Principles of Microeconomics
The nature and scope of economics; different economic systems; economic policy analysis and evaluation;
main bodies of economic thought; examples of household, business and government economic decision
problems; consumer choice, product demand and factor supply; enterprise choice, product supply and
factor demand; market analyses of contemporary issues; competitive market long run equilibrium; market
power; market failure and concerns for efficiency and equity; government involvement in the Australian

Mode of Delivery

On campus (Clayton and Sunway)

Workload requirements

Minimum total expected workload equals 144 hours per semester

Chief Examiner

Professor Stephen King


Professor Stephen King (Clayton)
Professor Gareth Leeves (Sunway)
Caulfield (King)/ Sunway (Leeves)
King: 99031288
Leeves: 5514 6279.

Office hours:
Consultation hours:


The information contained in this unit guide is correct at time of publication. The University has the
right to change any of the elements contained in this document at any time.
Last updated: 09 Feb 2014

engage in an internationalised world b. economic decisions and performance make informed and critical assessment and criticism of the public debate on many economic policy issues proceed to the study of other economics units which have an introduction to microeconomics as a prerequisite. Copyright  ©  Monash  University  2014. Graduate Attributes Monash prepares its graduates to be: 1.  All  rights  reserved. business and government choices and decisions apply economic principles to explain and analyse Australian economic institutions. critical and creative scholars who: a.45 pm each Tuesday from 3. 3. 2. communicate perceptively and effectively Assessment Summary Assessment Task 1. exhibit cross-cultural competence c. Pre-class testing through Aplia 10% By 11. Final examination 60% Official University exam period   Teaching Approach There will be 2 hours of lectures and a 1-hour tutorial per week.  this  work  may  not  be  reproduced  in  any  form   2   . apply research skills to a range of challenges c. produce innovative solutions to problems b. 4. demonstrate ethical values 2. responsible and effective global citizens who: a. Tutorial Attendance and Participation Value 10% Due Date Not applicable 2. 50-minute mid-semester test 20% TBA 4.  Except  as  provided  in  the  Copyright  Act  1968.Academic Overview Learning Outcomes The learning goals associated with this unit are to: 1. be familiar with the 'economic way of thinking' about a broad range of individual.

King. All other material required for this course will be accessible through Moodle.  this  work  may  not  be  reproduced  in  any  form   3   . Microeconomics. videos.  Except  as  provided  in  the  Copyright  Act  1968. 2015. Cengage. nd Moodle will be updated every week – so make sure you keep checking it.jsp Required Resources Prescribed text(s) and readings: The textbook for this Unit is: J. Principles  of  Microeconomics. and the pre-class assessment. Findlay and M. including lecture slide packs. 2010. C.  All  rights  reserved. The University’s student evaluation policy requires that every unit is evaluated each year. One of the key formal ways students have to provide feedback is through the Student Evaluation of Teaching and Units (SETU) A. P. 6 Byford and N. Garnett. 2011 and D. Gans. M. You may like to study these as well. please go to: https://emuapps. see: Pearson Australia. 6th edition. The feedback is anonymous and provides the Faculty with evidence of aspects that students are satisfied and areas for improvement. Two that are referred to in the reading guide are: G. th Recommended Resources Recommended text(s) and readings: There is a wide range of other first year undergraduate microeconomics O’Brien. employers and staff. Students are strongly encouraged to complete the surveys.policy. Hubbard.Feedback Our Feedback to You Students will receive feedback on work in the following ways: • Formally with written comments on essay • Informally during discussions in class • Informally if the student chooses to consult with the lecturer/tutor outside of class Your Feedback to Us Monash is committed to excellence in education and regularly seeks feedback from students. see: www. Pearson Australia. Parkin. Microeconomics  2 edition. For more information on Monash’s educational strategy. and on student evaluations. Lewis and T.html Previous Student Evaluations of this Unit If you wish to view how previous students rated this unit. Copyright  ©  Monash  University  2014.

