Students

ECON203 – Microeconomic Analysis

2015 – S1 Evening

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Pundarik Mukhopadhaya
Contact via pundarik.mukhopadhaya@mq.edu.au
E4A 413
TBA
Teaching Assistant and Tutor
Ha Vu
Contact via ha.vu@mq.edu.au
E4A 429
TBA
Ha Vu
Credit points Credit points
3
Prerequisites Prerequisites
15cp including ECON111 and (GPA of 2.0 (out of 4.0) or (admission to BAppFin or BActStud or BBA or BBusAnalytics or BBusLeadCom or BCom or BCom-Accg or BCom-ProfAccg or BEc or BGlobalBus or BMktgMedia))
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This is an intermediate-level unit in theoretical and applied microeconomics. Topics include: consumer choice and the theory of demand; consumer welfare measurement; labour supply; intertemporal consumption; choice under uncertainty; theory of the firm; production and cost theory; profit maximisation; perfect competition; monopoly; oligopoly; game theory; and general equilibrium.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • Understand how microeconomic theory aids decision-making by individuals, business and government.
  • Elaborate analytical skills relevant to the assessment of different theories and models of microeconomics.
  • Develop the insights and tools necessary for the study of more specialized areas in economics such as finance, actuarial studies, labour economics, health economics, industrial organization and public economics.
  • Comprehend the generic process of microeconomic analysis focusing on the aims of individual decision-makers (consumers and producers); how these objectives are constrained by the opportunities available to agents (budget constraints or market structures), and evaluate alternative economic outcomes in terms of their normatively defined welfare economic properties (efficiency and equity).
  • Apply microeconomic principles to solve complicated problems, and apply the major theories and modules of microeconomics.

Assessment Tasks

Name Weighting Due
Tutorial engagement 5% Each tutorial
Class Test 25% Week 6
Online Quizzes 10% Week 4, 12
Online Assignment 10% Week 9
Final Examination 50% University Examination Period

Tutorial engagement

Due: Each tutorial
Weighting: 5%

  1. Tutorials constitute a critical learning experience of this unit and students should attend them. The tutor will facilitate a highly student-centred discussion of answers to pre-set tutorial questions. A tutorial is also an active forum to present to the tutor difficulties you encountered when preparing for the pre-set tutorial questions. Ask your tutor questions and further guidance on how to approach questions. Students are expected to attempt the tutorial questions before each tutorial.
  2. In the first tutorial, you will be given a couple of minutes to chat with your classmates to form a study group (for your own benefit). You are strongly encouraged to work through the tutorial exercises with your group throughout the semester.
  3. The 5% will be decomposed into 2% for attendance and 3% for engagement. You will be awarded the entire 2% if you attend at least 8 tutorial classes (in 8 weeks), 1% if you attend between 5 and 7 classes, and 0% if you attend less than 5 classes. By "engagement", we will assess how active you are in the class such as how often you answer your tutor's question and/or ask him/her a question. Then based on your activeness throughout the whole session, you will be awarded the whole 3% or part of it. Altogether tutorial engagement and attendance will contribute 5% to your final mark in this unit.
  4. If you are unable to attend a class(es) due to an illness or misadventure, you must present a case for Disruption to Studies (see the Policies and Procedures section for details).
  5. Most of the tutorial questions are from the textbook. Tutorial solutions will be made available on iLearn at the end of the week following the tutorial.

On successful completion you will be able to:
  • Understand how microeconomic theory aids decision-making by individuals, business and government.
  • Elaborate analytical skills relevant to the assessment of different theories and models of microeconomics.
  • Comprehend the generic process of microeconomic analysis focusing on the aims of individual decision-makers (consumers and producers); how these objectives are constrained by the opportunities available to agents (budget constraints or market structures), and evaluate alternative economic outcomes in terms of their normatively defined welfare economic properties (efficiency and equity).
  • Apply microeconomic principles to solve complicated problems, and apply the major theories and modules of microeconomics.

