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 twodimensional graphs
 differentiate simple functions 
Examination 
Microeconomics:

Exam
ECTS 
7,5 
Examination form 
Written sitin exam on CBS'
computers 
Individual or group exam 
Individual exam 
Assignment type 
Written assignment 
Duration 
4 hours 
Grading scale 
7point grading scale 
Examiner(s) 
Internal examiner and external examiner 
Exam period 
Autumn and 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
nonexecutable format (no applications, application fragments, IT
tools etc.)
 Any calculator
 In Paper format: Books (including translation dictionaries),
compendiums and notes
The student will have access to  basic IT application package

Makeup exam/reexam 
Home assignment  written product 
 Size of written product: Max. 10
pages 
 Assignment type: Written
assignment 
 Duration: Written product to be
submitted on specified date and time. 
Description of the exam
procedure
retake is 4 hours home exam, open
book


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 brushup 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 brushup course hours that
the IB (dates and classes will be announced in due time). 
Feedback during the teaching period 
Student feedback takes place regularly throughout
the course, e.g. in exercise classes, inclass problem solving and
specific Q and A sessions. Students are always encouraged to
actively participate in lectures and ask questions. They also have
the opportunity to ask one on one questions in office hours, and to
post questions on discussion forums on canvas. There will be 23
graded quizzes in the course to ensure continuous feedback and
assessment of students’ performance.

Student workload 
Lecture hours and preparation (42+42) 
84 hours 
Workshop/exercises incl preparation( 12+12) 
24 hours 
Preparation for class and exams 
140 hours 

Expected literature 
"Microeconomics",including MyEconLab, by Jeffrey M.
Perloff
