Intermediate Economics

Module Code: EC2010

Module Title: Intermediate Economics

• ECTS Weighting: 10
• Semester/Term Taught: Michaelmas + Hilary Term
• Contact Hours: 44 hours of lectures and 20 hours of tutorials
• Module Personnel: Lecturer - Professor Francis O'Toole / Lecturer - Professor Philip Lane

Learning Outcomes

Having successfully completed this module, you will be able to:

• explain and interpret economic issues through the application of economic analysis/theory;
• formulate and address economic policy issues using the language and approach of economic analysis/theory;
• set up and solve theoretical economic problems related to the topics in this module;
• articulate economic reasoning and results.

Satisfactory completion of this module will contribute to the development of the following key skills:

• explanation and interpretation of economic phenomena using the appropriate economic theory tools and terminology;
• critical analysis of real world economic issues through the medium of generic economic theoretical concepts;
• economic reasoning, and critical evaluation of same, in clear and concise English.

Module Learning Aims

This module provides students with a broad overview of intermediate-level economy theory, covering both microeconomic theory and macroeconomic theory. As such, this module is the core building block for degree programmes specializing in economics, such as single or joint honors economics (e.g. BESS, PPES and TSM Economics). EC2010 is a pre-requisite for many subsequent advanced theory and policy modules in economics.

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Module Content

The module focuses on intermediate-level economic analysis/theory, and provides a foundation for the more advanced economic policy and economic theory modules available in subsequent years. EC1010 (or equivalent, e.g. EC1040) and EC1030 (or equivalent) are prerequisites for EC2010.

Michaelmas Term:

The first part of the module addresses microeconomic theory. The material is built around the study of economic agents (e.g. consumers or producers) maximizing objectives (e.g. utility or profits) in an environment of economic constraints (e.g. income or costs). The theory will be supported by a number of applications (e.g. labourleisure choice or consumption-savings choice).

Topics discussed during Michaelmas Term include:

• Consumer theory (indifference curves and budget constraints);
• Producer theory (isoquant curves and isocost lines);
• Market structure (perfect competition, monopoly, monopolistic competition and oligopoly);
• Game theory;
• Factor markets;
• Welfare economics and general equilibrium.

Hilary Term:

The second part of the module addresses macroeconomic theory. The material is built around the study of the behaviour of the economy as a whole. The approach is based on microeconomic foundations and progresses from individual maximization problems, as studied in the microeconomics module, to macroeconomic issues and issues confronting the aggregate economy.

Topics discussed during Hilary Term include:

• IS-LM Model;
• AS-AD Model;
• The Open Economy;
• Long-Run Growth;
• Inflation and Unemployment;
• Expectations.

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Recommended Reading List

Microeconomics: Estrin, Laidler and Dietrich, Microeconomics, (latest edition) and/or Varian, H., Intermediate Microeconomics: A Modern Approach, Norton, (latest edition).
Macroeconomics: Francesco Giavazzi, Alessia Amighini and Olivier Blanchard, Macroeconomics: A European Perspective, (latest edition), Pearson.

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Module Pre Requisite

EC1010 (or equivalent, e.g. EC1040) and EC1030 (or equivalent)

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Assessment Details

Two mid-term tests taking place in week 8 of each term accounting for 15% of the overall grade. A final exam accounting for 70% of the overall grade.

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Module Website

Blackboard

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