ECC1000

Principles of Microeconomics
The nature and scope of economics; different economic systems; economic policy analysis and evaluation;
main bodies of economic thought; examples of household, business and government economic decision
problems; consumer choice, product demand and factor supply; enterprise choice, product supply and
factor demand; market analyses of contemporary issues; competitive market long run equilibrium; market
power; market failure and concerns for efficiency and equity; government involvement in the Australian
economy.

Mode of Delivery

On campus (Clayton and Sunway)

Workload requirements

Minimum total expected workload equals 144 hours per semester

Chief Examiner

Professor Stephen King

Lecturers

Professor Stephen King (Clayton)

Professor Gareth Leeves (Sunway)
Caulfield (King)/ Sunway (Leeves)
King: 99031288
Leeves: 5514 6279.
[email protected]
[email protected]
TBA

Campus:
Phone:
Email:
Office hours:
Tutor(s)
Campus:
Phone:
Email:
Consultation hours:

TBA

SEMESTER1
2015
http://www.monash.edu.au/pubs/handbooks/units/ECC1000.html
The information contained in this unit guide is correct at time of publication. The University has the
right to change any of the elements contained in this document at any time.
Last updated: 09 Feb 2014

www.monash.edu

Academic Overview
Learning Outcomes
The learning goals associated with this unit are to:
1.
2.
3.
4.

be familiar with the 'economic way of thinking' about a broad range of individual, business and
government choices and decisions
apply economic principles to explain and analyse Australian economic institutions, economic
decisions and performance
make informed and critical assessment and criticism of the public debate on many economic policy
issues
proceed to the study of other economics units which have an introduction to microeconomics as a
prerequisite.

Graduate Attributes
Monash prepares its graduates to be:
1.

responsible and effective global citizens who:

a.
engage in an internationalised world
b.
exhibit cross-cultural competence
c.
demonstrate ethical values

2.

critical and creative scholars who:

a.
produce innovative solutions to problems
b.
apply research skills to a range of challenges
c.
communicate perceptively and effectively

Assessment Summary
Assessment Task

1. Tutorial Attendance and Participation

Value

10%

Due Date
Not applicable

2. Pre-class testing through Aplia

10%

By 11.45 pm each Tuesday from

3. 50-minute mid-semester test

20%

TBA

4. Final examination

60%

Official University exam period

Teaching Approach
There will be 2 hours of lectures and a 1-hour tutorial per week.

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2

Feedback
Our Feedback to You
Students will receive feedback on work in the following ways:

Formally with written comments on essay

Informally during discussions in class

Informally if the student chooses to consult with the lecturer/tutor outside of class
Your Feedback to Us
Monash is committed to excellence in education and regularly seeks feedback from students,
employers and staff. One of the key formal ways students have to provide feedback is through the
Student Evaluation of Teaching and Units (SETU) survey. The Universitys student evaluation policy
requires that every unit is evaluated each year. Students are strongly encouraged to complete the
surveys. The feedback is anonymous and provides the Faculty with evidence of aspects that students
are satisfied and areas for improvement.
For more information on Monashs educational strategy, see:
www.monash.edu.au/about/monash-directions/directions.html and on student evaluations, see:
www.policy.monash.edu/policy-bank/academic/education/quality/student-evaluation-policy.html

Previous Student Evaluations of this Unit

If you wish to view how previous students rated this unit, please go to:
https://emuapps.monash.edu.au/unitevaluations/index.jsp

Required Resources
Prescribed text(s) and readings:
The textbook for this Unit is:
J. Gans, S. King, M. Byford and N. G. Mankiw, Principles of Microeconomics, 6 edition, Cengage, 2015.
All other material required for this course will be accessible through Moodle, including lecture slide packs,
videos, and the pre-class assessment.
th

Recommended Resources
Recommended text(s) and readings:
There is a wide range of other first year undergraduate microeconomics textbooks. You may like to study these
as well. Two that are referred to in the reading guide are:
G. Hubbard, A. Garnett, P. Lewis and T. OBrien, Microeconomics 2 edition, Pearson Australia, 2011
and
D. McTaggart, C. Findlay and M. Parkin, Microeconomics, 6th edition, Pearson Australia, 2010.
nd

Moodle will be updated every week so make sure you keep checking it.

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Unit Schedule
Week

Commencing

Topic

March 2

Lectures 1 and 2: Topic 1 What is microeconomics, opportunity cost, why do

people trade, absolute and comparative advantage.