Class Test

Due: Week 6
Weighting: 25%

  1. A 90-minute test (including multiple choice questions and written-answer questions) will be held in place of the regular lecture in Week 6. This test is an indication of the form of the final examination. A non-programmable calculator is allowed in the test.The test will cover lectures from weeks 1 to 5.
  2. Failure to attend the class test without the submission of an application for Disruption to Studies on the grounds of illness or unavoidable mishap together with the required supporting documentation (see the Policies and Procedures section for details) will result in a mark of zero for the assessment.
  3. If the application for Disruption to Studies is accepted, the student will have to take a supplementary test which could be an oral test. The supplementary test will take place during the mid-session break.

On successful completion you will be able to:
  • Understand how microeconomic theory aids decision-making by individuals, business and government.
  • Elaborate analytical skills relevant to the assessment of different theories and models of microeconomics.
  • Comprehend the generic process of microeconomic analysis focusing on the aims of individual decision-makers (consumers and producers); how these objectives are constrained by the opportunities available to agents (budget constraints or market structures), and evaluate alternative economic outcomes in terms of their normatively defined welfare economic properties (efficiency and equity).

Online Quizzes

Due: Week 4, 12
Weighting: 10%

  1. There will be 2 online quizzes in this course, and each containing 30 multiple choice questions. Each quiz is worth 5%. Each student will most likely face a slightly different set of questions. The quizzes will be accessed online through the unit web page at http://ilearn.mq.edu.au. Refer to the Unit Schedule for the opening and closing dates for each quiz.
  2. Please note that no extensions will be granted. Failure to complete any quiz will result in a zero mark for that quiz. The penalty does not apply for cases in which an application for Disruption to Studies is made and approved.
  3. Students must be aware that IT failures may occur, and that with large numbers of students, congestion can at times limit access. It is the student’s responsibility to plan for these possibilities, and completion of the quiz soon after released is strongly advised.
  4. Read the "Instruction for Online Quizzes" carefully before attempting.

On successful completion you will be able to:
  • Understand how microeconomic theory aids decision-making by individuals, business and government.
  • Comprehend the generic process of microeconomic analysis focusing on the aims of individual decision-makers (consumers and producers); how these objectives are constrained by the opportunities available to agents (budget constraints or market structures), and evaluate alternative economic outcomes in terms of their normatively defined welfare economic properties (efficiency and equity).

Online Assignment

Due: Week 9
Weighting: 10%

The online assignment will be accessed through the unit web page at http://ilearn.mq.edu.au. Refer to the Unit Schedule for the opening and closing dates for the assignment.

The assignment may include true/false with explanation questions, explanation/discussion questions, and problem-solving questions. The details of the assignment will be released in Week 6.


On successful completion you will be able to:
  • Elaborate analytical skills relevant to the assessment of different theories and models of microeconomics.
  • Develop the insights and tools necessary for the study of more specialized areas in economics such as finance, actuarial studies, labour economics, health economics, industrial organization and public economics.
  • Comprehend the generic process of microeconomic analysis focusing on the aims of individual decision-makers (consumers and producers); how these objectives are constrained by the opportunities available to agents (budget constraints or market structures), and evaluate alternative economic outcomes in terms of their normatively defined welfare economic properties (efficiency and equity).

