Intermediate Microeconomics 1

EC2013
ACADEMIC YEAR 2015-2016
Autumn Term
Dr. Ravi Mukherjee
Intermediate Microeconomics 1 is a second-year core module. This is the first of the
two-part microeconomics module.
Aims and Objectives: This course aims to provide students with a sound knowledge
of microeconomic principles, theories and methods of analysis and prepare them to
use this knowledge within an applied framework of analysis. At the end of the
course the student should have an understanding of the analytical factors that
determine the behaviour of individuals as consumers, investors and members of the
labour force, and the behaviour of firms within alternative market structures.

Pre-requisites: It is assumed that the student has acquired a satisfactory level of

understanding of principles of microeconomics as taught in Introduction to
Microeconomics in year 1. A good background in mathematics is not assumed but
may prove useful.
Books and other Sources of Information: The textbook is 'Intermediate
Microeconomics' by Hal Varian, Norton, 8th edition, 2010. It is strongly
recommended that the student purchases the accompanying Workbook, Workouts
in Intermediate Microeconomics, A Modern Approach, by Bergstrom and Varian,
Norton, 8th edition, 2010.
Another good book is 'Microeconomics' by David Besanko and Ronald R.
Braeutigam, 3rd edition, Wiley, 2008.Summary lecture notes/slides can be
downloaded from Moodle. Please note that while the web notes may well
complement the lectures, they are certainly not complete by themselves and do not
substitute the latter.
This is an intermediate level course that assumes knowledge of introductory
economics. Students wishing to do some background reading are advised to have a
look at (among others) 'ECONOMICS' by Dornbusch, Begg and Fischer;, McGrawHill. The online help at http://highered.mcgrawhill.com/sites/0077099478/student_view0/ is extremely useful to brush up the
basics.

Structure: Lectures will be held on Thursdays 1 pm - 2:50 a.m. Weekly classes

will follow (time varies, depending on which group the student is assigned to). Each
class is of fifty-minute duration. Discussions in classes will be specific to the topics
in the lectures.
Assessment: Student performance will be evaluated as follows:

Final Exam: 80% weight

Coursework Test: 20% weight

The coursework will consist of an hour-long test, to be held on 12th November,

2015. The test will be based on all the topics that are covered up until the week
before.
The final examination will be held in January. A minimum overall average of 40%
(pass marks) should be obtained in the exam and the coursework (with at least 30%
in each of the two components) in order to pass this module.
Syllabus
Topic 1: Analysing Economic Problem: Chapter 1
Topic 2: The Market: Chapter 1
Topic3: Budget Constraint: Chapter 2
Topic 4: Preferences: Chapter 3
Topic 5: Utility: Chapter 4
Topic 6: Choice: Chapter 5
Topic 7: Demand: Chapter 6
Topic 8: Slutsky Equation and applications: Chapter 8,9
Topic 9: Inter-temporal Choice Chapter 10
Topic 10: Consumers Surplus Chapter 14
Topic 11: Market Demand Chapter 15
Topic 12: Technology: Chapter 18
Topic 13: Cost Minimization Chapter 20
Topic 14: Cost Curves and Supply Curves: Chapters 21, 22, 23
Classes: Students need to attend classes. In the nature of things, the lecturer does
most of the work during the lectures and students play a relatively passive role. The

classes provide an opportunity to reverse this situation and students are urged to ask
questions and get involved. The classes give us the opportunity to work out
exercises and clarify concepts left unclear in the lectures. It is hard to overemphasize the role of classes in this module.
Contact Details:
Name of Lecturer: Dr. Ravi Mukherjee
e-mail address: r.mukherjee@city.ac.uk
Office: D302, Rhind Building
Office-Hours for Term 1: Tuesdays,11 am -1 pm