Building upon material introduced in Microeconomics 1, this course aims to provide a solid understanding of basic microeconomic theory and the ability to apply those tools and ideas. Models describing the economic behaviour of individual decision-makers and the outcomes of markets are developed and applied with an interest in their impact on social welfare. Questions addressed include: What influences consumer demand decisions and how? How do firms decide on how much to produce and how much inputs to use? How do prices function to coordinate economic activity? What is meant by economic efficiency? When do markets fail to achieve efficient outcomes? Training in economic analysis is achieved via weekly tutorials that go over problem sets linked to material presented in lecture. Overall, the course takes an analytical approach emphasising rigorous logical reasoning and economic problem solving.

This course aims to provide a solid understanding of basic microeconomic theory and the ability to apply those tools and ideas.

• Final Exam - 65% or 75% of course mark
• Three in class tests - 20% or 30% of course mark
• Tuturial assignments - 3% of course mark
• Group presentations - 2% of course mark

Three lectures and one tutorial per week.

ECON1101 Microeconomics 1, or ECON1001/1011 Economics I (P or H).

See Course Website:  http://ecocomm.anu.edu.au/courses/course.asp?code=ECON2101

For further information please refer to http://ecocomm.anu.edu.au/courses/course.asp?code=ECON2101