March 9

Lectures 1 and 2: Topic 1 Production possibilities frontier, the role of prices in

coordinating trade.

March 16

Lecture 1 and 2: Topic 2 Introduction to the competitive market model

demand, supply and equilibrium.

March 23

Lecture 1: Topic 2 Applying the competitive market model Price ceilings and
price floors, sales taxes.
Lecture 2: Topic 2 Elasticity, How does elasticity relate to revenue.

March 30

Lecture 1: Topic 2 Taxes, subsidies and markets.

[MID-SEMESTER BREAK : 3 April 10 April 2015]

April 13

Lecture 1: Topic 3 Introduction to welfare economics, consumers surplus.

Friday April 17th: In Class test covering all material in Topics 1 and 2 of the unit
7

April 20

Lecture 1: Topic 3 Producers surplus and measuring gains from trade.

Lecture 2: Topic 3 Applications of welfare economics, price ceiling and price
floors revisited, the deadweight loss of taxation, the gains from international
trade.

April 27

Lecture 1: Topic 3 Analysing restrictions to international trade.

Lecture 2: Topic 4 Market failure, externalities, carbon taxes versus carbon
quotas.

May 4

Lecture 1: Topic 4 Externalities and the Coase theorem, public goods.

Lecture 2: Topic 5 Costs and profit maximising production.

10

May 11

11

May 18

Lecture 1: Topic 5 Market behaviour and perfectly competitive firms.

Lecture 2: Topic 5 Businesses and applications of the perfectly competitive
model.
Lecture 1: Topic 5 The monopoly model, the costs of monopoly, monopoly and
the law.
Lecture 2: Topic 5 - Oligopoly

12

May 25

Lectures 1 and 2: Review of key ideas introduced over semester.

SWOT VAC: 1 June 5 June 2015

Examination period : LINK to Assessment Policy:

http://policy.monash.edu.au/policy-bank/academic/education/assessment/assessment-in-courseworkpolicy.html

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The following is a list of topics to be covered in lectures along with appropriate references to Gans,
King, Byford and Mankiw as well as the other supplementary textbooks referred to above.
TOPIC ONE: MARKETS AND TRADE:
Why study economics? How do individuals make decisions? The role of prices in coordinating trade.
Opportunity costs and the potential for gains by specialisation and trade. Production possibility frontiers.
Comparative advantage. The role of market institutions in creating and dividing gains from trade. How can
prices coordinate trade?
Reading:

Gans et al. Chapters 1, 2 and 3.

Hubbard, et al. Chapters 1 and 2.
McTaggart, et al. Chapters 1, and 2.
TOPIC TWO: PERFECTLY COMPETITIVE MARKETS AND GOVERNMENT POLICY:
Price taking behaviour, demand and supply, market clearing(equilibrium) price, elasticity, applications of
perfectly competitive market analysis including: (a) should Mumbai have rent control, (b) do farmers benefit
from price support and (c) who pays a sales tax?
Reading:

Gans, et al. Chapters 4, 5 and 6.

Hubbard, et al. Chapters 3, and 4.
McTaggart, et al. Chapters 3 and 4.

TOPIC THREE: MARKETS, WELFARE AND POLICY UNDER PERFECT
COMPETITION:
The allocation of gains from trade producers and consumers surplus. Deadweight loss. Applications to
government policies that can be initially analysed in a perfectly competitive market model including
taxation, agricultural support programs, tariffs and quotas on international trade, and minimum wages.
Reading:

Gans et al. Chapters 7, 8 and 9.

Hubbard, et al. Chapters 5, and 13.
McTaggart, et al. Chapter 5, 6 and 7.
TOPIC FOUR: EXTERNALITIES WHERE PRIVATE AND SOCIAL WELFARE
CONFLICT:
The potential divergence between private and social outcomes and the relationship to market outcomes.
Examples include pollution and research. Private solutions and government policies will be examined, as
will public goods.
Reading:

Gans et al. Chapters 10 and 11.

Hubbard, et al. Chapters 14 and 15.
McTaggart, et al. Chapters 8 and 9.
TOPIC FIVE: THE FIRM AND THE MARKET:
Basic business decision making. How does a firm decide what to produce and how much to produce? How
do firms maximize profit under strong competition? How can profits be raised by a monopoly and what are
the consequences of this? Can businesses increase profits by setting different prices to different
consumers? Government regulation and monopoly behaviour.
Reading:

Gans et al. Chapters 13, 14, 15, 16 and 17.

