MICROECONOMICS

1. General information

Name: Microeconomics

Code: 61IFIS2MIC

Compulsory subject: 61ESP1B2

Credits: 3

Course length: 150 hours

2. Content description

The subject aims to provide students basic background of microeconomics relating to the demand, supply, price and market formation, individuals, households and firms’ behavior in decision making and allocation of resources; to analyze several intervention policies of government which affects the consumers and producers at micro level. This study is a necessary condition for other major subjects in terms of economics and international business.

3. Objectives of the subject

• Provide definition and research scope of Microeconomics
• Demonstrate law of supply and demand, price and government policies based on the application of law of supply and demand.
• Analyze the consumers’ behavior on optimum choices.
• Demonstrate theory of production and cost, theory of profit. Analyze the producers’ behavior in different types of market.
• Encourage students to manipulate the theory and analysis skills of micro issues in practical business environment.
• Familiarize yourself with the concepts of economics, be aware of the interdependence between microeconomics and the issues of the practical business environment;
• Understand basic concepts: economics, microeconomics, supply, demand, elasticity, law of supply and demand, optimum theory.
• Understand the government’s micro policy, apply the law of supply and demand to analyze the impact of policies on producers and consumers.
• Master the theory of behavior of consumers and producers through the concept of limited resources, optimal fulfillment.
• Distinguish the characteristics of the perfect market competitive, monopoly competitive, monopoly, oligopsony;
• Analyze the optimization decisions of the producers in each type of market related to input selection, cost, profit and revenue;
• Quantify the change in behavior of producers and consumers in decisions.