MICROECONOMÍA INTRODUCCIÓN

Introduction to Microeconomics

Overview of Economics

• The lecture begins with a general introduction to economics, emphasizing its significance as a science.

• A standard definition is provided: economics studies the allocation of scarce resources among alternative uses in the most efficient manner possible.

• The etymology of "economy" is discussed, originating from the Greek term meaning "management of the household."

Methodological Foundations

• Economics is described as a science that employs scientific methods and is verifiable.

• The division within economics into positive and normative branches is introduced, highlighting their distinct focuses.

Positive vs. Normative Economics

Understanding Positive Economics

• Positive economics involves studying the economy as it currently exists, providing diagnostic insights into its state.

• It describes economic conditions without making judgments about how they should be; it focuses on factual analysis.

Exploring Normative Economics

• Normative economics follows positive analysis by suggesting how the economy ought to function based on established diagnoses.

• This branch leads to policy-making aimed at improving economic conditions through various instruments and variables.

Focus on Microeconomics

Definition and Scope of Microeconomics

• Microeconomics is defined as the study of small-scale economic units such as firms and households.

• It examines their behavior in different markets, focusing on decision-making processes.

Market Dynamics

• A market is characterized as a physical or virtual space where buyers (demanders) and sellers (suppliers/producers) interact.

• Prices are determined through negotiations between supply and demand forces aiming for exchanges of goods and services.

Goods vs. Services

Characteristics of Economic Transactions

• Goods are tangible items while services are intangible; both aim to satisfy consumer needs.

• The interaction in markets revolves around fulfilling diverse consumer needs through these exchanges.

Conclusion on Market Functionality

• The lecture concludes with an emphasis on understanding market components like supply and demand for effective economic analysis.