COURSE OUTLINE
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Course Code: ECON1001 |
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Course Title: Introduction to Microeconomics |
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Course Discipline: Economics |
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Credits: 3 |
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Prerequisite/s: None |
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Corequisite: None |
COURSE DESCRIPTION
Against the constantly shifting background of economic and geopolitical international developments which impact the vulnerable economies of the Caribbean, new styles of management and professionalism are necessary in order to develop policy and practice that are truly informed. To help address these challenges, there is a clear and urgent need for citizens to be grounded in the fundamentals of economic theory. Furthermore, the increasingly large volumes of information available to decision makers have also created a demand for people with well-developed economic analysis skills.
Microeconomics is the study of people in the “ordinary business of life”. As economic welfare depends upon the choices of people regarding the allocation and use of resources, it is necessary that ordinary members of the community and specialists in government and business, understand the account of these choices that are provided by microeconomic theory and are able to develop critiques of that theory. It is also necessary that they are able to appreciate, and undertake, microeconomic analysis of contemporary problems and policies.
This course therefore explores the theory of economic choice and its application to a range of resource-use questions. Specifically, it focuses upon a range of microeconomic principles, their use in economic analysis, and their relevance in the global information economy. While drawing on the history of economic thought, it emphasises contemporary resource-use issues and the development of the skills of economic specialists and non-specialists.
Economics is a living discipline and to appreciate the applications of the concepts, you are encouraged to follow events and developments in Caribbean countries and other economies around the world, and relate them to the theories and concepts in the course. This will provide you with a better understanding and appreciation of the basis for economic policy and decision making.
COURSE OBJECTIVES
It is expected that at the end of the course you will be able to:
• Evaluate and critique the methodology of microeconomic analysis and apply this methodology to economic policy analysis.
• Explain and discuss the nature of demand and supply and their interaction as they relate to the workings of a market system.
• Describe and explain the concept of elasticity and show how it is applied at the level of the firm with respect to the setting of prices for various types of goods and services.
• Examine the principles, concepts, and theories underlying individual consumers’ behaviour with respect to utility maximization.
• Examine the principles and theories underlying the concepts of production and costs as well as the relationship between these two concepts and show how they are applied in order to derive the optimum behaviour of producers or sellers of goods and services.
• Discuss and explain the nature and characteristics of various market structures and show how the firm and industry derive equilibrium in both the short and long runs.
• Critically assess the impact of economic policies on economic efficiency within the confines of a market system.
