4134 Applied Microeconomics
An Analysis of the pricing processes in a market economy under varying competitive conditions, their role in the allocation of resources, and the functional distribution of national income.
- a) Understand that economics is about the allocation of scarce resources, that scarcity forces choice, tradeoffs exist and that every choice has an opportunity cost. Demonstrate these concepts using a production possibility frontier diagram.
- b) Understand how comparative advantage provides the basis for gains through trade.
- c) List the determinants of the demand and supply for a good in a competitive market and explain how that demand and supply together determine equilibrium price.
- d) Understand the role of prices in allocating scarce resources in market economies and explain the consequences of price controls.
- e) Define an externality and a public good and why explain the presence of externalities and public goods make markets inefficient. Analyze various government policies aimed at solving these inefficiencies.
- f) Understand the costs of production and how profit-maximizing firms determine how much to produce. Be able to distinguish between long-run decisions and short-run decisions.
- g) Distinguish between perfect competition and imperfect competition and be able to explain the welfare loss in non-competitive marke
Books for this Course
- Microeconomics: Theory and Applications with Calculus By Jeffrey M. Perloff (2011)
- September 2015
- January 2016