Hubbard, et al. Chapters 7, 8, 9 and 11.
McTaggart, et al. Chapters 13, 14, 10 and 16.
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Lectures
Lecture times and locations are as follows:
Lecture Part 1

Wednesday
8:00 9:00
64/South 1
Friday
8:00 9:00
64/South 1

Lecture Part 2

Wednesday
9:00 10:00
64/South 1
Friday
9:00 10:00
64/South 1

Lectures are 50 minutes in length starting 5 minutes after the hour. Lectures will provide feedback on the pre-lecture
assessment, clarify the core material and apply the material. Actual applications will depend on current issues in the
news. Lectures will include peer-to-peer interaction and (for Clayton) electronic questions. Lectures are recorded but
attendance means that you can participate in the active learning of the lectures.
Always do pre-reading and pre-lecture testing before attending lectures. This will maximise the benefit
of the lectures.

Conduct in lectures
Lectures are not compulsory; however it is your responsibility to ensure you are aware of all information related
to this unit which may have been presented in the lectures. Students who do choose to attend lectures are
expected to not disrupt the lecture in any way.

Talking and other disruptive behaviour is not only rude and unfair to other students and staff but is punishable
under Statute 4.1 - Discipline of the Monash University Calendar Statutes
(http://www.monash.edu.au/pubs/calendar/statutes/statutes04.html#Heading102).

Tutorials
Tutorials, which are of 50 minutes duration, will be held each week beginning the first week of
lectures (i.e. week commencing Monday 2rd March).
Tutorial questions are provided to you in advance through Moodle. You are not expected to attempt the
questions in advance (indeed, it is better to wait for the tutorial). Please make sure you can access the
questions in the tutorial (electronically or on paper). In the tutorial, together with your fellow students,
you will work through these problems. Students will be expected to actively participate in discussing the
questions and, where relevant, solving the problems. Tutors will facilitate the discussion.
Tutorials area a key element of your university learning. They are designed to help you understand the material
through active problem solving. They will help you prepare for the examination and may also indicate any areas
that have been covered in lectures and pre-lecture material that you do not understand.

To encourage your active participation in tutorials, your tutor will grade participation in tutorials.
This will be worth 10% of your final mark for the unit. A student who attends a specific tutorial
will receive a mark between zero and one for his or her participation in that tutorial. The
MAXIMUM participation mark over ALL tutorials for the semester is 10%. Note that any student
who fails to attend at least 8 of his or her allocated tutorials during the semester will receive a
participation mark of zero. Except for Easter Friday, you MUST attend your allocated tutorial to
receive a participation mark for that tutorial.

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Tutorial Allocation

Students must enrol in tutorials for ECC1000 via Allocate Plus. Go to: https://allocate.its.monash.edu.au/
If you have problems go to the Facultys Student Services Office on the Second Floor of the Menzies Building
(Building 11).
Pre-class internet-based testing
In weeks two to eleven of the semester there will be pre-class internet-based tests available using Aplia. Each
test will have a closing time of 11:45pm on the Tuesday prior to the first lecture of the week and will test
students understanding of pre-reading and other assigned materials that need to be studied before each weeks
lectures. Each of these tests will be worth up to 1% towards your final grade. In total, the pre-class internet-based
tests will be worth up to 10% of your final mark for the unit.
UNIT OUTLINE AND READING GUIDE
http://lib.monash.edu/resourcelists/e/ecc1000.html

Assessment Requirements
Assessment Tasks
Assessment task 1:
Details of task: Tutorial Participation
As discussed above, participation in tutorials will count 10% towards your final grade. Note that attendance at 8
or more of your allocated tutorials is required for you to receive any participation mark.
Weighting/Value: 10%

Assessment task 2:
Details of task: Pre-class testing through Aplia
As discussed above, there will be ten pre-lecture internet-based tests that will count 10% towards your final
grade. The closing time for each test is Tuesday 11.45 PM. For example, the closing time for the first test will be
Tuesday March 10th at 11.45 PM.
Weighting/Value: 10%

Assessment task 3:

Details of task: Mid-semester test:

