Microeconomics I

2023/2024

Academic Year

ENG

Instruction in English

6

ECTS credits

Delivered at:

Department of Economics

Course type:

Compulsory course

When:

1 year, 1, 2 module

Instructors

Molchanov, Pavel S.

Tomskiy, Savva

Course Syllabus

Abstract

This is an introductory microeconomics course designed for students majoring in economics and management.

Learning Objectives

• Mastering the basic principles of microeconomic analysis related to the behavior of the consumer and the firm, partial economic equilibrium at the introductory level

Expected Learning Outcomes

• Set up a monopoly's profit maximization problem alrebraically, solve for equilibrium price and quantity under non-price-discriminating unregulated monopoly. Illustrate the equilibrium under a monopoly with demand, marginal revenue and marginal cost curves. Illustrate the monopoly's profit/producer surplus.
• Understand scope of macroeconomic policies and their potential impact on macroeconomic equilibrium in the short and long run
• Knowledge of the Parreto principle and the ability to apply.
• Knowledge of the Production Possibility
• Ability to work with PPF
• Know the Trading Possibilities Curve
• Know all aspects of the firm's behavior.
• Know Budget Constraint
• Know all aspects of Consumer choice.
• Know and be able to apply Gossen's I and II law
• Know Derivation of the demand function, the concept of elasticity, price elasticity of demand, arc and point elasticity, price elasticity of demand, price and revenue from the sale of goods curves.
• Know the concept of perfect competition

Course Contents

• 1. . Introduction
• 2. Production Possibilities Frontier
• 3. Firm’s behavior
• 4. Consumer’s behavior
• 5. Partial equilibrium
• 6. Market structure

Assessment Elements

• Class grade
  Class work consists of several elements. Students get points for each element. The sum of points will be transferred to 10-grade scale at the end of the course. Pre-HW Description: Small homework assignments on the material that will be discussed at the upcoming seminar Evaluation criteria: at the discretion of the teacher; are normalized within the groups of one teacher Task examples: It is known that plant number 1 can produce 20 x's or 10 y's or any linear combination. Build the plant's PPF. Specify an analytical graph. Quiz Description: Small tests at the seminar on the material of the previous seminar Evaluation criteria: at the discretion of the teacher; are normalized within the groups of one teacher Task examples: There is a consumer who spends 5000 rubles on goods x and y. Price of x is 50 rubles, price of y is p rubles (x and y are continuous). At what p is the consumer unable to afford a bundle consisting of x = 80 and y = 5. Homework Description: A full-length homework assignment, containing tasks of intermediate and advanced levels of complexity, is compiled based on the materials of the current week's seminar. Evaluation criteria: at the discretion of the teacher; are normalized within the groups of one teacher Task examples: Suppose you were given individual math assignments. Everyone got 8 problems in calculus and 4 problems in linear algebra. Suppose you can solve four problems in calculus or two problems in linear algebra in an hour, and your friend can solve 5 problems in calculus or 3 problems in linear algebra. A) How long will it take you and your friend to decide on their own tasks. B) Determine which of you has absolute and relative advantages in solving problems in calculus and linear algebra.
• Midterm
  An examination containing tasks based on the materials of the first module.
• Final exam
  An examination containing tasks based on the materials of the whole course.

Interim Assessment

• 2023/2024 2nd module
  Basic grade: G0 = 0,2*Class grade + 0,2*Midterm 1+ 0,2*Midterm 2+0,4*Final exam Cut-off: G*=3. The student gets the final grade FG=1, if G0<G* G=7+1,5N^{-1}(r/(n+1)) ; Final Grade FG=4, if G<3,5; 10, if G>9,5; G otherwise Notes: N^{-1} is the inverse cumulative standard distribution functionя, r is the student’s rang рamong students, that receives G0G*, n is the rang of the student with the highest basic grade. The final grade is rounded to the nearest whole number using the arithmetic method.

Bibliography

Recommended Core Bibliography

• Pindyck, R. S., & Rubinfeld, D. L. (2015). Microeconomics, Global Edition (Vol. Global edition, Eighth edition). Boston: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1419566

Recommended Additional Bibliography

• Intermediate microeconomics with calculus, Varian, H., 2014