Course syllabus MIKR - Microeconomics I (ŠAVŠ - SS 2019/2020)

     Czech          English          

Course title: Microeconomics I
Semester: SS 2019/2020
Course supervisor: Ing. Šárka Dvořáková, Ph.D.
Supervising department: Department of Law and Economics (ŠAVŠ)
Prerequisites for registration: not Bachelor state examination
Time allowance: full-time, 1/2 (hours of lectures per week / hours of seminars per week)
part-time, 0/16 (lectures per period / seminars per period)
Type of study: usual
Form of teaching: lecture, seminar
Mode of completion and credits: Fulfillment of requirements (5 credits), Exam (5 credits)
Course objective:
- introduce students to microeconomics, its methods and basic principles of economics,
- learn to use the basic tools of supply and demand and construct and interprete basic economic models,
- understand how rationally behaving suppliers and demanders form the equilibrium prices in partial markets,
- understand limits of markets (why markets fail).
Course methods: In the present form of study, there are lectures and seminars. In the combined form of study are used contact hours (intensive teaching). Students can use also office hours.
Course content:
1.Introduction to Economics. (allowance 2/4)
a.Basic principles of economics. Macroeconomics vs. Microeconomics.
b.Basic economic problems. The role of assumptions. Economic models. Circular-flow diagram, the production possibilities frontier model.
c.Positive vs. normative analysis. Economic laws. Graphing.
d.Interdependence and the gains from trade. Absolute advantage. Opportunity cost and comparative advantage.

2.How markets work. (allowance 3/6)
a.Markets and competition. Demand and its determinants. Supply and its determinants. Equilibrium.
b.Price elasticity of demand and its factors, computing the elasticity. The variety of demand curves. Total revenue and price elasticity of demand. Price elasticity of supply, its determinants and computation of the elasticity. The variety of supply curves.
c.Supply, demand and government policies. Price ceiling, minimum wage, tax incidence.
d.Efficiency of markets. Consumer surplus. Producer surplus.

3.Why markets fail. (allowance 1/2)
a.Externalities. Negative and positive externalities. Private solutions to externalities. Public policies towards externalities.
b.Public goods. Nonexclusivity and nonrivalry. The free rider problem. Common resources.
c.Asymmetric information. Moral hazard and ways how to reduce it. Adverse selection and how markets respond to problems of asymmetric information.

4.Firm behaviour. (allowance 2/4)
a.The costs of production. Explicit and implicit (opportunity) costs. Total revenues, total costs, profit. Economic profit versus accounting profit.Production function and total cost function. Costs in the short run and in the long run. Cost curves and their shapes (TC, FC, VC, AC, AFC, AVC, MC), relationships.
b.Firm in competitive market. Revenues (total, average, marginal). Profit maximization in the short run, the firm's decision to shut down. The firm's supply curve. Profit maximization in the long run. Market supply in the short run. Market supply in the long run.
c.Monopoly. Why monopolies arise. Profit maximization - optimal output, setting the price, nonexistence of monopoly's supply curve, monopoly profit. The welfare cost of monopoly (the deadweight loss). Public policy towards monopolies. Price discrimination.
d.Oligopoly. Markets with only a few sellers. Cartel. The equilibrium for an oligopoly. Game theory and the economics of cooperation.
e.Monopolistic competition. Assumptions. Profit maximization in the short run. Profit maximization in the long run.

5.The markets for the factors of production. (allowance 2/4)
a.Labour market. The demand for labour - the assumption of competitive firm both in the market for output and in the market for labour, the value of the marginal product, shifts of the labour demand curve. The supply of labour - the wage as the opportunity cost of leisure, positively sloped labour supply curve and its shifts. Equilibrium in the labour market and its changes.
b.The other factors of production: land and capital.
c.Determinants of equilibrium wages - compensating differentials, human capital, education as signalling, economic rent. The economics of discrimination.

6.The theory of consumer choice. (allowance 2/4)
a.The individual maximizing utility from consumption of two goods. Preferences of the consumer and indiffernce curves. The budget constraint. The consumer optimal choice of two goods. How changes in income affect the consumer's optimum. How changes in the price of given good affect the optimal choice, substitution and income effects. Deriving the individual demand.
b.The individual maximizing utility from consumption and leisure. Deriving the individual labour supply.
c.The individual maximizing utility from current and future consumption.

