English   Danish

2015/2016  BA-BPOLO2000U  Applied Microeconomics

English Title
Applied Microeconomics

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc/MSc i International Business and Politics, BSc
Course coordinator
  • Morten Lau - Department of Economics (ECON)
Main academic disciplines
  • Managerial economics
  • Strategy
  • Economics
Last updated on 22-01-2016
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Explain basic economic terminology (as e.g. opportunity costs, risk aversion, etc.) in a comprehensive and intuitive way.
  • Describe and rationalize the main assumptions behind simple economic models and analyze the role that those assumptions play in the models.
  • Use economic models graphically (diagrammatically) to analyze the effects of policy experiments (e.g. introducing taxes).
  • Derive numerically economic instruments and apply them in analytical settings (e.g. find a price elasticity and use the elasticity to predict a change in demand).
  • Solve algebraically simple microeconomic problems (e.g. utility maximization, profit maximization, and determination of the equilibrium economic variables), and reflect on the solutions with a critical mind.
  • Use economic intuition to explain topical policy issues (e.g. why are housing taxes popular among economists?).
Examination
Applied Microeconomics:
Exam ECTS 7,5
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period Winter
Aids allowed to bring to the exam Limited aids, see the list below:
  • Books and compendia brought by the examinee
  • Allowed dictionaries
  • Allowed calculators
  • Notes in paper format brought by the examinee
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Description of the exam procedure

This is an open book exam meaning that students are allowed to bring textbooks, lecture notes and dictionaries. Electronic devices (Laptops, personal computers, portable computing devises etc.) are not allowed except for non-programmable calculators (pocket calculators) as specified on the BSc IB study homepage on E-campus.

Course content and structure

This course provides an introduction to the functioning of economic markets: it describes what lies behind the notions of demand and supply. Emphasis is placed on the behavioral assumptions that generate demand for particular products, and on whether the producers of a particular product compete in a perfect or an imperfect way. We also explore important extensions to the basic model such as uncertainty. The main blocks of the curriculum are: 
 

  • Supply and Demand
  • Consumer theory: preferences, rationality assumptions, budgetary constraints
  • Extensions: Uncertainty
  • Producer theory: production and costs functions
  • Market structure: perfect competition, monopoly, monopolistic competition, etc.


Practical Application of Theory
In each main block the theory is exemplified with everyday problems and issues. We will consider economic models evaluating policies such as minimum wages and commodity taxation. 

Relation to a Business or an Institutional Setting
We consider in depth how different market structures affect firms and consumers. We also emphasize how governments design institutions to correct market imperfections. 

Relation to International Business or Economics
Several examples from the international business area are considered. Examples will be drawn particularly from U.S., Canada and Europe. 

Research Based Teaching
Issues which are currently under debate in economic research are presented when relevant. In particular, we will discuss the limits of neoclassical models and how the research frontier confronts those limits.

Teaching methods
There are 24 lecturing hours. These hours will be devoted to covering the material in the textbook by traditional lectures and discussion in the class. There are also 5 workshops that will be used for exercises and applications with the aim of providing students an opportunity to practice the more applied aspects of the class.
Expected literature

"Microeconomics with Calculus", 3rd global edition, including MyEconLab, by Jeffrey M. Perloff

Last updated on 22-01-2016