Microeconomics I

Code:

LGE102

Acronym:

MIC I

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2005/2006 - 1S

Active?	Yes
Responsible unit:	Grupo de Economia
Course/CS Responsible:	Business Administration

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
GES	193	Official Curricular Structure since 2004	1	3		-

Objectives

To provide the basic economic concepts vital for managerial decision making and for understanding public policy.

Program

Chapter 1: THINKING LIKE AN ECONOMIST
1.1 Choice and scarcity
1.2 The cost-benefit principle
1.3 Opportunity costs and sunk costs
1.4 Average and marginal values
1.5 Theories and Models
1.5.1 The circular flow diagram
1.5.2 The production possibilities frontier
1.6 Positive Economics versus normative economics

Chapter 2: SUPPLY AND DEMAND
2.1 The supply curve
2.2 The demand curve
2.3 The market mechanism
2.4 Changes in market equilibrium
2.5 Elasticities of supply and demand
2.6 Short-run versus long-run elasticities
2.7 Applications

Chapter 3: EFFICIENCY AND TRADE
3.1 Equilibrium and efficiency
3.2 Economic surplus
3.3 Price controls and efficiency
3.4 Taxes and efficiency
3.5 Applications

Chapter 4: CONSUMER BEHAVIOUR
4.1 Consumer preferences
4.2 Budget constraint
4.3 Optimal consumption decision
4.4 Revealed Preference
4.5 Applications

Chapter 5: INDIVIDUAL AND MARKET DEMAND
5.1 Price effects
5.1.1 The price-consumption curve
5.1.2 The individual demand curve
5.2 Income effects
5.2.1 The income consumption curve
5.2.2. The Engel curve
5.3 Aggregation of individual demand curves
5.4 Income and price effects
5.4.1 Changes in the price of a normal good
5.4.2 Changes in the price of an inferior good
5.4.3 Applications

Chapter 6 GENERAL EQUILIBRIUM IN A CLOSED ECONOMY
6.1 Social Indifference Curves
6.2 General Equilibrium

Main Bibliography

Microeconomics, Robert S. Pindyck and Daniel L. Rubinfeld. Prentice-Hall, Inc. New Jersey, 6ª. Ed. 2005.
Principles of Economics, Robert Frank and Ben Bernanke. McGraw-Hill, 2003

Complementary Bibliography

Introduction to Economics, N., Gregory Mankiw. Elsevier, 2.ª ed.
Microeconomics and Behavior, Robert H. Frank. McGraw-Hill. 3.ª ed. 1998
Microeconomics, Stephen Dobson, G. S. Maddala, and Ellen Miller. McGraw-Hill, Inc. 1989
Economia da Empresa, José Mata. Fundação Calouste Gulbenkian 2000.

Teaching methods and learning activities

Theorectical and applied lectures

Evaluation Type

Distributed evaluation with final exam

Calculation formula of final grade

Continuous evaluation:
Two mini-tests with a weight of 30% and a final test with a weight of 70%.
Two mini-tests are mandatory.
The average classification of the two mini-tests will be a component of the final classification only if it is greater than the classification of the final comprehensive test.