Microeconomics

Department of Economics

The course is offered in the first cycle and is included in the second semester of the Bachelor's Programme in Business and Economics (S1EKA). It is not offered as a freestanding course.

The course describes how consumers and producers act in markets for both consumer products and inputs. First, the factors that determine demand and supply in a market and how these interact through the price mechanism to reach a market equilibrium are studied. Then consumers' actions in a market and what determines demand are studied in more detail.

Thereafter, producers' actions under various market forms are treated, as well as price formation in the market for input goods, mainly the labour market. The concept of economic efficiency is defined and analysed under different market forms.

Finally, shortcomings that may occur in the market system's ability to allocate resources and various measures that exist to deal with this problem, as well as their effects on the market outcome, are discussed.

On successful completion of the course the student will be able to:

1. Account for the basic theory of consumer and producer decisions. This includes factors that affect demand, how producers utilise production resources in order for production to take place as resource-efficiently as possible and how supply is thereby determined. 
2. Describe how, in the event of perfect competition, one can identify short-term and long-term equilibrium, and be able to explain how price formation takes place in different market forms. Furthermore, the student must be able to explain and critically analyse the meaning of economic efficiency, as well as critically compare perfect and imperfect competition with regard to economic efficiency.
3. Identify different forms of "market failures" and critically compare different measures to solve the problem, for example in the form of taxes, subsidies and quantitative regulations.

Teaching takes place through lectures and exercises.

Language of instruction: English

Learning outcomes 1 to 3 are examined via a written examination.

lf a student who has been failed twice for the same examination element wishes to change examiner before the next examination session, such a request is to be granted unless there are specific reasons to the contrary (Chapter 6 Section 22 HF).

lf a student has received a certificate of disability study support from the University of Gothenburg with a recommendation of adapted examination and/or adapted forms of assessment, an examiner may decide, if this is consistent with the course's intended learning outcomes and provided that no unreasonable resources would be needed, to grant the student adapted examination and/ar adapted forms of assessment.

lf a course has been discontinued or undergone major changes, the student must be offered at least two examination sessions in addition to ordinary examination sessions. These sessions are to be spread over a period of at least one year but no more than two years after the course has been discontinued/changed.

lf a student has been notified that they fulfil the requirements for being a student at Riksidrottsuniversitetet (RIU student), to combine elite sports activities with studies, the examiner is entitled to decide on adaptation of examinations if this is done in accordance with the Local rules regarding RIU students at the University of Gothenburg.

The grading scale comprises: Excellent (A), Very good (B), Good (C), Satisfactory (D), Sufficient (E) and Fail (F).

To obtain a passing course grade, students must receive a passing grade on the written examination.

Upon completion, the course will be evaluated in accordance with the rules for course evaluations established by the Bachelor's Programme in Business and Economics at the School of Business, Economics and Law. The result and any changes in the course structure should be communicated to both the students who completed the evaluation and to the students who will start the course.