Level of Study
Objectives and Content
This course will cover the fundamental theories and models from the field of microeconomics and will introduce students to a host of applications of these microeconomic insights. The goal will be to provide students with a solid level of knowledge and understanding that will prepare them for the applied economics courses they will encounter later in the master program. To enhance students' understanding of the different theories, special attention will be paid to teaching relevant applications.
Topics (and examples of applications) covered in the course include:
- Consumer, production theory and general equilibrium
- Labor market applications
- Risk and uncertainty
- Externalities and preference aggregation
- Game theory and applications
- Asymmetric information topics and applications
A student who has completed the course should have the following learning outcomes defined in terms of knowledge, skills and general competence:
- understands the main results from microeconomic (general) equilibrium theory and the theory of economic games and asymmetric information;
- is acquainted with applications of these theories to a variety of real world problems;
The student is able to
- formulate small scale microeconomic models;
- derive model predictions using optimization and equilibrium concepts central to microeconomics;
- interpret how the assumptions of a microeconomics model influences the predictions it makes;
- criticize and recognize (possibly testable) shortcomings of the presented models;
- has significantly increased the ability to think analytically and tackle complex problems;
- manages to formulate precise questions about resource (mis)-allocation in strategic and non-strategic settings and understand the microeconomic tools to address these questions.
Required Previous Knowledge
Students must have completed a Bachelor's degree in Economics or equivalent (subject to approval by the Department of Economics).
Access to the Course
The course is oriented towards students in the Master`s Programme in Economics, Professional Studies in Economics or Bachelor`s Programme in Informatics-Mathematics-Economy but is open to visiting students upon approval of student request.
Teaching and learning methods
The course will consist of 22 lectures of two hours (including breaks). During the lectures, the students will be given time to work on selected exercises.
Compulsory Assignments and Attendance
Pass/fail test after the first four mathematical lectures.
Students that do not pass (or do not attend) the test, get a single try at a related compulsory home assignment.
Forms of Assessment
Written exam (4 hours)
Updated: Change of assessment form from written exam to 4,5 hours take home exam as part of the measures to limit the risk of corona infection
Examination Support Material
Mathematical Formula Collection of K Sydsæter, A. Strøm and P. Berck or Mathematical Formulas for Economists of B Luderer, V. Nollau and K. Vetters and calculator. The following simple, non-programmable calculators without graphical display are allowed to be used for written tests:
All models of the type:
- Casio FX-82, Casio FX-82ES PLUS or Casio FX-82EX
- Hewlett-Packard HP30
- Texas Instruments TI-30
The Department of Economics can conduct a sample of aids in the examination room.
Assessment in teaching semester. Only students who have a valid document of absence will be entitled to take a new exam the following semester.
All courses are evaluated according to UiB's system for quality assurance of education.