Authorised by Academic Registrar, April 1996
Objectives On completion of this subject students should be able to understand the economic behaviour of individual consumers and producers; understand concepts relating to the cost of production in both the short and long run; explain the determinants of price and output outcomes under different market structures in both the short and long run and the welfare implications of these outcomes; describe the virtues and shortcomings of free markets; have a knowledge of remedies to overcome market failure; have an awareness of current issues in microeconomic policy.
Synopsis An introduction to microeconomic theory and policy; basic demand and supply analysis; consumer behaviour and elasticity; costs of production and profit maximisation; the output and price decision of firms operating under different market conditions market failure; payments to factors of production; income inequality and poverty; current government microeconomic policies.
Assessment Mid-semester test: 20% + Examination (2 hours): 80%