COURSE SYLLABUS

Introductory Microeconomics 7.5 credits

Nationalekonomi A, Mikroteori
First cycle, N0008N
Version
Course syllabus valid: Autumn 2020 Sp 1 - Present
The version indicates the term and period for which this course syllabus is valid. The most recent version of the course syllabus is shown first.

Syllabus established
by 28 Feb 2007

Last revised
by Director of Undergraduate Studies Daniel Örtqvist, Department of Business Administration, Technology and Social Sciences 14 Feb 2020

 Education level First cycle Grade scale U G VG * Subject Economics Subject group (SCB) Economics Main field of study Economics

Entry requirements

In order to meet the general entry requirements for first cycle studies you must have successfully completed upper secondary education and documented skills in English language + Swedish upper secondary school courses Mathematics 3b/3c , Social Studies 1b/1a1 +1a2 (specifik entry A4). Or: Swedish upper secondary school courses Mathematics C, Social Studies A (specifik entry 4)

Selection

The selection is based on final school grades or Swedish Scholastic Aptitude Test.

Course Aim
After the course the student should be able to:
1.    Use the model of partial market equilibrium in the goods and factor markets, to show graphically and explain verbally how market prices are determined in a market characterized by perfect competition and to analyze how market equilibrium is affected by changes in the factors that determine demand and supply.
2.    Calculate different types of elasticities for linear demand and supply functions and give the verbal interpretation of these concepts.
3.    Explain – graphically and verbally – how the individual is assumed to take their consumption decisions and how we can derive the individual and the market demand curve for goods/services, and how demand is affected by changes in commodity prices and income levels.
4.    Derive – graphically and verbally – the individual firm and the market supply curve for goods/services in the short and long term (under perfect competition) and explain how the supply curve depends on the cost structure and technology in the firm, how the supply is affected by changes in these determinants, and how the firm is assumed to take output decisions on short and long term.
5.    Derive – graphically and verbally – the individual firm and the markets demand curve for labor (under perfect competition) and explain how the firm and the market demand curve for labor depends on the company's cost structure and technology, how the demand is affected by changes in these determinants, and how the company is assumed to take decisions on the amount of employees.
6.    Explain how household labor supply varies with the real wage.
7.    Analyze graphically and discuss with the support of central welfare theoretical concepts, how taxes, subsidies and other regulations affect social efficiency in a market that is not characterized by market failures.
8.    Explain – graphically and verbally – the characteristics of the most common market structures and also discuss these from the perspective of social efficieny.
9.    Graphically and verbally explain what the general equilibrium means in a market economy.
10.    In group, work with and analyze different micro economics problems under objective 1-9 above.
11.    In front of other student (and teachers) present and motivate the analysis and solutions of the problems tackled in objective 1-10 above.

Contents

The following areas are included:
o Supply and demand
o Elastices
o Taxes and other regulations
o Consumer Theory
o Theory of the firm
o The production function in short and long run
o The production cost in short and long run
o Perfect competition
o The firm in a competitive market in short and long run
o Basic welfare theory
o Market power and market structure
o Monopoly
o Pricing
o Oligopoly and monopolistic competition
o Cartells
o Factor markets
o  Supply and demand
o  Monopsony
General equilibrium

Realization
Teaching in the form of lectures and a number of mandatory seminar sessions where students present and dicuss solution to problems dealing with the course's various areas. Before the lectures the student is given the opportunity to conduct quizzes which covers basic concepts and problems. The purpose of these quizzes is to stimulate learning and thus prepare students for lectures and seminars.

Examination
The course ends with a (individual) written exam covering the theoretical content of the course equivalent to 6 credits. The exam is given the grades VG (passed with honor), G (passed) or U (failed).

The examination also include mandatory seminars equivalent to 1.5 credits. At the seminars students in group present and justify solutions to macroeconomics problems in front of other students (and the teacher). The seminars are given grades G (passed) or U (failed). For the grade G (passed) students must pass three of four seminars.

Remarks
Students must register for the courses themselves or contact ETS educational administration, eduets@ltu.se not later than three days after the quarter commences. Failure to do so can result in the place being lost. This rule also applies to students with a guaranteed place.

Examiner
Olle Hage

Transition terms
The course N0008N is equal to IEN332

Literature. Valid from Autumn 2020 Sp 1 (May change until 10 weeks before course start)
Lundmark, R. ”Mikroekonomi ”. 3:e upplagan. Studentlitteratur. ISBN: 978-91-44-11766-9. (Older editions are not recommended).
Holm, L. & Osvaldo, S. ”Matematik och övningar för mikroekonomi”. Studentlitteratur. Latest edition. ISBN: 9789144094519.

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