Dr J Lye. 316-102 Introductory Microeconomics. First semester Two 1-hour lectures and a 1-hour tutorial a week. 316-202 Intermediate Microeconomics and 316-201 Intermediate Macroeconomics together form the second-year component of a specialisation in Economics. On completion of this subject students should:

• understand the scope and limitations of consumer and producer theory;
• be able to solve economic models which involve opt-imisation;
• appreciate the role of value judgements in economics;
• understand the conditions required for Pareto efficiency in exchange, production and in the composition of output;
• be able to critically evaluate arguments for government intervention;
• understand the interdependence of economic subjects within a general equilibrium framework;
• understand the basic characteristics of public choice mechanisms.

Intermediate-level microeconomics. Development of the microeconomic theory of the behaviour of economic agents. Understanding how the behaviour of economic agents influences the efficiency of the economy. The problems of market failure such as externalities and public goods. A 2-hour end-of-semester examination and a mid-semester multiple choice test. The final mark will be calculated by weighting the end-of-semester exam at 80 per cent and the mid-semester test at 20 per cent OR by weighting the end-of-semester exam at 100 per cent, whichever gives the higher mark. Mansfield E Microeconomics 8th Edn. ,Norton