KTTA2150 Microeconomics I (8 cr)
The most important goal of this course is to teach the central conceptual tools that make up every economist's toolbox. These are not so much specific skills or a specific set of knowledge, but much more a way to think.
Economic concepts are the most powerful when the subject at hand can somehow be thought of as a market, and in terms of contents this course therefore focuses on markets that are easily recognized as such. The same concepts can however also be applied to markets that are not always recognized as such, such as for example the market for education.
Contact teaching course autumn semester 1st and 2nd period. The study methods of the contact teaching course are specified in the study program annually.
Accepted completion of the designated assignments. The assessment criteria of the course is specified in the study program annually.
1) explain how a competitive market outcome is an equilibrium outcome;
2) explain how a competitive market yields a Pareto optimal outcome;
3) explain how a competitive market facilitates the flow of information on preferences and costs between market actors;
4) explain how a competitive market is an answer to a mechanism design problem in terms of 1), 2) and 3);
5) explain how and why markets fail, what this implies in terms of 1), 2) and 3), and what can be done about it;
6) analyze whether any specific market is likely to generate socially desirable outcomes;
7) analyze the effects of proposed economic policies on markets' functioning;
8) apply the Lagrange method for constrained optimization on economic problems;
9) calculate and use basic economic statistics such as for example price indices and elasticities;
10) apply basic game theoretic concepts, such as for example strategic dominance;
Timing: 2nd year
Description of prerequisites
KTTA1110 Mathematical Economics I
- Varian, H. R. 2006. Intermediate Microeconomics. 7th edition or newer.; ISBN: 978-0-393-92862-4