Course code Ekon5090

Credit points 4.50

Microeconomics Analysis

Total Hours in Course120

Number of hours for lectures18

Number of hours for seminars and practical classes18

Independent study hours84

Date of course confirmation21.06.2018

Responsible UnitInstitute of Economics and Finance

Course developer

author

Anastasija Vilciņa

Dr. oec.

Replaced course

EkonM003 [GEKOM003] Microeconomics Analysis

Course abstract

The topics of the course give an in-depth knowledge of market equilibrium and its stability indicators, criteria for an optimum consumption plan and production theory matters, which create an understanding of profit maximisation under different forms of competition. After completing the course, students can choose appropriate consumer and producer behaviour models in view of interaction of microeconomic processes.

Learning outcomes and their assessment

KNOWLEDGE
1. Students will be able to: demonstrate a profound knowledge and understanding of market equilibrium stability criteria and consumer behaviour patterns; test with calculations
2. Demonstrate a profound knowledge of production theory and an understanding of producer behaviour patterns in decision-making for various forms of market competition; test with calculations
3. Demonstrate a reasoned understanding of the interaction of microeconomic processes, the range of their regulation and their effects on population prosperity and enterprise competitiveness; independent work, discussions during classes
SKILLS
4. Independently apply criteria for drawing up an optimal consumption plan; calculations, independent work and group work, problem solving
5. Independently apply the knowledge of profit maximisation and cost minimisation conditions and price determination techniques for particular forms of market competition; discussions, calculations in classes, group work, a learning trip
6. Do research by applying theory, analytical calculations and relevant legislation for the choice of alternative consumer and producer behaviour patterns and defining prerequisites necessary for their implementation; independent work
7. Develop critical thinking and be confident in themselves; discussions, calculations in classes, a presentation
8. Actively engage in group work and assume responsibility for the results of the work; group work, a summary
COMPETENCE
9. Independently formulate and critically analyse consumer and producer behaviour patterns, identifying the promoting or limiting economic and legal aspects of the patterns, and integrate the knowledge of microeconomics and other economic sciences; examination

10. Theoretically and empirically substantiate and assess the effects of microeconomic processes on the sustainability of the society; tests, independent work

Course Content(Calendar)

1. Course of microeconomics; Market equilibrium and an analysis of its stability (1 h lecture, 1 h practical)
2. Drawing up an optimal consumption plan; Hicks and Slutsky’s theory on income and substitution effects (2 h lectures, 2 h practicals)
3. Analysis of the supply of labour and savings by a household. Savings and an analysis of labour supply factors at the national and individual levels (2 h lectures, 2 h practicals)
4. Test 1: Criteria for market equilibrium stability and consumer behaviour patterns (1h practical)
5. Analysis of the production function with two variable factors. Analysis of the Theory of Production (3 h lectures,2 h practicals)
6. Production cost elasticity and cost minimisation models. Analysis of the Theory of Production Cost (3 h lectures, 2 h practicals)
7. Comparative analysis of the kinds of competition. Differences between monopolistic and perfect competition. Coordination of the behaviour of economic entities under perfect and monopolistic competition (2 h lectures, 2 h practicals)
8. Analysis of price determination methods for an oligopoly. Price strategies for firms with market power. Coordination of the behaviour of economic entities under oligopolistic and monopolistic competition (2 h lectures, 2 h practicals)
9. Test 2: Theory of Production and producer behaviour patterns under various kinds of competition (1 h practical)
10. Welfare theory. Goods production possibilities. Transformation curve (2 h lectures, 2 h practicals)

11. Microeconomic models for legal problems. Interaction of market and public (governmental) institutions Anti-monopolistic activities under modern circumstances. (1 h lecture, 1 h practical)

Requirements for awarding credit points

A written examination covering all the topics of the course, which includes a test on theory and a test with calculations, has to be passed. Two tests have to be passed as well as independent work has to be completed and a presentation made.

Description of the organization and tasks of students’ independent work

The student has to submit at least one independent home assignment on “Interaction of microeconomic processes, the range of their regulation and their effects on population prosperity and enterprise competitiveness”, 7-10 pages in length, in electronic format, within the time specified. Each student or a group of 3-4 students produces and presents a report (10-12 slides) on “Analysis of the latest economic trends and the legal framework affecting consumer and producer behaviour motivations”, using the latest economic literature and economic statistics.

