Building upon material introduced in Microeconomics 1, this course aims to provide a solid understanding of basic microeconomic theory and the ability to apply those tools and ideas. Models describing the economic behaviour of individual decision-makers and the outcomes of markets are developed and applied to examine the welfare of market participants. Questions addressed include: What influences consumer demand decisions and how? How do firms decide on how much to produce and how much inputs to use? How do prices function to coordinate economic activity? What is meant by economic efficiency? When do markets fail to achieve efficient outcomes? Training in economic analysis is achieved via weekly tutorials that go over problem sets linked to material presented in lecture. Overall, the course takes an analytical approach emphasising rigorous logical reasoning and economic problem solving.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. describe the main microeconomic/neoclassical theory of consumer and producer behaviour
2. apply economic concepts to solve for choices made by consumers and producers
3. assess the economic efficiency of market outcomes for different market structures, in the presence of externalities, and/or when influenced by government intervention
4. compare and contrast the information needed for markets or for the government to allocate resources efficiently

Research-Led Teaching

The material taught in this course is directly relevant to various applied microeconomic research topics that have been considered by economists in academia, various public sector agencies, and various private sector organisations.

Examination Material or equipment

No material other than the usual writing equipment and a nonprogrammable scientific calculator will be permitted to be used during any exams for this class.

Required Resources

The recommended textbook for this course is:

• Varian, HR (2014), Intermediate microeconomics: A modern approach (ninth edition), WW Norton and Company, USA.

You are not required to purchase a copy of this textbook if you do not wish to do so. However, I strongly recommend that you have access to it during the semester. I will request that all copies of this edition of this book that are available in the ANU library system be placed on short loan for the duration of this course. (Note that the edition of this book that you consult is probably not particularly important, with the possible exception of differences in the relevant chapter titles or chapter numbers, or both. The references in this outline will be to the relevant chapters in the ninth edition of this textbook.)

This book, which is sometimes referred to as "Baby Varian", is in my opinion the best intermediate-level textbook on microeconomics that is currently available (and has been for about thirty years). (The first edition of this textbook was published in 1987.)

Recommended Resources

Other books that you might find useful include the following.

Preliminary Reading:

• Alchian, AA, and WR Allen (2018), Universal economics, Edited by JL Jordan, Foreword by WR Allen, Liberty Fund, USA.
• Gans, J, S King, M Byford, and NG Mankiw (2015), Principles of microeconomics (sixth Australian edition), Cengage Learning Australia, China.
• Hamermesh, DS (2006), Economics is everywhere (second edition), McGraw-Hill Irwin, USA.
• Landsburg, SE (1993), The armchair economist: Economics and everyday life, The Free Press, USA.

Elementary Mathematical Techniques for Economics:

• Asano, A (2013), An introduction to mathematics for economics, Cambridge University Press, Great Britain.
• Bradley, T (2013), Essential mathematics for economics and business (fourth edition), John Wiley and Sons, Great Britain.
• Haeussler, EF Jr, and RS Paul (1987), Introductory mathematical analysis for business, economics, and the life and social sciences (fifth edition), Prentice-Hall International Edition, Prentice-Hall, USA.
• Newbold, P (1988), Statistics for business and economics (second edition), Prentice-Hall, USA.
• Shannon, J (1995), Mathematics for business, economics and finance, John Wiley and Sons, Brisbane.
• Sydsaeter, K, P Hammond, A Strom, and A Carvajal (2016), Essential mathematics for economic analysis (fifth edition), Pearson Education, United Kingdom.

Supplementary References for Intermediate Microeconomics:

• Bergstrom, TC, and HR Varian (2014), Workouts in intermediate microeconomics (ninth edition), WW Norton and Company, USA.
• Eaton, BC, DF Eaton, and DW Allen (2002), Microeconomics (fifth edition), Prentice-Hall, Canada.
• Frank, RH (2006), Microeconomics and behaviour (sixth edition), McGraw-Hill-Irwin, USA.
• Hirshleifer, J, A Glazer, and D Hirshleifer (2005), Price theory and applications: Decisions, markets, and information (seventh edition), Cambridge University Press, USA.
• Kreps, DM (2019), Microeconomics for managers (second edition), Princeton University Press, USA.
• Landsburg, SE (2014), Price theory and applications (ninth edition), Cengage Learning, USA.
• McCloskey, DN (1985), The applied theory of price (second edition), Macmillan Publishing, USA.
• Nicholson, W, and C Snyder (2015), Intermediate microeconomics and its applications (twelfth edition), Cengage Learning, USA.

