SCHOOL OF ECONOMICS

FACULTY OF ARTS AND SOCIAL SCIENCES

ECOS2001 Intermediate Microeconomics

Semester 1, 2014
Unit of Study Coordinator: Oleksii Birulin Email: oleksii.birulin@sydney.edu.au Tel: 90365047 Office: Merewether 361 Consultation times: Thursday 3:00-4:00 pm Instructor: Vladimir Smirnov Email: vladimir.smirnov@sydney.edu.au Tel: 9036 9297 Office: Merewether 354 Consultation times: Thursday 2:00-3:00 pm or by appointment Tutors: Consultation times will be announced on BB Stream 1 Classes: Tuesday 9:00 - 11:00 am Venue: Old Geology Lecture Theatre (A11) Stream 2 Classes: Wednesday 2:00-4:00 pm Venue: Carslow Lecture Theatre 157

1.
1.1.

Unit of study information

School handbook description

The aim of Intermediate Microeconomics is the development of theoretical and applied skills in economics. It covers applications and extensions of the theory of consumer choice, firm behaviour and market structure. Emphasis is given to the economics of information and choice under uncertainty; industry structures other than monopoly and perfect competition; markets for factors of production; general equilibrium and economic efficiency; market failure and the role of government. This unit provides a basis for the more specialised options that comprise third year economics.

1.2. 1.3.

Pre-requisite units Assumed knowledge or skills

ECON1001. Co-requisites: ECMT1010. Prohibitions: ECON2001, ECOS2901, ECON2901

ECOS2001 builds on the material and knowledge developed in ECON1001 Introductory Microeconomics. The unit sets out a more rigorous framework with which to analyse the behaviour of economic agents and

ECOS2001 Intermediate Microeconomics

develops skills with which to analyse economic decision making. The unit provides the knowledge and techniques required for third year options such as ECON3003 Hierarchies, Incentives and Firm Structures, ECON3005 Industrial Organisation, and ECON3011 Public Finance. It is assumed that students know (a) how to read and draw graphs (b) how to solve linear equations and systems of equations and (c) what a derivative is and how to differentiate simple functions.

2.

Learning objectives and outcomes

This course is concerned with the following broad topics: (i) consumer behaviour and choice; (ii) firm behaviour under perfect competition; (iii) price mechanism that coordinates the choices of firms and consumers; (iv) firms behaviour in the presence of market power; and (v) firms interaction in a strategic manner.

2.1.

Aims of the unit

ECOS2001 is a course that lifts the students understanding of modern economics from introductory units taught at essentially high school level to the level from which they can study specialized subjects. The topics covered in this course provide a foundation not only for specialised fields of economics, such as international trade, labour economics, strategic behaviour and public finance, but also for business disciplines, such as finance, accounting, and marketing.

2.2.

Learning outcomes

Upon a successful completion of this course, students are expected to: Be familiar with the main microeconomic models describing consumer choice and firm behaviour; Be able to identify the likely outcome arising from the interaction of firms and consumers; Understand microeconomic concepts and apply analytical models to describe real world economic situations; Understand the limitations of various models, distinguish between competing explanations of market behaviour and critically evaluate competing theories; Be intellectually ready to participate in public policy discussions arising in business and government environments; Students are also expected to develop the following generic skills:

Research and Inquiry Problem solving skills Evaluation of ideas, views and evidence Information Literacy Critical thinking Personal and Intellectual Autonomy Ethical, Social and Professional Understanding Communication

3.
Week 1

Topic Schedule
Reading
Varian: Ch2, Ch3

Lecture content
Budget Constraint Preferences Marginal Rate of Substitution Utility Choice Demand Comparative Statics Inter-temporal choice Choice under Uncertainty Market Equilibrium Welfare Theorems IN CLASS

Tutorial content
Mathematical preliminaries Week 1 material Week 2 material

Assessment Due

2 3 4 5 6

Varian: Ch4, Ch5 Varian: Ch6, Ch 8, except 8.8, 8.9, Ch10 Varian: Ch12 Varian: Ch16, Ch 31 MID-SEMESTER

tutorial tutorial

Week 3 material Week 4 material Week 5 material

tutorial tutorial tutorial

Page 2

ECOS2001 Intermediate Microeconomics

EXAM Varian: Ch18, Ch20 EASTER BREAK Varian: Ch 21, Ch 22 Varian: Ch23, Ch24 Varian: Ch25 Varian: Ch28 Varian: Ch29 Ch27 Varian: Ch37

7 8 9 10 11 12 13

Technology Cost Minimization NO CLASS Cost Curves Firm Supply Industry Supply Monopoly Monopoly Behaviour Game Theory Applications Oligopoly Asymmetric Information

Mid-semester exam

Week 7 material Week 8 material Week 9 material Week 10 material Week 11 material Week 12 material

tutorial tutorial tutorial tutorial tutorial tutorial

4.