Criteria for Evaluating Learning Outcomes

The final mark consists of the following pieces of assessment: a written exam on all the topics covered – 40%, two tests on the following topics: “Market equilibrium stability criteria and consumer behaviour patterns” and “Production theory and producer behaviour patterns for various forms of market competition” – 40%, independent work – 10% and a presentation and activity in seminars – 10%. 10% are equal to one point on a 10-point marking scale.

Compulsory reading

1. Connell C.Mc., Brue S. Microeconomics. 15th. ed. Mc graw – Hill Higher Education 2001, 624 p.
2. Gods U. Mikroekonomika. Rīga: Biznesa augstskola Turība, 2008, 423 lpp.
3. Jaunzems A. Mikroekonomika: teorija un analīze. Ventspils: Ventspils Augstskola, 2013, 899 lpp.
4. Libermanis G. Mikroekonomika. Rīga: Kamene, 2006, 371 lpp.
5. Pindyck D., Rubinfeld. Microeconomic. 5th ed., Pearson Education, 2000, 700 p.
6. Ragan, Christopher T.S. Microeconomics. Boston: MA: Pearson Learning Solutions, 2012, 579 p.
7. Škapars R. Mikroekonomika. Rīga: LU, 2004, 390 lpp.
8. Varian H.R. Intermediate Microeconomics: A Modern Approach- 6th ed. W.W. Norton Company, 2003, 728 p.

9. Whitehead J.A. Microeconomics: A Global Test. London:Routledge, 2010, 496 p.

Further reading

1. Bikse V. Ekonomikas teorijas pamatprincipi: Mācību līdzeklis. Rīga: SIA Izglītības soļi, 2007, 454 lpp.
2. Dzelmīte M., Volodina M. Mikroekonomika. Rīga: SIA Izglītības soļi, 2004, 240 lpp.
3. Fusfeld, Daniel R. The age of the economist. 9th ed. Boston, Mass: Addison-Wesley, 2002.
4. Gesteland, Richard R. Cross-cultural business behavior: negotiating, selling, sourcing and managing across cultures. 4th ed. Copenhagen: Copenhagen Business School Press, 2005.
5. Heilbroner, Robert L. and William Milberg. The making of economic society. 12th ed. Upper Saddle River, N.J.: Pearson Prentice Hall, 2008.
6. Libermanis G. Tirgus, cena, konkurence. 4.izd. Rīga: SIA Jumis, 2007, 216 lpp.
7. Mansfield E. Microeconomics. 8th.ed. New York etc., 2000, 572 p.
8. Nešpors V. Mikroekonomikas teorijas pamati. Rīga: RTU, 2012, 254 lpp.
9. Oļevskis G. Uzņēmējs un tirgus. Rīga: J.Rozes apgāds, 2007, 220 lpp.
10. Samuelson P. A., Nordhaus W. D. Economics. 14-th ed.- Singapore, 1992, 784 p.
11. Stiglics Dž. E., Drifils Dž. Mikroekonomika. saīsin. tulk. Rīga: LU, 1995, 351 lpp.
12. Фишер С., Дорнбуш Р., Шмалензи Экономика: Пер. с англ.- Изд.2.-Москва: Дело, 1993, 829с.

Periodicals and other sources

1. Dienas bizness: nedēļas laikraksts: Latvijas biznesa avīze. Rīga: Diena: Dagens Industri, 2005-. ISSN 1407-2041.
2. iBizness. Rīga: Izdevniecība iŽurnāli, ISSN 2256-0882
3. Kapitāls: žurnāls lietišķiem cilvēkiem: krāsains biznesa un ekonomikas žurnāls. Rīga: Lietišķās informācijas dienests. ISSN 1407-2505.
4. The Economist: London: Economist Newspaper Ltd. ISSN 0013-0613. Pieejams arī: http://www.economist.com/?sa_campaign=econsubs/europe/subspage/imglink.
5. Latvijas kredītbanku asociācijas mājas lapa. Pieejams: www.bankasoc.lv;
6. Latvijas Bankas mājas lapa. Pieejams: www.bank.lv;
7. Centrālās statistikas pārvaldes mājas lapa. Pieejams: www.csb.gov.lv;
8. The statistical office of the European Union mājas lapa. Pieejams: http://epp.eurostat.ec.europa.eu;
9. Ekonomikas ministrijas mājas lapa. Pieejams: www.em.gov.lv;
10. Finanšu ministrijas mājas lapa. Pieejams: www.fm.gov.lv;
11. Vides aizsardzības un reģionālās attīstības mājas lapa. Pieejams: www.varam.gov.lv

12. Ministru kabineta mājas lapa. Pieejams: www.mk.gov.lv.

Notes

Compulsory course for the ESAF academic Master programme Economics