2020/2021  BA-BINBO1320U  Microeconomics

 English Title Microeconomics

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Start time of the course Second Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in International Business
Course coordinator
• Herdis Steingrimsdottir - Department of Economics (ECON)
• Economics
Teaching methods
• Blended learning
Last updated on 11-12-2020

Learning objectives
After having followed the course the students should be able to:
• • Explain basic economic terminology (as e.g. opportunity costs, moral hazard, risk aversion) 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?).
Course prerequisites
No prerequisites in economics are required.

The technical level required by the course is modest but basic math will be used in this class. More precisely, we will make extensive use of elementary algebra.

If you feel that it’s needed, please review how to:
- work with algebraic expressions (factorization, substitution, exponentiation, solving systems of two linear equations with 2 unknowns)
- plot linear equations in two-dimensional graphs
- differentiate simple functions
Examination
 Microeconomics: Exam ECTS 7,5 Examination form Home assignment - written product Individual or group exam Individual exam Size of written product Max. 10 pages Assignment type Written assignment Duration Written product to be submitted on specified date and time. Grading scale 7-point grading scale Examiner(s) Internal examiner and external examiner Exam period Autumn and Winter, 4 hours home exam, open book 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.
Course content, structure and pedagogical approach
 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, 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. Description of the teaching methods 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 (dates and classes will be announced in due time).
Description of the teaching methods
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 (dates and classes will be announced in due time).

classes will be online and tutorials on campus
Feedback during the teaching period

Office hours and 2-3 review sessions, including Q&A.