BØA203 Microeconomics 1

Contents and structure

The course contains basic theories and models in the field of microeconomics. In consumer and producer theory, the economic choices of consumers and producers are analysed, respectively. In market theory, price formation is studied in various markets, the main focus being on perfect competition and monopoly, but also an introduction to monopolistic competition and international trade. Based on market theory, the importance of competition and the consequences of public intervention for economic efficiency are studied. The final theme is market failures, and how public policy can promote a more efficient use of the resources when markets fail.

Learning Outcome

On completion of the course, the candidate must have acquired knowledge, skills and general competence as follows:

Knowledge: On completion of the course, the candidate has knowledge of:

• Basic concepts and models in microeconomics
• How microeconomic models can be used to analyse the economic behaviour of economic agents and their interaction in markets
• Criteria for economic efficiency and market failure
• How government policy can affect the behaviour of economic agents and thus prices, efficiency and the distribution of economic surplus

Skills: On completion of the course, the candidate can use his or hers professional knowledge to:

• Analyse the economic behaviour of consumers and producers
• Analyse how a market equilibrium is established as a result of the interaction between consumers and producers
• Present and discuss the market equilibrium in various competitive situations with and without government intervention
• Analyse situations where markets do not lead to economically efficient use of resources, that is market failures, and how government can promote a more efficient use of resources

General competence: On completion of the course, the candidate:

• Understand the relationship between the decisions of individual economic agents and the economic consequences
• Is able to reflect on events and economic policies related to markets and market agents
• Able to collaborate with others in order to solve tasks

Entry requirements

None

Recommended previous knowledge

BØA111 Mathematics for economists or equivalent.

Teaching methods

Lectures. Problem solving.

Compulsory learning activities

In order to take the exam, two written assignments must be approved. Students are obliged to collaborate in groups.

Assessment

4 hour written exam. Grade A - F.

Examination support material

Simple basic calculator of the following type:

- Casio fx-82, Casio fx-85 (all types of both fx-82 and fx-85 are allowed: CW, ES, ES Plus, EX, Solar etc.)

- TI-30Xa, TI-30XIIS, TI-30XS MultiView

- Sharp EL-531TG, Sharp EL-531TH, Sharp EL-531TS

More about examination support material

Course reductions

• SØ6-1001 - Samfunnsøkonomi mikro - Reduction: 7.5 studypoints
• ØKB1106 - Mikroøkonomi - Reduction: 7.5 studypoints
• ØSO001 - Mikroøkonomi 1 - Reduction: 7.5 studypoints
• ØKB1024 - Mikroøkonomi - Reduction: 7.5 studypoints
• ØKB024 - Mikroøkonomi og offentleg økonomi - Reduction: 6 studypoints
• SA0671 - Mikroøkonomi - Reduction: 6 studypoints
• SA022 - Samfunnsøkonomi I - Reduction: 6 studypoints