Master’s Programme in Economics (General Track). Open to all.

Timing

First autumn term

Learning outcomes

After the course, the student should

Be familiar with the basics of consumer and firm decision making as well as the notion of economic equilibrium

Be able to interpret economic behaviour using the decision theoretic framework and the equilibrium machiner

Completion methods

The course consists of lectures (24 hours) and exercises either in separate sessions or integrated into the lectures. The lectures and exercise sessions are not mandatory. There is a written final exam and four internet quizzes based on the homework assignments. The homework assignments consist of mostly theoretical exercises.

Prerequisites

Knowledge of the basic concepts of microeconomic theory.

Recommended optional studies

Knowledge of basic analysis is certainly an advantage.

Contents

The course provides a cohesive picture of the core concepts and technical tools of classical microeconomics, in particular decision theory and the notion of a price mechanism. Emphasis will be on the implications and applications of the theory. Attention will be paid to the welfare consequences of rational choice and economic equilibrium. The areas of investigation include rational choice and its axioms, the theory of the firm, and aggregate demand and supply. The objective is to construct a notion of general economic equilibrium under which the welfare properties of the price mechanism can be evaluated.

Study materials and literature

Jehle and Reny: Advanced Microeconomic Theory (3rd ed.) Chapters 1–5.

Activities and teaching methods in support of learning

All material related to the course is delivered through Moodle. It also contains a discussion forum where students can discuss issues related to the course with each other and the teacher. Each homework assignment involves multiple-choice questions that the students answer through Moodle before the exercise sessions related to the homework assignment

Assessment practices and criteria

The grade on a scale from 0 (fail) to 5 is based on the sum of points earned in the final exam and the quizzes based on the homework assignments. The maximum number of points is 100, of which 60 come from the final exam and 40 can be earned in the quizzes based on the homework assignments. To pass the course, the student must earn at least 50 points in total and at least 30 points from the final exam.