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Microeconomics I - JEB007

Title:	Mikroekonomie I
Guaranteed by:	Institute of Economic Studies (23-IES)
Faculty:	Faculty of Social Sciences
Actual:	from 2012 to 2013
Semester:	summer
E-Credits:	6
Examination process:	summer s.:
Hours per week, examination:	summer s.:4/2, Ex [HT]
Capacity:	unlimited / 128 (unknown)
Min. number of students:	unlimited
4EU+:	no
Virtual mobility / capacity:	no
State of the course:	taught
Language:	Czech
Teaching methods:	full-time
Teaching methods:	full-time
Note:	course can be enrolled in outside the study plan enabled for web enrollment priority enrollment if the course is part of the study plan

Guarantor:	Ing. Ivo Koubek
Teacher(s):	Mgr. Božena Bobková Mgr. Kristýna Ivanková Mgr. Bc. Tomáš Janotík Ing. Ivo Koubek
Incompatibility :	JEB104
Pre-requisite :	JEB003, JEB005
Interchangeability :	JEB104
Is incompatible with:	JEB104
Is pre-requisite for:	JEB008
Is interchangeable with:	JEB104

Examination dates Schedule Noticeboard

Annotation -

Last update: Ing. Ivo Koubek (16.09.2013)

Microeconomics is a set of theories, which help us to understand processes by which the scarce resources are allocated among alternative uses. Microeconomics explains the role of prices and markets in these processes, and makes more clear behaviour of the economic agents. This course of Microeconomics I consist of introduction in Microeconomics and Consumer Theory. The course is oriented on standard analytic methods. The main goal is to provide fundamental instruments of microeconomic analysis.

Aim of the course -

Last update: Ing. Ivo Koubek (22.02.2011)

Making students acquainted with structure of microeconomic analysis, its subjects and methods. Introducing them into the principles of optimization in consumer theory. Teaching them to apply basic instruments of microeconomic analysis. Making students familiar with different models of consumer behavior and with their particular attributes. Teaching students to apply procedures derived from these models for economic problems solving

Literature -

Last update: Ing. Ivo Koubek (16.09.2013)

Basic literature:

2. Gravelle, H. - Rees, R.: Microeconomics, Prentice Hall, third edition, 2004

Recommended literature:

1. Varian H.R. Intermediate Microeconomics, A Modern Approach, Norton, sixth edition, 2002

2. Frank, Robert H.: Microeconomics and Behavior, McGraw Hill, eighth edition, 2009

3. David Laidler, Saul Estrin, Introduction to Microeconomics, Cambridge University Press, Fourth edition, 1995.

Teaching methods -

Last update: Ing. Ivo Koubek (22.02.2011)

Lectures, exercises, examples, problem solving, questions, graphical analysis, home assignment

Requirements to the exam -

Last update: Ing. Ivo Koubek (10.02.2015)

1)To pass successfully first and second midterm (from each test at least 50 points of 100 possible points )
2)To receive in all at least 200 points from:
this two midterms (each max. 100 points),
four homeworks (each max. 25 points) and
3)To pass successfully final exam

Syllabus -

Last update: Ing. Ivo Koubek (22.02.2011)

Lectures:

1A. Nature of microeconomics.

B. Consumer’s budget constraint. Preferences and preference ordering.

2A. Introduction in optimization, solution characteristic.

B. The method of Lagrange, complementary slackness conditions.

3A. Utility, utility function and its properties.

B. Consumer choice and Marshallian demands.

4A. Income changes, Engel curves. Income elasticity of demand

B. Price changes, demand curves. Own and cross price elasticites of demand.

5A. Substitution and Income effects of price change (Hicks separation).

B. Slutski separation of substitution and Income effects.

6A. "Duality" in consumer theory: Hicksian demands and expenditure function.

B Properties of expenditure function (including Shephard's lemma)

7A. Properties of Hicksian demands.Indirect utility function and its properties (excluding Roy's identity)

B. Roy's identity. Slutski equation and other properties of Marshallian demands.

8A. Measuring of changes in consumer’s benefit resulting from price changes.

B. Revealed preferences.

9A. Price indices and changes in consumer’s standard of living.

B. Consumer buying and selling goods.

10A. Consumer’s supply of labor.

B. Intertemporal choice and interest rate.

11A. Investments, bonds and capital market.

B. Consumer’s production opportunity and investments on capital market.

12A. Choice under uncertainty: preference ordering and utility function.

B. Expected utility, certainty equivalent, risky premium and fair bet.

13A. Optimal insurance, moral hazard and adverse selection.

B. General equilibrium in pure exchange economy.

Seminars(exercises):

1. Sets, functions, Statement of a problem,

2. Types of budget constrain and different preferences,

3. Constrained extremes, Kuhn - Tucker conditions.

4. Utility functions for particular preference orderings. Consumer choice.

5. Demands. Income and price elasticities of demands.

6. Compensating and equivalent variation, substitution and income effect calculation.

7. Hicksian demands, expenditure functions and indirect utility functions. Shephard's lemma and Roy's identity applications.

8. Slutski equation. Measuring of compensating and equivalent variations with use of expenditure functions.

9. Revealed preferences and price indices.

10. Net demands and initial endowment effect. Labor supply.

11. Present and future value, intertemporal choice, real interest rate, investment evaluation.

12. Production opportunities for consumer and internal rate of return.

13. Choice under uncertainty and optimal insurance.