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ECON 207 is one of two intermediate microeconomics courses which build on the concepts learned in ECON 104. Concepts will be taught with a graphical and/or simple algebraic approach. Most of the first term is spent using the consumer behaviour model to explain optimal consumer decision making with different types of goods. Consumer decision making under risk and uncertainty is also examined. Term two is spent examining what happens when people and businesses are imperfectly informed about their transactions, or about each other. Externalities and public goods are also investigated.
Economics 207 is intended to encourage you to “think like an economist.” It will provide you with a solid grounding in the analytic methods of microeconomics, both in theory and in application. The course will emphasize three main ideas. First, that individuals practice optimal choice, doing the best they can to meet their objectives subject to constraints such as time, income, and information. Secondly, prices can act to coordinate the constrained optimal choices of individuals, bringing their behaviour into equilibrium, and thirdly, that we can evaluate equilibrium arrangements using the criteria of economic efficiency and equity. We will make repeated use of these ideas as we study consumer theory, choice under risk, externalities, asymmetric information and general equilibrium. Economics 207, preferably coupled with Economics 208, should equip those of you who intend to major in economics. It should also help you gain insight into the economic forces active in consumer behaviour, and in public policy issues. Economics 207 uses a predominantly graphical approach, supported by a little algebra for some topics.
On completion of ECON207, students will be able to:1. Use consumer theory to understand consumer decision making.2. Explain the different reasons for market failure.3. Understand risk, uncertainty and information asymmetry as it applies to markets.4. Understand the first and second welfare theorems.
ECON104
Students must attend one activity from each section.
Steve Agnew
Domestic fee $946.00
International fee $4,363.00
* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.
For further information see Department of Economics and Finance .