4134 Applied Microeconomics

Course Description

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.

 

Learning Objective

  • 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

Credits

    3

Books for this Course

  • Microeconomics: Theory and Applications with Calculus By Jeffrey M. Perloff (2011)

Times Offered

  • September 2015
  • January 2016

Course Prerequisite

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