ECON2: PRIN MICROECONOMICS
Introduction to microeconomic principles, theory, and analysis. Topics include scarcity and resource allocation, specialization and exchange, and the determinants and distribution of output, income, and welfare through the market system, as well as elasticity, production and cost theory, and market failure caused by externalities and asymmetric information. Includes consumer choice and utility maximization, as well as profit maximization in various competitive settings. This course has the option of a letter grade or pass/no pass. (C-ID: ECON 201) PREREQUISITE: MATH 430 or MATH 205
- Use the framework of supply, demand, consumerís surplus, and producerís surplus to show how changes in economic variables affect market outcomes.
- Recognize and apply economic theory in everyday life.
- Show, using graphs and or numerical examples, how specialization and exchange can increase well-being.
- Use marginal analysis to make resource allocation decisions.
- Identify instances of market failure and evaluate alternative strategies to improve outcomes.
- Define economic efficiency and compare the implications of different market settings (e.g. perfect competition, monopoly, etc.) on economic efficiency.