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Intermediate Microeconomics II

Intermediate Microeconomics II is partially a continuation of Microeconomic Theory I (2G03), and partially a stand-alone course. The overall focus of Intermediate Microeconomics II is general equilibrium and welfare. We begin with the description/analysis of consumer theory: why do people buy/consume the things they do? How is their behavior altered when prices or incomes change, and how do we measure the effects of these changes on individual well-being and/or social welfare? We extend our consumer models to analysis of economic agents both buying and selling goods and services. Applications of buying/selling include the labour supply decision (the labour/leisure model), and optimal choice over two or more time periods (intertemporal choice— which can imply borrowing or lending). Many of our economic decisions must be made before we are certain of their consequences. We analyse choice under uncertainty, and actions that can be taken to increase expected utility, such as insuring against losses. Goods and services are not always purely private—some impose costs or provide benefits to individuals external to the markets in which they are provided and exchanged. Our next group of topics concerns external benefits and costs, problems associated with ill-defined property rig

ECON 2GG3

Intermediate Microeconomics II

Unit(s): 3.0 Level(s): II Term(s): Winter, Fall Offered?: Yes

Intermediate Microeconomics II is partially a continuation of Microeconomic Theory I (2G03), and partially a stand-alone course. The overall focus of Intermediate Microeconomics II is general equilibrium and welfare. We begin with the description/analysis of consumer theory: why do people buy/consume the things they do? How is their behavior altered when prices or incomes change, and how do we measure the effects of these changes on individual well-being and/or social welfare? We extend our consumer models to analysis of economic agents both buying and selling goods and services. Applications of buying/selling include the labour supply decision (the labour/leisure model), and optimal choice over two or more time periods (intertemporal choice— which can imply borrowing or lending). Many of our economic decisions must be made before we are certain of their consequences. We analyse choice under uncertainty, and actions that can be taken to increase expected utility, such as insuring against losses. Goods and services are not always purely private—some impose costs or provide benefits to individuals external to the markets in which they are provided and exchanged. Our next group of topics concerns external benefits and costs, problems associated with ill-defined property rig


Robert Jefferson

Assistant Professor

Prerequisite(s): ECON 2G03 or ECON 2X03; and one of MATH 1F03, MATH 1M03, Grade 12 Calculus and Vectors U (or Grade 12 Advanced Functions and Introductory Calculus U) or equivalent