ECON 1004 - Principles of Microeconomics I

North Terrace Campus - Semester 1 - 2014

The course provides an introduction to a core area of economics known as microeconomics. It considers the operation of a market economy and the problem of how best to allocate society's scarce resources. The course considers the way in which various decision making units in the economy (individuals and firms) make their consumption and production decisions and how these decisions are coordinated. It considers the laws of supply and demand, and introduces the theory of the firm, and its components, production and cost theories and models of market structure. The various causes of market failure are assessed, and consideration is given to public policies designed to correct this market failure.

  • General Course Information
    Course Details
    Course Code ECON 1004
    Course Principles of Microeconomics I
    Coordinating Unit School of Economics
    Term Semester 1
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week. Intensive in Summer Semester.
    Incompatible WINEMKTG 1026EX
    Quota A quota may apply
    Course Description The course provides an introduction to a core area of economics known as microeconomics. It considers the operation of a market economy and the problem of how best to allocate society's scarce resources. The course considers the way in which various decision making units in the economy (individuals and firms) make their consumption and production decisions and how these decisions are coordinated. It considers the laws of supply and demand, and introduces the theory of the firm, and its components, production and cost theories and models of market structure. The various causes of market failure are assessed, and consideration is given to public policies designed to correct this market failure.
    Course Staff

    Course Coordinator: Dr Florian Ploeckl

    Summer Semester
    Course Coordinator: Mr John Snelling
    Office location: Nexus 10, Level 3, Room 3.35 
    Contact details:  Email john.snelling@adelaide.edu.au

    Semester 1
    Course Coordinator: Dr Stephanie McWhinnie
    Office location: Nexus 10, Level 4, Room 4.11
    Office hour: 4-5pm Tuesdays in teaching weeks of Semester 1
    Contact details: Email stephanie.mcwhinnie@adelaide.edu.au

    Semester 2
    Course Coordinator: Dr Florian Ploeckl
    Office location: Nexus 10, Level 4, Room 4.43
    Office hours:
    Contact details: Email florian.ploeckl@adelaide.edu.au
    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes

    Knowledge and Understanding
    This course aims to develop an understanding of the framework that economists use to analyse choices made by individuals in response to incentives and consider how these choices can also serve the social interest.  The course introduces students to models of how individuals and firms interact within markets, when markets fail, and how government policy may improve outcomes for society. (Learning outcomes 1-6)

    Communication Skills
    This course aims to develop students’ abilities to construct and sustain an argument using the phrases and concepts that economists use in their deliberations. A theoretical framework is developed in which students acquire an understanding of how economic agents interact and by doing so develop the literacy and verbal communication skills necessary for presenting arguments of an economic nature. (Learning outcomes 7-12)

    On the successful completion of the course students will be able to:

    1 Explain how competitive markets organise the allocation of scarce resources and the distribution of goods and services
    2 Assess the efficiency of markets and describe the various factors that might impact on efficiency
    3 Distinguish between the various forms of market failure and explain how governments might need to intervene
    4 Describe the various types of markets and compare their efficiency
    5 Recognise government failure and explain why government policy might fail
    6 Relate the basic economic theory and principles to current microeconomic issues and evaluate related public policy
    7 Use economic models to analyse a situation in terms of economics
    8 Interpret charts, graphs, and tables and use the information to make informed judgments
    9 Work and learn independently and with others
    10 Communicate their knowledge and understanding of economic issues using written, verbal and visual expression
    11 Evaluate outcomes based on the costs and benefits involved
    12 Understand the broader social consequences of economic decisions making
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1-5
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 7, 10
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 9, 11
    Skills of a high order in interpersonal understanding, teamwork and communication. 9-10
    A proficiency in the appropriate use of contemporary technologies. 8
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 6
    A commitment to the highest standards of professional endeavour and the ability to take a leadership role in the community. 12
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 12
  • Learning Resources
    Required Resources
    Microeconomics (1st Australian Edition)
    Jeffrey Perloff, Rhonda Smith and David Round
    ISBN 9781442532830
    Pearson Australia

    In the past "Microeconomics" by Douglas McTaggart, Christopher Findlay and Michael Parkin (or the microeconomics chapters from "Economics" by the same authors) was the textbook.  You may still use this book - it's available in the library or second-hand - but note that it is your responsibility to determine the appropriate sections to use as reference and understand that while the underlying content is similar, some material is presented differently.
    Recommended Resources
    An interesting book you may even read before the course starts or over the first
    few weeks is a Random House publication, The Undercover Economist: Exposing Why the Rich Are Rich, the Poor Are Poor and Why You Can Never Buy a Decent Used Car! by Tim Harford. Copies are available in the Barr Smith Library multiple copies collection. You can preview the book at Google Books via the References section of the MyUni site.

