APPLIES TO ACADEMIC YEAR 2013/2014
ELE 3729 Applied Microeconomics
Responsible for the course
Department of Economics
According to study plan
Language of instruction
The main objective of this course is to give students insight into how key economic issues can be analyzed by microeconomic theory. Students will develop an understanding of why we have a public sector and how government intervention, including direct and indirect regulations, affects the economy. Students will gain insight into the purpose and elements of cost-benefit analyzes and develop an understanding of the complexities associated with privatization and competition issues.
After completing the course, students should be able to explain phenomena in an unregulated economy that creates an efficient use of scarce resources, including phenomena such as externalities, public goods, imperfect competition, natural monopoly and imperfect information. The students should be able to propose measures, where such phenomena exist, providing a better resource allocation. Students should be able to explain the different steps of a cost-benefit analysis, and be able to discuss the advantages and disadvantages of specific privatization and competition issues.
Students should be able to determine what microeconomic approach that is most relevant to investigate a specific problem. Furthermore, students should be able to analyze a problem using both verbal, graphical and mathematical presentations.
The students should develop a critical sense to statements related to the society's allocation of resources and be able to assess an economic issue from different individuals / groups' interests.
SØK 3520 Microeconomics or eqivalent
Grønn, Erik. 2008. Anvendt mikroøkonomi. 2. utg. Cappelen akademisk. Utvalgte deler
- Taxes and subsidies
- Market failure (externalities, public goods, imperfect competition, natural monopoly and imperfect information).
- Public sector, some facts
- Government failure
- Cost-benefit analysis
- Environmental Economics
- Industrial organization
- Privatization and competition
No specified computer-based tools are required
Learning process and workload
The course consists of 36 lecture hours + 6 hours of plenary review of exercises.
Recommended use of hours for students:
Use of hours
|Plenary review of exercises
|Preliminary self-study in advance and after lecturer
|Total use of hours recommended
A three hours individual written exam concludes the course.
ELE 37291 - Written exam, counts for 100% to obtain final grade in ELE 3729, 7,5 credits.
Examination support materials
BI-defined exam calculator is allowed. TEXAS INSTRUMENTS BA II Plus™
Examination support materials at written examinations are specified under exam information in our web-based Student Handbook. Please note the use of calculator and dictionary. http://www.bi.edu/studenthandbook/examaids
A re-sit examination is offered the next time the course is scheduled.