Microeconomics

This is an outline of the typical undergraduate microeconomics course!

1. Introduction

1.1 Positive v Normative Economics
1.2 Difference between economic profit and accounting profit

2. Supply and Demand

2.1 Why does demand curve slope downwards?
2.2 Why is demand curve straight line?
2.3 When demand increases what happens to supply?

3. Market Controls

3.1 Why do price floors reduce total surplus
3.2 Show how minimum wage increases unemployment

4. Consumer and Producer surplus

4.1 Consumer surplus, producer surplus dead-weight loss with inelastic supply curve
4.2 Consumer surplus with inelastic demand 
4.2 Calculate dead-weight loss from tax revenue

5. Elasticity

5.1 Define elasticity

6. Taxation and subsidy

6.1 Burden of taxation
6.2 Subsidy

7. Gains from trade and International trade

7.1 Comparative advantage and gains from trade
7.2 International trade and Production Possibilities Frontier (PPF)

8. Utility maximisation

8.1 Expenditure minimization function and expenditure function
8.2 Utility maximization with perfect complements

9. Market structures

9.1 Dead-weight loss from Monopoly
9.2 Dead-weight loss from Monopsony

10. Game theory

10.1 Economics of Golden Balls
10.2 Maximin Strategy

11. General equilibrium

11.1 Prove if allocation is pareto optimal it is also pareto efficient

this covers the welfare aspects of supply and demand.

 

Leave a Reply

Your email address will not be published. Required fields are marked *