Microeconomics II
mulus@gsu.edu.tr
Content
Objective
to comprehend the theories that explain the consumer and the producer behaviour
Course Content
the course covers an extension of the subjects covered in Microeconomics I. Inspects (at the intermediate level ) theories that explain the consumer and producer behaviour. for the former, the course covers the consumer choice first in a dynamic setup and then under uncertainty. for the latter, the course covers the producer choice first under monopoly and then under duopoly. Finally, it provides a synthesis of the consumer and the producer behaviour by analyzing walrasian general equilibrium models.
Course Learning Outcomes
be able to compute equilibrium interest rates
comprehend the relation between consumption profile and interest rates
be able to compute insurance demand
have a knowledge of different types of market sturctures with imperfect competition
be ablle to determine the producer equilibrium under imperfect competition
Teaching and Learning Methods
teacher-focused theoretical sessions (3 h per week)
for the problem sessions, problem sets and questions are distributed to students at the beggining of the term. Active participation by students is obligatory for the problem sessions.
References
H. Varian Introduction to microeconomics (french version also available)
Picard P. les éléments de microéconomie
Weekly Contents
| Week | Weekly Contents |
|---|---|
| 1 | Consumer theory: summary of the previous term |
| 2 | intertemporal consumer choice |
| 3 | interest rate-consumption relation, income effect, substitution effect |
| 4 | comsumer choice under uncertainty |
| 5 | insurance demand |
| 6 | optimal insurance rate and moral hazard |
| 7 | market structures with imperfect competition |
| 8 | producer equilibrium under private monopoly |
| 9 | deadweight loss of private monoply, public monopoly, price discrimination |
| 10 | duopoly types |
| 11 | price and quantity underCournot duopoly |
| 12 | price and quantity under Stackelberg |
| 13 | price and quantity under Bertrand duopoly |
| 14 | revision session |
| Week | Weekly Contents |
|---|---|
| 1 | no problem session |
| 2 | exercises on the relation consumption-interest rate |
| 3 | computations on equilibrium consumption and interest rate |
| 4 | exam 1 |
| 5 | questions on uncertainty |
| 6 | problem set on insurance demand |
| 7 | examples of risk diversification |
| 8 | exam 2 |
| 9 | problem set on monopoly behaviour |
| 10 | comparison of private and public monopoly |
| 11 | exam 3 |
| 12 | problem set on Cournot and Stackelberg behaviour |
| 13 | problem set on Bertrand duopoly |
| 14 | revision |
Assessment System
| Activities | Number | Contribution |
|---|---|---|
| Contribution of in-term studies to overall grade | 3 | 50 |
| Contribution of final exam to overall grade | 1 | 50 |
| Total | 4 | 100 |
| Activities | Number | Contribution |
|---|---|---|
| Assignments | 0 | 0 |
| Presentation | 0 | 0 |
| Midterm Examinations (including preparation) | 3 | 50 |
| Project | 0 | 0 |
| Laboratory | 0 | 0 |
| Other Applications | 0 | 0 |
| Quiz | 0 | 0 |
| Term Paper/ Project | 0 | 0 |
| Portfolio Study | 0 | 0 |
| Reports | 0 | 0 |
| Learning Diary | 0 | 0 |
| Thesis/ Project | 0 | 0 |
| Seminar | 0 | 0 |
| Other | 0 | 0 |
| Total | 3 | 50 |
Relation of Proficiency
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 1 | Demonstrate a basic knowledge of different economic theories and main discussions driving current theoretical approaches | |||||
| 2 | Demonstrate ability to use basic qualitative and quantitative methods to asses different economic questions of applied fields | |||||
| 3 | Show a sound understanding of current economic discussions and problems | |||||
| 4 | Have an effective and clear communication in written and oral formats in different public and professional contexts. | |||||
| 5 | Demonstrate basic knowledge of the world economic history and a sound knowledge of the Turkish economic history | |||||
| 7 | Demonstrate knowledge of standard quantitative techniques and empirical models used in economics | |||||
| 8 | Show ability to apply basic economic theory to an applied topic | |||||
| 9 | Show a basic understanding of analytical methods, both theory- and model-based | X | ||||
| 10 | Show ability to use economic concepts to discuss current economic issues | |||||
| 11 | Reason logically and work analytically | X | ||||
| 12 | Show awareness on social aspects of the economics in different applied and theoretical fields | |||||
| 13 | Identify appropriate economic models to analyse problems | |||||
| 16 | Show understanding of basic statistical and econometric concepts and ability to apply basic concepts to own empirical work | |||||
| 17 | Demonstrate a sound knowledge of the current economic issues in Turkey and a general knowledge of the issues in the world economy | |||||
ECTS
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 14 | 5 | 70 |
| Working Hours out of Class | 14 | 2 | 28 |
| Midterm Examinations (including preparation) | 3 | 7 | 21 |
| Final Examinations (including preparation) | 1 | 17 | 17 |
| Total Workload | 136 | ||
| Total Workload / 25 | 5.44 | ||
| Credits ECTS | 5 | ||