I will request that all copies of these editions of these books that are available in the ANU library system be placed on short loan for the duration of this course. (Note that it probably does not matter which editions of these books you consult.)

Staff Feedback

Students will be given feedback in the following forms in this course:

• Graded tutorial assignments.
• Graded one-hour online assignment.
• Verbal feedback upon request during consultation hours and tutorials.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Work-Load Expectations

The amount of work required for successful completion of this class may vary between students. As a rough guide, students should expect to devote at least 10 hours a week to this class. This should include all of the following.

• 3 hours a week: lectures.
• 1 hour a week: tutorials.
• At least 6 hours a week: reading, research, writing, lecture and tutorial preparation.

Attendance Expectations

As a general rule, students should aim to attend all lectures and tutorials for this class unless they have a very good reason for not doing so. Recognising that occasional absences are often unavoidable, students are expected to attend at least 80 per cent of all lectures and tutorials (combined) for this class. The main exceptions to this are absences for medical or other reasons that can be supported by an appropriate form of official documentation.

General Grading Criteria For All Assessment Items

Basically, you will be graded on the accuracy and completeness of your answers to the questions that are posed. This potentially includes, among other things, some or all of the following:

- the relevance of the material you supply in the answer to the question that is asked,

- the appropriateness of your approach,

- your ability to employ any required or useful techniques, such as diagrammatic analysis and mathematical analysis, 

- the economic reasoning that you display, and 

- your ability to explain the economic intuition underlying your answer.

Important Caveat About Consultation Sessions

Please note that the consultation sessions for the course convenor listed above are not necessarily accurate. The current listing is included only because we are required to include this information before it is has been determined for approval of the syllabus. I will not determine the actual office hours until I know my timetable for semester one of 2020.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Budgets, Preferences, and Utility (Weeks 1 to 2)	Varian (2014): Chapters 2, 3, and 4.
2	Choice, Individual Demand, and Comparative Statics (Weeks 3 to 4)	Varian (2014): Chapters 5, 6, and 8.
3	Consumer Welfare and Market Demand (Week 5)	Varian (2014): Chapters 7, 14, and 15. Tutorial Assignment Due (Week 3).
4	Extension to Uncertainty (Week 6)	Varian (2014): Chapters 12.
5	Technology, Cost Minimisation, and Cost Curves (Weeks 7 to 8)	Varian (2014): Chapters 19, 21, and 22. Tutorial Assignments Due (Weeks 5 and 7).
6	Profit Maximisation, Firm Supply, and Industry Supply (Weeks 8 to 9)	Varian (2014): Chapters 20, 23, and 24. Tutorial Assignment Due (Week 9).
7	Exchange, Production, and General Equilibrium (Weeks 9 to 11)	Varian (2014): Chapters 9, 32, and 33. Tutorial Assignment Due (Week 11).
11	Externalities and Public Goods (Weeks 11 to 12)	Varian (2014): Chapters 35 and 37.

Tutorial Registration

You are expected to attend one tutorial each week from Week 2 onwards. You must enrol in a tutorial using the Wattle site for this course, and attend the tutorial in which you are enrolled. A selection of tutorials will be open for enrolment prior to the beginning of the semester - the remaining tutorials will be open in week 1 of Semester. When tutorials are available for enrolment, follow these steps:

1.   Log on to Wattle, and go to the course site

2.   Click on the link “Tutorial enrolment”

3.   On the right of the screen, click on the tab “Become Member of…..” for the tutorial class you wish to enter

4.   Confirm your choice

If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group….” and then re-enrol in another group. You will not be able to enrol in groups that have reached their maximum number. Please note that enrolment in ISIS must be finalised for you to have access to Wattle.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Fortnightly Tutorial Assignments.	20 %	09/03/2020	16/03/2020	1, 2, 3, 4.
One-Hour Online Assignment	5 %	09/05/2020	14/05/2020	1, 2, 3, 4.
Final Exam	75 %	29/05/2020	29/06/2020	1, 2, 3, 4.

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

This is an on-campus course. Attendance at all teaching events, while not compulsory, is expected in line with “Code of Practice for Teaching and Learning”, clause 2 paragraph (b).

Assessment Task 1

Fortnightly Tutorial Assignments.

