ESCUELA SUPERIOR POLITÉCNICA DEL LITORAL

FACULTAD DE CIENCIAS SOCIALES Y HUMANÍSTICAS (FCSH)

COURSE SYLLABUS
INTRO TO MICROECONOMICS

1. CODE AND NUMBER OF CREDITS:

CODE ICHE02667
NUMBER OF CREDITS Theoretical: 4 Practical: 0

2. COURSE DESCRIPTION:

The course is important because it provides the student with intuitive microeconomic tools for decision making,
with particular attention to consumer theory, the theory of the firm and market structure. The understanding
and intuition developed in this course will allow you to properly apply mathematical tools to model the behavior
of consumers and producers, models studied in Microeconomics I.

3. PRE-REQUISITES AND CO-REQUISITES:

PRE-REQUISITES None
CO-REQUISITES None

4. CORE TEXT AND OTHER REQUIRED REFERENCES FOR THE TEACHING OF THE COURSE::
CORE TEXT 1. FRANK Robert S., Intermediate Microeconomics. Analysis and
Economic Behavior, Seventh Edition, 2009, Mc. Graw Hill.
REFERENCES 1. PINDYCK Robert, Microeconomics, Seventh Edition, 2004,
Pearson Prentice Hall.

5. COURSE LEARNING OUTCOMES:

At the end of the course, the student will be able to:

1. Identify the conditions that must be met for an election to be rational, i.e. that its benefit outweighs
its cost. Thus the student knows how to calculate the "opportunity cost" involved in every economic
decision.
2. Learn the concepts of marginal benefit and marginal cost.
3. Examining the model of supply and demand and its practical applications to predict market behavior
under competitive conditions.
4. Examine and model the behavior of consumers by studying the "Consumer Theory and Rational
Choice" and from that derive the demand curve
5. Examine and model the behavior of producers by the study of the "Theory of Production" and
"Production Costs" and from that derive the supply curve.
6. Understanding the dynamics of the model of perfect competition.
7. Know the main "market failure" in a general way.

6. COURSE PROGRAM:
1. INTRODUCTION: MARKETS AND PRICES. (8 HOURS)
1.1. The subjects of Microeconomics: positive analysis contrasted with normative analysis.
1.2. What is a market?
1.3. Real prices vs. nominal prices.
1.4. Why to study Microeconomics?

2. BASIC ELEMENTS OF SUPPLY AND DEMAND. (8 HOURS)

2.1. Supply and demand.
2.2. The mechanism of the market.
2.3. Variations in market equilibrium.
2.4. Elasticity of supply and demand.
2.5. Short term and long term elasticity.
2.6. Price controls.

3. CONSUMER BEHAVIOR. (8 HOURS)

3.1 Consumer preferences.
3.2 Budgetary restrictions.
3.3 Consumer choice.
3.4 Revealed preference.
3.5 Marginal utility and consumer choice.

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INTRO TO MICROECONOMICS
 4. INDIVIDUAL DEMAND AND MARKET DEMAND. (8 HOURS)
4.1 Individual demand.
4.2 The income-consumption curve and the substitution effect.
4.3 Market demand.
4.4 Consumers’ Surplus.
4.5 Network externalities.

5. PRODUCTION. (8 HOURS)
5.1 Production technology.
5.2 Isoquants.
5.3 Production with a variable factor (work).
5.4 Production with two variable factors.
5.5 Economies of scale.

6. PRODUCTION COST. (8 HOURS)

6.1 Measuring costs.
6.2 Short term cost.
6.3 Long term cost.
6.4 Long and short term cost curves.

7. MAXIMIZING PROFITS AND COMPETITIVE SUPPLY. (8 HOURS)

7.1 Perfectly competitive markets.
7.2 Profit maximizing.
7.3 Marginal income, marginal cost and profit maximizing.
7.4 Short term production level choice.
7.5 The short term supply curve of a competitive enterprise.
7.6 The short term supply curve of the market.
7.7 Long term production level choice.
7.8 The long term supply curve of industry.

7. WORKLOAD: THEORY/PRACTICAL:

Number of teaching sessions per week: 2 sessions

Duration of each session: 2 theoretical hours
Number of weeks: 14

8. CONTRIBUTION OF THE COURSE TO THE EDUCATION OF THE STUDENT:

Introduction to Microeconomics contributes to basic training in Economics and Administrative Sciences, and it is
the foundation that allows the development of intuition necessary to study subjects Microeconomics I,
Microeconomics Microeconomics II and III.
Thus, this material allows the student to know and internalize what are the necessary conditions to make
correct decisions under conditions of scarcity, and therefore study the origin of the supply and demand curves,
knowing well the dynamics or behavior of the different markets .

BASIC TRAINING PROFESSIONAL SOCIAL SKILLS

TRAINING DEVELOPMENT
X

9. RELATIONSHIP BETWEEN THE LEARNING OUTCOMES OF THE COURSE AND THE LEARNING
OUTCOMES OF THE DEGREE PROGRAM:
LEARNING
CONTRIBUTION
LEARNING OUTCOMES OF THE OUTCOMES OF
(High, Medium, THE STUDENT MUST:
DEGREE PROGRAM* THE
Low)
COURSE**
a) Have the ability to work as
LOW
part of a multidisciplinary team;
b) Understand ethical and
LOW
professional responsibility;

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INTRO TO MICROECONOMICS
 c) Have the ability to
communicate effectively in
LOW
Spanish both orally and in
writing;
d) Have the ability to
communicate effectively in LOW
English;
e) Have a broad education to
understand the impact of the
Have the ability to analyze different
solutions of their career in the
MEDIUM 1,2,5,6,7 situations and their professions to make
global, economic,
sound decisions.
environmental and social
context;
f) Recognize the need to
continue learning throughout
LOW
life and have the ability and
attitude to do so;
g) Understand contemporary Inferring the behavior of consumer
MEDIUM 4,7
issues; demand.
h) Have the ability to lead and
show initiative LOW

i) Apply analytical methods

Have the capacity to analyze, interpret
and interpret the results for HIGH 1,3
and right decision-making
efficient decision making;
j) Analyze and evaluate the
performance of markets with
LOW
different economic and
administrative structures;
k) Analyze and interpret the
financial and accounting
LOW
information of a company for
effective decision making.

(* This column must also include the common curricular outcomes (cross-curricular outcomes) that the institution
approved on 16th February 2012 via resolution CP 12-02-078 of 23rd February 2012 (CAc-2012-034))
(** Only the NUMBER corresponding to section 5 of this document must be written.)

10. EVALUATION IN THE COURSE:

Evaluation Instruments
Exams X
Tests X
Homework/tasks X
Projects
Laboratory/Experiments
Class Participation
Visits
Other X

11. PERSON RESPONSIBLE FOR THE CREATION OF THE SYLLABUS AND DATE OF CREATION:
Created by ECON. CARLOS PAZMIÑO GUZMÁN
Date NOVEMBER 15 ,2012

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INTRO TO MICROECONOMICS
12. APPROVAL:
ACADEMIC SECRETARY OF THE DIRECTOR OF TECHNICAL
ACADEMIC DEPARTMENT ACADEMIC SECRETARY
NAME: NAME:
Lcda. Ingrid León Vasconez MSc. Marcos Mendoza Vélez.

SIGNATURE: SIGNATURE:

Date of approval by the Directive

Council: R-CD-FEN- 004-2013
January 14, 2013

13. VALIDITY OF THE SYLLABUS:

RESOLUTION OF THE
POLYTECHNIC BOARD:
13-10-269

DATE: October 17, 2013

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INTRO TO MICROECONOMICS