Hal R., Varian (2010), Intermediate Microeconomics, 8th edition, W.W. Norton & Co. New York. The text is available as part of a package from the University Co-op bookshop. The package contains the text and workouts. The tutorials are based on the questions not from the workout book, however. The workouts contain many additional useful questions (some with answers) for students to practice on. Use of the workouts book throughout the semester is highly recommended, but not obligatory. Students should note that the lectures will be based on the textbook. The materials regarded as important in the text will be highlighted during the lectures. Occasionally, materials and notations covered in lectures will be different from the textbook. Not all materials in the textbook will be covered in this course. See the lecture outline in part 11. Additionally, some topics discussed in tutorial class are not covered in the text. Additional reading material will be set from: Additional textbook Jeffery M. Perloff (2004), Microeconomics, 3rd edition, Addison Wesley Longman, Inc., Sydney. A copy of this text for photocopying is available in Special Reserve in Fisher Library. Some additional readings will be posted on the blackboard.

Texts and Other Resources

5.

Assessment
Weight 10% 40% 50% 100% Time of Assessment 3 times a semester Week 6 in class Finals week

Assessment Schedule Assessment items

Online Quizzes Midterm Exam Final examination Total ASSESSMENT CRITERIA

This unit uses standards referenced assessment for award of assessment marks. Students assessment will be evaluated solely on the basis of students achievement against criteria and standards specified to align with learning outcomes.

Page 3

ECOS2001 Intermediate Microeconomics

For reference to criteria and standards, please consult the School of Economics grade descriptors at http://sydney.edu.au/arts/economics/

Detailed Assessment Information

3 online quizzes These will be made available on Blackboard under Quizzes, beginni ng on Wednesday at 5 pm. They will have to be completed online by the following Sunday at 5 pm. The timetable for online quizzes is: Dates of online quizzes STARTS ONLINE QUIZ WEDNESDAY 5 PM 1 26 MARCH 2 13 MAY 3 3 JUNE

ENDS ONLINE SUNDAY AT 5 PM 30 MARCH 18 MAY 8 JUNE

TOPIC COVERAGE 1, 2, 3, 4 7, 8, 9, 10 11, 12, 13

You must do these quizzes alone. Do not allow anyone to see your answers, and do not ask anyone to help you do yours. You will have to do 20 multiple-choice questions, randomly selected and ordered for you from a large set. Make sure that you allocate sufficient time to do them. Do not expect to complete them at the last minutecomputers are not always available. Computer unavailability is not an acceptable excuse. NOTE: Provided a quiz is still available and not yet SUBMITTED, you can correct any previously saved answer. On the assignment page, you will find two buttons in the bottom right hand corner -"Save", "Submit". You may save your work by clicking on the "Save" button and continue the assignment at a later time. DO NOT CLICK on the "SUBMIT" button unless you have completed the assignment and want to get it graded. You can submit the assignment only once. The quizzes will be computer-marked. After the assignment is submitted, you will be able to see your score, and the GRADE is FINAL. It cannot be helped if you mistakenly submit your quiz too early. If you do not submit answers by the deadline for a quiz, you will get a mark of 0. Tutorial Attendance and participation Students have one hour tutorial class each week. Tutorials are designed to complement (not be a substitute for) the lectures. Each tutorial covers the material from the previous lecture. Time and venue of your tutorial class is to be announced. To prepare for the exams it is essential that you attend your assigned tutorials. Tutors will go over the assigned problems and answer questions associated with the lecture material. However, you are expected to have attempted all assigned problems prior to attending the tutorial. Note that you cannot adequately learn the material required to successfully complete this course without going through tutorial problems and attending tutorials. On random days the tutors will be collecting your homework. You submitted answers will be returned to you with the tutors feedback. Tutorial mark will not count towards your final mark but being prepared every time, submitting your answers and receiving feedback is an essential element of exam preparation. Mid-semester Exam The midterm exam is designed to comprehensively test your understanding and applied capability of the core of this subject. Generally speaking, due to the time limit of the lectures, all the materials covered by the lectures are necessary and testable. If there is any material which will not be covered by the exam, it should be announced one week prior to the exam. Final Exam The final exam will concentrate on the material covered after the midterm exam. Although the final exam would test the material covered since the midterm, you get to remember that a solid command of the materials covered after the midterm exam would be obtained only if you can flexibly apply the materials covered before the midterm exam due to the progressive nature of the course materials. If there is any material which will not be covered by the exam, it should be announced in the last week of classes. Page 4

