Understanding markets and market failure is integral to the work economists do in microeconomics. This unit builds upon the content and skills students learned in Microeconomics 1 by providing students with an analytical approach to learning microeconomic terms, concepts and models. This unit will emphasise rigorous logical reasoning and the application of theory to contemporary issues and will explore the responsibilities of individuals, businesses and government in dealing with market structures, market failures and their impact. Students will examine different market structures and evaluate the effectiveness of microeconomic reform in Australia. This unit will involve students using isoquant and iscost analysis of firms and analyse the role of the government in reducing market failure. This unit aims to provide students with a deep understanding of the major streams in microeconomic thought.

✔ Learning outcomes:

• Explain intermediate economic concepts and their connection to contemporary microeconomic issues
• Discuss the responsibilities of individuals, businesses and the government in dealing with market failure
• Learning and applying mathematical ideas and economic models using information technology to real-world problems
• Identify and discuss the role of the government in the market
• Analyse the impact of different market structures on individuals, firms, institutions and governments

✔ Content:

• Introduction; markets, prices, consumer and producer surplus
• Consumer theory – how consumers (including Indigenous) make decisions;
• Different market structures – Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly;
• Producer theory;
• Markets: information, resources and labour market;
• Market failure and the Government;
• Externalities, climate change and the environment;
• Inequality and the redistribution of income;
• Income disparities among Aboriginal peoples, and between Aboriginal and non-Aboriginal peoples;
• Labour market outcomes for Aboriginal and non-Aboriginal peoples;
• Government policies: Microeconomic Reform.