This unit introduces basic microeconomic principles. It does not assume any specific previous knowledge, though those who are not at all familiar with the subject must expect to do some additional background reading. It is more mathematical than most introductory courses, though the mathematics used is simple and is subordinated to the economic content. The course also introduces basic ideas of 'welfare economics' - this is not to do with the welfare state, but with individuals' 'welfare', meaning how well off they are, which can be used as a guide to policy. A case can be made for competitive markets, under ideal conditions, but the course also looks at major causes of market failure.
International trade is discussed at the end of the course.
Exercise work will be given out in the lectures and discussed in the classes. Learning Objectives Under each heading below, students should be familiar with the basic concepts and terminology and should be able to use them to discuss applied problems, recognizing the economic problems involved and drawing on and combining elements listed under different headings below. Competitive, monopolistic and oligopolistic markets, product differentiation. Consumer demand, allocation of time, choice over time, choice under uncertainty. Production and cost functions, cost minimization, firms' input and output choices in the short and long run.