619]

Yes he did

[@PankajSharma-sh8ql]

Yes he did 😂

[@marcosenrique2639]

excellent class by Ricardo Caballero! thank you MIT for sharing this course, greetings from Chile.

[@vpbledsoe2]

Mom is watching this now, so there will be no need to explain.. 😂

[@trangle-cb8rl]

So good lecture, really happy to find this. Best thing it is open for people who want to learn and understand more about economics. Thanks so much Prof.

[@aboudyaqoub7101]

What a great Professor 👍🏻👍🏻 I like his way and how he simplified everything well, thank you

[@daphnebailey6223]

Love how organized he is. Even if he doesn’t have notes written on the board he still sounds really organized and easy to take notes with.

[@rogofos]

nitpicks and politics aside, I am really grateful that your university uploads some of its lections, making education that much more accessible

[@viniciussrs100]

THANKS FOR MAKING THIS AVAILABLE FOR EVERYONE GREAT LECTURE WITH EXECELLENT EXAMPLES

[@simoncordova5655]

The fact that he had to explain his usage of the term guys says a lot about where we are in society. Great lecture.

[@montagecentral1379]

I want to sell my kidney now

[@studentsettaigal9195]

Still available 😕 ?

[@myoptimumpride5178]

For 10$

[@xulfikhan7744]

Ohhhhhh no

[@essakhan-oh2vh]

How your business is going on how speedily you remove comments not of your themes.

[@antikoerper256]

There you have it - MIT is MIT for a reason.