ECOS2001 Intermediate Microeconomics

For general guidelines for submission of assessments please refer to

http://sydney.edu.au/ab/policies/Assess_Exam_Coursework.pdf

5.3

Feedback

Feedback on assessments should be taken seriously to help you achieve your learning goals. In this unit you will receive the following types of feedback: Marks will be posted into the Blackboard Grade Centre when all results for an assessment have been compiled. Marks will not be given by email or over the phone. Final marks will not be posted in Grade Centre. Marks for mid-semester exams will be available within one week of the exam. The midterm exam papers will be graded and returned to students timely and the tutors will go
through the correct answers after the exams. The lecturer will stress the important points like common mistakes, etc.

If you would like further feedback on an assessment task, you are encouraged to ask your lecturer after class or during consultation hours.

6.

Student feedback and evaluation

Student feedback plays a very important part in helping develop this unit and degree program in general. Students are encouraged to approach the lecturer with feedback about the unit during the semester. Students will also have the opportunity to fill-out a confidential unit of study evaluation for each unit of study in the program at the end of the semester. Feedback from past students has been incorporated into the course
design and assessments. In response to students requests we will incorporate some problem solving into th e lectures, so that the students are better prepared for their home assignment. I will collect feedback during the course through evaluation forms, usually the first round of evaluations comes after mid-term 1. Teaching staff will be available to answer course related material on a regular basis during office hours, by e-mail or phone.

7.

University and Faculty Policies and Support

ACADEMIC DISHONESTY AND PLAGIARISM Academic honesty is a core value of the University. The University requires students to act honestly, ethically and with integrity in their dealings with the University, its members, members of the public and others. The University is opposed to and will not tolerate academic dishonesty or plagiarism, and will treat all allegations of academic dishonesty or plagiarism seriously. The Universitys Academic Dishonesty and Plagiarism Policy 2012 and associated Procedures are available for reference on the University Policy Register at http://sydney.edu.au/policies (enter Academic Dishonesty in the search field). The Policy applies to the academic conduct of all students enrolled in a coursework award course at the University. Under the terms and definitions of the Policy, academic dishonesty means seeking to obtain or obtaining academic advantage (including in the assessment or publication of work) by dishonest or unfair means or knowingly assisting another student to do so. plagiarism means presenting another persons work as ones own work by presenting, copying or reproducing it without appropriate acknowledgement of the source.

The presentation of another person's work as one's own without appropriate acknowledgement is regarded as plagiarism, regardless of the authors intentions. Plagiarism can be classified as negligent (negligent plagiarism) or dishonest (dishonest plagiarism). An examiner who suspects academic dishonesty or plagiarism by a student must report the suspicion to a nominated academic in the relevant faculty. If the nominated academic concludes that the student has engaged in dishonest plagiarism or some other sufficiently serious form of academic dishonesty, the matter may be referred to the Registrar for further disciplinary action under the terms of the Academic Dishonesty and Plagiarism Policy 2012 and Chapter 8 of the University of
Page 5

ECOS2001 Intermediate Microeconomics

Sydney By-Law 1999 (as amended). SPECIAL CONSIDERATION The Faculty of Arts and Social Sciences assesses student requests for assistance relating to completion of assessment in accordance with the regulations set out in the University Assessment Policy 2011 and Assessment Procedures 2011. Students are expected to become familiar with the Universitys policies and Faculty procedures relating to Special Consideration and Special Arrangements. Students can apply for: Special Consideration - for serious illness or misadventure Special Arrangements - for essential community commitments Simple Extension an extension of up to 5 working days for non-examination based assessment tasks on the grounds of illness or misadventure.

