Economics A101:1, 15 Credits

Contents

Module 1: Microeconomics, 7.5 ECTS

The module starts by describing different tools and concepts used in (micro)economics. The module continues by introducing the behavior of the single individual; how much goods and services to consume and how much of production factors to supply. The firm's resource allocation problem contains decisions on how much to produce and the form of production.

Later parts of the course discuss price theory, i.e. how the action of firms and individuals determines the price and quantity on different markets. The analysis focuses first on a partial equilibrium situation, and comparative statics are used to understand how the behavior of individuals and firms changes when underlying factor changes. The role of the government, and how taxes and subsidies can change actors' behavior, is also introduced.

The last part of the course focuses on general equilibrium analysis, economic efficiency, and how a market economy can, under certain circumstances, lead to efficient resource allocation.

Module 2: Market failures and resource allocation problems, 7.5 ECTS

The module questions the assumptions fundamental for perfect competition and the resulting economic efficiency. The firms' profit maximization problem under imperfect competition (monopoly, oligopoly, and monopolistic competition). Within the framework of imperfect competition, game theory can also explain firm behavior. In addition, the market structure has an impact on factor markets.

Over and above the market structure, the module introduces other forms of market imperfections, such as uncertainty, externalities, and asymmetric information. Given these market failures, can the government affect, and increase individuals' welfare? The discussion of government action focuses on competition policy, taxes (for example, in the environmental realm), and public good provision.

Expected learning outcomes

Module 1: Microeconomics, 7.5 ECTS
After completion of this module, students should be able to: 

1. Demonstrate the ability to apply the theories dealing with the individual's consumption choices, allocation of time between work and leisure and intertemporal consumption problem. 
2. Demonstrate the ability to apply the theories dealing with the firm's choice of production factors and the firm's profit maximization problem given perfect competition. 
3. Describe the price formation mechanism under perfect competition. 
4. Explain how taxes and subsidies affect market equilibrium. 
5. Explain how the market mechanism achieves an effective allocation of resources under perfect competition. 
6. Explain basic welfare concepts and how to use them in economic applications. 
7. Describe relevant aspects of the Swedish tax system. 

Module 2: Market failures and resource allocation problems, 7.5 ECTS 
After completion of this module, students should be able to:

1. Explain the meaning of different market failures and the government's ability to correct these.
2. Explain how different market structures affect resource allocation.
3. Describe the individual organization's strategic behavior.
4. Describe the basics of government competition policy.
5. Explain the conditions for public goods and service production.
6. Explain how environmental taxes and regulation can correct for externalities.
7. Apply the decision rules for public investment.

Required Knowledge

Form of instruction

Instruction consists of lectures and seminars.

Examination modes

The examination consists of mid-module exams (duggor), written examination at the end of each module, assignments and seminars. The result from the mid-module exams, assignments and seminars are only valid during the current semester. A second exam opportunity is always offered within a short time span after the regular exam date for those students not achieving a Pass. The subsequent exam opportunity is either the re-take opportunity the week before the fall semester or the next regular exam date.

The following grading system will be used: Pass with Distinction (Väl Godkänd, VG) Pass (Godkänd, G) Fail (Underkänd, U). Grades on the course are awarded when the student has passed all examinations and compulsory course elements on both modules. The grade Pass with Distinction on the course requires the grade Pass with Distinction on both modules.

Exceptions from examination form stated in the course syllabus can be made for a student who has a decision on pedagogical support for disabilities. Individual adaptations of the examination form should be considered based on the student's needs. The examination form shall be adapted within the framework of the expected learning outcomes stated in the course syllabus. At the request of the student, the course responsible teacher, in consultation with the examiner, must promptly decide on examination form adaptation. The decision must then be communicated to the student.

When a student has failed an examination on two occasions, he or she has the right to ask for another examiner. A written request for an alternative examiner should be handed to the Director of Studies no later than two weeks before the next examination opportunity.

Credit transfer 
Academic credit transfers are according to the University credit transfer regulations.