EC238: Economics 2: Microeconomics

Damiano Turchet
Module Leader

15 CATS - Department of Economics

Introduction

EC238-15 Economics 2: Microeconomics

Principal Aims

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

Subject knowledge and understanding:...understand key concepts and principles in intermediate microeconomics.

Subject knowledge and understanding:...apply rigorous knowledge of theoretical models which underlie economic analysis.

Key Skills:...communicate knowledge and understanding of economics in written, spoken, graphical and in mathematical forms.

Key Skills:...conduct individual and collaborative research into an Economic topic, using world wide web and library resources.

Subject knowledge and understanding:...demonstrate knowledge of microeconomic policies.

Subject knowledge and understanding:...abstract and simplify economic problems through the application of theoretical models.

Key Skills:...present the output of their own work to an audience.

Cognitive Skills:...analyse and formulate models for understanding and solving problems.

Subject knowledge and understanding:...to understand the uses, applications and limitations of theoretical models.

Cognitive Skills:...analyse competing models and hypotheses in a critical way.

Subject-Specific/Professional Skills:...select and apply appropriate economic models and techniques to particular problems especially those of a policy nature.

Subject-Specific/Professional Skills:...produce concise and analytical reports relating to economic problems and issues.

Syllabus

The exact topics may vary, but the syllabus will include a selection of the following topics:

• Consumer Theory: indifference analysis, tastes and preferences, applications. Decomposition and welfare of price changes

• Choice Under Uncertainty: risk, uncertainty, expected value, expected utility, asymmetric information, insurance, moral hazard, adverse selection and solutions.

• General equilibrium and welfare economics

• Market Failures: externalities, public goods and solutions

• Game Theory: Simultaneous and sequential games, Nash equilibrium and sub-game perfect Nash equilibrium; repeated games

• Competition and Firm Behaviour: models of oligopoly and monopoly

Context

Core Module

X35B - Year 2, L1L8 - Year 2

Optional Module

Y602 - Year 2, G100 - Year 2, GG14 - Year 2

Pre or Co-requisites

Any of:

EC106-24 Introduction to Economics OR

EC107-30 Economics 1 OR

EC137-15 Economics 1: Micro

EC131 Economics for Business AND

EC229 Economics of Strategy

with a mark of 60% in each plus passes in

IB121-15 Business Statistics AND

IB122-15 Business Analytics

Summary:

Modules: EC106-24 or EC107-30 or EC137-15 or (IB121-15 and EC131-15 and IB122-15 and EC229-15)

Restrictions

May not be combined with modules EC202-30 or EC204-30

Assessment

Assessment Method: Coursework (40%) + Centrally-timetabled examination (On-campus) (60%)
Coursework Details: Centrally-timetabled examination (On-campus) (60%) , Participation in and engagement with Support and Feedback classes (10%) , Test 1 (30%)
Exam Timing: Summer