Microeconomics 1

Lecturer: Dali Laxton

Dates: 23.09. 2022 – 06.01.2023

Lectures, Seminars: Friday 13:00 – 16:50

Office hours: Saturday 16:00-17:00 (Online by appointment) or during breaks


Course Description

The course is providing a general understanding of basic microeconomic concepts. Specifically, it
acquaints the students with the study of individual consumers, groups of consumers, and firms. The
course will focus on how individuals make decisions that affect their income and wealth, how firms
make decisions that affect profits and production, and how government regulation affects
individuals and firms.

The main textbook:

    Mankiw, G. Principles of Economics. 4th ed. South-Western College Pub, 2017. 836 pp. ISBN
1-305-58512-7


Pre-requisites

None.


Course objectives

In this course, students will learn the basic principles of Microeconomics. They will get
acquainted with the concept of preference, cost, revenue, elasticity, supply, demand, firm, market,
externality etc., and their mutual relationship. The students will understand the operation of the
market process and structure. They will be able to use the microeconomic analytical tools to
describe and analyze the real-world cases and avoid usual analytical errors. They will understand
the consequences of changes in demand, cost, market structure, and basic policy changes. At the end
of this course, students will be able to understand and explain when markets are a good solution to
the mundane problem and when the government can improve its results. They will be also prepared to
study microeconomics on the intermediate level in the consequent course.


Grading (Tentative)

Quizzes: 10 % each

You will have 2 quizzes – 1 before the midterm exam and 1 afterwards. It will include one multiple
choice question, one conceptual question and one problem to solve. These exercises will enhance
your problem-solving skills and prepares you for exams.

Homework: 10 % each

You will have 2 homework

Midterm exam: 30 %

The midterm exam will take place during regular class on November 11^th. You are not allowed to use
any textbook, any notes or electronic devices (except for calculators). There will be no make-up
for the midterm exam.

Final Exam: 30 %

Final exam will take place on December 16^th. There will be one make-up exam for the final exam
(dates TBA).

Grade distribution:

A: 85 – 100

B: 70 - 84

C: 60 – 69

D: 50 – 59

F: 0 – 49

NOTE: The maximum latter grade in make-up exam is B.


Outline

(This is a tentative schedule to be updated based on students' progress.)

1.       Introduction into Economics

2.       Market Forces of Supply and Demand

3.       Elasticity and Its Applications

4.       Consumers, Producers and Efficiency of Markets

5.       Government policies and efficiency

6.       Cost of Production

7.       Firms in Competitive Markets

8.       Monopoly and Monopolistic Competition

9.       Oligopoly

10.   Markets for Factors of Production

11.   Externalities

12.   Public Goods and Common Resources