BSc Economics

Year of entry: 2022

Course unit details:
Principles of Microeconomic Theory 1: Consumers, Welfare, Production and Costs

Unit code ECON10171
Credit rating 10
Unit level Level 1
Teaching period(s) Semester 1
Offered by School of Social Sciences
Available as a free choice unit? No

Overview

This unit is an introduction to Microeconomic Theory with calculus. Topics include consumer 
theory, demand analysis, consumer welfare analysis, and the theory of the firm.

Pre/co-requisites

Unit title Unit code Requirement type Description
Advanced Mathematics ECON10071 Co-Requisite Compulsory
ECON10171 MIcroeconomic Analysis 1 Pre-requisites: A level Maths

A-Level Mathematics (compulsory Pre-Requisite).

This course unit is for BSc Econ and PPE students only.

NOT available to students who have previously taken ECON10221

Aims

This Uit aims to:

1. Provide an introduction to fundamental concepts and techniques of Microeconomic Theory.
2. Cover the preparatory material for more specialist courses in economics in the second and third year.
3. Provide key employability skills, such as the ability to describe recent key microeconomic concepts and expose students to a range of applications.

Learning outcomes

The learning outcomes of this unit are:
1. To have a firm grounding in introductory Microeconomic Theory.
2. To be able to manipulate and perform basic analysis of economic data relating to issues of contemporary importance.
3. Demonstrate an understanding of key theoretical explanations of individual, firm and industry behaviour.

Syllabus

1. Supply and Demand - Demand, Supply, Market equilibrium, Comparative statistics.
2. Elasticities - Price Elasticity of Demand, Other Elasticities, Applications.
3. Consumer Theory - Preferences, Utility, Budget Constraints, Formulation and Solution of the Consumer’s Utility Maximisation Problem.
4. Demand - Deriving Demand Functions, Demand Analysis, Hicks Decomposition, Expenditure Minimisation, The Slutsky Equation.
5. Consumer Welfare Analysis - Consumer Surplus, Compensating Variation, Equivalent Variation.
6. Firms and Production - Short-Run Production, Long-Run Production, Isoquants, Returns to Scale.
7. Costs - Short-Run Costs, Long-Run Costs, Cost Minimisation.

Teaching and learning methods

Online Learning and Guided self-study.

Employability skills

Analytical skills
Skills of analysis, and the application of analytical models. The evaluation and critical analysis of arguments, theories and policies. To be able to synthesise and evaluate data.
Group/team working
Working in teams and presenting team work.
Problem solving
Other
To be able to independently locate and assess relevant literature, and to draw on these to develop understanding and to construct arguments. Application of subject knowledge. Time management and ability to work to deadlines.

Assessment methods

70%      Exam

30%      Mid-term test

 

Feedback methods

  • Weekly problem sets: feedback on solutions in tutorials.
  • Feedback on presentations in tutorials.
  • Office hours.
  • Revision sessions.
  • Discussion boards.

Recommended reading

Jeffrey Perloff (2014) "Microeconomics with Calculus, Global Edition" (ISBN-10: 
0273789988; ISBN-13: 9780273789987).

Study hours

Independent study hours
Independent study 56

Teaching staff

Staff member Role
Craig Webb Unit coordinator

Additional notes

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