Course period: 3.
Year of study: 1.
Compulsory course

The goal of subject is to acquire theoretical knowledge combined with modern microeconomic theory at the level of basic knowledge of literature (Varian).

In theory area student obtains the necessary knowledge in the area of microeconomic problem solving. Practical skills: student applies theoretical knowledge to solve specific tasks.

Brief course description:

  • Market equilibrium, the interaction of consumers and businesses. Economic welfare and the market equilibrium. Efficiency and welfare. Discrete goods model, taxes and subsidies.
  • Exchange. Walras balance, its existence. The first and second theorem of welfare. Pareto efficiency, maximizing welfare.
  • Uncertainty and risk. Lottery, expected benefit. Global and relative risk aversion. Subjective probability.
  • Information. Principal-agent problem. Incomplete information and markets, alerting.