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2018/2019  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
Teaching methods
  • Face-to-face teaching
Last updated on 13-08-2018

Relevant links

Learning objectives
  • Explain basic economic terminology (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 market outcomes), and reflect on the solutions with a critical view.
  • 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
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 microeconomic theory and how economic markets function: it describes what lies behind the notions of demand and supply. Emphasis is placed on the behavioral and technological assumptions that generate product demand and supply, and on market competition and regulation. We also explore important extensions to the basic decision model such as uncertainty. The main topics in 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, etc.

Practical Application of Theory
In each main topic the theory is exemplified with economic problems and issues. We will discuss how one can use microeconomic theory to evaluate tax and labor market policies with macro-economic implications. 

Relation to a Business or an Institutional Setting
We consider in depth how different market structures infuence decisions by producers 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.

Description of the teaching methods
The course includes 15 lectures of two hours each in which the main economic theories and applications are discussed. The lectures are supported by 10 workshops of three hours each, in which you will apply microeconomic theory to specific economic problems. This will provide you with an opportunity to practice the economic methods that you learn in class.
Feedback during the teaching period
We try to offer feedback and respond to your questions and inquiries in a timely manner whenever possible. Please feel free to see full-time staff members during their office hours in active course weeks. The best way to get feedback is to engage actively in discussions in lectures and workshops, and via discussions with your fellow students. You can also consider self-study groups to get feedback from your peers.

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”, 8’th global edition, including MyLab Economics, by Jeffrey M. Perloff

Last updated on 13-08-2018