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2017/2018  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 31-08-2017

Relevant links

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?).
Applied Microeconomics:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period Winter
Aids Limited aids, see the list below:
The student is allowed to bring
  • USB key for uploading of notes, books and compendiums in a non-executable format (no applications, application fragments, IT tools etc.)
  • Non-programmable, financial calculators: HP10bll+ or Texas BA II Plus
  • Books (including translation dictionaries), compendiums and notes in paper format
At all written sit-in exams the student has access to the basic IT application package (Microsoft Office (minus Excel), digital pen and paper, 7-zip file manager, Adobe Acrobat, Texlive, VLC player, Windows Media Player). PLEASE NOTE: Students are not allowed to communicate with others during the exam : Read more about exam aids and IT application packages here
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.
It is at the discretion of the Study Board to change the exam form from a 4-hour written sit-in exam to a 20 min oral exam with no preparation.
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 30 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 10 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.
Feedback during the teaching period
We try to offer feedback in response to your questions and work whenever possible. Please feel free to take advantage of the ‘office hours’ offered by full-time staff members, although these can never be a substitute for participation in lectures and classes. We also encourage you to ask questions or make comments in class and form self-study groups to secure peer feedback on your work.
Student workload
Preparation time (readings, group work etc.) 106 hours
Lectures / class exercises / “homework cafés” / workshops etc. 60 hours
Exam (incl. preparation for the exam and actual exam period) 40 hours
Expected literature

"Microeconomics", 7'th global edition, including MyEconLab, by Jeffrey M. Perloff


This is a sample of the literature that will be used. A comprehensive reading list can be found in the course plan that will be published on CBS Learn before classes begin.

Last updated on 31-08-2017