MICROECONOMICS I
1st Module, 2002/2003
Professors: Reuben
Gronau, Omer
Moav
TAs:
A.
Introduction - Basic Concepts (6
hours)
- Scarcity, The Transformation Curve, Efficiency,
Alternative Costs
- Comparative Advantage, Trade Specialization
- Allocation and Distribution: The Market Solution
and the Central Planner’s Solution.
B.
Household Behaviour – Demand for Goods
(8 hours)
- The Budget Constraint and Consumer Preferences,
Linear and Non-linear budget constraints, Preferences, Principles
of rationality, Utility
- Consumer’s Choice, Constrained Optimization
- Comparative Statics, Income and Price Effects,
Elasticities
C.
Household Behaviour – Supply of Factors
of Production (4 hours)
- Consumer’s Choice in a Model of Fixed Endowments,
Comparative Statics, Demand and Excess Demand
- Supply of Labor
- Intertemporal Choice – Consumption and Savings
D.
Welfare Measurement (4 hours)
- Revealed Preference and Consumer Surplus
E.
General Equilibrium in a Consumption
Economy (6 hours)
- Market Demand
- General Equilibrium in a Consumption Economy: The
Market Solution, the Central Planner solution, Pareto efficiency,
Government Intervention.
Problem sets (answer key): 1 2 3
4 5
6 7
8
Mid-term,
2001/02
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