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:

Knowledge 

The student

• 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;

Skills 

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;

General competence

The student

• 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.

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.

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

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.

studieveileder@econ.uib.no