Principles of Economics
This course will provide students with the basic tools in Microeconomics. We start by studying consumer behavior and how choices form the basis of demand in the economy. Next we study firm behavior in order to understand input and output decisions of firms and to learn where supply comes from. Finally (strategic) interaction between firms is studied. Throughout the course we will use examples from the real world in order to stimulate understanding of the economic theories.
The course builds on (parts of) the ‘Principles of Economics’ course. However, this course will be more mathematical and assumes some basic background in Mathematics, including differentiation. See blackboard for background materials in Mathematics that you are supposed to understand and be able to use.
At the end of this course, the student understands how economic theory can be used to study:
how individuals make decisions;
firm behaviour and market functioning;
and is able to predict how individuals and firms will behave.
Also the student is able to reproduce key findings in microeconomic theory.
The student is able to interpret findings from theoretical models.
Further, the student will be able to apply economic theory to explain phenomena we observe in the real world.
Once available, timetables will be published here.
Mode of instruction
During the first seminar of each week, the main issues in the required reading will be identified and discussed. Based on an interactive setting, the focus will be on understanding the concepts and theories in Microeconomics. Students are expected to actively participate.
During the second seminar of each week, students will apply their knowledge. Each week the homework consists of preparing study problems. In class the students will discuss the solutions to the problems. In addition there will be student presentations in class.
The assessment of this course is based on the following elements:
Final written exam (40%). The final exam consists of open questions and is administered in the exam week. The questions will be based on the literature and the materials that are discussed in class.
Midterm exam (20%). The setup is similar to the final exam. The Midterm exam is an individual exam administered in class in week 4 and covers all the material of the first four weeks.
Assignments (25%). Students hand in 4 sets of presentation slides (in week 2,3,5, and 6). They are assigned a topic each time. In the presentation students i) briefly explain the theory behind the topic, ii) set up an exercise, iii) and solve the exercise. Students’ best assignment counts for 10% and the others count for 5%. Dependent on the number of students that enrol in the course, there will be 3 or 4 different topics each week (and I assign each student to one of the topics).
Student presentation (5%). Students are randomly selected in class to present their assignment (see above) once. They will have 10 minutes in total to present and discuss with the audience (i.e. the lecturer and students). Students will be graded based on their presentation in class.
Unweighted average of scores on class participation (10%). Every week, students are expected to prepare the reading material and the study questions. Based on this preparation, students are able and expected to participate in class. Students are expected to discuss the concepts, theories and the solutions to the study problems.
There will be a Blackboard site available for this course. Students will be enrolled at least one week before the start of classes.
Microeconomics and Behavior, 2nd edition (2016), Frank and Cartwright, McGraw Hill ISBN-13: 9780077174088.
This course is open to LUC students and LUC exchange students. Registration is coordinated by the Education Coordinator. Interested non-LUC students should contact firstname.lastname@example.org.
Max van Lent