The course examines how individuals and firms make decisions by weighing up costs and benefits, and how the interaction of their decisions leads to market and social outcomes. The model of market supply and demand is employed to examine the effects of taxes, subsidies, and other government interventions in market activity. The implications of different market structures, including perfect competition and monopoly, are examined.  Public goods, externalities and common resources are key examples of cases in which private markets may yield socially sub-optimal outcomes.  Such cases are examined and the role of government policy in correcting for these is discussed. Special attention is given to the design of schemes aiming to reduce carbon emissions.

On satisfying the requirements for this course, students will have the knowledge and skills to:

• understand economic policy debates as presented in the media;
• think as an economist; and
• present clearly written analysis of economic issues and problems.

Three lectures a week plus one tutorial plus at least 6 hours of private study time.

None.

Incompatible with ECON1001/1011 Economics I (P or H).

See Course Website:  http://ecocomm.anu.edu.au/courses/course.asp?code=ECON1101

For further information please refer to http://ecocomm.anu.edu.au/courses/course.asp?code=ECON1101