sales taxes. 9 May 4 Lecture 1: Topic 4 – Externalities and the Coase theorem. [MID-SEMESTER BREAK : 3 April – 10 April 2015] 6 April 13 Lecture 1: Topic 3 – Introduction to welfare economics. 5 March 30 Lecture 1: Topic 2 – Taxes. SWOT VAC: 1 June – 5 June 2015 Examination period : LINK to Assessment Policy: http://policy.  Except  as  provided  in  the  Copyright  Act  1968. the deadweight loss of taxation. Friday April 17th: In Class test – covering all material in Topics 1 and 2 of the unit 7 April 20 Lecture 1: Topic 3 – Producers’ surplus and measuring gains from trade. the costs of monopoly. Lecture 2: Topic 3 – Applications of welfare economics. carbon taxes versus carbon quotas. absolute and comparative Lecture 2: Topic 4 – Market failure. 2 March 9 Lectures 1 and 2: Topic 1 – Production possibilities frontier. the gains from international trade. How does elasticity relate to revenue. subsidies and markets.Oligopoly 12 May 25 Lectures 1 and 2: Review of key ideas introduced over semester. externalities. Lecture 2: Topic 2 – Elasticity. 3 March 16 Lecture 1 and 2: Topic 2 – Introduction to the competitive market model – demand. Lecture 2: Topic 5 – Costs and profit maximising production. monopoly and the law. Lecture 1: Topic 5 – The monopoly model. Lecture 2: Topic 5 – Businesses and applications of the perfectly competitive model.html Copyright  ©  Monash  University  2014. price ceiling and price floors revisited. consumers’ surplus.  this  work  may  not  be  reproduced  in  any  form   4   . why do people trade. 10 May 11 11 May 18 Lecture 1: Topic 5 – Market behaviour and perfectly competitive firms.  All  rights  reserved. public goods. opportunity cost.Unit Schedule Week Commencing Topic 1 March 2 Lectures 1 and 2: Topic 1 – What is Lecture 2: Topic 5 . 8 April 27 Lecture 1: Topic 3 – Analysing restrictions to international trade. the role of prices in coordinating trade. 4 March 23 Lecture 1: Topic 2 – Applying the competitive market model – Price ceilings and price supply and equilibrium.

Chapters 3. The role of market institutions in creating and dividing gains from trade. Byford and Mankiw as well as the other supplementary textbooks referred to above. 9 and 11.The following is a list of topics to be covered in lectures along with appropriate references to Gans. et al. How does a firm decide what to produce and how much to produce? How do firms maximize profit under strong competition? How can profits be raised by a monopoly and what are the consequences of this? Can businesses increase profits by setting different prices to different consumers? Government regulation and monopoly behaviour. market clearing(equilibrium) price. Hubbard. How can prices coordinate trade? Reading: Gans et al. WELFARE AND POLICY UNDER PERFECT COMPETITION: The allocation of gains from trade – producers’ and consumers‘ surplus. Chapters 7. Reading: Gans et al. 14. demand and supply. et al. Chapters 4. et al. 14. Chapters 5. 5 and 6. et al. Hubbard.  this  work  may  not  be  reproduced  in  any  form   5   . Hubbard. McTaggart. Opportunity costs and the potential for gains by specialisation and trade. TOPIC FOUR: EXTERNALITIES – WHERE PRIVATE AND SOCIAL WELFARE CONFLICT: The potential divergence between private and social outcomes and the relationship to market outcomes. Comparative advantage. Chapters 1. Hubbard. 15. Reading: Gans et al. 8. et al. 6 and 7. King. McTaggart. Copyright  ©  Monash  University  2014. Chapters 8 and 9. (b) do farmers benefit from price support and (c) who pays a sales tax? Reading: Gans. et al. and 4. McTaggart. Chapters 13. 16 and 17. TOPIC TWO: PERFECTLY COMPETITIVE MARKETS AND GOVERNMENT POLICY: Price taking behaviour. agricultural support programs. et al. et al. Reading: Gans et al. McTaggart. and minimum wages. 2 and 3. as will public goods. TOPIC FIVE: THE FIRM AND THE MARKET: Basic business decision making. Chapters 1. TOPIC ONE: MARKETS AND TRADE: Why study economics? How do individuals make decisions? The role of prices in coordinating trade. and 13. Production possibility frontiers. Chapters 14 and 15. applications of perfectly competitive market analysis including: (a) should Mumbai have rent control. Chapters 3 and 4.  All  rights  reserved. et al. Chapters 7. Hubbard. Chapters 13. Applications to government policies that can be initially analysed in a ‘perfectly competitive market’ model including taxation. 10 and 16. et al. Chapter 5.  Except  as  provided  in  the  Copyright  Act  1968.   TOPIC THREE: MARKETS. Examples include pollution and research. Chapters 10 and 11. and 2. elasticity. tariffs and quotas on international trade. 8 and 9. McTaggart. Private solutions and government policies will be examined. Deadweight loss. et al. Chapters 1 and 2.

