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Academic staff member responsible for the design of the course syllabus
(name, surname, academic title/scientific degree, email address and signature)
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NA
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Main Course Lecturer (name, surname, academic title/scientific degree, email address
and signature) and Office Hours:
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Prof.Dr. Eglantina Hysa ehysa@epoka.edu.al
, Monday, 12.30-14.30
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Second Course Lecturer(s) (name, surname, academic title/scientific degree, email
address and signature) and Office Hours:
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NA
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| Teaching Assistant(s) and Office Hours: |
NA
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| Language: |
English
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| Compulsory/Elective: |
Compulsory
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| Study program: (the study for which this course is offered) |
Bachelor in Economics (3 years)
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| Classroom and Meeting Time: |
08.45-12.30, Monday (E211)
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| Code of Ethics: |
Code of Ethics of EPOKA University
Regulation of EPOKA University "On Student Discipline"
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| Attendance Requirement: |
75%
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| Course Description: |
Microeconomics I: The aim of this course is to examine the analytical framework used in microeconomics. New concepts are illustrated with entertaining and informative examples, both verbal and numerical. In addition, several purely ‘micro’ topics are illustrated with ‘macro’ applications. On the successful completion of this unit, students should have a clear understanding of the basic principles of microeconomics and with the aid of simple mathematical tools, be able to solve specific problems and answer questions appropriate to this level. Topics include supply, demand and equilibrium, the behavior of consumers, the behavior of firms, production and costs, competition welfare economics, knowledge information, monopoly, market power, collusion and oligopoly, the theory of games, external costs and benefits, common property and public goods, the demands for factors of production, the market for labor, risk and uncertainty.
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| Course Objectives: |
The primary objective of this course is to teach students the fundamental principles and methods of modern microeconomics theory. Also to illustrate the usefulness of these principles and methods and models for studying actual microeconomics problems. Comprehending of economic life and analyzing of consumer behaviors
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BASIC CONCEPTS OF THE COURSE
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| 1 |
Consumer and producer surplus, market interventions
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| 2 |
Forms of competition (Perfect competition, Monopoly, Price discrimination, Monopolistic competition, Oligopoly)
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| 3 |
Production decisions and economic profit
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| 4 |
Profit maximization
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| 5 |
Cost minimization
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| 6 |
The firm supply and industry supply
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| 7 |
Market demand
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| 8 |
Cost curves
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| 9 |
The impact of technology on production
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| 10 |
The concept of game theory
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| Week |
Topics |
| 1 |
Introduction to Microeconomics I --- Chapter 1: What is microeconomics? Microeconomics focuses on the study of individual decisions (consumer, firms) and markets of individual goods and services. In contrast, macroeconomics studies the performance of the economy as a whole. |
| 2 |
The Market: Optimization and Equilibrium --- Chapter 2 : In this chapter, we demonstrate how we do simple economic analysis through a simple model of apartment market. We set up a model about renters and landlords, see how they make decisions, how apartments are allocated, and how outcomes change when exogenous variables changes. We also talk about a criteria for evaluating outcome: Pareto Efficiency. Page numbers (1-19) |
| 3 |
Budget Constraint --- Chapter 3 : The budget set describes what consumption bundles are affordable to the consumers. The budget constraint is typically described by p1 x1 + p2 x2 = m, which is a straight line when prices are constant. When income increases, budget set shifts outward, enlarging the budget set. When prices increases, the slope of budget line changes, and the it shrinks the budget set. Page numbers (20-32) |
| 4 |
Consumer Preferences --- Chapter 4 : Rationality in Economics - Behavioral Postulate: A decisionmaker always chooses its most preferred alternative from its set of available alternatives. So to model choice we must model decisionmakers’ preferences. Page numbers (34-52) |
| 5 |
Consumer Preferences (continue) --- Chapter 4 : Preference Relations - Comparing two different consumption bundles, x and y: strict preference: x is more preferred than is y; weak preference: x is as at least as preferred as is y; indifference: x is exactly as preferred as is y. Page numbers (34-52) |
| 6 |
Utility --- Chapter 5 : Utility Functions A preference relation that is complete, reflexive, transitive and continuous can be represented by a continuous utility function. Continuity means that small changes to a consumption bundle cause only small changes to the preference level. Page numbers (57-70) |
| 7 |
Choice: Optimal Choice --- Chapter 6 : The principal behavioral postulate is that a decisionmaker chooses its most preferred alternative from those available to it. The available choices constitute the choice set. Page numbers (73-90) |
| 8 |
Midterm Exam |
| 9 |
Choice: Consumer Demand --- Chapter 7 : Consumer demand is defined as the - willingness and ability of consumers to purchase a quantity of goods and services in a given period of time, or at a given point in time. Page numbers (73-90) |
| 10 |
Demand --- Chapter 8 : Properties of Demand Functions - Comparative statics analysis of ordinary demand functions -- the study of how ordinary demands x1*(p1,p2,y) and x2*(p1,p2,y) change as prices p1, p2 and income y change. Page numbers (96-115) |
| 11 |
Slutsky Equation. The Law of Demand --- Chapter 9 : Effects of a Price Change - What happens when a commodity’s price decreases? Substitution effect: the commodity is relatively cheaper, so consumers substitute it for now relatively more expensive other commodities. Income effect: the consumer’s budget of $y can purchase more than before, as if the consumer’s income rose, with consequent income effects on quantities demanded. Page numbers (137-157) |
| 12 |
Slutsky Equation. The Law of Demand (continue) --- Chapter 9 : Slutsky discovered that changes to demand from a price change are always the sum of a pure substitution effect and an income effect. Page numbers (137-157) |
| 13 |
Inter-temporal choice --- Chapter 10 : Persons often receive income in “lumps”; e.g. monthly salary. How is a lump of income spread over the following month (saving now for consumption later)? Or how is consumption financed by borrowing now against income to be received at the end of the month? Page numbers (182-202) |
| 14 |
Overview of the Term --- Review of the chapters : theory and exercises. |
| No |
Program Competencies |
Cont. |
| Bachelor in Economics (3 years) Program |
| 1 |
Students define the fundamental problems of economics |
5 |
| 2 |
Students describe key economic theories |
5 |
| 3 |
Students critically discuss current developments in economics |
4 |
| 4 |
Students appropriately use software for data analysis |
3 |
| 5 |
Students critically contextualize the selection of an economic problem for research within scholarly literature and theory on the topic |
3 |
| 6 |
Students apply appropriate analytical methods to address economic problems |
5 |
| 7 |
Students use effective communication skills in a variety of academic and professional contexts |
3 |
| 8 |
Students effectively contribute to group work |
4 |
| 9 |
Students conduct independent research under academic supervision |
3 |
| 10 |
Students uphold ethical values in data collection, interpretation, and dissemination |
4 |
| 11 |
Students critically engage with interdisciplinary innovations in social sciences |
3 |
| 12 |
Student explain how their research has a broader social benefit |
5 |
