BSc Economics

Year of entry: 2022

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 (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.

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 (i.e., 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.     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.

Syllabus

  • 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.

Teaching and learning methods

Online Learning and Guided Self-Study

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

85% Exam

15% Mid-term test

Feedback methods

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.

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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