To enable students to develop a deeper understanding of microeconomic concepts introduced in first-year analysis.
To introduce students to new concepts in intermediate microeconomic analysis.
To develop students’ understanding of more complex micro concepts, such as general equilibrium analysis and game theory.
To provide students with an understanding of the application of microeconomics to policy.
To equip students with a range of appropriate analytical skills, including descriptive, graphical and mathematical methods; and to develop the capacity to apply analytical techniques to real world problems
Principal Learning Outcomes
By the end of the module the student should be able to understand key concepts and principles in intermediate microeconomics. Apply rigorous knowledge of theoretical models which underlie economic analysis. Understand the uses, applications and limitations of theoretical models. Demonstrate knowledge of microeconomic policies and abstract and simplify economic problems through the application of theoretical models.
Microeconomics. The exact topics may vary, but the syllabus will include a selection of the following topics:
• Consumer Theory: indifference analysis, tastes and preferences, applications.
• Choice Under Uncertainty: risk, uncertainty, expected value, expected utility, asymmetric information, insurance, moral hazard, adverse selection and solutions.
• Producer theory: isoquants and isocost analysis; marginal rate of transformation.
• General equilibrium and welfare economics
• Market Failures: externalities, public goods and solutions
• Game Theory: Simultaneous and sequential games, Pure strategy and Mixed strategy Nash equilibrium; sub-game perfect Nash equilibrium
• Competition and Firm Behaviour: price discrimination, models of oligopoly and monopoly
- Core Module
- L1L8 - Year 2, X35B - Year 2
- Pre or Co-requisites
- EC106 (for MORSE students) or EC137 or EC131 and EC229 with a mark of 60% in each plus passes in IB121 and IB122.
- LA99 students must take EC204 instead
- Part-year Availability for Visiting Students
- Not available on a part-year basis
- Assessment Method
- Coursework (20%) + 1.5 hour exam (80%)
- Coursework Details
- One assignment (2000-word essay) (20%)
- Exam Timing
Time Allowed: 1.5 hours.
Answer BOTH questions from Section A (40 marks total) and ONE question from Section B (60 marks each). Answer Section A questions in one booklet and Section B questions 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.