Microeconomics studies how individuals and firms make choices facing scarce resources. The course offers a thorough analysis of the theory at an intermediate level. The first part of the course covers the core chapters, including consumer’s choice, firm’s behavior, and the study of supply and demand in different markets. A deeper understanding of the material is facilitated by discussing the most important parts of the theory as well as solving numerical problems during the seminars.
Microeconomics I. (ECBA009.1)
Course format:
Synchronous, hybrid sessions (ELTE students in-class, virtual exchange students online)
Two seminars (in one session) per week (2×90 minutes)
In the seminars, topics are discussed along with the solution of basic problems which enable the deeper understanding of the material. There will be interactive review sessions as well, where further (sometimes more challenging problems) will be solved, preparing students for the exams and assignments.
Assignments:
There will be four assignments during the semester, including short theoretical questions, and numerical problems. Assignments must be submitted online in the Canvas system by the given deadlines.
Exams:
There will be two written exams: one midterm, and one final. Both exams will be in-class for the ELTE students, and (synchronously) online for the virtual exchange students.
Grading:
Assignments: 20 points, Midterm: 30 points, Final 30 points:
0-39 points: Fail (1);
40-49 points: Pass (2);
50-59 points: Satisfactory (3);
60-69 points: Good (4);
70-80: points: Excellent (5).
Preliminary course schedule:
Week 1 09.11. The Market. Budget Constraint. Varian, Chapters 1-2
Week 2 09.18. Preferences. Utility. Varian, Chapters 3-4
Week 3 09.25. Review Session 1. Workouts, Chapters 1-4
Week 4 10.02. Choice. Demand. Varian, Chapters 5-6
Week 5 10.09. Market Demand. Equilibrium. Varian, Chapters 15-16
Week 6 10.16 Review Session 2. Workouts, Chapters 5-6, 15-16
Week 7 10.23 National Holiday
Week 8 10.30. Midterm exam
Week 9 11.06. Technology. Profit Maximization. Varian, Chapters 19-20
Week 10 11.13. Cost Minimization. Cost Curves. Varian, Chapters 21-22
Week 11 11.20. Review Session 3. Workouts, Chapters 19-22
Week 12 11.27. Consumer Surplus Firm Supply. Varian, Chapters 14 & 23
Week 13 12.04 Industry Supply. Monopoly. Varian, Chapters 24-25
Week 14 12.11. Review Session 4. Workouts, Chapters 14 & 23-25
Learning outcomes:
By the end of the course, students will be familiar with concepts, principles, and methods of microeconomics. They will be able to identify, formulate and specify different economic problems at the micro level. They gain knowledge in problem solving concepts and techniques which are indispensable in their further studies in economics. Besides, they develop skills in critical thinking, and also understand the limits and scope of mathematical modelling in social sciences. Finally, the course also enhances problem-sensitive, proactive behaviour of the students.
Requirements:
Attendance is compulsory.
Assignments:
There will be four assignments during the semester, including short theoretical questions, and numerical problems. Assignments must be submitted online in the Canvas system by the given deadlines.
Exams:
There will be two exams: one midterm, and one final. Both exams will be in-class for the ELTE students, and (synchronously) online for the virtual exchange students. Make-up exams are possible only in serious, and confirmed cases. Make-up exams are possible only in case of serious, and documented problems.
Grading:
Assignments: 20 points, Midterm: 30 points, Final 30 points:
0-39 points: Fail (1);
40-49 points: Pass (2);
50-59 points: Satisfactory (3);
60-69 points: Good (4);
70-80: points: Excellent (5).
Pre-requisites:
Some knowledge of economics (at an introductory level) and basic calculus is recommended.
Required textbooks:
Varian, H. R.: Intermediate Microeconomics: A Modern Approach, Ninth Edition, New York: W. W. Norton & Co., 2014. (V)
Bergstrom, T. C. & Varian, H. R.: Workouts in Intermediate Microeconomics, 9th ed., New York: W. W. Norton & Co., 2014. (W)
All of the sessions are seminars, where the topics are discussed and problems are solved interactively – sometimes in group work.
Transcript of records
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