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This subject is an introduction to microeconomic theory and policy. Topics include the theory of perfectly competitive markets, welfare analysis and the role of government in the economy, theory of the firm (production and costs), game theory, and effects of market structure on resource allocation.
Intended learning outcomes
- Describe the main objectives of the study of - to seek to understand the operation of the economy, and to guide decision-making by individuals, businesses and government.
- Evaluate and critically analyse government policy, make an informed contribution to public debate on economic issues.
- Proceed to the study of other economics and commerce subjects that have a knowledge of introductory microeconomics as a prerequisite.
- Explain the nature and role of theory and models in economic analysis.
- Explain the concepts of demand, supply, and market equilibrium; and apply the model of demand and supply in a market to explain the determinants of prices and output of goods and services.
- Explain how market and social welfare outcomes are affected by changes in demand/supply and government policy, and explain how and in what circumstances intervention by government in the operation of the economy can improve efficiency and social welfare.
- Identify `strategic situations' in economic activity, be able to analyse and predict outcomes of strategic situations
- Identify the main characteristics of different market types such as perfectly competitive and monopoly markets. Describe the nature of competitive behaviour in those markets, analyzing and predicting price and output outcomes in the different markets.
- Explain models of firm behaviour in choosing output, price, and how to produce.
- Use examples to illustrate key concepts such as the role of demand and supply factors in determining market outcomes, the effects of government intervention on market outcomes, the existence of strategic situations in the economy, different types of markets.
- Apply economic models of individual behaviour and markets to describe the main features of actual markets, and to explain outcomes in actual markets, including prices and output levels, and business performance and profitability.
High level of development: written communication; problem solving; application of theory to practice; interpretation and analysis; critical thinking; synthesis of data and other information.
Moderate level of development: oral communication; collaborative learning; team work; evaluation of data and other information; receptiveness to alternative ideas.
Some level of development: statistical reasoning; use of computer software; accessing data and other information from a range of sources.
Last updated: 20 February 2024