The course examines the way in which scarce resources are allocated in market economies. Commencing with an analysis of production possibilities and gains from specialisation and trade, it then develops the model of market supply and demand which is subsequently employed to examine the effects of taxes, subsidies, and other government interventions in market activity. The implications of different market structures, including perfect competition, monopoly and oligopoly, on consumer welfare and producer profits are examined.  Following this some attention is given to the role of labour in the production process. Public goods, externalities and common resources provide key examples of cases in which private markets may yield socially sub-optimal outcomes are examined and the role of government policy in correcting for these is discussed. Finally, numerous international trade issues are discussed.

For further information please refer to http://ecocomm.anu.edu.au/courses/course.asp?code=ECON7073