Introduction to Economic Policy

Module Code: EC1040

Module Name: Introduction to Economic Policy

• ECTS Weighting: 10
• Semester/Term Taught: Michaelmas + Hilary Term
• Contact Hours: 44 hours of lectures and 20 hours of tutorials
• Module Personnel: Lecturer - Professor Eleanor Denny / Lecturer - Professor Michael Wycherleys

Learning Outcomes

On successful completion of the two modules in this course, you will be able to:

• Explain in detail the concepts of demand, supply and prices and illustrate shifts and movements in demand and supply curves
• Discuss the concepts of general equilibrium and distinguish between the short run and long run positions of a perfectly competitive firm
• Evaluate the benefits of competition versus a monopoly and oligopoly
• Explain the causes of market failure
• Understand the sources of economic growth and cross country differences in average incomes
• Explain the options faced in macroeconomic policy setting
• Discuss the reasons for and the implications of the adoption of the euro

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Module Learning Aims

The first part of this module, presented by Professor Denny, aims to provide students with a comprehensive outline of some of the core elements of micro economics and their applications. By the end of the first half of the module it is hoped that students will be able to use their knowledge of economic theory and policy so as to have a better understanding of the drivers of demand and supply and of the decision making processes of individuals and businesses.

The second part of this module, presented by Professor Wycherley, aims to provide students with a comprehensive outline of some of the core elements of macroeconomics and their applications. By the end of the second half of the module it is hoped that students will be able to use their knowledge of economic theory and policy so as to have a better understanding of how an economy functions and to help their decision making processes in later life.

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Module Content

Michaelmas Term:

A. Introduction to Economics

1. Introduction to the subject of Economics, Opportunity Cost and Choice.
2. Introduction to the subject of Economics, Opportunity Cost and Choice.
3. Elasticity and the characteristics of different demand and supply curves

B. The Market System

1. Household choice, budget constraints and he concept of utility
2. The Production function and how firms make decisions
3. Short run decisions versus long run decisions
4. Labour and land
5. Capital markets and investment
6. General Equilibrium and Perfect Competition

C. Market Imperfections

1. Monopoly
2. Oligopoly
3. Monopolistic Competition

Other issues: Externalities, Public goods and Social Choice, Uncertainty, Income Distribution

Hilary Term

• Description of macroeconomics and the issues policymakers face
• Sources of economic growth and differences in average income levels
• Labour markets and unemployment
• Monetary and fiscal policy and the Phillips curve
• Exchange rates, the trilemma and EMU
• The Euro in practice

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Recommended Reading List

Given the different backgrounds of students in the class it is difficult to recommend one textbook.

For those starting out in Economics for the first time, Gregory Mankiw and Mark P. Taylor's Economics (South-western: Cengage learning) is recommended.

There are a multitude of basic textbooks on economics. Students should browse in the Lecky to consult some of these. Bade and Parkin's Foundations of Macroeconomics is worth consulting. For those wishing to learn about the background to economic theories they could read Paul Strathern's A Brief History of Economic Genius (Texere, London and New York, 2001), Todd G. Buchholz's New Ideas from Dead Economists (Penguin 1989; re-print 1999) and Robert Heilbroner's classic The Worldly Philosophers (1953; re-print Simon and Schuster, 1991)

For the second semester, students should also download a copy of the latest Central Bank of Ireland Quarterly Bulletin from the internet.

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Assessment Details

The final exam amounts to 70% of the marks for this module. In the first semester there is a group work project accounting for 15% and in the second semester there is an individual assignment worth 15%.

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Module Website

Michaelmas Term: Blackboard

Hilary Term: https://sites.google.com/site/wycherlm/ec1040

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