Final Examination

Due: University Examination Period
Weighting: 50%

  1. A 2 hour final examination for this unit will be held during the University Examination period. The examination will contain multiple choice questions and written-answer questions.
  2. You are expected to present yourselves for examination at the time and place designated in the University Examination Timetable. The timetable will be available in Draft form approximately eight weeks before the commencement of the examinations and in Final form approximately four weeks before the commencement of the examinations. For details check: http://www.timetables.mq.edu.au/exam
  3. The only exception to not sitting an examination at the designated time is because of documented illness or unavoidable disruption. In these circumstances you may wish to consider applying for Disruption to Studies (see the Policies and Procedures for details).
  4. If a Supplementary Examination is granted as a result of the Disruption to Studies process, the examination will be scheduled after the conclusion of the official examination period. You are advised that it is Macquarie University policy not to set early examinations for individuals or groups of students. All students are expected to ensure that they are available until the end of the teaching semester, the final day of the official examination period.
  5. As indicated in the event of documented adverse personal circumstances, such as accident, illness, etc., a supplementary exam may be granted. However, when a student has extra time to prepare while suffering only a minor ailment, a higher standard is expected in the deferred exam. Also, students who sit the regular final exam and then request a supplementary exam should know that, if a supplementary exam is granted, his/her performance in the supplementary exam may raise or lower the result obtained in the regular final exam. Although the material coverage for the Supplementary exam would be the same as the final exam, it will include ALL written answers questions (NO multiple choice questions).

On successful completion you will be able to:
  • Understand how microeconomic theory aids decision-making by individuals, business and government.
  • Elaborate analytical skills relevant to the assessment of different theories and models of microeconomics.
  • Develop the insights and tools necessary for the study of more specialized areas in economics such as finance, actuarial studies, labour economics, health economics, industrial organization and public economics.
  • Comprehend the generic process of microeconomic analysis focusing on the aims of individual decision-makers (consumers and producers); how these objectives are constrained by the opportunities available to agents (budget constraints or market structures), and evaluate alternative economic outcomes in terms of their normatively defined welfare economic properties (efficiency and equity).
  • Apply microeconomic principles to solve complicated problems, and apply the major theories and modules of microeconomics.

Delivery and Resources

Classes

This unit provides 3 hours face-to-face teaching per week. It consists of two-hour lectures and one-hour tutorials. (There are NO tutorials in the first week of semester, and in Week 6 due to the class test).

The timetable for lectures and tutorials can be found on the University web site at: http://www.timetables.mq.edu.au.

As per university safety Policy every student must have a seat. The lecture will not run with students standing or sitting on the floor. If a lecture room is overfull, the lecturer may ask unseated students to leave. This is a requirement of University health and safety regulations.

Lecture slides will be available on the unit web page at http://ilearn.mq.edu.au. Please consult the Unit Schedule for precise details of the currently scheduled lecture topics for the whole unit. During the semester, unforeseen circumstances may require the cancellation of some lectures and/or tutorials. Any changes will be announced as far as possible in advance on the unit web page.

Lectures will start punctually. Students should arrive on time. Students may ask questions at the END of the lecture. It is disruptive and discourteous to arrive late or talk during lectures.

Attendance at lectures will not be enforced, but is strongly recommended. Students who miss classes put themselves at a considerable disadvantage for several reasons, including:

  1. Not all material in the required text is covered in the unit, and not all the unit material is covered in the required text. In some places the text deals with issues in greater depth than is necessary for the unit, and in other places it does not go far enough. The lectures contain all the unit material taught at the level that is required for successful completion of tutorial exercises, and they are your guide to the content of the unit.
  2. In some of the tutorials you will learn the techniques to solve quantitative problems, while lectures may not deal with all of these techniques, however, deal mainly with the underlying theory and some problem-solving questions which may not be covered in the tutorials.
  3. The lectures will include significant guidance about the style and content of the final exam and recommendation about the study techniques.
  4. It is difficult and often impossible for the lecturer to provide meaningful assistance to students outside class times on topics for which they did not attend the relevant lectures and tutorials.

Required and Recommended Texts and/or Materials

Required Textbook

Besanko D. and Braeutigam R.R. (2014) Microeconomics (5th Ed), Wiley (Mentioned elsewhere as the textbook)

The text is available for purchase at Co-op Bookshop. A small number are available on reserve in the library.