The mid-semester test will be held in your regular lecture on Friday APRIL 17. The mid-semester test is
redeemable against the final examination. In other words, if you do better in the mid-semester test than in the
final examination, the mid-semester test will count for 20% towards your final grade and the final examination
will count for 60% towards your final grade. If you do worse in the mid-semester test than in the final
examination, your mid-semester mark will be ignored and the final examination will count for 80% towards your
final grade.
There is no deferred mid semester test.
Weighting:
Length:
Type:

20% (redeemable)
50 minutes
Closed book

Electronic devices allowed in the exam: None

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Assessment task 4:

Details of task: Final examination:

This is a 2-hour examination. Examinations Section will advise the date, time and place of the exam
approximately six weeks before the semester examination period commences. It is your responsibility to find
out these details. Read the examination notices and check the Web
(http://www.monash.edu.au/exams)
Weighting:
Length:
Type:

60% (80% if improves grade after removing mid-semester result)

2 hours
Closed book

Electronic devices allowed in the exam: None

Information on Special Consideration Procedures for Students
http://policy.monash.edu.au/policy-bank/academic/education/assessment/special-considerationprocedures.html

Hurdle Requirements
There are no assessment hurdles for this unit. For a pass students must achieve a minimum of
50% on the aggregate of all assessment.

Second marking
Where an assessment task is given a fail grade by an examiner, that piece of work will be marked
again by a second examiner who will independently evaluate the work, and consult with the first
marker. No student will be awarded a fail grade for an assessment task or unit without a second
examiner confirming the result.
Note: Exceptions to this are individual pieces of assessment contributing 10% or less of the final mark,
unless the total of such pieces exceeds 30% of the final mark.

Return of final marks

Faculty policy states that 'the final mark that a student receives for a unit will be determined by the
Board of Examiners on the recommendation of the Chief Examiner taking into account all aspects of
assessment'. The final mark for this unit will be released by the Board of Examiners on the date
nominated in the Faculty Calendar. Student results will be accessible through the my.monash portal.

Assessment criteria
Assessment Criteria Grading Descriptors available at:
http://www.buseco.monash.edu.au/esg/agu/policies/assessment.html

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Assignment submission
Thee are no assignments for this course.

Technological Requirements
Students must regularly check Moodle for announcements.

Examination material or equipment

Calculators are not permitted during the examination.

Learning resources
Monash Library Unit Reading List http://readinglists.lib.monash.edu/index.html

Extensions and penalties

All applications for an extension of the time allocated to an assessment task must be made in writing
to the unit co-ordinator prior to the submission date. Approval if granted will be in writing and will be
recorded on the Faculty Assessment Cover sheet accompanying the assessment task by the
responsible lecturer/tutor.

Other Information
Policies
Monash has educational policies, procedures and guidelines, which are designed to ensure that staff
and students are aware of the Universitys academic standards, and to provide advice on how they
might uphold them. You can find Monashs Education Policies at: www.policy.monash.edu.au/policybank/academic/education/index.html
Key educational policies include:
Student Academic Integrity Policy and Student Academic Integrity: Managing Plagiarism and
Collusion Procedures ;
Assessment in Coursework Programs;
Special Consideration;
Grading Scale;
Discipline: Student Policy;
Academic Calendar and Semesters;
Orientation and Transition; and
Academic and Administrative Complaints and Grievances Policy.
Graduate Attributes Policy
http://www.policy.monash.edu/policy-bank/academic/education/management/monash-graduateattributes-policy.html

Student Charter

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Student Services
The University provides many different kinds of services to help you gain the most from your
studies.Contact your tutor if you need advice and see the range of services available at
www.monash.edu.au/students

Monash University Library

The Monash University Library provides a range of services, resources and programs that enable you
to save time and be more effective in your learning and research. Go to www.lib.monash.edu.au or the
library tab in my.monash portal for more information.

Disability Liaison Unit

Students who have a disability or medical condition are welcome to contact the Disability Liaison Unit
to discuss academic support services. Disability Liaison Officers (DLOs) visit all Victorian campuses
on a regular basis.

Website: www.monash.edu/equity-diversity/disability/index.html
Telephone: 03 9905 5704 to book an appointment with a DLO
Email: [email protected]
Drop In: Equity and Diversity Centre, Level 1, Building 55, Clayton Campus.

Moodle 2
All unit and lecture materials, plus other information of importance to students, are available through
the virtual learning environment Moodle site. You can access Moodle via the my.monash portal.
Where to go for help
If you're stuck, confused or simply not sure how to approach Moodle, there are a number of Moodle
resources that you can tap into.

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10