THE UNIVERSITY OF HONG KONG

FACULTY OF BUSINESS AND ECONOMICS

ECON 1210 – Introductory Microeconomics

Course information as of June 2019. For the most up-to-date course information,
please visit the course offering department's website at https://www.fbe.hku.hk/

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Course management:
Details may be found at http://moodle.hku.hk/ (HKU portal UID and passcode required).

COURSE INFORMATION:
Prerequisites: There are no prerequisites. This course is open to all students.
Course Description:
An introduction to the basic concepts and principles of microeconomics - the study of demand and
supply, consumer theory, cost and production, market structure, incentives, and resource allocation efficiency,
political economy, and ethics and public policy.

Textbook:
Tyler Cowen and Alex Tabarrok, Modern Principles: Microeconomics, 4rd edition, Worth Publishers, 2018.

Additional reference:
John McMillan: Reinventing the Bazaar: A Natural History of Markets, W.W. Norton & Company, 2002.

COURSE OBJECTIVES
1. To introduce price theory to analyze the choice of individuals, the decisions of firms, and the
competitive market outcome of supply and demand interaction.
2. To introduce the strategic behavior of monopolistic firms and price discrimination.
3. To gain an understanding of the effects and consequences of different government interventions in
the markets and the role of government in organizing economic activity --- an important foundation
for leadership.
4. To develop economic intuition rigorously.
5. To prepare students for leadership, enlightened citizenship and continuing economic studies.

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COURSE LEARNING OUTCOMES
Aligned Faculty
Course Learning Outcomes Learning Outcomes*
CLO1 Explain and predict observed decisions of consumers and firms FLO1, 2
CLO2 Explain and predict economic outcomes in competitive and FLO1, 2
monopolistic markets
CLO3 Analyze the effects and consequences of government FLO1, 2, 3, 4
interventions in the market
CLO4 Evaluate critically different economic viewpoints and analyses FLO1, 2 3, 4

Notes on Faculty Learning Outcomes (FLOs):

FLO1 Acquisition and internalization of knowledge of the programme discipline (economics & finance)
FLO2 Application and integration of knowledge
FLO3 Inculcating Professionalism and Leadership
FLO4 Developing global outlook
FLO5 Mastering communication skills

COURSE TEACHING AND LEARNING ACTIVITIES

Expected Study Load
Course Teaching and Learning Activities contact (% of study)
TL1. Lectures: Instructors will teach major concepts and their /study
33 hours 28%
applications. hours
TL2. Homework (online quizzes and writing assignments) 20 hours 16%
TL3. Tutorials: Teaching assistant will hold weekly tutorials to 10 hours 8%
explain difficult subjects taught in classes, discuss homework
assignments, and answer questions students have about the
lectures.
TL4. Consultation: Both instructors and teaching assistants will hold 2 hours 2%
weekly consultation hours to address students’ questions. Students
are also encouraged to discuss questions with the instructor and
teaching assistant via email or a forum on the class website.
TL5. Self Study 55 hours 46%
Total 120 hours 100%

Assessment Methods Weight Aligned Course

Learning Outcomes
A1. Final exam 50% CL01, 2 3, 4
A2. Midterm exam 25% CL01, 2 3, 4
A3. Weekly assignments 15% CL01, 2 3, 4
A4. Tutorial participation 5% CL01, 2 3, 4
A5. Lecture participation 5% CL01, 2 3, 4
Total 100%

Logic of assessment design:

The major assessments of the course are midterm and final exams. Weekly assignments (in the form of weekly
quizzes) are assigned to give students continuous feedback on their learning. Normally, students who treat the
weekly assignments and the corresponding feedback seriously are likely to do well in the exams. Participation in
tutorials and lectures are taken to encourage students to attend the designed teaching and learning activities.
Numerous studies have shown that attendance ensures learning from courses. We trust that students should be
able to learn much if they are willing to actively engage in all the designed teaching and learning activities.
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STANDRDS FOR ASSESSMENT

Course Grade Descriptors

A+, A, A- Candidate has consistently demonstrated a thorough grasp of the subject as evidenced by
an exceptionally thorough understanding of the concepts and reasoning presented in this
course; and is able to apply it creatively to the analysis and interpretation of observed
economic phenomenon.
B+, B, B- Candidate frequently demonstrated a substantial grasp of the subject as evidenced by a
good understanding of the concepts and reasoning presented in this course; and is able
to apply it well to the analysis and interpretation of observed economic phenomenon.
C+, C, C- Candidate has occasionally demonstrated a general grasp of the subject as evidenced by a
mostly accurate understanding of the concepts and reasoning presented in this course;
and is able to apply it most of the time to the analysis and interpretation of observed
economic phenomenon.
D+, D Candidate has demonstrated a partial grasp of the subject as evidenced by a somewhat
accurate understanding of the concepts and reasoning presented in this course; and is
able to apply it only some of the time to the analysis and interpretation of observed
economic phenomenon.
F Candidate has demonstrated a poor grasp of the subject with evidence of largely
inaccurate understanding of the concepts and reasoning presented in this course; and
is largely unable to apply it to the analysis and interpretation of observed economic
phenomenon.

