Coaching Actuaries

VEE Microeconomics Syllabus

Updated 4/14/2017

You must read the instructions and syllabus completely. Failure to abide by course
requirements may result in course failure.

Important Guidelines Required for Passing

Due to the flexible nature of this course, we must be stringent with our guidelines in order to
maintain SOA/CAS guidelines.
Final Exam must be scheduled and proctored. Coaching Actuaries will provide you with
the exam link at the time specified.
o Coaching Actuaries can provide a remote proctor via webcam and screen-sharing
using Skype or similar service.
You can schedule an exam with us free of charge. If you need to
reschedule, you will be charged a fee of $25. This fee is non-refundable.
Latest version of Skype is required. If you are not familiar with Skype,
you must set up a Skype tutorial in advance of the exam to ensure it will
work.
o The exam is closed-note and closed-text. Calculator, writing device, and scratch
paper are permitted.
Assignments and Final Exam must be completed within 120 days of beginning the
course, unless a course is put on hold (see FAQ). The fee for subscription hold requests
is $25.

Course Dates
This course is a flexible, study-at-your-own-pace course. Students are required to complete the 5
graded assignments on their own. The final exam is a proctored, 1.5-hour exam. Students must
schedule their final exam at least 2 weeks in advance by e-mailing
proctoring@coachingactuaries.com

Course Instructor & Coaches

Mike Carmody, FSA, CFA, MAAA (Instructor)
Keith Lo, FSA(Coach)
Course Objectives
The course aims to introduce key concepts in microeconomics. The learning outcomes for this
course are included below.

The student should be able to:

a. Analyze the interaction between supply and demand in determining transaction prices
and quantities.
b. Calculate the elasticity of demand and supply and describe its relevance to
understanding markets.
c. Analyze the theory of the consumer, which addresses the decisions that consumers
make about consumption.
d. Analyze the theory of the firm, which addresses the decisions by profit-maximizing
firms about pricing, output, and employment.
e. Analyze the behavior of firms in different market structures including perfect
competition, monopolistic competition, oligopoly, and pure monopoly.

Course Materials
The textbook for this course is highly recommended but not required, and can be purchased
from VitalSource at https://store.vitalsource.com/show/9781119030522. The textbook is only
available in electronic format.

If you are outside North America, we recommend this text:

Piros, et.al. Economics for Investment Decision Makers (1st Edition). Hoboken, NJ: CFA
Institute, 2013. ISBN 13: 978-1118105368

Course Prerequisites
There are no prerequisites for this course.

Course Structure
The course is partitioned into suggested weekly units. Students study and complete the course at
their own pace. Students are required to read the study notes, watch the instruction videos, and
complete assignments. One final comprehensive exam will be conducted.

Assignments and the Final Exam are generated in our Adapt Exam Engine and recreate CBT
testing style of SOA exams. To prepare for assignments, we recommend completing end of
chapter questions in the textbook.

Assignments
There are 5 graded assignments. Each assignment is worth 10% of the course grade. Once an
assignment is initiated, the assignment must be completed within 24 hours. Each assignment
may be attempted more than once. However, the final score of each assignment is the
score of the first attempt. The subsequent attempts will not be counted towards the final
score.
 Final Exam
The final exam is a comprehensive, 1.5-hour, closed-note and closed-text, 60-question,
online multiple-choice exam. The final exam is worth 50% of the course grades. The final
exam must be proctored, and the proctor must be approved by Coaching Actuaries

