Economics I - Microeconomics (Microeconomics)

This course provides an introduction to basic concepts of microeconomics. It deals with the behaviour of individual economic units, such as households, business firms, and public institutions. Another concern is how these units interact to form markets and industries. How can consumer decisions be explained and how can aggregate demand be derived from consumer choice? Which are the factors that determine the production decisions of companies? How do equilibrium prices emerge in competitive markets, how in monopoly markets? What is the effect of government interventions in markets (e.g. taxes, price controls)? How does market power affect social welfare? Which factors lead to market failure?

After attending this module, students will be able to describe economic tradeoffs (particularly in choice under scarcity situations of consumers and firms). Moreover, they know strategies to solve those tradeoffs and are capable of applying them to new situations. Students are able to explain the fundamental economic mechanisms underlying specialisation and trade (particularly in view of technological progress). Students can predict how government interventions (e.g. taxes, price controls) will affect simple competitive markets. They are able to explain why certain industries are prone to market concentration and how market power affects social welfare. They can distinguish which types of goods are efficiently provided on free markets, and which not.

None

An interactive lecture introduces essential microeconomic concepts and theories and illustrates them with the help of topical empirical examples. Classroom experiments complement the classic bird-eye's perspective by nudging students to put themselves in the positition of particular economic players, thereby requiring them to actively reflect the concepts introduced. Online surveys at the end of each chapter enable students to select which topics they would like to intensify in subsequent classes. In the accompaying exercise class, students practice, on specific problems and examples, the mathematical techniques needed to develop a deeper understanding of the economic concepts. In self-study students use the textbook to repeat the concepts introduced in class and apply them to additional examples.

This module is also offered at TUM Campus Straubing.

Textbook, slides, exercise sheets, classroom experiments, online surveys

Robert S. Pindyck and David L. Rubinfeld, Microeconomics, 8th Edition, Pearson, 2013 (ISBN 13: 978-0-13-285712-3). AND Robert S. Pindyck und David L. Rubinfeld, Mikroökonomie, 8. Aufl., Pearson Studium, 2013 (ISBN-13: 978-3868941678).

In the exam (written, 120 minutes) students should demonstrate their ability to adequately interpret the microeconomic concepts and apply the methods worked on in class, in limited time and without aid. By means of multiple-choice-questions, which are either embedded in a context/case/scenario or require prior computation, students' capacity to apply the learned solution strategies to new settings and draw correct economic implications is assessed.