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Microeconomics

Course developer

Replaced course

EkonB004 [GEKOB004] Microeconomics

Course abstract

The course builds up students’ understanding of the mutual behaviour, motivation and influence of individual economic entities – households (consumers) and businesses in relation to economic causation. Students analyse the motivation behind the behaviour of the household (consumer) and the manufacturer and perform production cost calculations to determine the efficiency of the business under limited resources

Learning outcomes and their assessment

Students will be able to demonstrate:
KNOWLEDGE of
1. The most important principles and causal relationships of a market economy - practical assignments;
2. Demand and supply, the factors and the price elasticity - test 1;
3. Consumer and producer motivations in the market - independent work, a presentation;
4. Profit maximisation under perfect, oligopolistic and monopolistic competition - test 2.
SKILLS to
5. Analyse the causes of a demand and supply change in the market, simulate changes in a market equilibrium - test 1;
6. Analyse consumer and producer motivations in the market - independent work, a presentation;
7. Forecast the functioning of the market mechanism, depending on the degree of competition in the market - practical assignments, discussions;
8. Discuss microeconomic matters with the other students - practical assignments, group work;
9. Independently plan and do research and present the results in public - practical assignments, presentations.
COMPETENCES to
10. Substantiate the choice of the factors of production and the related costs by performing calculations - test 1;

11. Analyse mutual relationships between consumers and producers, applying the knowledge acquired – an examination.

Course Content(Calendar)

1. Analysis of basic economic problems and questions. (1 h lecture, 1 h practical)
2. Limited resources – a production possibilities curve, identification of alternatives. (1 h lecture, 2 h practicals)
3. Development and analysis of a simplified market model (goods and money flow scheme). (1 h lecture, 2 h practicals)
4. Graphical interpretation of market demand and supply. (1 h lecture, 2 h practicals)
5. Market equilibrium simulation. Market response to changes in supply and demand. (1 h lecture, 2 h practicals)
6. Practical determination of price elasticity of supply and demand. (2 h lectures, 3 h practicals)
7. Test 1. (1 h practical)
8. Mathematical interpretation of consumer equilibrium. (1 h lecture, 2 h practicals)
9. Graphical interpretation of consumer balance. (1 h lecture, 2 h practicals)
10. Presentations of students' independent work on consumer motivation in the market. (3 h practicals)
11. Production, production optimization, calculation of an average and a marginal product. (1 h lecture, 2 h practicals)
12. Calculation of production costs. (2 h lectures, 3 h practicals)
13. Test 2. (1 h practical)
14. Assessment of a firm’s activities in a complete and an incomplete market. (2 h lectures, 3 h practicals)
15. Test 3. (1 h practical)

16. Analysis of the situation in the market of production resources in Latvia. (2 h lectures, 2 h practicals)

Requirements for awarding credit points

• Three tests;
• independent work;

• written examination.

Description of the organization and tasks of students’ independent work

The independent work and a presentation on consumer behaviour in the market, which have to be submitted and presented within the time specified.

Criteria for Evaluating Learning Outcomes

The final mark consists of the following pieces of assessment:
• Test 1 – 15 points;
• Test 2 – 15 points;
• Test 3 – 15 points;
• Independent work – 10 points;
• Examination – 45 points.

A score of 10 is equal to one point on a 10-point marking scale.

Compulsory reading

1. Nešpors V. Mikroekonomikas teorijas pamati. Rīga: RTU, 2015. 244 lpp.
2. Dzelmīte M., Volodina M. Mikroekonomika. Rīga: SIA Izglītības soļi, 2004. 241 lpp.

3. Gods U. Mikroekonomika. Rīg.a: Biznesa augstskola Turība, 2008. 432 lpp.

Further reading

1. Dzelmīte M., Volodina M. Uzdevumi mikroekonomikā / Pārstr. un papild. izd. Rīga: SIA Izglītības soļi, 2002. 48 lpp.
2. Škapars R. Uzdevumi un testi mikroekonomikā – I daļa. Rīga: LU, 2002. 132 lpp.
3. Škapars R. Uzdevumi un testi mikroekonomikā – II daļa. Rīga: LU, 2002. 206 lpp.
4. Lībermanis G. Mikroekonomika. Rīga: Kamene, 2006. 371 lpp.
5. Škapars R. Mikroekonomika. Loģiskās shēmas. Rīga: Ekonomikas pētījumus un biznesa izglītības institūts, 2007. 370 lpp.
6. Plotkāns A. Cita ekonomika. Rīga: SIA Dienas Grāmata, 2010. 191 lpp.
7. Bikse V. Ekonomikas teorijas pamatprincipi: Mācību līdzeklis. Rīga: SIA Izglītības soļi, 2007. 454pp.
8. Jaunzems A. Mikroekonomika: teorija un analīze. Ventspils: Ventspils augstskola, 2013. 899 lpp.
9. Begg D., Fischer St., Dornbusch R. Economics: 7th Edition. - Cambrige: McGraw - Hill Education, 2003. 552 p.
10. Lībermanis G. Tirgus, cena, konkurence / 4. pārstr. un papild. izd. Rīga: SIA Jumis, 2007. 216lpp.

11. Oļevskis G. Uzņēmējs un tirgus. Rīga: SIA Jāņa Rozes apgāds, 2007. 219 lpp.

Periodicals and other sources

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Notes

Field professional and information technology course (Part B2) for the ESAF professional bachelor programme Entrepreneurship and Business Management