UNIVERSITY OF MAURITIUS FACULTY OF SOCIAL STUDIES AND HUMANITIES DEPARTMENT OF ECONOMICS AND STATISTICS BSc (Hons) Economics and

Finance II; BSc (Hons) Economics with Management II, BSc (Hons) Economics with International Relations II, BSc (Hons) Business Statistics with Economics II Module Information Sheet Microeconomic Theory ECON 2001Y A. General Information Lecturers: Dr V. Tandrayen-Ragoobur (Mrs) Time and Location: Monday 9.00-10.30- G2 ET; Tuesday 10.00-11.30 G1 ET BSc (Hons) Economics and Finance II Monday 9.00-10.30- G2 ET; Tuesday 10.00-11.30 G1 ET BSc (Hons) Economics with International Relations II, BSc (Hons) Economics with Management II, BSc (Hons) Business Statistics with Economics II Office: Room 1.8 Phone No: 4037700 Email Address: v.tandrayen@uom.ac.mu Office Hour: Tuesday 12.00-13.30 B. Module Description ECON 2001Y is intended to help you think like an economist. It will provide you with a solid grounding in the analytic methods of microeconomics, both in theory and in application. The module will emphasise three main ideas. First, individuals practice optimal choice, doing the best they can to meet their objectives subject to constraints such as time, income, and information. Second, prices can act to coordinate the optimal choices of individuals, bringing their behaviour into equilibrium. Third, we can evaluate equilibrium arrangements using the criteria of economic efficiency and equity. These ideas are applied as we study the various actors in the modern economy, and the market environments under which they interact.
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C. Module Objectives The objectives of the module are: (a) To demonstrate how microeconomics can be used to explain and predict household and firm behaviour (b) To develop problem-solving skills, so reinforcing understanding of both microeconomic and mathematical concepts. D. Learning Outcomes 1By the end of the module students should Understand how microeconomic theory can be applied to the workings of

households, firms and markets; Analyse different market structures Apply game theory and strategic behaviour /games; Translate economic ideas into equations or numerical examples; Calculate quantitative answers to economic problems

E. Module Outline Week Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Theory of Consumer Choice Income Consumption Curve, Price Consumption Curve Solution to the Choice Problem - Formal Derivation of demand functions Applications of the Theory of Consumer Choice Compensating Variation and Equivalent Variation Slutsky Equation Consumer Surplus and Marshallian Consumer Theory Individual Supply of Labour The Allocation of Consumption Over Time Revealed Preference and Duality: Applications Class Test Choice under Uncertainty
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Module Outline

Week 11 Week 12 Week 13 Week 14 Week 15

Theory of Production Theory of Costs Competitive Markets Monopoly Recap/Revision

F. Textbooks Estrin and Ladler (1995), Introduction to Microeconomics 4th Edition Hal R. Varian (2005) Intermediate Microeconomics, 7th Edition G. Teaching Methods There will be 30 hours of formal lectures and 15 hours of tutorials. Tutorials relate basically to solving numerical and quantitative problems. distributed in advance. H. Module Assessment This is a yearly module with course grades based on two mid-semester class test (15% each) and a final exam (70%). Module Assessment Class test (1 Semester) Class test (2nd Semester) Examination (3 hour paper) I. Further Reading and Attendance Class lectures and discussion will be designed to complement and supplement the readings, not substitute for them. It is therefore important that your reading stay ahead of the lectures. Further reading and practice are necessary. Class lectures will cover a lot of key material, so make attendance a priority. Attending lectures is necessary. In fact failure to do so on a regular basis (i.e. failing to attend 80% or more of lectures) is a good predictor of failure in the final exam. Regulations on 80% attendance of students at classes will be strictly enforced. No student will be admitted to Exams unless he/she has 80% attendance for the module.
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Tutorial sheets will be

Weight (%) 15% 15% 70%

J. A Guide to Effective Learning Whilst the value of lectures and tutorials are recognised, your appreciation and understanding of the module material, your analytical skills, and hence your examination performance will be considerably enhanced if you devote at least six hours per week of private study time to the module. Use this time to: produce a set of clear lecture notes, study the lecture handouts, read as much of the textbook as you can and make appropriate notes, attempt the tutorial questions. K. Feedback You will receive feedback on your work and progress. This feedback may be provided through your participation in tutorials and class discussions, as well as through the class test. It may come in the form of individual advice, marks and comments. You will also be asked to provide feedback online to the Department on the module taught and lectures at the end of the semester. This will help improve the module and course delivery.