The aim of the course is to develop the basic tools for analyzing problems of resource allocation used by economists working in research, government and business. It aims to include modern developments without being overly mathematical, and to develop a capacity to apply economic concepts to real-world problems. The first part of the course focuses primarily on price-taking behavior by economic agents. The second part of the course focuses on strategic interaction and market failures.
Topics include the firm, the consumer, general equilibrium, uncertainty and risk, welfare economics, an introduction to game theory, imperfect competition, adverse selection, signaling, moral hazard, externalities and public goods.