INTERNATIONAL FINANCE
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
ECO2211	Microeconomics	Fall	3	0	3	8

Basic information

Language of instruction:	English
Type of course:	Must Course
Course Level:	Bachelor’s Degree (First Cycle)
Mode of Delivery:	Hybrid
Course Coordinator :	Assoc. Prof. KAAN İRFAN ÖĞÜT
Course Lecturer(s):	Assoc. Prof. ÇAĞLAR YURTSEVEN Assoc. Prof. BÜLENT ANIL Prof. Dr. NECİP ÇAKIR
Recommended Optional Program Components:	None
Course Objectives:	This course will explore both the economic characteristics and behaviors of individual economic units, focusing especially on consumer behavior.

Learning Outcomes

The students who have succeeded in this course;
1. Market Structures and Intorduction Optimisation
2. Consumer Choice and Rationality
3. Demand and Optimal Choice
4. Income, Substitution Effects and Revealed Prefeence
5. Intertemporal Choice and Uncertainty
6. Equilibrium, Technoılogy and Profit Maximization
7. Supply, Cost and Profits in Competitive Markets
8. Ordinary Monopoly and Price Discrimintion
9. Oligopolistic Markets and Monopolistic Competition
10.Game Theory

Course Content

Introduction
Supply and Demand
The theory of consumer choice
Individual and Market Demand
Using Consumer Choice Theory
Exchange, Efficiency and Prices
Production
The Costs of Production
Profit Maximization in Perfectly Competitive Market
Using the Competitive Model
Monopoly
Product Pricing with Monopoly Power
Monopolistic Competition and Oligopoly
Imperfect Information
Public Goods and Externalities

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Market & Budget Constraint: Optimization & Equilibrium, Demand & Supply Curves, Pareto Efficiency, Budget Constraint and Budget Set
2)	Preferences & Utility: Assumptions on Preferences, Indifference Curves, MRS, Cardinal & Ordinal Utility, Marginal Utility & MRS
3)	Revealed Preference & Slutsky Equation: Idea of Revealed Preference, WARP, SARP, Substitution Effect, Income Effect, Total Change in Demand, Compensated Demand Curves
4)	Revealed Preference & Slutsky Equation: Idea of Revealed Preference, WARP, SARP, Substitution Effect, Income Effect, Total Change in Demand, Compensated Demand Curves
5)	Intertemporal Choice & Asset Markets: Budget Constraint and Preferences, Slutsky Equation & Intertemporal Choice, Present Value, Rates of Return, Adjustment for Differences, Assets
6)	Uncertainty: Contingent Consumption, Utility Functions and Probabilities, Expected Utility, Risk Aversion and Risk Spreading, Role of Stock Market
7)	Risky Assets & Consumer Surplus: Mean Variance Utility, Measuring Risk, Equilibrium with Risky Assets, Demand for Discrete Goods, Construcitong Utility from Demand, Interpretations of Consumer Surplus, Compensating and Equilibrating variation, Producer’s Surplus
8)	Market Demand & Equilibrium: Inverse Demand Functions, Demand for Discrete Goods, Elasticity, Demand & Marginal Revenue, Income Elasticity, Market Equilibrium, Inverse Demand, Supply Curves, Comperative Statics, Pareto Efficiency
9)	Technology and Profit Maximization: Inputs & Outputs, Technological Constraints, Fixed Proportions, Cobb-Douglas, TRS, Diminishing MP, Profits, Fixed & Variable Factors, Profit Maximization, Returns to Scale
10)	Cost Minimization & Cost CUrves: Cost Minimization, Returns to Scale & Cost Function, SR & LR Costs, Fixed and Quasi Fixed Costs, AC, MC & VC, LR Costs, LRMC
11)	Firm Supply & Industry Supply: Pure Competition & Firm Supply, Inverse Supply Function, LR Supply Curve, LR Constant AC, SR Industry Supply, SR & LR Industry Equilibrium, Zero Profits, Fixed Factors & Economic Rent
12)	Monopoly and Monopoly Behaviour: Linear Demand Curve, Mark up Pricing, Inefficiency of Monopoly, Natural Monopoly, Price Discrimination
13)	Monopolistic Competition and Factor Markets: Monopolistic Competition, Location Model, Product Differentiation, Monopoly in Output Market, Monopsony
14)	Oligopoly, Game Theory & Exchange: Strategy Choice, Quantity and Price Leadership, Cournot Equilibrium, Collusion, Payoff Matrix & Nash Equilibrium, Mixed Strategies and Repeated Games, Prisoners Dilemma , edgeworth’s Box, trade and Pareto Efficent Allocations, Walras’ Law, Equilibrium & Efficiency

Sources

Course Notes / Textbooks:	Varian, Hal, Intermediate Microeconomics, W. W. Norton & Company, 7th edition, 2006
References:	Yok

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Midterms	4	% 60
Final	2	% 40
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 60
PERCENTAGE OF FINAL WORK		% 40
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Duration (Hours)	Workload
Course Hours	14	3	42
Study Hours Out of Class	14	11	154
Midterms	2	4	8
Final	1	4	4
Total Workload			208

Contribution of Learning Outcomes to Programme Outcomes

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	To correctly identify the problems and to be able to ask the correct questions	4
2)	To have the ability for problem solving and to utilize analytical approach in dealing with the problems of finance	3
3)	To understand and grasp the full details of theoretical arguments and counter arguments	3
4)	To be fully prepared for a graduate study in finance and to have lifelong learning awareness	1
5)	To be able to apply theoretical principles of finance to the realities of practical business life	3
6)	To develop solutions for managerial problems by understanding the requirements of international financial markets	2
7)	To think innovatively and creatively in complex situations	1
8)	To be able to make decisions both locally and internationally by knowing the effects of globalization on business and social life	2
9)	To have the competencies of the digital age and to use the necessary financial applications	1
10)	To be able to use at least one foreign language both for communication and academic purposes	1
11)	To understand the importance of business ethics and to take decisions by knowing the legal and ethical consequences of their activities in the academic world and business life	1
12)	To develop an objective criticism in business and academic life and having a perspective to self-criticize	2