37293 - Microeconomics

Learning outcomes

At the end of the course students with understands of the principles of micro-economic analysis. They have been introduced the concept of economic rationality as it applies to individuals and firms, and the analysis of how price and quantity are set under different market structures. Moreover students are introduced to topics addressed in more detail will include the form of utility and production functions, and rational decision making and intertemporal choice in the face of uncertainty. Implications for the behaviour and organization of firms will be highlighted throughout.

Course contents

Note: the course is in English

1. Introduction to the concepts of market and economic rationality

2. Consumer Theory
- The budget
- Preferences and Utility
- Choice
- Individual demand (for goods and services)
- Labour supply

3. Market equilibrium
- Market demand
- Market equilibrium and the implications of taxes on consumption

4. Producer Theory
- Technology
- Profit maximisation
- Cost minimisation
- Firm supply in a competitive market
- Industry supply in a competitive market
- The implications for supply of non-competitive market structures: Monopoly and Oligopoly

5. The concepts of Externalities and Public Goods may also be introduced

The first mid-term exam will cover topics 1, 2, and 3; the second mid-term exam will cover topics 4., and 5.

Full exams can cover material from any of the five topics.

Readings/Bibliography

Note: the course is in English

The text book for the course will be:

Varian, Hal R., Intermediate Microeconomics: A Modern Approach, (9th international student edition), published by WW Norton & Co.

It is strongly recommended that students have access to a copy of the textbook.

There is also an accompanying exercise book which students may find useful (though it is not required reading). This exercise book is:

Bergstrom, Theodore C. and Hal R. Varian, Workouts in Intermediate Microeconomics for Intermediate Microeconomics and Intermediate Microeconomics with Calculus, 2014, W.W. Norton & Co.: New York, London.

Copies of teaching materials (slides, exercises) will be published on the university platform VIRTUALE: https://virtuale.unibo.it/

Teaching methods

Traditional lectures led by the course lecturer.

Lessons to work through exercises led by course lecturer or tutor.

Assessment methods

Final written exam of about one and a half or two hours, or two mid-term exams of about one and a half or two hours each.

The content and structure of exam questions is intended to assess familiarity with the material covered in the course lectures, and, in particular, to assess understanding of the theoretical content of the course. The nature of exam questions will closely follow examples covered as exercises during the course, and discussed in lectures/tutorials.

The exams will contain a mixture of definitions, multiple choice questions, and computational/open exercises. The division of marks between the different types of question will be indicated on exam papers where this is appropriate.

The exam is computer-based through a platform provided by the University. In case online exams will be envisaged by the University of Bologna, the structure of the written exam is the same. The exam will be run through Zoom and Exams Online (EOL). Detailed instructions on how to manage and hand in the online exam are available on the course page on the VIRTUALE platform.

During exams (mid-term or full exams) students will NOT be allowed to use materials such as: textbooks, lecture notes/slides; any written notes; web-enabled or data storage devices, or smartphones. Candidates found with such items will be removed from the exam and their work will not be marked.

Note: The mid-term exams are FOR CURRENT (1st year) STUDENTS ONLY: students from earlier years must take the full exams.
Only students with a sufficiently high mark in the first mid-term exam will be admitted to the second one: other candidates must proceed to the full exams.
For students taking the mid-term exams (esami parziali), the final mark for the course will be an average of the marks in the two mid-term exams.

For students taking the full exam, the mark of the exam is the final mark.

The grading system is on a 0-30 scale. The maximum possible score is 30 cum laude, in case all answers are correct, complete and formally rigorous. If this is not the case, the following graduation applies:

<18 fail
18-23 sufficient
24-27 good
28-30 very good
30 cum laude: excellent

Candidates will be required to enroll for exams via the University's electronic service (AlmaEsami). Exam marks will be published via the University's electronic service (AlmaEsami). The mark published after a second partial exam or after a full exam will be the student’s final mark for the course.

After exams students will be entitled to see their script by attending the lecturer’s office hour.

Students will be allowed to reject their final grade for the course at most ONCE. When exam results are published, the date by when students must notify the course lecturer of their intention to reject their mark, will be communicated to candidates. Notification of the intention to reject must be sent in writing (by email). After the date specified, marks will be electronically registered (verbalizzato).

Teaching tools

Slides, example exercises and some mock-up exams from previous years will available on the platform VIRTUALE: https://virtuale.unibo.it/

Office hours

See the website of Davide Dragone