• You are requested to submit answers to all of the "tutorial questions" (but not any "additional problem questions") that are assigned for teaching week 3 (tutorial 2), teaching week 5 (tutorial 4), teaching week 7 (tutorial 6), teaching week 9 (tutorial 8), and teaching week 11 (tutorial 10).
• Each of these assignments should be submitted online through the "Turnitin" link on the Wattle site for this class. A scanned copy of your handwritten assignment is fine. You are not required to type up your answers. However, in order for your assignment to be marked, it must be legible to the grader. If it is not legible, then a mark of zero will be awarded.
• Each assignment should be submitted by 8:00 am on the Monday at the beginning of the week in which the relevant tutorials are held (that, in teaching weeks 3, 5, 7, 9, and 11), unless that Monday is a public holiday. If the Monday is a public holiday, then the assignment should be submitted by 8:00 am on the first regular business day thereafter.
• If you have trouble submitting your assignment through the turnitin link, then please email a copy of that assignment to your tutor and copy the course convenor into that email. Any such email must be received no later than 08:00:00 am on the day that the assignment is due in order for your assignment to be marked.
• You will typically receive the questions for each assignment at least half a week before it is due.
• No late submissions will be accepted. Any assignments that are not submitted by the due date and time will receive a mark of zero.
• In each of these assignments, one question will be chosen for assessment and your mark for that assignment will be based on your response to that question. The identity of the selected question will only be revealed upon release of the marked assignments.
• Your four highest scoring tutorial assignments will be used to calculate your total mark for this assessment component. Each of those four tutorial assignments will potentially be worth 5 % of your overall mark for this course. This means that this assessment component is potentially worth 20 % of your mark for this course.
• Note that this assessment component is redeemable against the final exam. This means that it will only count if you receive a higher percentage mark for this assessment component than you do for the final exam. This will be calculated automatically. No action is required on your part.
• Comments and marks for these assignments will be released via "Turnitin" by 5:00 pm on Mondays in Teaching Weeks 4, 6, 8, 10, and 12 (that is, in the week after they are submitted).
• All learning outcomes are relevant for this assessment task.

Assessment Task 2

One-Hour Online Assignment

• You are requested to complete a one-hour online assignment at the end of teaching week 9.
• This assignment will consist of some number of questions that are either of the multiple choice, true or false, or precise numerical value variety.
• You are only entitled to one attempt at this assignment. If there is a mistake in the set-up of the assignment that allows to to have more than one attempt, please do not do so. If you are able to have more than one attempt and elect to do so, then your mark for this assessment item will be the one that you attain on your first attempt.
• You will have a four-day window in which to undertake this task. However, you will only have at most one hour from when you first begin the task in which complete it. (You will have exactly one hour in which to complete it if you begin the task before 11:01 pm on the Tuesday of teaching week 9. If you begin it after that point in time, you will only have the time remaining until the close of the window for undertaking this assessment item.)
• The window for undertaking this assessment item opens at 12:01 am on Saturday (that is, just after midnight on Friday) at the end of teaching week 9.
• The window for undertaking this assessment item closes at 12:01 am on Wednesday (that is, just after midnight on Tuesday) in teaching week 10.
• No late submissions will be accepted. Any assignments that are not submitted by the due date and time will receive a mark of zero.
• This online assignment is potentially worth 5 % of your overall mark for this course.
• Note that this assessment component is redeemable against the final exam. This means that it will only count if you receive a higher percentage mark for this assessment component than you do for the final exam. This will be calculated automatically. No action is required on your part.
• Answers and marks will be released immediately after the closing of the window for undertaking this assignment.
• All learning outcomes are relevant for this assessment task.

Assessment Task 3

Final Exam

• The final exam for this course will be a closed book exam that consist of fifteen minutes of reading time followed by three hours of writing time. The only permitted materials will be standard writing equipment and a nonprogrammable scientific calculator.
• The exam will comprehensive, in the sense that questions can potentially be drawn from any component of this class. This includes any material that is covered in lectures, or covered in tutorials, or covered in assigned readings, or covered in some combination of these sources.
• The date and time of the final exam will be determined by the central administration of the ANU. It will occur sometime during the official final exam period.
• The final exam is worth either 75 %, or 80 %, or 95 %, or 100 % of your overall mark for this class, depending on your relative performance in the various components of assessment for this class.
• Opportunities to view the graded final exam scripts will be available sometime after the official release of results for the semester.
• All learning outcomes are relevant for this assessment task.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.

The ANU commits to assisting all members of our community to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to be familiar with the academic integrity principle and Academic Misconduct Rule, uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with.

The Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

Please refer to the information on this that was provided above in the discussion of the various assessment tasks. 

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

No resubmission of any assignment after the due date and time for its submission will be permitted in this class.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students