Introductory Microeconomics

This subject has the following teaching availabilities in 2016:

An estimated total time commitment of at least 170 hours.

One of:

• Entry into the Bachelor of Commerce
• Entry into the Bachelor of Biomedicine
• Entry into the Bachelor of Science

OR

Both of:

• A study score of at least 25 in VCE English/English Language/Literature (Units 3 and 4), or equivalent, or at least 30 in ESL
• A study score of at least 25 in VCE Mathematical Methods (Units 3 and 4) or Specialist Mathematics (Units 3 and 4), or equivalent; OR MAST10012 Introduction to Mathematics (can be taken concurrently in order to meet prerequisite); OR both MAST10014 Foundation Mathematics 1 and MAST10015 Foundation Mathematics 2.

Please refer to Prerequisites and Corequisites.

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

This subject is an introduction to microeconomic theory and policy. Topics include the theory of perfectly competitive markets, welfare analysis and the role of government in the economy, theory of the firm (production and costs), game theory, and effects of market structure on resource allocation.

• Describe the main objectives of the study of - to seek to understand the operation of the economy, and to guide decision-making by individuals, businesses and government.
• Evaluate and critically analyse government policy, make an informed contribution to public debate on economic issues.
• Proceed to the study of other economics and commerce subjects that have a knowledge of introductory microeconomics as a prerequisite.
• Explain the nature and role of theory and models in economic analysis.
• Explain the concepts of demand, supply, and market equilibrium; and apply the model of demand and supply in a market to explain the determinants of prices and output of goods and services.
• Explain how market and social welfare outcomes are affected by changes in demand/supply and government policy, and explain how and in what circumstances intervention by government in the operation of the economy can improve efficiency and social welfare.
• Identify `strategic situations' in economic activity, be able to analyse and predict outcomes of strategic situations
• Identify the main characteristics of different market types such as perfectly competitive and monopoly markets. Describe the nature of competitive behaviour in those markets, analyzing and predicting price and output outcomes in the different markets.
• Explain models of firm behaviour in choosing output, price, and how to produce.
• Use examples to illustrate key concepts ­ such as the role of demand and supply factors in determining market outcomes, the effects of government intervention on market outcomes, the existence of strategic situations in the economy, different types of markets.
• Apply economic models of individual behaviour and markets to describe the main features of actual markets, and to explain outcomes in actual markets, including prices and output levels, and business performance and profitability.

A 2-hour end-of-semester examination (60%), a multiple choice test (5%), two assignments not exceeding 2500 words (25%) and tutorial attendance and participation (10%).

You will be advised of prescribed texts by your lecturer.

This subject potentially can be taken as a breadth subject component for the following courses:

• Bachelor of Arts
• Bachelor of Biomedicine
• Bachelor of Environments
• Bachelor of Music
• Bachelor of Science
• Bachelor of Engineering

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

• High level of development: written communication; problem solving; application of theory to practice; interpretation and analysis; critical thinking; synthesis of data and other information.

• Moderate level of development: oral communication; collaborative learning; team work; evaluation of data and other information; receptiveness to alternative ideas.

• Some level of development: statistical reasoning; use of computer software; accessing data and other information from a range of sources.