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HAI_MIE - Microeconomics* (Q2)

Faculty
Pascalis Raimondos-Møller
Course Coordinator
Pascalis Raimondos-Møller, Department of Economics, Porcelænshaven 16A
Course content, structure and teaching
This course provides a basic understanding of the functioning of the markets: it describes what lies behind the notions of demand and supply. Emphasis is put to the behavioural assumptions that generate the demand of a particular product, and on whether the producers of a particular product compete in a perfect or an imperfect way. By integrating the two sides of the market, we focus on the general equilibrium functioning of an economy and on the role of the government. The main blocks of the curriculum are:
  • Supply and Demand;
  • Consumer theory: rational and behavioural description of preferences and tastes;
  • Producer theory: production and costs functions;
  • Market structure: perfect competition, monopoly, monopolistic competition, oligopoly;
  • General equilibrium theory; Public goods, externalities, and income distribution.
In each main block the theory is exemplified to everyday problems and issues. Issues like ‘how taxes affect the behavior of economic agents’ are a theme in several parts of the course. Several examples from the international business area are considered, with emphasis on how governments design institutions in order to correct for market imperfections. Relevant recent research issues are presented when relevant.
Learning Objectives
After having followed the course the students should be able to:
  • Explain basic economic terminology (as e.g. opportunity costs, public goods) in a comprehensive and intuitive way.
  • Describe and rationalize the main assumptions behind simple economic models as e.g. the demand and supply model, the perfect competition model, the monopoly model, etc.
  • Illustrate diagrammatically these models and perform policy experiments (e.g. introducing taxes).
  • Derive numerically economic instruments and learn how to use them in practice (e.g. price elasticity, Lerner Index, etc.)
  • Solve algebraically simple microeconomic models (e.g. demand=supply, profit maximization, etc.) in order to determine the equilibrium economic variables (e.g. price, quantity, profit, etc.), and reflect on the solutions with a critical mind (e.g. price and quantity can not take negative values while profits can take negative values in the short run).
  • Use economic intuition to explain topical policy issues (e.g. why are housing taxes popular among economists?)
Type of examination, exam aids and assessment
Written 4-hour open book exam, graded by internal examiner on the 7-point scale. The make-up and re-examination takes place according to the same rules as the regular examination
Exam aids: Students are allowed to bring textbooks, lecture notes and dictionaries. Electronic devices (Laptop and Personal Computers etc.) are not allowed except for non-programmable calculators.
Teaching methods
There are 42 lecturing hours. These hours will be devoted in covering the material in the textbook by traditional lectures and discussion in the class. There are also 12 exercises hours that will be used in doing exercises/applications with the aim in preparing students for the mathematical part of the exam. In case that your mathematical skills (level B) are not recent, please make sure to attend the 20 Math brush-up course hours that the IB/IBP program offers (dates and classes will be announced in due time).
Course literature
  • "Microeconomics and Behaviour", seventh edition, by Robert Frank, McGraw-Hill 2008.

Last updated by CBS International 15/05/2009