SØK 3520 Microeconomics
APPLIES TO ACADEMIC YEAR 2016/2017
SØK 3520 Microeconomics
Responsible for the course
Department of Economics
According to study plan
Language of instruction
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.
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.
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.
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.
MET 2910 Mathematics or equivalent
Riis, Christian og Espen R. Moen. 2016. Moderne mikroøkonomi. 3. utg. Gyldendal akademisk
- Introduction to Microeconomic Analysis
- Market equilibrium: supply and demand
- Budget constraint and consumer preferences
- Effects of price and income changes
- Demand functions and elasticities
- Product function
- The cost function
- Profit maximisation
- The adjustment in the short and long term
- Price formation under various cost structures
- Price and income generation in the short and long term
- Industrial dynamics
- The impact of excise taxes
- Economic efficiency
- Monopolies and market power
- Game theory
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.
Recommended use of hours for students:
Use of hours
|Planetary assignment review and feedback||
|Preliminary self-study in advance of lecture||
|Working with tasks in the aftermath of lectures||
|Total use of hours recommended||
In course delivery as online courses or evening classes, will lecturer, in collaboration with the Academic Services Network and evening studies, organize an appropriate combination of digital and class room teaching. Online students are also offered a study guide, which will help progression and overview. Total recommended amount of time for completion of the course also applies here.
A five hours individual written exam concludes the course.
SØK 35202 - Written exam, counts for 100% to obtain final grade in SØK 3520 Micoeconomics, 7,5 credits.
Examination support materials
BI approved exam calculator. Examination support materials at written examinations are explained under examination information in the student portal @bi. Please note use of calculator and dictionary in the section on support materials (https://at.bi.no/EN/Pages/Exa_Hjelpemidler-til-eksamen.aspx).
A re-sit examination is offered every term.
Re-sit students must take the exam in SØK 35202 as of 2013-2014. There will be no re-sit examiniation in the previous exam code SØK 35201.