This course places emphasis on the application of standard theories to practical problems. Topic includes: supply and Demand Analysis, preference, consumption, equilibrium. Equilibrium exchange of household, firm and industry. factor market, distribution and Inter-temporal Analysis, factor market equilibrium, and income distribution.  Optimisation of theories of consumption and production. Theory of the firm and its application to monopoly, oligopoly, monopolistic and perfect competition. Theories of determination of wages, rent, interest and profit. Optimisation in theories of consumption and production. The notion of economic efficiency. Efficiency and equity. Externalities. Social and private costs. Pareto optimum. Social welfare functions.

 

Level of Study: 400 Level