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2021/2022  BA-BPOLO2000U  Applied Microeconomics

English Title
Applied Microeconomics

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory (also offered as elective)
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
  • Luigi Butera - Department of Economics (ECON)
Main academic disciplines
  • Managerial economics
  • Strategy
  • Economics
Teaching methods
  • Blended learning
Last updated on 17-12-2021

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?).
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved (see section 13 of the Programme Regulations): 3
Compulsory home assignments
Students must have 3 out of 4 mandatory assignments approved to be able to attend the final exam in the course. The mandatory assignments will be in the form of quizzes administered through Canvas or Peergrade.

Collective feedback on the quizzes will be given.

If the students does not obtain 3 out of 4 approved mandatory assignment the student will not be eligible for the ordinary exam.

If the student can document with Doctor's certificate that participation in the one or more of the mandatory assignments was due to illness. A retake mandatory assignment will be offered between the ordinary and retake exams. The retake mandatory assignment will be a a 1 hour take home assignment.

Please note that to submit the retake mandatory assignments it is a precondition that the student has made a valid attempt in all set activities, unless it can be documented that the lack of submission/participation was caused by illness or similar circumstances. Failure to participate in activities (blanking) does not allow students access to the retake mandatory assignments.

More information on prerequisites for participating in the exam: compulsory activities can be found in the BSc IBP Programme Regulations §13.1-5.
Examination
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-point grading 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
  • In Paper format: Books (including translation dictionaries), compendiums and notes
The student will have access to
  • basic IT application package
Make-up exam/re-exam Home assignment - written product
Size of written product: Please see text below
Assignment type: Written assignment
Duration: Written product to be submitted on specified date and time.
Description of the exam procedure

The retake exam is a 4 hour writte home assignment with all aids. There is no specific number of pages for the exam
Course content, structure and pedagogical approach

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 game theory and uncertainty. The main topics in the curriculum are: 
 

  • Supply and Demand
  • Consumer theory: preferences, rationality assumptions, budgetary constraints
  • Extensions: Game Theory, 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
The course is supplemented by a blended learning approach through the use of MyLab Economics. This online platform provides continuous feedback on exercises and tests, covering all learning objectives in the textbook. In addition, lectures and workshops provide ample opportunities for questions and answers. Students are also encouraged to take advantage of staff office hours to advance comprehension of the teaching material and learning objectives.
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 17-12-2021