    If you are interested in learning something about the way economics has developed over the years (centuries), R.L. Heilbroner, Worldly Philosophers, (Simon and Schuster, several editions) provides a very readable account of the ideas, life and times of many of the greatest economists, from Adam Smith to the present.
    Online Learning
    The course makes extensive use of MyUni for the posting of lecture notes, tutorial exercises, assignments, weekly quiz and important announcements.
    It is expected that all students will regularly check the MyUni course website, and regularly check their university email accounts.
    A discussion board has been set up on the MyUni website for this course. This will be monitored regularly.  The discussion board will be the key electronic forum where students can clarify their understanding of any topics covered in lectures, tutorials or in the text. It might also be used by students to explore different ways of interpreting tutorial and assignment questions and various approaches to answering them.  It will also be THE place where students will ask questions about the administrative requirements of the course; such things as attendance, assessment, due dates and so on. It might also be a place for students to provide timely critical feedback on aspects of the course they particularly like or dislike and discussion of contemporary economic issues is also encouraged.

    Lecture recordings will typically be made available online.  Students should be aware that there may be occasional instances where lecture recording fails due to technical issues.
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Each topic is divided into a lecture component and a tutorial component. The lecture covers the key concepts of a particular topic. Tutorials will consolidate your understanding of course material by working through analytical problems and expand your understanding of course material through group discussion on current issues related to the topic. You should use the relevant sections of the textbook to enhance your understanding of topics covered in the lectures and tutorials.  The tutorials and weekly assessments follow after the lecture, so for example the lecture content covered in week 1 will be covered in the tutorial session in week 2 and the weekly assessments due in week 2.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This translates to 12 hours per week for a semester course.
    Learning Activities Summary
    Week   Lecture Topic Text reference
    PSR 1st Ed
    1 What is economics? Ch 1
    2 Supply and demand Ch 2
    3 Applying supply and demand Ch 3
    4 Consumer theory Ch 4&5
    5 Producer theory Ch 6&7
    6 Perfect competition Ch 8
    Mid-Semester Break (14th to 25th April)
    7 Welfare Ch 9&10
    8 Trade Ch 10
    9 Monopoly and regulation Ch 11&12
    10 Oligopoly and monopolistic competition Ch 13
    11 Games and strategic behaviour Ch 14
    12 Externalities and public goods Ch 18
    Optional week - no classes for this course
    SWOT VAC
    EXAMINATIONS

    This is planned outline of activities.  Changes may be made as the course progresses.  Please see the lecture notes and MyUni for up-to-date references.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Assessment includes tutorial work that will consist of weekly assignments, weekly online tests, and a final exam.
    Weekly Tutorial Assignments (best 8 out of 11) 25%
    Weekly Online Quizzes (best 10 out of 13) 10%
    Final exam 65%
    Assessment Related Requirements

    Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process, and may affect marks.

    It is expected that students will complete all 11 assignments and 13 quizzes and thus the “best of” is to allow leeway in the event of technical failure or illness or compassionate issues. As such, there will not generally be any special consideration of these issues but please contact the Course Coordinator to discuss any concerns.

    Assessment Detail

    Weekly tutorial assignments 25%
    Students will be asked to submit written answers to the indicated questions on the weekly tutorial exercises, which will be available to download from MyUni on a weekly basis. Only the best 8 weekly tutorial assignments will contribute to the grade for this component of assessment, which in total will be 25% of assessment. Instructions on the submission and return of these weekly assignments will be provided on MyUni.

    Weekly Online Quizzes 10%
    The weekly quizzes will be conducted online each week. The grade for this component will be based only on the score of the student‟s best 10 quizzes out of the total 13. Further details on how and when to access these quizzes will be provided on MyUni.

    Final exam 65%
    The final exam will be a 3-hour exam, plus 10 minutes reading time. This exam may assess all topics covered in the course. Details regarding the structure will be posted on MyUni. A past semester's exam is available on MyUni, which follows a similar structure. Please note that this is a closed book exam. Dictionaries of any type will not be allowed in the exam. Calculators will be allowed in the exam, but calculators that can store text, are programmable, or have wireless functions will not be permitted. This means graphics calculators are not permitted, and some particular scientific calculators may not be permitted.

    Submission
    Refer to MyUni for detailed instructions regarding submission.
    Students must retain a copy of all assignments submitted.
    Late submissions will not be accepted.
    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

    A summary of and response regarding past SELTs for this course is available on MyUni.
  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.