By the end of this section, you will be able to:

Show the relationship between production costs and comparative advantage
Identify situations of mutually beneficial trade
Identify trade benefits by considering opportunity costs

14.01 Principles of Microeconomics is an introductory undergraduate course that teaches the fundamentals of microeconomics. This course introduces microeconomic concepts and analysis, supply and demand analysis, theories of the firm and individual behavior, competition and monopoly, and welfare economics. Students will also be introduced to the use of microeconomic applications to address problems in current economic policy throughout the semester.
This course is a core subject in MIT's undergraduate Energy Studies Minor. This Institute-wide program complements the deep expertise obtained in any major with a broad understanding of the interlinked realms of science, technology, and social sciences as they relate to energy and associated environmental challenges.
Course Format
This course has been designed for independent study. It includes all of the materials you will need to understand the concepts covered in this subject. The materials in this course include:

A complete set of Lecture Videos by Prof. Jon Gruber.
Reading Assignments in your choice of two textbooks – one of which is a free online edition - as preparation for the lectures.
Multiple-choice Quizzes to assess your understanding of the key concepts in each session.
Problem Sets with solution keys to test your ability to apply to concepts covered in lecture, and Problem Solving Videos to provide step-by-step instruction through several problem set solutions.
A collection of links For Further Study to provide supplemental online content.
A full set of Exams, including review material and practice exams to help you prepare.

Are many products made in the United States anymore? As it turns out, yes. In fact, U.S. manufacturing output is near its highest level ever—and with fewer workers. How is that possible? Productivity growth. The March 2017 issue of Page One Economics describes what affects productivity, why economists are concerned about its recent slowdown, and what can be done about it.

As we shift towards remote learning and working from home, it is important to avoid burnout and stay on task! Remote Study Strategies: The Pomodoro Technique is an interactive presentation that walks students through the Pomodoro Technique, a productivity strategy that is useful for studying. This tutorial gives background on the technique, and provides tips from our team that we find useful to enhance our work process.

Note: Throughout the tutorial, audio clips from WI+RE team members are available to walk you through the slides and provide you with additional information. To play these clips, look for an audio button found in the slides.

In this lesson, students learn about human resources, productivity, human capital, and physical capital. They participate in three rounds of a reasoning activity. From round to round they receive training and tools to help them improve their reasoning ability and thus increase their productivity. Students will then listen to a story about how the Empire State Building was built and identify examples of key concepts mentioned or shown in the book.

This course addresses the relationship between technology-related problems and the law applicable to work environment. The National Labor Relations Act, the Occupational Safety and Health Act, the Toxic Substances Control Act, state worker's compensation, and suits by workers in the courts are discussed in the course. Problems related to occupational health and safety, collective bargaining as a mechanism for altering technology in the workplace, job alienation, productivity, and the organization of work are also addressed. Prior courses or experience in environmental, public health, or law-related areas will be useful.

In this multidisciplinary lesson, students work in small groups ("work crews") while participating in a production activity. Students learn about competition, division of labor, and incentives. They also demonstrate how division of labor and incentives help lead to greater productivity.

This resource is a video abstract of a research paper created by Research Square on behalf of its authors. It provides a synopsis that's easy to understand, and can be used to introduce the topics it covers to students, researchers, and the general public. The video's transcript is also provided in full, with a portion provided below for preview:

"Economists have long acknowledged that physical attractiveness affects wages. Highly attractive men and women generally earn more than ordinary people doing comparable work. But it’s not clear _why_ this linkage exists. To answer this question, two scientists recently reported on a study designed to uncover the root cause of this so-called beauty premium. Their results imply that physically attractive people make more money _not_ because they’re beautiful, but rather because they’re healthier, more intelligent, and have more pleasant personalities. Their study tracked the careers and physical attractiveness of over 15,000 people for more than ten years. Participants were interviewed starting around age 16 and again at ages 17, 22, and 29. In each interview, they shared their gross personal earnings over the previous year and described their current occupation and health status. They also completed personality assessments and IQ tests..."

The rest of the transcript, along with a link to the research itself, is available on the resource itself.

Over 200 years ago, Adam Smith attempted to explain why some nations are wealthier than others. Today, the gap between rich and poor countries is even larger. The September 2017 issue of Page One Economics describes how total factor productivity contributes to economic growth and how growth leads to a rising standard of living.

Robots are in the headlines, and many of us are wondering if they’ll also be taking over our jobs. Is the “Robot Apocalypse” upon us, or is this part of a larger trend that’s been occurring for much of human history? Find out by reading the January 2018 issue of Page One Economics.