ECON4002

Microeconomics

10 Units 4000 Level Course

Available in 2014

Callaghan Campus Semester 2

Previously offered in 2013, 2011

This course provides students with an understanding of how to formally model the economic behaviour of economic agents, individual consumers (demand theory) and firms (production theory). It also introduces the concept of market failure and the role of government. The economy can also be viewed a multi-sectoral input-outut system. In addition, the economy can be conceived of as an evolutionary system in which a variety of different operational routines are developed and exposed to forces of selection and reproduction. The insights gained from these alternative conceptions of an economy are compared and evaluated. Systems of regulation, governance and prudential control are of particular importance for financial institutions. Policies to manage this important sector of the economy are also examined.

Objectives At the conclusion of this course students will be able to:
1. demonstrate a thorough understanding of the analytical techniques adopted in microeconomics;
2. critically assess the underlying assumptions and models employed in microeconomics;
3. utilize techniques developed in the course to analyze specific economic issues.
Content A variety of theoretical perspectives are introduced to encourage debate
1. Demand Theory:
- Optimization under constraints, deriving demand functions, welfare economics
2. Production Theory
- Duality theory, cost and production functions, derived factor demand, economies of scale and scope, technological change, network effects, imperfect competition
3. Input-Output Models & Capital Debates:
- Multisectoral modelling (Leontieff, Sraffa, and von Neumann Systems), the Capital debates
4. Evolutionary Economics
- Motivation and approaches to modelling and applications
5. A Critical Perspective on Finance Theory
- Uncertainty versus risk, theories of crisis, issues in regulation
Transition N/A
Industrial Experience 0
Assumed Knowledge Bachelors degree or equivalent in economics.
Modes of Delivery Internal Mode
Teaching Methods Lecture
Seminar
Tutorial
Workshop
Computer Lab
Assessment Items
Other: (please specify) Student assessment may include, but is not restricted to the following tasks:
i) Student presentations Each student will make 2 brief presentations for about 15-20 minutes in the form of a literature survey/review based on the assigned readings and other relevant material.
ii) Essays
Students will prepare two papers each of which reviews the extant literature on a contemporary economic issue and critically assesses the underlying methodologies.
Contact Hours Lecture: for 2 hour(s) per Week for Full Term
Timetables 2014 Course Timetables for ECON4002