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2019/2020  BA-BHAAI1023U  Principles of Microeconomics – a Business Perspective

English Title
Principles of Microeconomics – a Business Perspective

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration Summer
Start time of the course Summer
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 120
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Course instructor: Bradley K. Hobbs, Clinical Professor of Economics. Clemson University.
    Sven Bislev - Department of Management, Society and Communication (MSC)
For academic questions related to the course, please contact instructor Bradley Hobbs at hobbs4@clemson.edu
Other academic questions: contact academic director Sven Bislev at sb.msc@cbs.dk
Main academic disciplines
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 12/11/2019

Relevant links

Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Fully explain the basic concepts, models, theories and tools used in the principles of microeconomics and use them to analyze economic decisions by individuals and by firms.
  • Identify the foundational assumptions used in their own economic analysis and in the economics analysis of others.
  • Predict the effects of supply and demand changes on the direction of market price and quantity. Use the tools of consumer and producer surplus to identify the gains form exchange and the gains from the ability to manipulate price or quantity (e.g., the effects of barriers to entry, market power, monopolization, price controls, taxes, subsidies, and quotas.)
  • Articulate and explain the systematic nature of economic analysis and address likely secondary effects of particular policies and institutional frameworks.
  • Analyze economic outcomes in terms of their contribution to recognition of scarcity and efficiency.
  • Communicate, discuss, and present sound logical conclusions from their analysis of economic incentives.
Course prerequisites
None
Examination
Principles of Microeconomics - a Business Perspective:
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-point grading scale
Examiner(s) One internal examiner
Exam period Summer, Ordinary exam: 4 hour written exam in the period of 27–31 July 2020
Retake exam: 4 hour written exams in the period of 28 September–2 October 2020
3rd attempt (2nd retake) exam: 72-hour home assignment- 23-26 November 2020 – for all ISUP courses simultaneously


Exam schedules available on https:/​/​www.cbs.dk/​uddannelse/​international-summer-university-programme-isup/​courses-and-exams
Aids Closed book: no aids
However, 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), and the student is allowed to bring simple writing and drawing utensils (non-digital). PLEASE NOTE: Students are not allowed to communicate with others during the exam.
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.
Retake exam: 4 hour written sit-in exam, new exam question
Exam form for 3rd attempt (2nd retake): 72-hour home project assignment, max. 10 pages.
Course content, structure and pedagogical approach
The Principles of Microeconomics is the primary foundation for all other neoclassical economic theory including much of macroeconomics. Microeconomic theory principals provide insights into the behavior of both individual and collective actors (firms) in markets. This course is the introductory course in any economics curriculum.  It will provide you with an insight into how economists analyze practical problems which present themselves to policy makers in the real world. The concepts are theoretical but we will develop a "set of tools for analysis" which you will be expected to apply. The materials in this course are used extensively in economics, financial economics, and business.
 
Economics is ultimately about problem-solving through critical thinking. We are asked to provide logical, well-argued, defensible answers to complex questions. To do this we must strip problems down to their essential assumptions, arguments, and then critically analyze them. We do not expect you to master problem-solving or critical thinking in this one course. We do expect that you will greatly increase your proficiency at these skills.
 
The emphasize applications because economics conditions and "answers" are constantly changing. What is transferable, fundamental, and constant is the method of economic analysis which we will develop. The ability to apply these tools to varying situations and to make the results clear to others is what gives value to economic analysis.
 
The primary focus of this course is on the development of analytical prowess or "critical thinking." The discipline of economics originated within philosophy, rhetoric, logic and mathematics and transitioned through political economy in the 19th century into modern economics.  As a result, economics is a very broad social science drawing upon the interconnectedness of human action. We model human behaviors within particular institutional arrangements.
 
This course focuses on the behaviors of individuals, firms, and institutional actors. Students should be able to successfully apply time-tested, empirical models of microeconomic behavior. 
 
