ELE 3729 Applied Microeconomics

ELE 3729 Applied Microeconomics

Course code: 
ELE 3729
Course coordinator: 
Terje Synnestvedt
Course name in Norwegian: 
Anvendt mikroøkonomi
Product category: 
Bachelor - Electives
2018 Spring
Active status: 
Level of study: 
Teaching language: 
Course type: 
One semester

Hovedmålet for dette kurset er å gi studentene innsikt i hvordan sentrale samfunnsøkonomiske problemstillinger kan belyses ved mikroøkonomisk teori. Studentene skal utvikle forståelse for hvorfor vi har en offentlig sektor og hvordan offentlige inngrep, herunder direkte og indirekte reguleringer, påvirker aktørene i det økonomiske liv. Studentene skal få innsikt i formålet med, og elementene i, nyttekostnadsanalyser og utvikle en forståelse for kompleksiteten knyttet til privatiserings- og konkurranseutsettingsspørsmål.

Learning outcomes - Knowledge

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.

Aquired knowledge
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.The students should also be able to explain what is ment by competitive advantages.

Learning outcomes - Skills

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.

Learning Outcome - Reflection

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.

Course content
  • Efficiency
  • Taxes and subsidies
  • Inequalities
  • Market failure (externalities, public goods, imperfect competition, natural monopoly and imperfect information).
  • Public sector, some facts
  • Government failure
  • Taxation
  • Cost-benefit analysis
  • Environmental Economics
  • Industrial organization
  • International trade
  • The financial crise
  • Privatization and competition
Learning process and requirements to students

The course consists of 36 lecture hours + 6 hours of plenary review of exercises.

When course is delivered online, lecturer, in cooperation with the Academic Servises Network, will organize an appropriate combination of digital teaching and lectures. Online students are also offered a study guide to contribute to progression and overview. Total recommended time spent for completing the course also applies here.

Software tools
No specified computer-based tools are required.
Additional information

For electives re-sit is normally offered at the next scheduled course. If an elective is discontinued or is not initiated in the semester it is offered, re-sit will be offered in the electives ordinary semester.


Higher Education Entrance Qualification.

Required prerequisite knowledge

SØK 3520 Microeconomics or eqivalent

Exam category: 
Form of assessment: 
Written submission
Support materials: 
  • BI-approved exam calculator
  • Simple calculator
3 Hour(s)
Exam code: 
Grading scale: 
Examination when next scheduled course
Exam organisation: 
Ordinary examination
Total weight: 
Student workload
36 Hour(s)
Feedback activities and counselling
6 Hour(s)
Student's own work with learning resources
100 Hour(s)
Group work / Assignments
55 Hour(s)
3 Hour(s)
Sum workload: 

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.