BA Politics, Philosophy and Economics / Course details

The unit aims to provide students with a rigorous treatment of fundamental microeconomic concepts exposing the class to key economic ideas and theories motivated and explained with the regular use of real world examples.

Students will acquire a deeper and more rigorous understanding of the concepts encountered in Microeconomics 1 and Microeconomics 2. Specifically, students will be taught: (i) General Equilibrium Theory; (ii) Decision making under Uncertainty; (iii) Role of Information in Economics; (iv) Market Failures, particular focus on externality, public goods, and coordination failure and institutional responses; and (v) a brief introduction to Behavioural Economics.

ECON30022 Prerequisites: ECON30021 Micro 3 and (ECON10071 Adv Maths or ECON20071 Adv Maths)

 

The unit aims to provide students with a rigorous treatment of fundamental microeconomic concepts exposing the class to key economic ideas and theories motivated and explained with the regular use of real world examples.

Students will acquire a deeper and more rigorous understanding of the concepts encountered in Microeconomics 1 and Microeconomics 2. Specifically, students will be taught: (i) General Equilibrium Theory; (ii) Decision making under Uncertainty; (iii) Role of Information in Economics; (iv) Market Failures, particular focus on externality, public goods, and coordination failure and institutional responses; and (v) a brief introduction to Behavioural Economics.

Brief overview of the syllabus/topics:

1. General Equilibrium and Economic Welfare

• General Equilibrium: feedback between competitive markets
• Endowment and mutually beneficial trades
• Competitive Exchange and comparative advantage
• Efficiency and Equity

2. Uncertainty

• Decision Making under Uncertainty: Expected Utility Theory
• Risk preferences
• Investing under Uncertainty: Insurance

3. Information

• Asymmetric Information and Adverse Selection
• Moral Hazards
• Contracts

4. Market Failure

• Coordination Failure and Institutional Responses
• Externality
• Public Good

5. Behavioural Economics

• Behavioural Economics of Risk: Prospect Theory Social Preferences

Synchronous activities (such as Lectures or Review and Q&A sessions, and tutorials), and guided self-study

Microeconomic theory accompanied by real world applications

independent study; critical thinking 

mathematical skills, writing on technical economic concepts, presenting economics concepts and their applications in real world, use of word processing software

problem solving; analysis and synthesis; students will develop presentation and interpersonal skills through participation in tutorial sessions and presenting a given topic related to microeconomics in the form of oral/poster presentation.

60% Exam (1hr or equivalent)

20% Presentation

20% Coursework (2 x 10%)

• Online quizzes released on Blackboard and tutorials
• Feedback: during tutorial classes,  on the Discussion Board, and during office hour

Varian, “Intermediate Microeconomics: a modern approach”, 9^th Edition, 2014, Norton.

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.