School of Arts and Social Sciences ECON A311F: Intermediate Microeconomics (Autumn 2016) Course Outline No. of Credits: Contact Hours: Prerequisites: Instructor: 5 credits 4 hours per week (Lecture: 3 hours; Tutorial: 1 hour) Mandatory: ECONA231F / Equivalent Advisory: ECONA232F / Equivalent Mr Arbitor Ma Lecturer, School of Arts and Social Sciences (Room A0725; Tel: 2768 5725 E-mail: ycma@ouhk.edu.hk) Classes: Lecture: Monday (15:00 18:00) at C0713 Tutorial: Group 1: Tuesday (14:00 15:00) at C0712 Student Consultation: By appointment 1
Introduction ECON A311F Intermediate Microeconomics is a five-credit higher level course in the full-time social sciences programme. It is presented in English. Aims This course aims to provide students with the framework to analyse the economic behaviour of individuals in the business and public sectors, including the behaviour of firms under different market structures. It covers topics like theories of consumption and production, theories of various market structures, market failure and the roles of government. Learning Outcomes Upon completion of this course, students should be able to: 1. Master the theoretical framework for the analysis of the behaviour of consumption and production. 2. Describe the functions of markets and their limitations in the allocation of economic resources. 3. Apply economic theories in the management of firms. 4. Apply economic theories to evaluate the effectiveness of government policies. 2
Content Study of the following topics is supported by a 3-hour weekly lecture and a 1-hour weekly tutorial. Topics 1 Consumption theories Consumer behaviour: Pindyck & Rubinfeld (2013): Chapter 3 Consumer demand: Pindyck & Rubinfeld (2013): Chapter 4 Uncertainty and consumer behaviour: Pindyck & Rubinfeld (2013): Chapter 5 2 Production & Cost theories and Perfect competition Production: Pindyck & Rubinfeld (2013): Chapter 6 The cost of production: Pindyck & Rubinfeld (2013):Chapter 7 Perfect competition: Pindyck & Rubinfeld (2013):Chapter 8 & 9 3 Market Power and Competitive strategy Monopoly and pricing with market power: Pindyck & Rubinfeld (2013): Chapter 10 & 11 Monopolist competition and Oligopoly: Pindyck & Rubinfeld (2013): Chapter 12 Game theory and : Pindyck & Rubinfeld (2013): Chapter 13 4 General equilibrium General equilibrium and Economic efficiency: Pindyck & Rubinfeld (2013): Chapter 16 5 Selected topics in microeconomics (if time allows) Markets with asymmetric information: Pindyck & Rubinfeld (2013): Chapter 17 Externalities and Public Goods: Pindyck & Rubinfeld (2013): Chapter 18 *The above topics are suggestive and tentative. The actual coverage may be different from the above table. 3
Alignment of outcomes and content The outcomes are related to the above topics as follows: Outcome Topic Outcome 1 Topics 1 & 2 Outcome 2 Topics 1 4 Outcome 3 Topics 3 & 5 Outcome 4 Topics 4 & 5 Teaching and learning strategies Lectures and tutorial discussion are the main strategies employed in the course to help students achieve the outcomes. Lectures are used to introduce and explain the main concepts and theoretical frameworks. They are supplemented by tutorial discussion to enhance students understanding of the key economic concepts and develop their skills in communication. Students can also use the Online Learning Environment (OLE) which contains notes and PowerPoints from lectures and tutorials and other relevant resources. The online Discussion Board offers an additional means for students to communicate with each other. Assessment Course assessment includes both continuous assessment and a final examination. Continuous assessment (weighting 30%) Mid-term test 1 (weighting 15%) The mid-term test 1 composes of multiple choices and short questions, which again assess a broad understanding of the techniques and concepts in solving economic problems. The test assesses outcomes 1 and 2. Mid-term test 2 (weighting 15%) The mid-term test 2 composes of short questions. The short questions focus on assessing the ability to master the techniques and concepts in solving economic problems. This assignment assesses mainly outcomes 3 and 4. Examination (weighting 70%; Date: University Examination Period) A final examination covers all the topics in the course and composes of short questions. As in the continuous assessment, the examination tests students understanding of the techniques and concepts in solving economic problems. All the learning outcomes are assessed. 4
The passing mark for both the continuous assessment and the examination is 40. To pass the course, students must pass OCAS, OES and the overall course score. The arrangements can be summarized as follows: Assessment Components Weighting Mid-term test 1 15% Mid-term test 2 15% Examination 70% Total 100% The mid-term test 1 and 2 will be held during the lecture scheduled on October 17, 2016 and November 28, 2016 respectively. Please also note that there are no make-up arrangements for mid-term tests. Readings/references There is one required textbook for the course. Textbook: Robert S. Pindyck and Daniel L. Rubinfeld (2013) Microeconomics, 8 th edition, Pearson Education References: Chiang, Alpha C. (1984), Fundamental Methods of Mathematical Economics, 3 rd edition, McGraw-Hill. Pashigian, P. B. (1998), Price theory and applications, 2 nd edition, McGraw Hill. (The above references are available in University Library.) 5
Teaching Schedule Week (1 st day of the week) 1 (Sep.5) 2 (Sep.12) 3 (Sep.19 ) 4 (Sep.26) 5 (Oct.03) 6 (Oct.10) 7 (Oct.17) 8 (Oct.24) 9 (Oct.31) Lecture: Title of the study Introduction Consumption theories Tutorial: Items to be covered / Topic keywords/concepts Revision on quantitative methods Constant Function Rule, Power Function Rule, Sum- Difference Rule, Product Rule, Logarithms Rules Consumption theories Revision on quantitative methods Constant Function Rule, Power Function Rule, Sum- Difference Rule, Product Rule, Logarithms Rules Consumption theories Production theories Consumption theories Preference, Budget constraint, Consumer choice Production theories Consumption theories Constrained maximization, Demand curve, Describing Risk, Preferences toward Risk, Reducing Risk Perfect competition Market power and Production theories Isoquant, Iscost, Economies of scale, Economies of scope, Learning curve Public Holiday Perfect competition Production function, Return to scale, Cost function, Cost minimization, Expansion path, Cost curve Mid-term test 1 Market power and Capturing consumer surplus, Price discrimination Study Break Study Break Market power and Discussion of mid-term 1 Assessment: Mid-term test 1 (17 Oct, 2016) 10 (Nov.7) Market power and Market power and Intertemporal price discrimination, Peak-load pricing, Two-Part tariff 11 (Nov.14) 12 (Nov.21) 13 (Nov.28) 14 (Dec.5) 15 (Dec.12) Market power and General equilibrium Mid-term test 2 General equilibrium Market power and Capturing consumer surplus, Price discrimination, Intertemporal price discrimination, Peak-load pricing, Two-Part tariff Market power and Oligopoly, Price competition, Collusion, Prisoner dilemma, Dominant Firm Mid-term test 2 General equilibrium General equilibrium, Contract curve, Efficiency in Exchange, Efficiency in Production, Efficiency of Competitive Markets General equilibrium Markets with asymmetric information (if time allows) Make-up / Revision class (if necessary) Discussion of mid-term 2 Study Break Mid-term test 2 (28 Nov, 2016) *The above schedule is suggestive and tentative. The actual teaching progress / topic may be different from the above schedule. 6