This module provides students with knowledge and understanding of elementary microeconomic theory. It covers the basic definitions and concepts in microeconomics, consumer theory, producer theory, perfect competition, imperfect competition, monopoly, externalities and public goods. Basic algebra and calculus are used occasionally. However, the main objective of this module is to give students an intuitive understanding of microeconomic principles.
A. Demonstrate an ability to think intuitively about economics problems.
B. Identify how individual economic agents make rational choices given scarce resources, and how they optimize the use of resources available.
C. Analyse and apply the mechanics of demand and supply for individuals, firms, and the market.
D. Understand and apply the concept of Marginal Analysis in order to make optimal choices.
E. Identify and interpret the characteristic differences between various market structures (perfect competition, monopoly, imperfect competition).
F. Locate the frontiers of modern microeconomic theory.
During the lectures students will be introduced into the elementary concepts of microeconomic theory. This will be done using a combination of verbal explanations, graphs, and formal mathematical models.
In addition to the lectures, tutorials will be provided in which students will learn how to apply the contents they have learned during the lectures. The tutorial questions will be distributed online in advance and students should come prepared with their answers to the questions.
Every two weeks, students will be asked to solve a series of problems on APLIA (e-learning platform) before coming to the tutorials, which will then be corrected during tutorial time. After the tutorial, students will be able to access the week’s questions freely and practice again at home.