The law of supply and demand, opportunity costs, and utility maximization

Interview with University of Milan

Principles of Microeconomics - Microeconomics uses a set of fundamental principles to make predictions about how individuals behave in certain situations involving economic or financial transactions. These principles include the law of supply and demand, opportunity costs, and utility maximization.
Consumer theory - Consumer theory is the study of how people decide to spend their money based on their individual preferences and budget constraints. A branch of microeconomics, consumer theory shows how individuals make choices subject to how much income they have available to spend and the prices of goods and services. The four consumer behavior theories we've covered in this article are The IMBP Model, Social Influence Theory, Personal Factors Theory (PFT), and Environmental Influences on Consumer Behavior (EICT).
Intertemporal choice - Intertemporal choice is an economic term describing how current decisions affect what options become available in the future. Theoretically, by not consuming today, consumption levels could increase significantly in the future, and vice versa.
Uncertainty - refers to epistemic situations involving imperfect or unknown information. It applies to predictions of future events, to physical measurements that are already made, or to the unknown. Uncertainty arises in partially observable or stochastic environments, as well as due to ignorance, indolence, or both.
Market equilibrium - A situation where for a particular good supply = demand. When the market is in equilibrium, there is no tendency for prices to change. We say the market-clearing price has been achieved. A market occurs where buyers and sellers meet to exchange money for goods.
Producer theory - The producers theory is concerned with the behavior of firms in hiring and combining productive inputs to supply commodities at appropriate prices. Producer theory considers how firms work to determine the supply of goods that maximizes profits. Consumer theory looks at how individual preferences affect the demand for certain goods in the marketplace. Both theories seek to ex- plain the functionality of the market system.
Forms of market - Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.
Game Theory - Game theory is a theoretical framework for conceiving social situations among competing players. In some respects, game theory is the science of strategy, or at least the optimal decision-making of independent and competing actors in a strategic setting.
Elementary Probability and Random Variables - A random variable is a variable whose possible values are the numerical outcomes of a random experiment. Therefore, it is a function which associates a unique numerical value with every outcome of an experiment. Further, its value varies with every trial of the experiment. Random variable is a function that associates values of a sample space to a real number. Probability distribution is a function that associates values that a random variable can take to the respective probability of occurrence.

Descriptive Statistics - Descriptive statistics are used to describe or summarize data in ways that are meaningful and useful. For example, it would not be useful to know that all of the participants in our example wore blue shoes. However, it would be useful to know how spread out their anxiety ratings were.
Statistical inference - Statistical inference is the process through which inferences about a population are made based on certain statistics calculated from a sample of data drawn from that population.
Linear Regression Model With One or More Regressors - Multiple linear regression refers to a statistical technique that uses two or more independent variables to predict the outcome of a dependent variable. The technique enables analysts to determine the variation of the model and the relative contribution of each independent variable in the total variance.
Estimation and Testing - Software testing estimation is a management activity to calculate and approximate time, resources and expenses needed to complete test execution in a specified environment. It is a forecast that helps avoid exceeding time limits and overshooting budgets.
Instrumental Variables - An instrumental variable (sometimes called an “instrument” variable) is a third variable, Z, used in regression analysis when you have endogenous variables—variables that are influenced by other variables in the model. In other words, you use it to account for unexpected behavior between variables. An example of instrumental variables is when wages and education jointly depend on ability which is not directly observable, but we can use available test scores to proxy for ability.