BSc International Business, Finance and Economics with Industrial/Professional Experience / Course details

Year of entry: 2020

Course unit details:
Microeconomics 2

Unit code ECON20232
Credit rating 10
Unit level Level 2
Teaching period(s) Semester 2
Offered by Economics
Available as a free choice unit? No

Overview

This module will introduce students to the basics of industrial organization, individual decision making, the role of markets and how they fail as well as issues around the measurement and study of inequality.

Students will develop a build on the Microeconomics learned in Term 1 to more fully be able to study and discuss some of the main ideas and issues in micro.

Pre/co-requisites

Unit title Unit code Requirement type Description
Microeconomics 1 ECON10221 Pre-Requisite Compulsory
Introductory Mathematics ECON10061 Pre-Requisite Compulsory
Advanced Mathematics ECON10071 Pre-Requisite Compulsory
ECON20232 Prerequisites: ECON10221 and (ECON10061 or ECON10071)

ECON10221 and (ECON10061 Intro Maths or ECON10071 Adv Maths)

Aims

This module will introduce students to the basics of industrial organization, individual decision making, the role of markets and how they fail as well as issues around the measurement and study of inequality. 

Learning outcomes

Students will develop a build on the Microeconomics learned in Term 1 to more fully be able to study and discuss some of the main ideas and issues in micro.

Syllabus

 Choice Theory 2

•      Revisit classic models of individual agent’s decision making and newer developments allowing for agent’s uncertainty and irrationality.

Understanding Markets 2: Market Failure Due to Market Conditions

•      Public goods and the role of the state.

•      Funding the provision of public goods with taxes.

•      Efficiency loss and gain from taxation.

•      The moral limits of markets.

Externalities, Under/Over Provided Goods, Social Costs

•      Theory of externalities.

•      Applications to (e.g. Environmental and Education policy).

Information Asymmetries

•      Moral Hazard.

•      Adverse selection.

•      Cheap talk and Signaling.

•      Applications to Public policy and information provision.

The Distribution of Gains from Markets

•      Inequality and redistribution.

•      Inequality.

•      Measurement.

•      Debates and policies.

•      Normative issues: Rawls and Nozick.

•      Redistribution as a public good.

Political Economy

•      Power and Economic Policy.

•         Institutions and development.

Teaching and learning methods

Lectures and tutorial classes.

Employability skills

Analytical skills
Oral communication
Problem solving

Assessment methods

55%     Essay

20%     Presentation

25%      6xOnline tests

Recommended reading

The main text for this module is CORE Economics. Students should register (it is free) at www.core-econ.org/.
 

Study hours

Independent study hours
Independent study 0

Teaching staff

Staff member Role
Peter Backus Unit coordinator

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