Further information on special consideration policy and procedures is available on the Faculty website at http://sydney.edu.au/arts/current_students/special_consideration.shtml. School of Economics application of approved special consideration If an application for Special Consideration is approved, the following form of consideration will be granted: Assessment Final exam Class test / midsemester test Further test Action taken by student Did not attend exam Did not attend the test Did not attend further test Consideration that will be granted Further test (after end of semester exam period) Further test (after end of semester exam period) Second further test (start of following semester) EITHER Grade of Absent Fail ( for repeated short-term illness) OR grade of Discontinue (Not to count as Fail) for ongoing serious illness or misadventure Grant extension or reweight other assignments None

Second further test Assignment Optional assignment or test Tutorial participation (where it contributes to a final mark) Tutorial written work All other assessment not listed

Did not attend second further test Late submission Did not attend the test

Did not attend Not submitted Not submitted

Reweight other tutorials Reweight other tutorials Reweight or alternative assessment offered

OTHER POLICIES AND PROCEDURES RELEVANT TO THIS UNIT OF STUDY The Facultys Student Administration Manual is available for reference at the Current Students section of the Faculty Website (http://sydney.edu.au/arts/current_students/). Most day-to-day issues you encounter in the course of completing this Unit of Study can be addressed with the information provided in the Manual. It contains detailed instructions on processes, links to forms
Page 6

ECOS2001 Intermediate Microeconomics

and guidance on where to get further assistance. STAYING ON TOP OF YOUR STUDY For full information visit http://sydney.edu.au/arts/current_students/staying_on_top.shtml The Learning Centre assists students to develop the generic skills, which are necessary for learning and communicating knowledge and ideas at university. Programs available at The Learning Centre include workshops in Academic Reading and Writing, Oral communications Skills, Postgraduate Research Skills, Honours, masters Coursework Program, Studying at University, and Workshops for English Language and Learning. Further information about The Learning Centre can be found at http://sydney.edu.au/stuserv/learning_centre/. The Write Site provides online support to help you develop your academic and professional writing skills. All University of Sydney staff and students who have a Unikey can access the WriteSite at http://writesite.elearn.usyd.edu.au/. The Faculty of Arts and Social Sciences has units at both an Undergraduate and Postgraduate level that focus on writing across the curriculum or, more specifically, writing in the disciplines, making them relevant for all university students. To find out more visit http://sydney.edu.au/arts/teaching_learning/writing_hub/index.shtml and http://sydney.edu.au/arts/teaching_learning/pg_writing_support/index.shtml. In addition to units of study on writing, The FASS Writing Hub offers drop-in sessions to assist students with their writing in a one-to-one setting. No appointment is necessary, and this service is free of charge to all FASS students and/or all students enrolled in WRIT units. For more information on what topics are covered in a drop-in session and for the current schedule, please visit http://sydney.edu.au/arts/teaching_learning/writing_hub/drop_in_sessions.shtml. Pastoral and academic support for Aboriginal and Torres Strait Islander students is provided by the STAR Team in Student Support services, a dedicated team of professional Aboriginal people able to respond to the needs of students across disciplines. The STAR team can assist with tutorial support, mentoring support, cultural and pastoral care along with a range of other services. More information about support for Aboriginal and Torres Strait Islander students can be found at http://sydney.edu.au/current_students/student_services/indigenous_support.shtml. The Library offers students free, online tutorials in library skills at http://sydney.edu.au/library/skills. There's one designed especially for students studying in the Humanities and Social Sciences at http://sydney.edu.au/library/subjects/subject.html. And don't forget to find out who your Faculty Liaison Librarians are. OTHER SUPPORT SERVICES Disability Services is located on Level 5, Jane Foss Russell Building G20; contact 8627 8422 or email mailto:disability.services@sydney.edu.au. For further information, visit their website at http://sydney.edu.au/stuserv/disability/. Counselling and Psychological Services (CAPS) are located on Level 5, Jane Foss Russell Building G20; contact 8627 8433 or email mailto:caps.admin@sydney.edu.au. For further information, visit their website at http://sydney.edu.au/current_students/counselling/.

Page 7