Learning outcomes and competences:
After completing the course, student:
-Will deduce the formation of the equilibrium in particular markets
-Will define and explain basic economic terminology, will know principles and methods of economic theory
-Will present acquired knowledge on a chosen microeconomic topic
-Will understand rational behaviour of the supply and the demand, will apply the logic of marginal terminology
-Will use and interpret basic microeconomic models, will know methods of their simplifying

Teaching methods and workload (hours of workload):
Type of teaching methodDaily attendanceCombined form
Direct teaching
     Attendance of lectures12 h16 h
     Attendance of courses/seminars/tutorials24 h0 h
     Consultations with teacher (part-time form of study)0 h4 h
     Course reading and ongoing preparation24 h30 h
     Ongoing evaluation24 h34 h
     Preparation for final test28 h28 h
     Preparation for final oral exam28 h28 h
Total140 h140 h
Assessment methods:
Requirement typeDaily attendanceCombined form
Active lecture/seminar/workshop/tutorial participation10 %10 %
Mid-term test(s)40 %40 %
Final test25 %25 %
Final oral exam25 %25 %
Total100 %100 %
Course completion:
The subject is completed by the exam.

To sucsessfully pass, students are required to:
- participate in seminars and be active: max.10 points - (10%)
- write the first test(chapters 1 - 11): max.20 points - (20%)
- write the second test(chapters 13 - 20): max.20 points - (20%)
- pass the exam: max.50 points - (50%)

During the semester, the 1st and 2nd test are written in terms announced in advance. There is no possibility to rewrite any test.

Students are allowed to apply to the exam only in case that they have got at least 30 points during the course of the semester.
The exam is composed from two parts. The first part is in a written form and students must get 60% at least to be able to take part in the second/oral form of the exam. In case of getting less than 60% from the first part of the exam students will get the grade "failed".
Support for combined/distance forms of study:
Pdf form of lectures. Pdf form of learning materials in the document server of the Academic information system.
Reading list:
Language of instruction: Czech
MANKIW, N G. Zásady ekonomie. 1st ed. Praha: GRADA, 2009. ISBN 80-7169-891-1.
PAVELKA, T. Mikroekonomie.: Základní kurz. 2nd ed. Praha: Vysoká škola ekonomie a managementu, 2010. ISBN 978-80-86730-52-3.
MANKIW, N G. Principles of economics. Cengage Learning, 2015. 847 p. ISBN 978-1-285-16587-5.
FRANK, R H. -- ANTONOVICS, K. -- HEFFETZ, O. -- BERNANKE, B S. Principles of Economics.: Sixth Edition. 6th ed. New York: McGRAW HILL, 2016. ISBN 978-0-07-802185-5.

Language of instruction: Czech
MACÁKOVÁ, L. -- ČERMÁKOVÁ, B. Mikroekonomie.: Základní kurs. 11th ed. Slaný: MELANDRIUM, 2010. ISBN 978-80-86175-70-6.
FRANK, R H. -- BERNANKE, B S. Ekonomie. 1st ed. Praha: Grada Publishing, a.s., 2003. 804 p. ISBN 80-247-0471-4.

Study plans:
B-EMCZ Economics and Management, full-time form, initial academic year WS 2019/2020
B-EMCZ Economics and Management, full-time form, initial academic year WS 2019/2020
B-EMCZ Economics and Management, part-time form, initial academic year WS 2019/2020
B-EMCZ Economics and Management, part-time form, initial academic year WS 2019/2020
B-EMEN Economics and Management, full-time form, initial academic year WS 2019/2020
B-PEMI Podniková ekonomika a manažerská informatika, full-time form, initial academic year WS 2019/2020
Run in the period of: WS 2019/2020, SS 2018/2019, WS 2018/2019, SS 2017/2018, WS 2017/2018, SS 2016/2017   (and older)
Course tutor: Ing. Šárka Dvořáková, Ph.D. (examiner, instructor, lecturer, supervisor)
doc. Ing. Vladislav Flek, CSc. (examiner, instructor, lecturer)
PhDr. Jiří Malý, Ph.D. (examiner, instructor, lecturer)
Teaching language: Czech, English
Room: Mladá Boleslav, Praha

Last modification made by Mgr. Luděk Švejdar on 10/18/2019.

Type of output: