040046 UK Consumption, Production and Welfare B (MA) (2019W)

Aims: The course provides master students with the basic tools of microeconomic analysis. Upon successful completion students are able to work with the basic models of market competition, price determination, and welfare analysis. In simple theoretical examples, they are able to compute market equilibria and perform comparative statics. They are able to make a qualitative assessment of how different political interventions or parameter changes affect market welfare. In examples and real-world applications students identify the main features of the market at hand and the presence and nature of market failures. They can assess the consequences for equilibrium outcomes and welfare properties in markets with strong externalities, when some agents have market power, or missing information. Last but not least, students are also able to convincingly discuss about these issues in form of a report or essay addressed to the general reader or interested party.

Method: The lecturer will present the topics of the course and some introductory examples in class. Problem sets will be distributed regularly through the course platform. Students are expected to work on the problem sets on their own. Some exercises will also be treated in class with help of small-group discussions and student presentations. Active learning will also be promoted with exercises and old exam questions posted in the course platform, as well as with writing assignments.