Supplementary General Texts

You may find other intermediate microeconomic texts useful:

Pindyck R.S. and Rubinfeld D.L. (2013), Microeconomics (8th Ed), Pearson International Edition.

Nechyba, T.J. (2011), Microeconomics: An Intuitive Approach with Calculus (1st Ed), South-Western.

Perloff, J.M, R. Smith, and D. Round (2014), Microeconomics, Pearson.

Varian, H.R. (2006), Intermediate Microeconomics: A Modern Approach (7th Ed), New York: Norton.

Frank, R.H. (2006), Microeconomics and Behaviour (6th Ed), Boston: McGraw-Hill.

Mathematical detail

Henderson, J.M and E. Quandt (1980), Microeconomic Theory: A Mathematical Approach. McGrawHill

Dowling, E.T. (1980), Introduction to Mathematical Economics (2nd ed), Schaum's Outline Seriesm McGrawHill.

Technology Used and Required

Unit Web Page

Course material as well as up to date information concerning any aspect of the unit, including any changes to the schedule, will be available to students by logging on to the learning management system (iLearn) that can be accessed via https://ilearn.mq.edu.au/login/MQ/.

Unit Schedule

Week 

Lecture Topic 

Reading 

 Tutorial

1

Introduction to Microeconomics

Chapters 1 and 2 NO TUTORIAL

2

Consumer Preferences and Consumer Choice

Chapters 3 and 4 Tutorial 1: Supply and Demand

3

The theory of Demand

Chapter 5

Tutorial 2: Consumer Choice

 4 Inputs and Production Functions Chapter 6

Tutorial 3: The theory of Demand

 

Quiz 1: covering Lectures in weeks 1, 2, and 3.

Opens 6pm Tuesday 17/3/2015

Closes 6pm Saturday 21/3/2015

   

5

Cost Minimization and Cost Curves

Chapter 7 and 8 Tutorial 4: Production Functions
6

CLASS TEST: Covering Lectures in weeks 1 to 5

   NO Tutorial
  Session Break (from Monday 6/4/15 to Friday 17/4/15)    

7

Perfectly Competitive Markets

Chapter 9

Tutorial 5: Costs, and Class-test Feedback

8

Applications of Competitive Markets

Chapters 10

Tutorial 6: Competitive markets

9

Monopoly Chapter 11 Tutorial 7: Applications of Competitive Markets

 

Online Assignment: covering Lectures in weeks 5, 7, 8 and 9.

Opens 6pm Friday 8/5/2015

Closes 6pm Friday 15/5/2015

   

10

Price Discrimination Chapter 12 Tutorial 8: Monopoly
11 Imperfect Competition and Strategic Behavior. Chapters 13 and 14 Tutorial 9: Price Discrimination

12

General Equilibrium

Chapter 16 Tutorial 10: Imperfect Competition

 

Quiz 2: covering Lectures in weeks 9, 10, and 11

Opens 6pm Tuesday 26/5/2015

Closes 6pm Saturday 30/5/2015

 

 

13

Revision   Tutorial 11: General Equilibrium
     
  This unit schedule is subject to change if necessary.    

Learning and Teaching Activities

Lectures - large group learning (2 hours each teaching week)

Lectures are intended to provide overviews of the conceptual framework and economic data that are critical to the core themes of the unit. Students are expected to read the relevant chapters in the textbook before each lecture.

Learning by doing (about 6 hours each teaching week and 9 hours each week during the mid-session break)

ECON203 relies heavily on independent learning where students read the relevant chapters in the textbook, revise the lecture notes, prepare answers to the pre-set tutorial questions, and extend themselves by doing additional reading, questions, exercises, problems.

Tutorials - small group learning (1 hour each teaching week beginning in Week 2)

Tutorials constitute a critical learning experience of this unit and students should attend them. The tutor will facilitate a highly student-centred discussion of pre-set tutorial questions. A tutorial is also an active forum to present to the tutor difficulties you encountered when preparing for the tutorial questions. Ask your tutor questions and further guidance on how to approach questions. Students are expected to attempt the tutorial questions before each tutorial.

