SOK-3006 Microeconomics - 10 stp

• Theory of production ¿ concepts of profit function, cost function and supply function, application of duality theory
• Consumer theory ¿ concepts of direct and indirect utility functions, derivation of demand functions, application of duality theory
• Decision-making under uncertainty ¿ Expected utility theory, risk aversion, subjective probability
• General equilibrium analysis ¿Walrasian equilibrium, existence of equilibrium in pure exchange and production economies, Pareto efficiency, Welfare economics

A Bachelor's degree or equivalent in economics. (An example of an equivalent degree can be another bachelor¿s degree containing a minimum of 80 ECTS in economics.)

· The Norwegian grading system is an A-F scale in which A is the highest score and F is fail. An average grade C from a bachelor degree issued in Norway is the minimum requirement for admission to the master's level for students with Norwegian study background.

· Applicants who hold a bachelor's degree or equivalent issued in Europe, Canada, USA, Australia and New Zealand must have an average grade C as a minimum, or the corresponding numerical mark/percentage score to be considered for admission.

· Applicants who hold a bachelor's degree or equivalent issued in countries other than the above mentioned region/countries must have an average grade B as a minimum, or the corresponding numerical mark/percentage score to be considered for admission.

 Application code 9371

Students who have successfully completed the course should have achieved the following learning outcomes:

Knowledge

The candidate

• Has broad knowledge of basic concepts, theories and analytical methodologies in addressing topics related to production and consumption, decision-making under uncertainty, general equilibrium analysis, and welfare economics
• Is aware of various applications of microeconomic problems in market transactions, and of competitive forces affecting market equilibrium
• Can refresh their knowledge within the fields of economic principles and theories analyzing individual behavior
• Knows the research and development works in the fields of microeconomic theory, welfare economics and applied microeconomics

Skill

The candidate

• Can apply knowledge and relevant theories to formulate simple microeconomic problems of producer and consumer behaviors, and decision-making problems in uncertain situations
• Can find, assess, and refer to relevant analytical tools to analyze producer and consumer behaviors, solve for market equilibrium, analyze competitive market forces
• Can reflect on various market forces leading to inefficient and undesirable outcomes in real-world economic applications
• Can analyze, discuss and present relevant case studies in applied microeconomics

General competence

The candidate

• Develops insights to apply microeconomic principles to real-world problems, apply economic reasoning to understand key market forces and tradeoffs
• Can work in teams to analyze economic case studies and prepare technical reports
• Can engage in discussions, exchange views and opinions with practitioners and policy makers to develop strategies for effective functioning of market forces
• Can understand and discuss research papers, professional economic reports, and policy papers
• Has competence in understanding consumer and producer behaviors, and functioning of market

Written exam lasting 4 hours at campus Tromsø. A graded scale of five marks from A to E for pass and F for fail.

A re-sit exam will be arranged for this course.

Course work requirement: compulsory term paper.

The date for the exam can be changed. The final date will be announced at your faculty early in May and early in November.