EC106: Introduction to Economics
Subhasish Dey
Module Leader
Farzad Javidanrad
Module Lecturer
Principal Aims
24 CATSTo introduce quantitative economics to students with a relatively strong mathematical background and to extend this
analysis through the use of mathematics. The focus is mainly on economic theory but "real world" applications of relevant theories may also be examined.
30 CATSThis module provides students who have a mathematical background with an introduction to both microeconomics and macroeconomics. It is taught using a non-mathematical approach, with the focus on providing an intuitive understanding to core economic theory, which will also include ‘real world’ applications. Graphical analysis will also be used to illustrate key concepts, giving students a different way of examining problems that will complement the mathematics skills learnt in other modules.
Principal Learning Outcomes
24 CATSDemonstrate knowledge of economic behaviours, outcomes, trends, developments, phenomena, institutions and policies
To demonstrate the capacity for abstract reasoning and to simplify economic problems through the application of theoretical models
30 CATSDemonstrate knowledge of economic behaviours, outcomes, trends, developments, phenomena, institutions and policies
Demonstrate the capacity for abstract reasoning and to simplify economic problems through the application of theoretical models
Demonstrate an understanding of key concepts, principles, theories and models in Economics
Demonstrate the capacity to interpret economic data and to use data to inform the selection and application of appropriate economic tools of analysis
Demonstrate the capacity to comment and facilitate in formulating economic policy
Syllabus
The focus is mainly on economic theory but "real world" applications of relevant theories will also be examined, subject to time limitations. The module will typically cover the following topics:
Term 1: microeconomics, which is concerned with the economic behaviour of individual consumers and producing firms, and their interaction in markets for goods, services and factors of production, strategic interaction and the analysis of externalities and public goods.
Topic-1: Introduction: What is Economics? (Parkin: Chapter 1&2)
Topic-2: Demand and Supply (Parkin: Chapter 3 )
Topic-3: Consumer Choices (N&S: Chapter 3&4 and Parkin: Chapter 9)
Topic-4: Uncertainty and Information (Parkin: Chapter 20 )
Topic-5: The Firm: Production (N&S: Chapter 9 and Parkin: Chapter 11 )
Topic-6: The Firm: Cost (Parkin: Chapter 11 )
Topic-7: The Market: Perfect Competition (Parkin: Chapter 12 )
Topic-8: The Market: Monopoly (Parkin: Chapter 13 and N&S: Chapter 14)
Topic-9: The Market: Oligopoly and Game Theory (N&S: Chapter 8 &15)
Topic-10: Public Goods and Externality (Parkin: Chapter 16&17 )
Term 2: macroeconomics, which is concerned with aggregate economic variables or the workings of the national economy as a whole: aggregate output (Gross Domestic Product or GDP), employment and unemployment, inflation, interest rates, the balance of payments, exchange rates, etc., and with government economic policies to influence these variables.
Topic-1: Introduction to Macroeconomics: (Lecture notes + Rochon & Rossi Ch.1 & 2, + Gandolfo Ch.1)
Topic-2: National Accounts, Alternative Measurements (Lecture notes + Miles, Scott & Breedon Ch.2 + Rochon & Rossi Ch. 7 & 8 + Mankiw Ch.3)
Topic-3: Income Distribution, Demand Side & Supply Side of Economy (AD/AS) (Lecture notes, Blanchard, Amighini and Giavazzi Ch. 8 + Rochon & Rossi Ch.7 + Mankiw Ch. 3 & 10 & 11 & 12)
Topic-4: Money, Banking & Financial System (Lecture notes + Rochon & Rossi Ch.4 & 5 & 6 & 15 + Mankiw Ch. 4 & 11 & 12 + Blanchard, Amighini and Giavazzi Ch.5 & 6 & 14)
Topic-5: Shocks & Fluctuations Using IS-LM model, The Great Depression, Economic & Financial Crises (Lecture notes + Mankiw Ch.12 + Blanchard, Amighini and Giavazzi Ch.20)
Topic -6: Inflation, Unemployment and Phillips Curve (Lecture notes + Mankiw Ch. 5 & 7 & 14 + Rochon & Rossi Ch.8 + Blanchard, Amighini and Giavazzi Ch.7 & 9 & 10, Carlin & Soskice Ch.2)
Topic -7: The 3-Equation Model and Macroeconomic Policy (Lecture notes + Carlin & Soskice Ch.3)
Topic -8: Economic Growth, Capital Accumulation, Population Growth, Technological Advancement (lecture notes + Mankiw Ch.8 & 9 + Rochon & Rossi Ch.10 + Blanchard, Amighini and Giavazzi Ch.11 & 12 & 13)
Topic -9: Open Economy Model (Lecture notes + Mankiw Ch.6 & 13 + Amighini and Giavazzi Ch.6)
30 CATSTerm 1: microeconomics, which is concerned with the economic behaviour of individual consumers and producing firms, and their interaction in markets for goods, services and factors of production, strategic interaction and the analysis of externalities and public goods. The module will typically consider some of the following topics:
What is Economics; Demand and Supply; Consumer Choice; Uncertainty; Information; Production; Costs; The Market Mechanism; Perfect Competition; Imperfect Competition, including Monopoly, Monopolistic Competition and Oligopoly; Game Theory; Market Failure, including Externalities and Public Goods
Term 2: macroeconomics, which is concerned with aggregate economic variables or the workings of the national economy as a whole: aggregate output (Gross Domestic Product or GDP), employment and unemployment, inflation, interest rates, the balance of payments, exchange rates, etc., and with government economic policies to influence these variables.
Introduction to Macroeconomics; Economic Growth; National Accounts, Alternative Measurements; The Distribution of Income; Aggregate Demand and Aggregate Supply; Equilibrium National Income; Inflation; Unemployment; The Phillips Curve; The Money Market; Interest Rates; The Financial System; ISLM analysis; The Great Depression; Economic and Financial Crises; The 3-Equation Model; Macroeconomic Policy; Technological Change; Models of Capital Accumulation; The Open Economy
Context
- Core Module
- G300 - Year 1, Y602 - Year 1
- Optional Module
- G100 - Year 1, G103 - Year 1
- Pre or Co-requisites
- A-level Mathematics or the equivalent
- Pre-requisite for
- EC204-30, EC220-12, EC221-12, EC220-15, EC221-15
- Part-year Availability for Visiting Students
- Available in the Spring term only (1 x test - 9.6 CATS) and in the Autumn and Spring terms together (2 x tests - 19.2 CATS)
Assessment
- Assessment Method
- Coursework (20%) + 2 hour exam (summer) (80%)
- Coursework Details
- 24 CATS , Test 2 (10%), 2 hour exam (summer) (80%) 30 CATS , Test 2 (10%) , 2 hour exam (summer) (80%)
- Exam Timing
- 24 CATS - Summer 30 CATS - N/A
Exam Rubric
Time Allowed: 2 Hours.
Read all instructions carefully – and read through the entire paper at least once before you start entering your answers.
There are TWO Sections in this paper. Answer ALL THREE questions in Section A (50 marks total) and ALL THREE questions in Section B (worth 50 marks total).
Approved pocket calculators are allowed.
You should not submit answers to more than the required number of questions. If you do, we will mark the questions in the order that they appear, up to the required number of questions in each section.
Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.