Introductory Microeconomics, E-learning

Microeconomics provides knowledge on the interaction between consumers and producers in a market economy and the outcome of this interaction. Furthermore it discusses the role of the state in a market economy and the implications of different market failures. This introductory course in microeconomics will give students basic knowledge in microeconomic principles and methodology. It will also give students the skills needed to make simpler microeconomic analyses. After the course is completed the students will:
- understand and be able to calculate the concept of opportunity cost
- understand what influences demand- and supply curves in the market for goods and be able to explain how they influence price and quantity
- understand and be able to apply the elasticity concept
- understand the basis for consumer demand: utility theory and indifference curves
- derive and graphically construct cost curves for a firm
- derive and graphically construct demand- and marginal revenue curves for firms in perfect competition and monopoly
- understand how game theory can be used in microeconomic analysis
- know about and have the ability to make simple analysis of imperfect markets
- be able to use consumer- and producer surplus and dead weight loss to analyse the effect of imperfect markets and taxation on economic efficiency
- derive and graphically construct the demand curve for labour

The course starts with a discussion about the concept scarcity (that there are limited resources) and the trade-offs that this implies, since this is the basis for economic analysis. Thereafter the concept opportunity cost and the implications of trade are explained. Following this introduction the focus will shift to the principles and methodology used in microeconomic analysis. First demand- and supply curves are described along with explanation on how they can be used in microeconomic analysis, for example explaining the role of prices in the distribution of resources as well as analysing trade effects. Moreover it provides knowledge on the basics regarding the theories on consumers and producers behaviour and how these theories can be used for efficiency and welfare analysis. After this first part of the course is completed, the focus will shift towards imperfect markets and how microeconomic theory can be used to explain and analyse the effects of market failures. The role of the state and the effects of regulations (taxes, laws etc.) are also discussed in this part of the course. Furthermore, game theory and how it can be used in microeconomic analysis is introduced as well as the basics of labour market theory.

The assessment is composed of three parts: a mid-course exam “Dugga”(multiple-choice questions), assignments and a written exam. The Dugga and the assignments are optional, but the points collected will be added to the points for the written exam. To obtain points on the assignments, participation in the economic experiments (see below) is compulsory for the student.

The course contains distancelectures, math exercises and economic experiments.

The Swedish grades U–VG.

The points collected in the mid-course exam and the assignments are only validcan for one year.
There is a maximum of five opportunities to take the exam.