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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
On successful completion of the subject, students should be able to:
- Understand the operation of the economy, and to guide decision-making by individuals, businesses and government in solving the key economic problem of meeting unlimited wants with limited resources
- Explain the concepts of market demand, supply and equilibrium; and apply the market model to explain the determination of prices, quantities and wellbeing
- Explain how market and social welfare outcomes are affected by changes in demand and supply, and by changes of government policy
- Explain in what circumstances and in what forms intervention by government in the operation of the economy can improve efficiency and social welfare
- Identify “strategic situations” in economic activity, and be able to analyse and predict outcomes of strategic situations
- Identify the main characteristics of different market structures, and describe and evaluate the nature of decisions and outcomes in the different market structures
- Explain the nature, role and limitations of theory and models in economic analysis
- Proceed to the study of other economics and commerce subjects that have a knowledge of introductory microeconomics as a prerequisite
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