SØK 3520 Microeconomics

APPLIES TO ACADEMIC YEAR 2012/2013

SØK 3520 Microeconomics

Responsible for the course
Christian Riis

Department
Department of Economics

Term
According to study plan

ECTS Credits
7,5

Language of instruction
Norwegian

Introduction
Through the study of microeconomics students will learn the fundamentals of how markets and economic institutions function.

The course is a thorough study on price formation and the production and income distribution in markets. The analysis covers both markets for consumer goods and markets for production resources. There is a special emphasis on the analysis of price trends and industry development in short and long term.

Furthermore, criteria for economic efficiency and high value added are discussed. In particular the course discusses if conditions for individual economic decisions are leading to effective utilisation of community resources. One sees here both the decisions in competitive markets and decisions in markets with limited competition.

Learning outcome
Acquired knowledge
Students will understand the basic relationships between individual economic decisions and the social consequences in different market situations. Students will understand the basic principles of how changes in some markets have ripple effects to other markets. Students should also understand the distinction between descriptive and normative theory.
 
Acquired skills
Students will master the basic techniques of financial analysis: They should be able to master the basic economic model system, and understand the distinction between exogenous and endogenous variables. They will also be able to formulate economic optimise problems and solve them analytically.

Reflection
Students will be able to identify the welfare and distributional consequences of market processes. They will be encouraged to be aware of trade-offs between market efficiency and other considerations that are not captured by market analysis.

Prerequisites
MET 2910 Mathematics or equivalent

Compulsory reading
Books:
Riis, Christian og Espen R. Moen. 2012. Moderne mikroøkonomi : med digital arbeidsbok. 2. utg. Gyldendal akademisk

Recommended reading

Course outline
  1. Introduction to Microeconomic Analysis
  2. Market equilibrium: supply and demand
  3. Consumer Behaviour
    • Budget constraint and consumer preferences
    • Effects of price and income changes
    • Demand functions and elasticities
  4. Firm behaviour
    • Product function
    • The cost function
    • Profit maximisation
    • Substitution
    • The adjustment in the short and long term
  5. Market Theory
    • Price formation under various cost structures
    • Price and income generation in the short and long term
    • Industrial dynamics
  6. Economic efficiency
  7. Limited competition
    • Monopolies and market power

Computer-based tools
No specified computer-based tools are required.

Learning process and workload
The course consists of 36 lecture hours + 6 hours of plenary assignment review and feedback in plenary.

Coursework requirements
During the course there will be three multiple choice assignments on the learning platform It's Learning. In order to take the final exam, it is requirered that a minimum of 2 assignments are submitted and approved.

Feedback will be given in the planetary assignment reviews.

Recommended use of hours for students:
Activity
Use of hours
Lectures
36
Planetary assignment review and feedback
6
Working with compulsory assignments
18
Preliminary self-study in advance of lecture
36
Working with tasks in the aftermath of lectures
49
Self-study
50
Examination
5
Total use of hours recommended
200

E-learning
The e-learning platform It’s learning is used by the e-learning centre to administrate the mandatory exercises, and make students able to communicate with each other ant the Lecturer. Module sessions are carried out at the beginning of the semester and before exams. The e-learning students are also offered a study guide which is an educational guide to the syllabus.

Recommended use of hours for students:
Activity
Use of hours
Lectures
8
Planetary assignment review and feedback
6
Working with compulsory assignments, study guide and activities on It's Learning
54
Preliminary self-study in advance of lecture
10
Working with assignments
67
Self-study
50
Examination
5
Total use of hours recommended
200

    Coursework requirements
    In order to sit for the final exam in this course, students must get two out of three multiple choice tests apporved.

    Examination
    A five hours individual written exam concludes the course.

    Examination code(s)
    SØK 35201 - Written exam, counts for 100% to obtain final grade in SØK 3520 Micoeconomics, 7,5 credits.

    Examination support materials
    BI-defined exam calculator is allowed. TEXAS INSTRUMENTS BA II Plus™
    Examination support materials are specified under examination information in our web-based Student Handbook. Please note the use of calculator and dictionary. http://www.bi.edu/studenthandbook/examaids

    Re-sit examination
    A re-sit examination is offered every term.
    Students who do not get approved two of three multiple choice tests, have not met the course work requirement in the course, and can not take the exam. This means that they must take the course over again. Students who do not get passed the written exam or who want to improve their grade may re-sit at next scheduled examination.

    Additional information

    Semester

    Oversettelser