Preliminary assignment:
(1) Read the first four chapters of the textbook and prepare questions to discuss in our first week of class meetings.
(2) Carefully read this article: Radford, R.A. 1945. “The Economic Organisation of a P.O.W. Camp.” Economica, 12(48): 189-201.  Be prepared to participate in the discussion in the first class. Prepare written answers to the study guide questions.
(3)  Carefully read this article: Hayek, F. A. 1945. “The Use of Knowledge in Society.” American Economic Review, 35(4): 519–30. Be prepared to participate in the discussion in the fourth class. Prepare written answers to the study guide questions.
 
Class 1
Chapter 1 - The Big Ideas
Chapter 2 - The Power of Trade and Comparative Advantage
 
Class 2
Chapter 3 - Supply and Demand
Chapter 4 - Equilibrium: How Supply and Demand Determine Prices
 
Class 3
Chapter 5 - Elasticity and Its Applications
Chapter 6 - Taxes and Subsidies
 
Class 4
Chapter 7 - The Price System: Signals, Speculation, and Prediction
Chapter 8 - Price Ceilings and Floors
 
Class 5
Chapter 9 - International Trade
Chapter 10 - Externalities: When Prices Send the Wrong Signals
 
NOTE:
The Optional Midterm Assignment below opens at the beginning of Week 5 on CANVAS.
 
Class 6
Chapter 11 - Costs and Profit Maximization Under Competition
Chapter 12 - Competition and the Invisible Hand
 
FEEDBACK ACTIVITY
Optional Mid-term Assignment
The optional mid-term assignment will be a take-home examination covering course materials up to that point and will be similar to the final examination. Its format will be multiple choice and short answer. It will be posted on Canvas a week prior to its due date - the beginning of Class Meeting 5. This midterm is best viewed as learning opportunity for students. I encourage you, and you have my explicit permission, to work with a classmate or small team. Ideally, you will learn from one another. Midterm questions are drawn from the test bank which is a supplement to your textbook. Space will be provided for you to do your analysis on the examination.
 
Class 7
Chapter 13 - Monopoly
Chapter 14 - Price Discrimination
 
Class 8
Chapter 15 - Cartels, Oligopolies, and Monopolistic Competition
Chapter 16 - Competing for Monopoly: The Economics of Network Goods
 
Class 9
Chapter 17 - Labor Markets
Chapter 18 - Public Goods and the Tragedy of the Commons
 
Class 10
Chapter 19 - Political Economy and Public Choice
Chapter 20 - Economics, Ethics, and Public Policy
 
Class 11 Comprehensive Review

 

Description of the teaching methods
Lecture
Feedback during the teaching period
The Feedback is a mid-term assignment will be a take-home examination covering course materials up to that point. It will be similar in format to the final examination. It will be posted on LEARN a week prior to its due date - the beginning of Class Meeting 5. This midterm is best viewed as learning opportunity for students. I encourage you, and you have my explicit permission, to work with a classmate or small team. Ideally, you will learn from one another. Midterm questions will be drawn from the test bank which is a supplement to your textbook. Space will be provided for you to do your analysis on the examination.
Student workload
Preliminary assignment 20 hours
Classroom attendance 33 hours
Preparation 126 hours
Feedback activity 7 hours
Examination 20 hours
Further Information

Preliminary Assignment: To help students get maximum value from ISUP courses, instructors provide a reading or a small number of readings or video clips to be read or viewed before the start of classes with a related task scheduled for class 1 in order to 'jump-start' the learning process.

 

Course timetable is available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams

 

We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams end March 2020.

Expected literature

Mandatory readings:

 

Tyler Cowen and Alex Tabarrok, Modern Principles: Microeconomics. Worth Publishing, 4th Edition. ISBN-33: 978-1319182113 or ISBN-10: 1319182119
 
Radford, R.A. 1945. “The Economic Organisation of a P.O.W. Camp.” Economica, 12(48): 189-201.
 
Hayek, F. A. 1945. “The Use of Knowledge in Society.” American Economic Review, 35(4): 519 -30.
 
Tyler, Cowen and Alex Tabarrok. Modern Principles of Microeconomics, 4th Edition. 
Indicated chapters. 
 
Last updated on 12/11/2019