Business Economics (MSB107)

This master level course in microeconomics and focuses on business applications. It provides students with the analytical skills necessary for conducting rigorous examinations of consumer choice, producer decisions and market formation.Students will also learn how to decode applied microeconomic research and gain hands-on experience in empirical analysis. Microeconomics provides important tools for leaders in business environments, analysts in planning and resource management and researchers in both the private and public sector. In the words of J. M. Keynes: "The theory of economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine. An apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions."

Microeconomic analysis provides critical tools for modern business leaders, public policy makers and resource managers, as well as researchers in both the private and public sector.

The first part of the course presents core neoclassical theories of the consumer, firm, and market equilibrium outcomes, emphasizing training in abstract thinking and formal analysis (ie, mathematical, graphical, and verbal). Strategic decision making by consumers and firms in a game theoretic framework is also covered.

The second part of the course covers a selection of extended microeconomic topics (eg, public economics and behavioral economics). Throughout these semesters, the students will also practice applied microeconomic analysis (eg, decoding and analyzing scientific articles; data analysis; scientific writing).

The course involves solving mathematical problems, interpreting R code and output pertaining to the simulation of microeconomics models, and reading academic research papers.

Knowledge

Upon completion of the course, students will have:

• Anadvancedunderstandingofkeymicroeconomicconcepts,theoriesandmodelsthatformthebasisofthecourse and the science of economics
• Theabilitytoseethecomplexityandscopeofthedeterminantsofeconomicbehaviorinconsumers,producersand other types of microeconomic agents
• Developedextensiveknowledgeandeconomicintuitionregardingtheformalizationofmodelsofthedecision-making processes of microeconomic agents
• Understandhowextensions/modificationsofconsumertheory,producertheory,andmarketequilibriummodelsare relevantforaddressingreal-worldchallenges
• Solvemicroeconomicmodelsusingstatisticalsoftware(e.g.,R)andsimulatedemand,supply,marketprice,and competitive equilibriums.

Skills

Upon completion of the course, students will:

• Have the ability to use different theories and models to analyze what drives economic actors in different situations
• Know how to read and comprehend published microeconomic research
• Be capable of implementing their own applied microeconomic research
• Beabletoapplymicroeconomictoolsasabasisforevaluatinganddevelopingeconomicdecision-makingstrategies in both the private and public sectors of the economy
• Be able to analyze the causes of and potential solutions to real-world challenges such as designing wage contracts, mitigating free-riding in teams, and selecting channels of advertising.
• Know how to use statistical software for simulating economic models such as predict market prices

Attend lectures,process course material (textbook chapters,scientific articles,etc.),solve practice problems (both graded and non-graded), work in learning teams. The expected distribution of effort is approximately as follows:

Attending lectures = 40 hours

Attending practice sessions=20hours

Learning team work = 110 hours

Independent study = 110 hours