Course Overview

Microeconomic Principles for Everyday Decision-Making 

⏱ Duration: 14 hrs. | Mode of Delivery: Hybrid  

Instructor(s): 

1. Sunjida Khan: Assistant Professor, Department of Business Administration, Daffodil International University, Bangladesh; Ph.D Researcher, M.Sc in Economics.
2. Israt Hossain: Director, SANEM, Dhaka, Bangladesh; M.S.S in Economics.   

Course Description 

This course focuses on foundational microeconomic principles and their practical applications in everyday decision-making. Participants will learn to evaluate trade-offs, apply marginal analysis, and recognize the role of incentives to optimize resource allocation and outcomes. By understanding and responding to microeconomic trends, participants can make informed choices that enhance competitiveness and profitability in personal and professional contexts.

Evidence of Demand

• Microeconomics principles are highly relevant and significant in business decisions.
• Companies like Apple Inc. utilize the elasticity of demand to price products at a premium, maintaining strong demand through brand reputation and perceived quality.
• Walmart's strategy of everyday low prices is based on understanding customer price sensitivity, which attracts a large volume of customers and achieves economies of scale.
• By understanding and responding to microeconomic trends, companies can make informed decisions that enhance their competitiveness and profitability.

Purpose and Objectives Purpose: To understand foundational microeconomic principles and their practical applications. 

Objectives:

• Learn to make better choices by evaluating trade-offs and opportunity costs.
• Apply marginal analysis to optimize resource allocation and outcomes.
• Recognize the role of incentives in shaping decisions and behaviors.
• Generate confidence in using economic reasoning in everyday situations.

Course Content & Class Plan (Modules)

• Module 1: Introduction to Microeconomic Thinking: What is microeconomics? Scarcity, choice, and the allocation of resources.
• Module 2: Opportunity Cost and Trade-Offs: Evaluating alternatives and the cost of foregone choices. Practical examples in time management, budgeting, and career decisions.
• Module 3: Incentives and Decision-Making: How incentives shape behavior in households, businesses, and markets.
• Module 4: Marginal Analysis: Thinking on the Margin: Understanding marginal costs and benefits. Applying marginal analysis to personal and professional decisions.
• Module 5: Supply and Demand in Everyday Life: How markets function and prices are determined. Practical examples: Shopping decisions, energy consumption, and housing choices.
• Module 6: Game Theory and Strategic Decision-Making: Basics of strategic interaction and decision-making. Examples: Negotiations, conflict resolution, and competitive scenarios.
• Module 7: Behavioral Economics and Everyday Biases: Recognizing and addressing biases in decision-making. Nudges and behavioral strategies for better choices.

Practical & Field Work

• Case Studies: Analyzing incentives in personal savings, healthy lifestyle choices, and workplace productivity.
• Practical Examples: Applying concepts to time management, budgeting, career decisions, shopping, energy consumption, and housing choices.
• Strategic Scenarios: Exploring game theory through negotiations, conflict resolution, and competitive interactions.

Learning Outcomes

Upon completion, participants will be able to:

• Make informed decisions in budgeting, career planning, and time management.
• Improve personal financial literacy and strategic thinking skills.
• Develop a strong foundation in microeconomic reasoning applicable across various domains.
• Gain a recognized credential to demonstrate your decision-making acumen.

Target Audience & Requirements

Target Audience:

• Undergraduate Students, Graduate Students, and Professionals.

Entry Requirements:

• Potential participants who are interested in understanding the economics to make business decisions behind everyday choices.
• Minimum Educational Qualification: HSC.
• Minimum Age: 20 years or above.

Career Pathways

• Entrepreneur/Small Business Owner.
• Policy Analyst.
• Financial Analyst.
• Product Manager.

Tools & Resources

• Text book.
• Google information for any contemporary issues and examples.

Assessment Criteria

• Quizzes.
• Assignment/Project.

Financial Information

• Tentative Course Fee: 1500 BDT