731127 Basics of microeconomics

Type
Lecture
Semester hours
2
Lecturer (assistant)
Hacek, Marion , Leonhardt, Heidrun Else
Organisation
Offered in
Wintersemester 2024/25
Languages of instruction
Deutsch
Content

The lecture introduces the basics of neoclassical microeconomics. The focus is on the neoclassical school of economics, as this is currently the predominant school of thought and offers an interesting perspective on economic issues.

The following chapters are covered:
1) Introduction to the course, basic concepts of economics
2) The market model as the central model of neoclassical economics and examples of its application
3) Basic terms of neoclassics: models, functions, basic concepts
4) The standard market model in detail
5) Reaction measures (elasticities)
6) Neoclassical household theory and other theories of human behaviour
7) Neoclassical production theory
8) Supply in a competitive market; monopoly
9) Other market forms (monopolistic competition, oligopoly) and pricing strategies in the presence of market power
10) Neoclassical welfare economics
11) & 12) The role of government in the neoclassical model
13) Insight into other economic schools of thought

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Previous knowledge expected

No formal prerequisites
Basic knowledge of maths (simple algebra, solving simple systems of equations with 2 unknowns, basic understanding of functions) is expected
Interest in economic issues and openness to new theories and concepts is a great advantage! :)
Objective (expected results of study and acquired competences)

After successful completion of the course, students are able to...
Explain basic concepts of neoclassical economics.
Apply basic models of neoclassical economics.
Identify use cases for neoclassical models and explain the advantages and limitations of the theory.

In detail by course unit:
1) State and explain definition(s) of key concepts in economics.
2) Explain and apply the basic principles of the neoclassical market model; explain the basic idea of external effects and apply it in the market model; identify and reproduce use cases for (neoclassical) microeconomics
3) Explain basic aspects, terms and concepts of neoclassical economics
4) Apply the neoclassical market model to analyse changes in demand and supply; determine equilibrium price and quantity mathematically and graphically; describe basic assumptions and limitations of the neoclassical market model
5) Explain the concept of elasticities; calculate elasticities
6) Explain and apply neoclassical household theory; explain and derive the demand function; name and explain the limits of neoclassical economics and alternative perspectives from economics on human behaviour
7) Explain and apply the neoclassical theory of the firm (production and cost function); explain and derive economies of scale, explain and derive supply function
8) Explain pricing/profit maximisation in perfect competition; derive and apply the model graphically and algebraically; explain pricing/profit maximisation in monopoly; apply theory graphically and algebraically
9) Explain and apply further neoclassical models of market power (graphically and algebraically); recognise pricing strategies; apply corresponding neoclassical models
10) Explain the neoclassical concept of welfare and apply it to previously learnt models/situations (graphically)
11) & 12) Name conditions for functioning markets and explain objectives of the governments' role in the market; describe pricing policy & taxes using the market model; describe ‘market failure’ and countermeasures, illustrate these using the neoclassical market model (graphically)
13) Name alternatives to neoclassical economics, explain their main features; discuss the explanatory power of neoclassical economics

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You can find more details like the schedule or information about exams on the course-page in BOKUonline.