Module Code: EC2010
Module Title: Intermediate Economics
- ECTS Weighting: 10
- Semester/Term Taught: Michaelmas Term + Hilary Term
- Contact Hours: 44 hours of lectures and approximately 20 hours of tutorials
- Module Personnel: Lecturer - Professor Francis O'Toole / Lecturer - Professor Davide Romelli
Module Learning Aims
This module aims to:
- provide those with a fundamental level of economics (e.g. EC1010) with the required foundation in economic analysis/theory necessary for tackling more advanced economic policy and economic theory modules (e.g. EC3010);
- provide the core building block for degree programmes specializing in economics, such as single or joint honors economics (e.g. BESS, PPES and TSM Economics);
- provide the appropriate economic tools and terminology for the explanation and interpretation of economic phenomena;
- provide the generic theoretical concepts required for a critical analysis of real world economic issues; and,
- facilitate the use of the clear and concise English that is required for economic reasoning and policy-making.
Module Learning Outcomes
Having completed this module (successfully), you will be able to:
- describe, interpret and evaluate economic events 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; and,
- articulate economic reasoning and results
This module provides students with a broad overview of intermediate-level economic theory, covering both microeconomic theory and macroeconomic theory.
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. labour-leisure choice, 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 (Nash equilibrium);
- Factor markets;
- Welfare economics and general equilibrium.
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;
Recommended Reading List
Microeconomics: Estrin, Laidler and Dietrich, Microeconomics, (recent edition) or Varian, H., Intermediate Microeconomics with Calculus or Intermediate Microeconomics Norton, (recent edition).
Microeconomics, (International Edition): Goolsbee, Levitt and Syverson, Macmillian, 2013 provides some excellent examples of applied economics.
Macroeconomics: Francesco Giavazzi, Alessia Amighini and Olivier Blanchard, Macroeconomics: A European Perspective, (latest edition), Pearson.
Module Pre Requisite
EC1010 (or equivalent, e.g. EC1040) and EC1030 (or equivalent).
It is envisaged that there will be two mid-term tests taking place in teaching week 8 (usually on Saturday morning at the end of teaching week 8) of each term with each accounting for 15% of the overall grade. A final exam accounts for 70% of the overall grade.