They are designed to help you understand the material through active problem solving.  A  student  who  attends  a  specific  tutorial   will  receive  a  mark  between  zero  and  one  for  his  or  her  participation  in  that  tutorial. Lectures are recorded but attendance means that you can participate in the active learning of the lectures. Actual applications will depend on current issues in the news. you will work through these problems.  All  rights  reserved.  you  MUST  attend  your  allocated  tutorial  to   receive  a  participation  mark  for  that  tutorial. Students who do choose to attend lectures are expected to not disrupt the lecture in any way.  your  tutor  will  grade  participation  in  tutorials.     Copyright  ©  Monash  University  2014.  Except  for  Easter Lecture times and locations are as follows: Lecture Part 1 Wednesday 8:00 – 9:00 64/South 1 Friday 8:00 – 9:00 64/South 1 Lecture Part 2 Wednesday 9:00 – 10:00 64/South 1 Friday 9:00 – 10:00 64/South 1 Lectures are 50 minutes in length starting 5 minutes after the hour.   This  will  be  worth  10%  of  your  final  mark  for  the  unit.     Conduct    in    lectures   Lectures are not compulsory. will be held each week beginning the first week of lectures (i.e. You are not  expected to attempt the questions in advance (indeed. Tutorials area a key element of your university learning. Tutorial questions are provided to you in advance through  this  work  may  not  be  reproduced  in  any  form   6   . Talking and other disruptive behaviour is not only rude and unfair to other students and staff but is punishable under Statute 4.Discipline of the Monash University Calendar Statutes (http://www.  This  will  maximise  the  benefit   of  the  lectures. which are of 50 minutes duration. Tutors will facilitate the discussion.   Tutorials Tutorials. Lectures will provide feedback on the pre-lecture assessment. Lectures will include peer-to-peer interaction and (for Clayton) ‘electronic questions’. solving the problems. Please  make  sure you  can  access  the   questions  in  the  tutorial  (electronically  or  on  paper). where relevant.1 . They will help you prepare for the examination and may also indicate any areas that have been covered in lectures and pre-lecture material that you do not understand. Students will be expected to actively participate in discussing the questions and.html#Heading102).  In the tutorial. Always  do  pre-­‐reading  and  pre-­‐lecture  testing  before  attending together with your fellow students. week commencing Monday 2rd March). clarify the core material and apply the material.  The   MAXIMUM  participation  mark  over  ALL  tutorials  for  the  semester  is  10%. it is better to wait for the tutorial). however it is your responsibility to ensure you are aware of all information related to this unit which may have been presented in the lectures.  Note  that  any  student   who  fails  to  attend  at  least  8  of  his  or  her  allocated  tutorials  during  the  semester  will  receive  a   participation  mark  of  zero.   To  encourage  your  active  participation  in  tutorials.  Except  as  provided  in  the  Copyright  Act  1968.

there will be ten pre-­‐lecture  internet-based tests that will count 10% towards your final grade. UNIT  OUTLINE  AND  READING  GUIDE   http://lib.45 PM. Pre-­‐class  internet-­‐based  testing   In weeks two to eleven of the semester there will be pre-class internet-based tests available using  All  rights  reserved. participation in tutorials will count 10% towards your final grade. Weighting/Value: 10% Assessment task 3:   Details  of  task:    Mid-­‐semester  test:     The mid-semester test will be held in your regular lecture on Friday APRIL  17. the pre-class internet-based tests will be worth up to 10% of your final mark for the If you have problems go to the Faculty’s Student Services Office on the Second Floor of the Menzies Building (Building 11). The closing time for each test is Tuesday PM. Go to: https://allocate. the mid-semester test will count for 20% towards your final grade and the final examination will count for 60% towards your final the closing time for the first  test will be Tuesday March 10th at 11. Each of these tests will be worth up to 1% towards your final Weighting: Length: Type: 20%  (redeemable)   50 minutes Closed book Electronic devices allowed in the exam: None Copyright  ©  Monash  University  2014. For example. If you do worse  in the mid-semester test than in the final examination. There is no deferred mid semester test.its. Note that attendance at 8 or more of your allocated tutorials is required for you to receive any participation mark.html Assessment Requirements Assessment Tasks Assessment task 1: Details of task: Tutorial Participation As discussed above. Each test will have a closing time of 11:45pm  on  the  Tuesday  prior  to the first lecture of the week and will test students understanding of pre-reading and other assigned materials that need to be studied before  each week’s lectures.  Except  as  provided  in  the  Copyright  Act  1968. In other words. if you do better  in the mid-semester test than in the final examination. Weighting/Value: 10% Assessment task 2: Details of task: Pre-­‐class  testing  through  Aplia     As discussed above. The mid-semester test is redeemable against the final examination.  this  work  may  not  be  reproduced  in  any  form   7   . your mid-semester mark will be ignored and the final examination will count for 80% towards your final grade.Tutorial Allocation Students  must  enrol  in  tutorials  for  ECC1000  via  ‘Allocate  Plus’. In total.

