BØA203 Microeconomics 1
Course description for academic year 2020/2021
Due to Covid-19, changes may occur in course descriptions for the autumn semester of 2020. Changes in each course will be published on Studentweb or Canvas. When a course description has been changed there, the description on web is no longer valid. Examples of such changes could be accomplishment of practice, course type, or whether letter grades or passed/not passed will be used as grading scales.
Contents and structure
The course contains basic theories and models in the field of microeconomics. In consumer and producer theory, the economic choices of consumers and producers are analysed, respectively. In market theory, price formation is studied in various markets, the main focus being on perfect competition and monopoly, but also an introduction to monopolistic competition and oligopoly. Based on market theory, the importance of competition and the consequences of public intervention for economic efficiency are studied. The final theme is external effects and other kinds of market failure, and how public policy can promote a more efficient use of the resources when markets fail.
On completion of the course, the candidate must have acquired knowledge, skills and general competence as follows:
Knowledge: On completion of the course, the candidate has knowledge of:
- Basic concepts and models in microeconomics
- How microeconomic models can be used to analyse the economic behaviour of economic agents and their interaction in markets
- Criteria for economic efficiency and market failure
- How government policy can affect the behaviour of economic agents and thus prices, efficiency and the distribution of economic surplus
Skills: On completion of the course, the candidate can use his or hers professional knowledge to:
- Analyse consumer behaviour based on preferences, prices and Income
- Analyse producer behaviour based on production technology and prices
- Analyse how a market equilibrium is established as a result of the interaction between consumers and producers
- Present and discuss the market equilibrium in various competitive situations with and without government intervention
- Analyse situations where markets do not lead to economically efficient use of resources, market failures, and how government can promote a more efficient use of resources
General competence: On completion of the course, the candidate:
- Understand the relationship between the decisions of individual economic agents and the economic consequences
- Is able to reflect on events and economic policies related to markets and market agents
Recommended previous knowledge
BØA111 Matematikk or equivalent.
Lectures. Problem solving.
In order to take the exam, two assignments must be approved.
4 hour written exam. Grade A - F.
Examination support material
Same calculator as in BØA111 Matematikk, containing a clean memory. https://www.hvl.no/student/eksamen/hjelpemiddel-ved-eksamen/More about examination support material