Proctor for Final Exam

A student-chosen proctor should have either an associate-level or fellow-level designations
from actuarial organizations. Other alternatives include a university professor or a high-
ranked member of management who is not able to sit for exams, such as Vice President of
Human Resources.
The proctor may not be a relative of the candidate.
Student-chosen proctors need to verify their credentials (the above 2 bullet points) via email
to proctoring@coachingactuaries.com. The exam link for the student will be sent to the proctor
by the CA Staff after verification.
You may choose to purchase the VEE Final Exam Proctoring Service with Coaching
Actuaries.
o You can schedule an exam with us free of charge. If you need to reschedule, you
will be charged a fee of $25. This fee is non-refundable.
o If you elect this option, contact us at proctoring@coachingactuaries.com to schedule
your exam. A Coaching Actuaries team member will proctor your exam via
Skype or similar service. This requires a pre-exam tutorial to ensure all
technology will work correctly on exam day.
The student-chosen proctor will need to go through the following steps with you. If you are
using a Coaching Actuaries staff member as a proctor, they will follow these steps with you:
1. Verify your identity via driver's license or passport
2. Check scratch paper prior to exam to ensure it's blank
3. See the area around you to ensure there are no notes or books
4. Have you do a screen share for monitoring during the exam via skype (if applicable)
5. Have you clear your calculator
Plan on a 2-hour timeframe, in order to go through the above steps before the 1.5 hour exam
begins.
The exam will be sent to the student after these 5 steps are completed and the exam (timer
included) then begins immediately upon clicking the link.

Course Grades
Grades in the course are composed of the following:
Assignments: 50%
Final Exam: 50%
Letter grades will tentatively be assigned based on 85%, 75%, 65%, 55% cutoffs. Students must
achieve a grade of at least 75% (i.e. at least a letter grade B) in order to pass the course.

Communication with the Instructor/Coach

Students can email course-related questions to the instructor/coach at
vee_micro@coachingactuaries.com. The instructor/coach will respond to student emails
every Monday to Friday throughout the course.
Student Responsibilities
Students must read all readings, watch all videos, and complete all assignments.
Students must choose an exam proctor at least 2 weeks before the final exam, and submit
the name to Coaching Actuaries. See Proctor for Final Exam above for details.

Course Refund Policy

From days 1 7 of the course, students are eligible for a 75% refund.
From days 8 14 of the course, students are eligible for a 50% refund.
After day 14 of the course, no refunds will be given.

Frequently Asked Questions

Why do the readings numbers not start at 1?

The material for this course utilizes material designed for the Chartered Financial Analyst (CFA)
exam. Reading numbers correspond to the readings (chapters) for that material.

Can I retake an assignment?

No. Assignments are basically tests. You must complete an assignment the first time.

Can I put the course on hold to complete later?

This is not recommended. Yes, we can put your course access on hold so that you can resume it
later. There is a $25 fee for this service, as stated above in the section Important Guidelines
Required for Passing. Depending on the time length, we may require you to re-take
assignments.

What if I fail the course?

You can re-take the course one additional time for free.
Chapter Sequence
This course follows the sequence as outlined below:

Units Topic
Reading 13: Demand and Supply Analysis: Introduction
Unit 1
o Introduction
Reading 13: Demand and Supply Analysis: Introduction
o Demand Function and Curve; Supply Function and Curve
Unit 2
o Market Equilibriums; Auctions
o Consumer, Producer, and Total Surplus
Reading 13: Demand and Supply Analysis: Introduction
o Market Interference
Unit 3
o Demand Elasticities
Assignment 1 covers Reading 13
Reading 14: Demand and Supply Analysis: Consumer Demand
Unit 4 o Introduction, Consumer Theory, and Utility Theory
o The Opportunity Set
Reading 14: Demand and Supply Analysis: Consumer Demand
o Consumer Equilibrium
Unit 5
o Revisiting the Consumers Demand Function
Assignment 2 covers Reading 14
Reading 15: Demand and Supply Analysis: The Firm
o Introduction and Objectives of the Firm
Unit 6 o Analysis of Revenue, Costs, and Profits Profit Maximization
o Analysis of Revenue, Costs, and Profits Productivity
Assignment 3 covers Reading 15
Reading 16: The Firm and Market Structure
o Introduction
Unit 7 o Perfect Competition
o Monopolistic Competition
Assignment 4 covers the 3 topics listed above in Reading 16
Reading 16: The Firm and Market Structure
o Oligopoly
Unit 8
o Monopoly
o Identification of Market Structure
Assignment 5 covers the 3 topics listed above in Reading 16
Unit 9
Study for Final
Unit 10 Final Exam (covers Reading 13 Reading 16)