Assessment criteria Assessment Criteria Grading Descriptors available at: http://www. Student results will be accessible through the my. It  is  your responsibility  to  find   out  these  details. For a pass students must achieve a minimum of 50% on the aggregate of all assessment. unless the total of such pieces exceeds 30% of the final mark. The final mark for this unit will be released by the Board of Examiners on the date nominated in the Faculty portal. No student will be awarded a fail grade for an assessment task or unit without a second examiner confirming the that piece of work will be marked again by a second examiner who will independently evaluate the Weighting: Length: Type: 60%  (80%  if  improves  grade  after  removing  mid-­‐semester  result)   2 hours Closed book Electronic devices allowed in the exam: None Information on Special Consideration Procedures for Students http://policy. and consult with the first marker.  this  work  may  not  be  reproduced  in  any  form   8   . Return of final marks Faculty policy states that 'the final mark that a student receives for a unit will be determined by the Board of Examiners on the recommendation of the Chief Examiner taking into account all aspects of assessment'. time and place of the exam approximately six weeks before the semester examination period commences.html Copyright  ©  Monash  University Note: Exceptions to this are individual pieces of assessment contributing 10% or less of the final mark. Examinations Section will advise the date.Assessment task 4:   Details  of  task:    Final  examination:     This is a 2-hour  All  rights  reserved.  Except  as  provided  in  the  Copyright  Act  1968.html Hurdle Requirements There are no assessment hurdles for this Second marking Where an assessment task is given a fail grade by an  Read the examination notices and check the Web (http://www.

policy.Assignment submission Thee are no assignments for this course. procedures and guidelines.policy. and to provide advice on how they might uphold them. • Discipline: Student Policy. • Orientation and Transition. Approval if granted will be in writing and will be recorded on the Faculty Assessment Cover sheet accompanying the assessment task by the responsible lecturer/tutor.html Extensions and penalties All applications for an extension of the time allocated to an assessment task must be made in writing to the unit co-ordinator prior to the submission • Academic Calendar and Semesters. Graduate Attributes Policy http://www.  this  work  may  not  be  reproduced  in  any  form   9   .edu/index. and • Academic and Administrative Complaints and Grievances Policy.html Key educational policies include: • Student Academic Integrity Policy and Student Academic Integrity: Managing Plagiarism and Collusion Procedures . which are designed to ensure that staff and students are aware of the University’s academic standards.html Student Charter Copyright  ©  Monash  University  2014.  All  rights  reserved.  Except  as  provided  in  the  Copyright  Act  1968. • Grading Scale.lib. • Assessment in Coursework Programs. Examination material or equipment Calculators are not permitted during the examination. Learning resources Monash Library Unit Reading List http://readinglists. Other Information Policies Monash has educational • Special You can find Monash’s Education Policies at: www. Technological Requirements Students must regularly check Moodle for announcements.

monash portal for more information.Student Services The University provides many different kinds of services to help you gain the most from your plus other information of importance to students. • • • • Website: Monash University Library The Monash University Library provides a range of services.  Except  as  provided  in  the  Copyright  Act  1968. Building confused or simply not sure how to approach Moodle 2 All unit and lecture or the library tab in my. resources and programs that enable you to save time and be more effective in your learning and research. Level 1.  this  work  may  not  be  reproduced  in  any  form   10   . Copyright  ©  Monash  University  2014. Go to www. You can access Moodle via the my. Disability Liaison Officers (DLOs) visit all Victorian campuses on a regular portal.lib. are available through the virtual learning environment Moodle site. Clayton Campus. there are a number of Moodle resources that you can tap into. Where to go for help If you're Drop In: Equity and Diversity your tutor if you need advice and see the range of services available at www. Disability Liaison Unit Students who have a disability or medical condition are welcome to contact the Disability Liaison Unit to discuss academic support  All  rights  reserved.html Telephone: 03 9905 5704 to book an appointment with a DLO Email: dlu@monash.