| Week |
Subject |
Related Preparation |
| 1) |
• Trade-off, prices and markets, theories and models, positive vs. normative statements
• Market definition, competitive vs. non-competitive markets
• Market price, real vs. nominal prices
|
Reviewing the course syllabus |
| 2) |
• Supply, Demand and the Market mechanism
• Changes in market equilibrium
• Elasticities of Supply and Demand
• Understanding and predicting the effects of Changing Market Condition
• Effects of government intervention
|
Reviewing the chapter covered.
Registering to Pearson MyLab related to ECO203
Reading Chapter 2 in Pindyck and Rubinfeld (2018) pp. 43-62 and 71-83.
|
| 3) |
• Consumer preferences, indifference curves, marginal rate of substitution
• Budgetary constraints, effects of price and income changes
• Consumer choice, corner solutions
• Marginal utility and consumer choice
|
Reviewing the chapter covered.
Reading Chapter 3 in Pindyck and Rubinfeld (2018) pp. 89-114 and 117-122.
.
|
| 4) |
• Individual demand, price and income changes, Engel curves
• Income and substitution effects, Giffen goods
• Market demand, price elasticity of demand
• Consumer surplus
|
Reviewing the chapter covered.
Reading Chapter 4 in Pindyck and Rubinfeld (2018) pp. 131-155.
|
| 5) |
• Utility maximization
• Lagrange multiplier methods
• Equal marginal principle
• Marginal rate of substitution
• Binary
• Income and substitution effects |
Reviewing the chapter covered.
Reading Appendix to Chapter 4 in Pindyck and Rubinfeld (2018) pp. 169-177.
|
| 6) |
• The technology of production, production function, production in the short-run vs. long-run
• Average and marginal products, law of diminishing marginal returns, labor productivity
• Isoquants, input flexibility, substitution among inputs
• Returns to scale
|
Reviewing the chapter covered.
Reading Chapter 6 in Pindyck and Rubinfeld (2018).
|
| 7) |
• Accounting cost versus economic cost, opportunity cost, sunk cost, fixed and variable cost, marginal and average cost
• Costs in the short run, shapes of cost curves
• Cost minimizing input selection, isocost line, expansion path and long-term costs
• Long-term average cost, economies and economies of scale
|
Reviewing the chapter covered.
Reading Chapter 7 in Pindyck and Rubinfeld (2018) pp. 237-267. |
| 8) |
Evaluation of the students’ performance via midterm exam |
Reviewing the chapters covered during mid-term.
Getting prepared for the mid-term exam.
|
| 9) |
• Perfect competition
• Marginal revenue, marginal cost and profit maximization
• Short-term and long-term profit maximization
• Producer surplus, economic rent
• Long-run supply curve of the sector |
Reading Chapter 8 in Pindyck and Rubinfeld (2018).
|
| 10) |
• Consumer and producer surplus
• Efficiency of a competitive market
• Minimum prices
• Price supports and production quotas
• The effect of a tax or subsidy |
Reviewing the chapter covered.
Reading Chapter 9 in Pindyck and Rubinfeld (2018), sections 9.5 and 9.6 are optional. |
| 11) |
• Average revenue and marginal revenue
• The monopolist's output decision
• Production, price and monopoly power
• Sources of monopoly power
• Social costs of monopoly power: rent seeking, price regulation, natural monopoly |
Reviewing the chapter covered.
Reading Chapter 10 in Pindyck and Rubinfeld (2018) pp. 369-394 (sections 10.1-10.4)
|
| 12) |
• Price discrimination (first degree, second degree, third degree)
• Intertemporal price discrimination and peak load pricing
• Two-part tariff
• Advertising and bundling |
Reviewing the chapter covered.
Reading Chapter 11 in Pindyck and Rubinfeld (2018), sections 11.5 and 11.6 are optional. |
| 13) |
• Monopolistic competition
• Oligopoly, Nash equilibrium, Cournot equilibrium
• Stackelberg model, Bertrand model
• Prisoner's dilemma, consequences of oligopolistic pricing
• Cartels, cartel pricing |
Reviewing the chapter covered.
Reading Chapter 12 in Pindyck and Rubinfeld (2018).
|
| 14) |
• Market for lemons
• Market signaling
• Moral hazard
• Principle-agent problem
• Asymmetric information in labor markets: efficiency wage theory
|
Reviewing the chapter covered.
Reading Chapter 17 in Pindyck and Rubinfeld (2018), section 17.5 is optional.
|
| 15) |
Evaluation of the students’ performance via Final exam |
Review of chapters covered during the semester.
Preparing for the final exam.
|
| |
Program Outcomes |
Level of Contribution |
| 1) |
Explain the advances in the area of economics and finance within the framework of scientific methodology, theories and models. |
5 |
| 2) |
Employ the appropriate tools and analytical techniques to collect and analyze quantitative and qualitative data in the related areas, interpret results and propose solutions. |
5 |
| 3) |
Explain the evolution of financial markets and institutions in a historical context and define how they operate. |
1 |
| 4) |
Recognise the basic principles and regulations in the financial sector. |
1 |
| 5) |
Discover and create entrepreneurial opportunities to successfully establish and develop their own ventures. |
3 |
| 6) |
Recognise, interpret and discuss the current economic issues both at the national and global levels. |
3 |
| 7) |
Have the English proficiency in following and interpreting the developments in the areas of economics and finance and in conducting written and oral communication. |
3 |
| 8) |
Express the role of international capital markets in the global economy; accordingly define the concept of risk in terms of measurement and management. |
2 |
| 9) |
Identify standards of personal, professional, social and business ethics, evaluate the ethical implications of various practices in the related areas, and be aware the importance of ethical behavior in adding value to the society. |
1 |
ISTANBUL OKAN UNIVERSITY INFORMATION PACKAGE / COURSE CATALOGUE
