BAEcon Economics and Finance / Course details

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.

For BSc Economics and BA Econ students Co-Requisite: ECON20501

ECON20501 Micro Analysis 3

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:

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.

 

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

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).

80% Exam

20% Mid-term test

 

• 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

 

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

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

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.