To develop the notion of competitive equilibrium and the fundamental properties of competitive equilibria.
Principal Learning Outcomes
By the end of the module the student should be able to acquire a sense of the importance of strategic considerations in economic problem solving and the normative significance of competitive markets in obtaining Pareto optimal allocations via appropriate extensions of the commodity space. Learn that a few simple, intuitive principles, formulated precisely, can go a long way in understanding the fundamental aspects of many economic problems.
The module will typically cover the following topics:
1. Foundations and Definitions for the Study of Walrasian Equilibrium: Commodities, Consumer preferences, Edgeworth boxes, Production
2. Efficiency of Allocation and Production
3. Walrasian Equilibrium in Exchange Economies
4. Walrasian Equilibrium in Production Economies
5. The First Welfare Theorem of Economics
6. The Second Welfare Theorem of Economics
- Pre or Co-requisites
- 12 CATS - EC121 or EC123 AND EC122 or EC124; EC107 for GL11 students.
15 CATS - EC120 or EC107 for GL11 students
- Pre-requisite for
- 15 CATS for Economics-based students. 12 CATS for MORSE students. 3rd years may opt to take EC220 as a 15 CAT module, but this excludes L100 students, who may not take EC200 coded modules in year 3.
- Part-year Availability for Visiting Students
- 12 CATS - Not available on a part-year basis
15 CATS - Available in the Spring term only (1 x test - 12 CATS) and in the Spring and Summer terms together (1 x test and 1 x 2 hour exam – 15 CATS)
- Assessment Method
- 12 CATS - 2 hour exam (100%)
15 CATS - Coursework (30%) + 2 hour exam (70%)
- Coursework Details
- One 90 minute test (30%)
- Exam Timing
Time Allowed: 2 hours.
Answer TWO questions ONLY. All questions carry equal weight (50 marks each). Answer each question in a separate booklet.
Approved pocket calculators are allowed.
Read carefully the instructions on the answer book provided and make sure that the particulars required are entered on each answer book. If you answer more questions than are required and do not indicate which answers should be ignored, we will mark the requisite number of answers in the order in which they appear in the answer book(s): answers beyond that number will not be considered.
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.