Microeconomics 2

This subject has the following teaching availabilities in 2016:

Estimated total time commitment of 120 hours per semester

ECON90015 Managerial Economics or equivalent or entry into the Master of Accounting (261%)

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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 explains and provides illustrative applications of microeconomic theory of the behaviour of households, firms and government and how the behaviour of the private sector and the public sector influence the efficiency of the economy. Topics include consumer theory, producer theory, perfect competition and general equilibrium, market failures associated with market power, externalities and public goods.

On successful completion of this subject students should be able to:

• Explain the core microeconomic theories of the consumer and the firm;
• Identify the usefulness and limitations of these theories;
• Apply microeconomic theories to economic problems faced by business and other decision makers under different assumptions about market structure and under different assumptions about available information;
• Critically evaluate the role of markets and governments in solving the economic problems facing societies;
• Apply economic tools to the analysis and solution of selected decision problems facing businesses; and
• Synthesise theory and practice in the context of selected public policy issues.

• One 30-minute multiple choice in-class test (10%)
• 3000 word assignment due in week 9 (30%); and
• Two-hour final examination (60%).

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• High level of development: oral communication; written communication; collaborative learning; problem solving; team work; application of theory to practice; interpretation and analysis; critical thinking.
• Moderate level of development: synthesis of data and other information; evaluation of data and other information; receptiveness to alternative ideas.
• Some level of development: statistical reasoning.