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:

Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html

Assessment Policy  http://mq.edu.au/policy/docs/assessment/policy.html

Grading Policy http://mq.edu.au/policy/docs/grading/policy.html

Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html

Grievance Management Policy http://mq.edu.au/policy/docs/grievance_management/policy.html

Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.

In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/

Results

Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Learning Skills

Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.

Student Services and Support

Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.

Student Enquiries

For all student enquiries, visit Student Connect at ask.mq.edu.au

IT Help

For help with University computer systems and technology, visit http://informatics.mq.edu.au/help/

When using the University's IT, you must adhere to the Acceptable Use Policy. The policy applies to all who connect to the MQ network including students.

Graduate Capabilities

Discipline Specific Knowledge and Skills

Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.

This graduate capability is supported by:

Learning outcomes

  • Understand how microeconomic theory aids decision-making by individuals, business and government.
  • Elaborate analytical skills relevant to the assessment of different theories and models of microeconomics.
  • Develop the insights and tools necessary for the study of more specialized areas in economics such as finance, actuarial studies, labour economics, health economics, industrial organization and public economics.
  • Comprehend the generic process of microeconomic analysis focusing on the aims of individual decision-makers (consumers and producers); how these objectives are constrained by the opportunities available to agents (budget constraints or market structures), and evaluate alternative economic outcomes in terms of their normatively defined welfare economic properties (efficiency and equity).
  • Apply microeconomic principles to solve complicated problems, and apply the major theories and modules of microeconomics.

Assessment tasks

  • Tutorial engagement
  • Class Test
  • Online Quizzes
  • Final Examination

Critical, Analytical and Integrative Thinking

We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.

This graduate capability is supported by:

Learning outcomes

  • Understand how microeconomic theory aids decision-making by individuals, business and government.
  • Elaborate analytical skills relevant to the assessment of different theories and models of microeconomics.
  • Develop the insights and tools necessary for the study of more specialized areas in economics such as finance, actuarial studies, labour economics, health economics, industrial organization and public economics.
  • Comprehend the generic process of microeconomic analysis focusing on the aims of individual decision-makers (consumers and producers); how these objectives are constrained by the opportunities available to agents (budget constraints or market structures), and evaluate alternative economic outcomes in terms of their normatively defined welfare economic properties (efficiency and equity).
  • Apply microeconomic principles to solve complicated problems, and apply the major theories and modules of microeconomics.

Assessment tasks

  • Tutorial engagement
  • Class Test
  • Online Quizzes
  • Online Assignment
  • Final Examination

Problem Solving and Research Capability

Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.

This graduate capability is supported by:

Learning outcomes

  • Elaborate analytical skills relevant to the assessment of different theories and models of microeconomics.
  • Comprehend the generic process of microeconomic analysis focusing on the aims of individual decision-makers (consumers and producers); how these objectives are constrained by the opportunities available to agents (budget constraints or market structures), and evaluate alternative economic outcomes in terms of their normatively defined welfare economic properties (efficiency and equity).
  • Apply microeconomic principles to solve complicated problems, and apply the major theories and modules of microeconomics.

Assessment tasks

  • Tutorial engagement
  • Class Test
  • Online Assignment
  • Final Examination

Effective Communication

We want to develop in our students the ability to communicate and convey their views in forms effective with different audiences. We want our graduates to take with them the capability to read, listen, question, gather and evaluate information resources in a variety of formats, assess, write clearly, speak effectively, and to use visual communication and communication technologies as appropriate.

This graduate capability is supported by:

Learning outcomes

  • Elaborate analytical skills relevant to the assessment of different theories and models of microeconomics.
  • Apply microeconomic principles to solve complicated problems, and apply the major theories and modules of microeconomics.

Assessment tasks

  • Tutorial engagement
  • Class Test
  • Final Examination