Introductory description

n/a

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

Unit 1: Microeconomics

• The Economic Problem
  o The nature and purpose of economic activity
  o Introduction to microeconomics versus macroeconomics
  o Economic resources
• Scarcity and resource allocation;
  o Scarcity, choice and the allocation of resources
  o Production possibility diagrams
  o Value judgements, positive and normative statements
  o Supply and demand
  o Analysing equilibrium in markets
  o The price mechanism
  o Changes in market conditions
  o The efficient allocation of resources
• Elasticity
  o Price elasticity of demand
  o Income elasticity of demand
  o Cross-price elasticity of demand
  o Price elasticity of supply
• Consumer choice;
  o Utility theory
  o Consumer surplus
  o Efficiency
• Producer theory
  o Cost curves
  o Revenue
  o Profit
  o Time period
• Profit maximisation under alternative market structures;
  o Perfect Competition – short run and long run
  o Oligopoly – competitive and collusive oligopolies
  o Monopoly - sources of monopoly power, price discrimination
• Behavioural economics;
  o The Objectives of Firms
  o The Divorce of Ownership and Control
  o Strategic thinking and game theory
• Economics of market failure;
  o The meaning of market failure
  o Positive and negative externalities in consumption and production
  o Merit and demerit goods
  o Public goods
  o Monopoly and the allocation of resources

Unit 2: Macroeconomics

• Economic schools of thought;
  o Modelling the determination of national income;
  o Main Macroeconomic Targets (low inflation, full employment, economic growth and a healthy balance of payments)
  o The Role of the Government and Economic Policy
• Macroeconomic indicators (GDP, CPI, RPI, unemployment)
  o Income, output, and expenditure identity
  o Circular flow model
• The Long-run vs the Short-Run
• Economic Growth – causes and consequences
• The Business Cycle
• Employment and Unemployment (causes and costs)
• Inflation and Deflation (Causes and costs)
• International trade and competiveness
  o The exchange rate
  o Trade and the Balance of Payments
• The goods and the money market;
  Aggregate demand – consumption, investment, government spending, net exports
  Demand and supply of money
  Interest rates and the transmission mechanism
  Aggregate supply – short run and long run
• Economic Policy
  o Fiscal Policy
  o Monetary Policy
  o Supply side policy

Learning outcomes

By the end of the module, students should be able to:

• Explain core microeconomic concepts of resource allocation, demand and utility theory, supply, equilibrium and elasticities of demand and supply.
• Analyse microeconomic models of supply and market failure and apply them to individuals and markets in the economy with reference to improving economic efficiency and welfare through government intervention.
• Evaluate alternative views of government intervention to solve current issues in the macroeconomy, applying economic theory to a range of real world contexts and communicating the results.

Indicative reading list

Sloman, J., Garratt, D., (2016) Essentials of Economics, 7th edn., Harlow, Pearson
Gillespie, A., (2016) Foundations of Economics, 4th edn., New York, Oxford University Press

View reading list on Talis Aspire

Research element

Students are required to choose a country to research in Summative assessments 3 and 4. Students will research examples of the application of theory to real world situations and evaluate the outcomes.
In summative assessment 3 students will examine examples of market failure that have resulted in government failure.
In summative assessment 4 (final exam) students will research the factors affecting the success of investment for economic growth.
In both cases the research element forms 40-45% of the assessment mark.

International

Students are encouraged to bring the experience of their home country to the course.
Students are required to research a country of their choice for both the coursework essay and the final examination assessment, giving them the opportunity to evaluate how governments in other countries respond to problems in individual markets and in the macroeconomy.

Subject specific skills

.Analysis and interpretation of economic data
Use of diagrammatic and mathematical models to explain economic theory
Application of economic theories to real world contexts through individual research.
Analysis and evaluation of the impact of macroeconomic policies on the achievement of macroeconomic objectives.

Transferable skills

Use of mathematics and diagrammatical analysis
Use of analytical and critical thinking skills
Use and interpretation of data.