Assessment Rubrics for Individual Assessment

Assessment Task: Examinations, Quizzes and Homework Assignments

A+, A, A- Respond to all or almost all of the questions clearly and accurately. All or almost all of the
responses are well organized, clear, fluent, and with appropriate elaboration.
B+, B, B- Respond to most of the questions clearly and accurately. Most of the responses are well
organized, clear, fluent, and with appropriate elaboration.
C+, C, C- Respond to some of the questions clearly and accurately. Some of the responses are well
organized, clear, fluent, and with appropriate elaboration.
D+, D Respond to few of the questions clearly and accurately. Few of the responses are well
organized, clear, fluent, and with appropriate elaboration.
F Respond to very few of the questions clearly and accurately. Very few of the responses are
well organized, clear, fluent, and with appropriate elaboration.

Assessment Task: Tutorial/lecture participation

A+, A, A- Attend almost all tutorials (say, 85%) and participate in the exercises and discussions therein.
B+, B, B- Attend most tutorials (say, 70%) and participate in the exercises and discussions therein.
C+, C, C- Attend more than half of all tutorials (say, 55%) and participate in the exercises and discussions
therein.
D+, D Attend slightly less than half of all tutorials and participate in the exercises and discussions
therein.
F Attend much less than half of all tutorials and participate in the exercises and discussions
therein.

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COURSE POLICY

Plagiarism and Misconduct

No plagiarism will be tolerated! The University Regulations on academic dishonesty will be strictly enforced!

Please check the University Statement on plagiarism on the web: http://www.hku.hk/plagiarism/.

Academic dishonesty is behavior in which a deliberately fraudulent misrepresentation is employed in an attempt

to gain undeserved intellectual credit, either for oneself or for another. It includes, but is not necessarily limited
to, the following types of cases:

Plagiarism - The representation of someone else’s ideas as if they are one’s own. Where the arguments, data,
designs, etc., of someone else are being used in a paper, report, oral presentation, or similar academic project,
this fact must be made explicitly clear by citing the appropriate references. The references must fully indicate the
extent to which any parts of the project are not one’s own work. Paraphrasing of someone else’s ideas is still
using someone else’s ideas, and must be acknowledged.
The representation of work as solely one’s own when in fact it is the result of a joint effort.

Where a candidate for a degree or other award uses the work of another person or persons without due
acknowledgment:

The relevant Board of Examiners may impose a penalty in relation to the seriousness of the offence;
The relevant Board of Examiners may report the candidate to the Senate, where there is prima facie evidence of
an intention to deceive and where sanctions beyond those in (1) might be invoked.

COURSE CONTENT, READINGS AND TENTATIVE TEACHING SCHEDULE

Lecture hours given by the instructor will be approximate and may vary with the flow of the class.

Introduction (three hours)

Friedman, M. “The Methodology of Positive Economics,” Essays In Positive Economics, University of
Chicago Press, Chicago, 1953.
Cowen Chapter 1

Supply and Demand

The Power of Trade and Comparative Advantage (two hours)
Cowen Chapter 2
Supply and Demand (three hours)
Cowen Chapter 3
Equilibrium: How Supply and Demand Determine Prices (two hours)
Cowen Chapter 4
Elasticity and its Applications (two hours)
Cowen Chapter 5
Taxes and Subsidies (three hours)
Cowen Chapter 6

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The Price System
The Price System: Signals, Speculation and Prediction (one hour)
Cowen Chapter 7
Hayek, F. A. “The Use of Knowledge in Society,” American Economic Review 35, No. 5 (1945): 519-530.
Price Ceilings and Price Floors (three hours)
Cowen Chapter 8
Externalities: When Prices Send the Wrong Signals (three hours)
Cowen Chapter 10
Coase, R.H. “The Problem of Social Cost,” Journal of Law and Economics 3 (1960): 1-44.
Public Goods and the Tragedy of the Commons (two hours)
Cowen Chapter 19

Firms and Factor Markets

Costs and Profit Maximization Under Competition (two hours)
Cowen Chapter 11
Coase, R.H. “The Nature of the Firm,” Economica 4, No. 16 (1937): 386-405
Competition and the Invisible Hand (one hour)
Cowen Chapter 12
Monopoly (two hours)
Cowen Chapter 13
Price Discrimination (two hours)
Cowen Chapter 14
Oligopoly and Game Theory (two hours)
Cowen Chapter 15

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