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BAEcon Economics and Finance / Course details

Year of entry: 2021

Course unit details:
Microeconomic Analysis 4

Unit code ECON20512
Credit rating 10
Unit level Level 2
Teaching period(s) Semester 2
Offered by School of Social Sciences
Available as a free choice unit? Yes

Overview

This course aims to introduce students to rigorous analysis of the workings of the factor (labour and capital) markets and how uncertainty and asymmetric information affect the decision making process of market actors.

At the end of this course unit it is expected that you will be able to demonstrate your understanding of: (i) labor demand and supply, (ii) intertemporal choice, (iii) capital market and real interest rate, (iv) expected utility theory, (v) concept of risk aversion, (vi) optimal insurance purchasing, (vii) Risky asset investment, (viii) economics of asymmetric information.

Pre/co-requisites

Unit title Unit code Requirement type Description
Microeconomic Analysis 3 ECON20501 Co-Requisite Compulsory
For BSc Economics and BA Econ students Co-Requisite: ECON20501

ECON20501 Micro Analysis 3

Aims

This course aims to introduce students to rigorous analysis of the workings of the factor (labour and capital) markets and how uncertainty and asymmetric information affect the decision making process of market actors.

 

 

Learning outcomes

At the end of this course unit it is expected that you will be able to demonstrate your understanding of:

  1. Labor demand and supply.
  2. Intertemporal choice.
  3. Capital market and real interest rate.
  4. Expected utility theory.
  5. Concept of risk aversion.
  6. Optimal insurance purchasing.
  7. Risky asset investment.
  8. Economics of asymmetric information.

 

Syllabus

Factors Markets
Labor demand and supply
Intertemporal choice
Capital Market and real interest rate

Uncertainty
Decisions under risk
Expected utility Theory
Concept of risk aversion
Optimal insurance purchasing
Risky asset investment

Asymmetric Information
Adverse selection
Moral hazard
Signalling

Teaching and learning methods

The material is delivered via the online (Blackboard) provision of material (readings, clips) and lectures.

The learning process of students is supported by tutorials (exercise questions and discussion based questions) and the provision of further online material (such as discussion boards and practice quizzes).

Employability skills

Analytical skills
Abstract and numerical reasoning.
Problem solving
Applying knowledge to unfamiliar problems.
Written communication
Using words, mathematics, and diagrams to explain, solve problems, and make arguments. Producing documents with text, mathematics, and diagrams. Academic writing.

Assessment methods

80% Exam

20% Mid-term test

Feedback methods

 

  • Formative Assessment (assessment that does not contribute to your grade) and other feedback opportunities
  • Weekly tutorial: A Problem set containing questions designed to reinforce understanding of material covered in the lectures is assigned for each tutorial. Students are asked to attempt the questions before attending each tutorial and get questions answered during the tutorial.
  • Sample Exam Paper

Recommended reading

 

Nicholson, Walter and Christopher Snyder, Intermediate Microeconomics and its Applications, Cenage Learning, 2015.

Varian, Hal. R., Intermediate Microeconomics with Calculus, Norton, 2014.

Study hours

Independent study hours
Independent study 0

Teaching staff

Staff member Role
Alejamdro Saporiti Unit coordinator

Additional notes

For every 10 course unit credits we expect students to work for around 100 hours. This time generally includes any contact times (online or face to face, recorded and live), but also independent study, work for coursework, and group work. This amount is only a guidance and individual study time will vary.

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