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BAEcon Development Studies and Social Statistics

Year of entry: 2021

Course unit details:
Microeconomics 4

Unit code ECON20022
Credit rating 10
Unit level Level 2
Teaching period(s) Semester 2
Offered by Economics
Available as a free choice unit? Yes

Overview

The unit aims to provide students with a rigorous treatment of fundamental microeconomic concepts exposing the class to key economic ideas and theories motivated and explained with the regular use of real world examples.

Students will acquire a deeper and more rigorous understanding of the concepts encountered in Microeconomics 1 and Microeconomics 2. Specifically, students will be taught: (i) General Equilibrium Theory; (ii) Decision making under Uncertainty; (iii) Role of Information in Economics; (iv) Market Failures, particular focus on externality, public goods, and coordination failure and institutional responses; and (v) a brief introduction to Behavioural Economics.

Pre/co-requisites

Unit title Unit code Requirement type Description
Microeconomics 3 ECON20021 Co-Requisite Compulsory
Advanced Mathematics ECON10071 Pre-Requisite Compulsory
Advanced Mathematics ECON20071 Co-Requisite Compulsory
ECON20022 Prerequisite: ECON20021 and (ECON10071 or ECON20071)

ECON20021 Micro 3 and (ECON10071 Adv Maths or ECON20071 Adv Maths)

 

Aims

The unit aims to provide students with a rigorous treatment of fundamental microeconomic concepts exposing the class to key economic ideas and theories motivated and explained with the regular use of real world examples. 

Learning outcomes

Students will acquire a deeper and more rigorous understanding of the concepts encountered in Microeconomics 1 and Microeconomics 2. Specifically, students will be taught: (i) General Equilibrium Theory; (ii) Decision making under Uncertainty; (iii) Role of Information in Economics; (iv) Market Failures, particular focus on externality, public goods, and coordination failure and institutional responses; and (v) a brief introduction to Behavioural Economics. 

Syllabus

 

Brief overview of the syllabus/topics.

  1. General Equilibrium and Economic Welfare
    1. General Equilibrium: feedback between competitive markets
    2. Endowment and mutually beneficial trades
    3. Competitive Exchange and comparative advantage
    4. Efficiency and Equity
  2. Uncertainty
    1. Decision Making under Uncertainty: Expected Utility Theory
    2. Risk preferences
    3. Investing under Uncertainty: Insurance
  3. Information
    1. Asymmetric Information and Adverse Selection
    2. Moral Hazards
    3. Contracts
  4. Market Failure
    1. Coordination Failure and Institutional Responses
    2. Externality
    3. Public Good
  5. Behavioural Economics
    1. Behavioural Economics of Risk: Prospect Theory

Social Preferences

Knowledge and understanding

Microeconomic theory accompanied by real world applications

Intellectual skills

independent study; critical thinking 

Practical skills

mathematical skills, writing on technical economic concepts, presenting economics concepts and their applications in real world, use of word processing software

Transferable skills and personal qualities

problem solving; analysis and synthesis; students will develop presentation and interpersonal skills through participation in tutorial sessions and presenting a given topic related to microeconomics in the form of oral/poster presentation.

Assessment methods

80% Exam

20% Presentation

Feedback methods

 

  • Online quizzes released on Blackboard and tutorials
  • Feedback: during tutorial classes,  on the Discussion Board, and during office hour

Recommended reading

Varian, “Intermediate Microeconomics: a modern approach”, 9th Edition, 2014, Norton.

Study hours

Independent study hours
Independent study 0

Teaching staff

Staff member Role
Ralf Becker Unit coordinator

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