SCHOOL OF ECONOMICS

FACULTY OF ARTS AND SOCIAL SCIENCES

ECOS2001 Intermediate Microeconomics

Semester 2, 2013
Unit of Study Coordinator: Oleksii Birulin Email: oleksii.birulin@sydney.edu.au Tel: 90365047 Office: Merewether 361 Consultation times: Tuesday 2:30 3:30 pm Tutor: TBA Class times: Tuesday 12:00 - 2:00 pm Venue: Carslaw 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 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.

1.4

Learning structure and assessment overview

We have lectures and tutorials. Lectures and tutorial attendance is not compulsory except for the in class exams. Your homework is being collected at the beginning of the tutorials. Tutorial Attendance and participation

ECOS2001 Intermediate Microeconomics

Students will 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. You are required to submit your answers to tutorial questions at the beginning of the tutorial. If you cannot attend the tutorial due to illness or misadventure you may submit your work prior to the tutorial. On random dates your work will be graded. Out of these graded homework we discard the homework with the lowest grade and the rest count as tutorials toward your final mark.

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

Tutorial content
Mathematical preliminaries Week 1 material Week 2 material

Assessment Due

2 3

Varian: Ch4, Ch5 Varian: Ch6, Ch 8,

tutorial tutorial
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except 8.8, 8.9, Ch10 Varian: Ch12 Varian: Ch16, Ch 31 MID-SEMESTER EXAM Varian: Ch18, Ch20 Varian: Ch 21, Ch 22 Varian: Ch23, Ch24 Comparative Statics Inter-temporal choice Choice under Uncertainty Market Equilibrium Welfare Theorems IN CLASS Technology Cost Minimization Cost Curves Firm Supply Industry Supply Monopoly

4 5 6 7 8 9 AVCC 10 11 12 13

Week 3 material Week 4 material Week 5 material Mid-semester exam Week 7 material Week 8 material

tutorial tutorial tutorial

tutorial tutorial

non-teaching
Varian: Ch25 Varian: Ch28 Varian: Ch29 Ch27 Varian: Ch37

week
Monopoly Behaviour Game Theory Applications Oligopoly Asymmetric Information

(30 Sep -4 Oct )

Week 9 material Week 10 material Week 11 material Week 12 material

AVCC
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

Assessment Schedule Assessment items

Tutorials Midterm Exam Final examination Total ASSESSMENT CRITERIA Weight 10% 40% 50% 100% Time of Assessment Once a week Week 6 in class Finals week

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ECOS2001 Intermediate Microeconomics

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

Detailed Assessment Information

Tutorial Attendance and participation Students will 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. You are required to submit your answers to tutorial questions at the beginning of the tutorial. If you cannot attend the tutorial due to illness or misadventure you may submit your work prior to the tutorial. On random dates your work will be graded. Out of these graded homework we discard the homework with the lowest grade and the rest count as tutorials toward your final mark.

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. 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
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ECOS2001 Intermediate Microeconomics

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 the 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

http://sydney.edu.au/arts/downloads/documents/policy/2009_Arts_Attendance_policy.pdf

Attendance requirements and penalties for non-attendance

Appeals against academic decisions

University policy http://sydney.edu.au/senate/policies/Ac_Appeals_Rule.pdf

Faculty policy & procedures http://sydney.edu.au/arts/current_students/appeal_academic_decision.shtml

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 Sydney By-Law 1999 (as amended).

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SUBMISSION OF WRITTEN WORK Compliance Statements

All students are required to submit an authorised statement of compliance with all work submitted to the University for assessment, presentation or publication.
A statement of compliance certifies that no part of the Work constitutes a breach of Academic Dishonesty and Plagiarism Policy, and must be in the form of: a. University assignment cover sheet; b. University electronic form; or c. University written statement.

Late work policy

Students must respect deadlines for assignments and should familiarise themselves with the Faculty policy on late work, available at:
http://sydney.edu.au/arts/downloads/documents/policy/2011_Policy%20on%20Late%20Work.pdf 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 less than 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 / mid-semester 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
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Second further test Assignment

Did not attend second further test Late submission

ECOS2001 Intermediate Microeconomics

Optional assignment or test Tutorial Tutorial written work All other assessment not listed

Did not attend the test

None

Did not attend

Not submitted Not submitted

Reweight other tutorials

Reweight other tutorials Reweight or alternative assessment offered

7.6

Student Support
Faculty Policy http://sydney.edu.au/arts/current_students/student_support.shtml

7.7

Students with a disability

Students with a disability who wish to obtain reasonable adjustments for their disability must register with and seek the support of the Disability Services Office. A student who is registered with the Disability Services Office, and has in place reasonable adjustments for a disability, may also make a separate claim for special consideration due to illness or misadventure (see 7.4 above).

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