BSc Economics

This course aims to introduce students to rigorous analysis of the workings of the factor (i.e., 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) labour demand and supply, (ii) intertemporal choice, (iii) capital market and real interest rate, (iv) expected utility theory, (v) risk aversion, (vi) optimal insurance, (vii) risky asset investment, and (viii) 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 (i.e., 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.     Labour demand and supply.

2.     Intertemporal choice.

3.     Capital market and real interest rate.

4.     Expected utility theory.

5.     Risk aversion.

6.     Optimal insurance purchasing.

7.     Risky asset investment.

8.     Asymmetric information.

• Factors Markets
  Labour demand and supply;
  Intertemporal choice;
  Capital Market and real interest rate.
• Uncertainty
  Decisions under risk;
  Expected utility Theory;
  Risk aversion;
  Optimal insurance;
  Risky asset investment.
• Asymmetric Information
  Adverse selection;
  Moral hazard;
  Signalling.

Online Learning and Guided Self-Study

85% Exam

15% Mid-term test

Weekly tutorial: A problem set containing questions designed to reinforce the understanding of the material covered in the lectures is assigned to each tutorial. Students are asked to attempt the questions before attending each tutorial, and get the questions answered by the tutor during the tutorial session.

• 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.