Microeconomic Theory and Applications

Description

Introduction to price theory: The neo-classical model of consumer and producer choice and general equilibrium, and deviations from that model including externalities and public goods. The course covers the same material as ECON230 but with an emphasis on applications of the theory rather than formal mathematical modelling.

Economics 231 is intended to help you "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.  Second, that prices can act to coordinate the optimal choices of individuals, bringing their behaviour into equilibrium.  And third, 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 the various actors in the modern economy, and the market environments under which they interact.  Economics 231 should equip those of you who intend to pursue higher-level studies in economics.  It should also help you gain insight into the economic forces active in consumer and producer behaviour, and in public policy issues.