OVERVIEW

The course introduces the fundamental language and tools of microeconomics to analyse the choices of consumers and firms and the functioning of markets. It develops students’ ability to interpret prices, quantities and market outcomes through analytical models that can be applied to real economic issues.

In particular, the 6-ECTS version of the course will focus on the behavior of consumers and firms, and on market equilibrium and efficiency in competitive markets; the 9-ECTS version will also address the main causes of failure of the competitive market.

AIMS AND CONTENT

LEARNING OUTCOMES

The course aims to provide the basic elements to explain the economic decisions of individual operators (families and businesses), with particular regard to the results of their interrelation on the market and the reasons for its failure (monopolistic and strategic behaviors, informational asymmetries, externalities) .

AIMS AND LEARNING OUTCOMES

At the end of the course, students will be able to:

1. Knowledge and understanding

• describe the fundamental concepts of microeconomics, including scarcity, choice, constraints, opportunity cost, incentives, equilibrium and efficiency;
• understand how consumers and firms make economic decisions in the presence of constraints and alternatives;
• explain the demand and supply model and the role of prices in coordinating individual decisions;
• understand the conditions for equilibrium and efficiency in competitive markets;
• for the 9-credit version of the course, identify the main causes of market failure, with reference to monopoly, externalities, public goods and asymmetric information.

2. Applying knowledge and understanding

• use the demand and supply model to analyse changes in market equilibrium;
• apply marginal reasoning and the concept of opportunity cost to the study of economic choices;
• analyse consumer choices using preferences, indifference curves and the budget constraint;
• analyse firms’ decisions using production functions, average and marginal costs, returns to scale and economies of scale;
• represent graphically and interpret the main microeconomic models;
• use the technical language and terminology of microeconomics correctly.

3. Making judgements

• interpret the role of prices and markets in the allocation of resources;
• assess the strengths and limitations of economic models as analytical tools;
• distinguish between model assumptions, analytical results and economic implications;
• reflect on real economic problems using an analytical and logically structured approach.

4. Communication skills

• clearly explain the main microeconomic concepts;
• discuss simple economic problems using graphs, formulas and verbal reasoning;
• use appropriate economic terminology when describing individual choices, firms’ decisions and market outcomes.

5. Learning skills

• consolidate the theoretical and methodological foundations needed to attend further courses in economics;
• use textbooks, teaching materials and exercises to deepen their understanding of the topics covered;
• develop a study method based on the integration of theory, graphical representation and application to problems.

PREREQUISITES

Basic mathematical knowledge at upper-secondary school level is required. In particular, familiarity with first- and second-degree equations and inequalities, elementary functions, exponentials and logarithms, graphical representations, basic notions of analytic geometry and qualitative function analysis is useful.

No previous knowledge of economics is required.

TEACHING METHODS

The course consists of lectures, classroom discussions, exercise sessions and individual study. Lectures introduce the main theoretical concepts and basic microeconomic models; exercise sessions focus on the application of analytical and graphical tools through examples, problems and exercises.

Active participation in lectures and exercise sessions is strongly recommended. Regular practice with exercises is an integral part of preparation, as it helps consolidate the understanding of the models and develop the ability to apply them to concrete economic problems.

Students with valid certification of specific learning disorders, disabilities or other special educational needs are invited to contact the lecturer and the inclusion officer of the relevant teaching area at the beginning of the course, in order to agree on teaching arrangements that, while respecting the learning objectives of the course, take individual learning needs into account.

SYLLABUS/CONTENT

Programme for the 6-credit course

• Introduction to microeconomics: scarcity, choices, constraints, opportunity cost and marginal reasoning.
• Demand, supply and market equilibrium.
• Elasticity of demand and supply.
• Consumer choice: preferences, indifference curves, budget constraint and optimal choice.
• Individual demand and market demand.
• Firm behaviour: technology, production function and returns to scale.
• Production costs: total, average and marginal costs; short-run and long-run costs; economies of scale.
• Firm and market equilibrium under perfect competition.
• Efficiency in competitive markets.

Additional programme for the 9-credit course

For students taking the 9-credit version of the course, the following topics are added to the 6-credit programme:

• Monopoly: the monopolist’s choice, market power, deadweight loss and welfare effects.
• Externalities and public policy instruments.
• Public goods.
• Asymmetric information and its main economic implications.

RECOMMENDED READING/BIBLIOGRAPHY

The course is mainly based on the following textbook:

• B. Douglas Bernheim, Michael D. Whinston, Microeconomics, McGraw Hill.

An alternative reference textbook is:

• Robert H. Frank, Edward Cartwright, Microeconomics, McGraw Hill.

For a more discursive and less mathematical treatment, students may also consult:

• Daron Acemoglu, David Laibson, John A. List, Economics, Pearson.

Additional teaching materials, such as slides, exercises, practice questions and possible supplementary readings, will be made available online by the lecturer.

For non-attending students, working students or students with specific learning needs, it is recommended to refer to the materials published online and to contact the lecturer for any additional guidance.

TEACHERS AND EXAM BOARD

LESSONS

Class schedule

The timetable for this course is available here: Portale EasyAcademy

EXAMS

EXAM DESCRIPTION

The exam is written. The written exam lasts approximately 90 minutes and consists of true/false questions, open-ended questions and exercises.

Students may take the exam in one of the following ways:

1. Two mid-term tests: one test during the teaching period and a second test in conjunction with the first exam session. The exam is considered passed if the average mark of the two tests is at least 18/30 and neither test receives a severely insufficient mark, that is, below 12/30.
2. Single written exam on the whole programme: if the mid-term tests are not taken, or if they do not lead to passing the exam according to the criteria indicated above, the whole exam must be taken in one of the regular exam sessions.

In case of suspected irregularities during the exam, the examination board may require an additional oral examination.

ASSESSMENT METHODS

The written exam is designed to assess the achievement of the expected learning outcomes.

True/false questions assess knowledge and understanding of the fundamental concepts of microeconomics, as well as the ability to identify correct and incorrect statements concerning the models covered in the course.

Open-ended questions assess the ability to explain theoretical concepts clearly, use the technical language of the discipline correctly, describe the functioning of microeconomic models and discuss their implications.

Exercises assess the ability to apply the analytical and graphical tools acquired during the course, with particular reference to the analysis of market equilibrium, consumer choice, firm behaviour and, for the 9-credit version of the course, the main forms of market failure.

The assessment will take into account the correctness of answers, the ability to apply models to specific problems, clarity of exposition, appropriate use of economic terminology and coherence of reasoning.

FURTHER INFORMATION

Students may use the supporting materials made available on AulaWeb during the semester, including slides, exercises, practice questions and any further information useful for exam preparation.

For non-attending students, the structure of the exam is the same as for attending students. They are advised to refer to the programme, the textbooks listed in the bibliography and the materials made available on AulaWeb.

Students with certification of disabilities, specific learning disorders or other special educational needs are invited to contact the lecturer and the inclusion officer of the relevant teaching area at the beginning of the course, in order to agree on teaching and examination arrangements that, while respecting the learning objectives of the course, take individual learning needs into account and allow the use of any compensatory tools.

The acceptance of incoming mobility students is subject to the lecturer’s approval; therefore, the lecturer must be contacted in advance.