| Detailed information |
| Pre-requisites |
(*)KS Einführung in die Volkswirtschaftslehre KS Einführung in die Mikroökonomie
ODER Zulassung zum Masterstudium Economic and Business Analytics
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| Original study plan |
Bachelor's programme Economics and Business 2025W |
| Learning Outcomes |
Competences |
- Students are able to conduct economic analysis in which they calculate quantitative answers to economic problems in general, and decision problems in particular.
- Students are able to construct a numerical example to illustrate some economic argument.
- Students are able to apply the mathematical toolbox to analyze research questions on their own and are capable to go further with economic model building (upon completion of both KS and IK Intermediate Microeconomics).
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| Skills |
Knowledge |
- Learning outcome 2 (LO2): Apply the Lagrange multiplier method to formulate, analyze and solve various individual decision problems. Derive the first-order conditions and the optimal value functions for these problems.
- Learning outcome 3 (LO3): Depict the calculated solutions of the individual decision problems graphically.
- Learning outcome 4 (LO4): Derive comparative statics results about the decision-making behavior.
- Learning outcome 5 (LO5): Explain the theory and the underlying assumptions by means of the given example.
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Learning outcome 1 (LO1): Recall the mathematical methods to analyze individual decision-making behavior.
Course Topics (the same as in the KS)
Part I: A closer look on consumer theory and its fundamental concepts
- Preferences and utility functions
- Consumer choice, demand for goods and the utility maximization problem
- Expenditure minimization problem, compensated demand and the Slutsky equation
Part II: Some important topics in consumer theory
- Endowments in the budget constraint: consumer’s sale of goods and labor supply
- Intertemporal choice
- Choice under uncertainty
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| Criteria for evaluation |
- Exam: Written exam (max 64 points), there is a possibility to repeat it in case of negative results or scheduling issues (retake exam). The exam is closed book and consists of open questions. It lasts 70 minutes. Students must achieve at least 32 points to pass the exam.
- Homework: After each lesson, homework is provided in Moodle. Students must complete at least 50% of all homework and submit it via moodle.
- Voluntary presentation of homework solutions (max 12 points)
- Voluntary contributions to class discussion (max 4 points)
When having completed at least 50 % of all homework and having passed the exam, the final grade is determined by the total sum of points as follows:
| Points | Grade |
|---|
| 59.0-80.0 | 1 |
| 50.0 – 58.5 | 2 |
| 41.0 – 49.5 | 3 |
| 32.0 – 40.5 | 4 |
| 0.0 – 31.5 | 5 |
Synchronization of learning outcomes and assessments:
LO1: Exam + Homework
LO2: Exam + Homework + Presentation + Contributions
LO3: Exam + Homework + Presentation + Contributions
LO4: Exam + Homework + Presentation + Contributions
LO5: Homework + Presentation + Contributions
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| Methods |
The course uses a combination of different teaching methods in order to
- maximize the motivation and attention of the students.
- address the learning objectives in the didactically best way.
This includes the following
- Development of solutions to exercise problems in collaboration with the students on the black board.
- Use of examples to discuss the meaning of specific assumptions (e.g. about individual preferences) for the decision behavior together with the students.
- In-class exercises worked on in small groups and review of the results in class.
- Individual homework exercises and presentation of the solutions by the students in class.
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| Language |
English |
| Study material |
- Slides with examples and in-class exercises (provided via moodle)
- Solutions of the examples and in-class exercises (provided via moodle)
- Homework exercises (provided via moodle)
- Reading material:
- Sydsaeter, K., Hammond, P., Strom, A. and A. Carvajal, Essential Mathematics for Economic Analysis, Pearson, in the current edition.
- Varian, Hal, R., Intermediate Microeconomics, W.W. Norton, 9th edition.
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| Changing subject? |
No |
| Further information |
- This IK is offered only in the winter semester.
- This IK should be preferably attended in the same semester as the KS Intermediate Microeconomics.
- It is assumed that students know the basics of microeconomics from KS and IK Introductory Microeconomics (or any other introductory course in microeconomics).
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