2285.21 - Intermediate Microeconomics 1

2285.21

Intermediate Microeconomics 1

7.5

Upper secondary diploma with B-level mathematics. A foundation from Principles of Microeconomics and Mathematics 1 are not a requirement, but would certainly be an advantage.

The purpose of this course is to prepare students to read relevant academic literature in economics independently, as well as to apply microeconomics methods and approaches to the analysis of economic issues.

Micro 1 provides an in-depth introduction to economics building on the knowledge students have acquired in ‘Principles of Microeconomics’ and ‘Mathematics 1’. The course provides insight into fundamental concepts in economics and provides students with an introduction to formal mathematic analyses of microeconomic issues. When revising theories and models we will emphasise the link between the preconditions that are embedded into theories and models and the resulting findings and conclusions. Micro 1 gives students an introduction to and understanding of the economic decisions made by individual actors (households or companies) in a market economy with perfect competition. The aim is to provide students with an in-depth understanding of how consumers and companies behave on the market. This leads to a description of economic equilibrium and an analysis of welfare based on fundamental theorems of welfare.

The course bibliography will be discussed in lectures and class-based exercises. During class-based exercises students will be required to regularly present solutions to problems in the course bibliography assigned on a weekly basis.

The successful student can, within the economic framework of economic models with perfect competition, demonstrate ability to: • Analyse and calculate market equilibriums and changes to these when the economic environment changes • Understand and reproduce how rational consumers choose between different options, conditioned by prices and income • Analyse and calculate how consumer behaviour is conditioned by preference • Analyse and calculate how producers choose a production plan when seeking to maximize profit • Analyse and calculate equilibriums (Walras equilibriums) in an economy with two actors (two consumers or one consumer and one business) • Analyse and calculate Pareto optimality in an economy

3-hour written examination without aids. Students are required to pass a minimum of two assignments in order to attend the exam.

External

7-

The course reading list will be made available at the department

Hans Ellefsen