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Learning Objectives
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After having followed the course the students should be able to:
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Explain basic economic terminology (as e.g. opportunity costs) in a comprehensive and intuitive way.
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Describe and rationalize the main assumptions behind simple economic models and analyze the role that those assumptions play in the models.
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Use economic models graphically (diagrammatically) to analyze the effects of policy experiments (e.g. introducing taxes).
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Derive numerically economic instruments and apply them in analytical settings (e.g. find a price elasticity and use the elstasticity to predict a change in demand).
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Solve algebraically simple microeconomic models in order to determine the equilibrium economic variables, and reflect on the solutions with a critical mind.
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Use economic intuition to explain topical policy issues (e.g. why are housing taxes popular among economists?).
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Examination
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Microeconomics:
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Assessment
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Written Exam
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Marking Scale
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7-step scale
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Censorship
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No censorship
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Exam Period
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December/January and Winter Term, the regular exam takes place in December. The make-up and re-examination takes place in January.
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Aids
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Open Book, Written Aid is permitted
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Duration
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4 Hours
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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).
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Examination
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The Make-up and Re-examination takes place according to the same rules as the regular exam.
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Course Content
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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 behavioural 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 and symmetric information. The main blocks of the curriculum are: - Supply and Demand
- Consumer theory: preferences, rationality assumptions, budgetary constraints
- Extensions: Uncertainty and information economics
- Producer theory: production and costs functions
- Market structure: perfect competition, monopoly, monopolistic competition, oligopoly
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.
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Teaching Methods
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There are 42 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 12 exercises hours that will be used for doing exercises and applications with the aim of providing students an opportunity to practice the more applied aspects of the class.
In case that your mathematical skills (level B) are not recent, please make sure to attend the 12 Math brush-up course hours that the IB/IBP program offers (dates and classes will be announced in due time).
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Student Workload
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Lecture hours
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42
hours
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Workshop/exercises
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24
hours
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Preparation for class and exams
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159
hours
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Literature
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"Microeconomics and Behaviour", eighth edition, by Robert Frank, McGraw-Hill 2010. |
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