ØKB1106 Micro Economics

Contents and structure

The course begins with a basic presentation of consumer theory, and continues with a presentation of production theory. Based on analyses of the adaptation of individual actors, various market solutions are introduced. First, the free competition market is described, followed by the monopoly. An general economic evaluation of the different types of markets is provided, including the consequences of government intervention. Examples of market failure are studied, as well as the effect that economic policy can have in such situations.

Learning Outcome

Knowledge

The student:

• Is  familiar with and understand basic concepts and models within microeconomics.
• Understands  how the models can be used to analyze individual actor's economic behavior and the interaction between them under various types of markets.
• Can discuss criteria for economic efficiency and have knowledge about situations with market failure.
• Understands  how government policy can affect individual actor's behavior and thereby prices and efficiency.

Skills

The student:

Has control over basic graphical and mathematical tools in order to:

• Present and explain consumers' choices based on preferences, prices, and income
• Present and explain producers' decision based on technology and factor prices
• Show how the interaction between consumers and producers creates a market equilibrium
• Present and discuss the market equilibrium under various types of competition
• Explain and discuss the connection between market equilibrium and efficiency
• Discuss  situations where the market equilibrium is not efficient, and what authorities can do to contribute toward increased efficiency

General Qualifications:

The student:

Has achieved  a basic understanding of the relationship between individual economic decisions and the collective economic consequences of these choices.

Entry requirements

None

Recommended previous knowledge

 Knowledge equivalent to the course in mathematics, first year of study.

Teaching methods

 Lectures and exercises.

Compulsory learning activities

Yes, specified at the beginning of the semester.

Assessment

Written exam, 4 hours, 100%

Grad scale A-F

Examination support material

Basic calculator.

More about examination support material