MODULE CODE: EC1040

MODULE TITLE: INTRODUCTION TO ECONOMIC POLICY

Lecturers: Prof. Eleanor Denny / Mr Ronan Lyons
Phone: 1522 / TBC
Email: dennye@tcd.ie / rolyons@tcd.ie
Office: 3016 / TBC Arts Building
Office Hours: Tuesdays 11.00 - 13.00 / Mondays & Tuesdays 17.00 - 18.00

ECTS VALUE: 10

CONTACT HOURS
24 hours lectures per term
12 hours tutorials per term

RATIONALE AND AIMS
The first part of this module, presented by Prof. 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 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 the drivers of demand and supply and of the decision making processes of individuals and businesses.

The second part of this module, presented by Mr Lyons, 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.

MODULE CONTENT

Michaelmas Term:
A. Introduction to Economics

• Introduction to the subject of Economics, Opportunity Cost and Choice.
• Where do the demand and supply curves come from?
• Elasticity and the characteristics of different demand and supply curves

B. The Market System

• Household choice, budget constraints and he concept of utility
• The Production function and how firms make decisions
• Short run decisions versus long run decisions
• Labour and land
• Capital markets and investment
• General Equilibrium and Perfect Competition

C. Market Imperfections

• Monopoly
• Oligopoly
• Monopolistic Competition

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

Hilary Term
A. National Economies

• Why do we measure income, not happiness? National accounts, GNP & GDP
• When and why did economies start growing? Economic growth, the Industrial Revolution, from Malthus to growth
• Why is the world economy in crisis? The business cycle, recessions, booms and bubbles

B. Government Policy

• Should Ireland leave the euro? Interest rates, inflation, monetary policy and banking
• Will our grandchildren still be paying for our mistakes? Fiscal policy, taxes & government finances
• Should we protect Irish jobs from imports? International trade & competitiveness

 C. Macroeconomics in your life

•  Should we reintroduce third-level fees? Unemployment, human capital & the labour market
•  Should I rent or buy? Pensions, mortgages & the housing market
•  Why do we live where we do? Migration, amenities & economics outside the market

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 basic macroeconomic structure and economic growth
• Identify and analyse the causes of the current domestic and international economic crisis
• Understand the nature of government economic policy, in particular monetary and fiscal policy
• Understand the economics of the housing and labour markets

METHODS OF TEACHING AND STUDENT LEARNING
The teaching strategy is a mixture of lectures, tutorials, and problem solving. The format of lectures is conventional; however, as a large proportion of the module is practical and based on real markets there is much emphasis on media reporting and real-life examples. Also, there are a number of guest lectures for this course.

The students attend weekly tutorials where they work through problem sheets based on the lectures. 

METHODS OF ASSESSMENT
(a) 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 a mid-term test accounting for 5% of the final grade.  In the second semester there is a mid-term assignment accounting for another 10%.
(b) The students work through problem sets in the tutorials and the tutors monitor the comprehension of the students. The lecturers then meet with the tutors on a weekly basis to discuss the students’ progress and the lecturers can then revise material in lectures if necessary.

EVALUATION
Student feedback and evaluation of this course will be requested in both Michaelmas and Hilary terms and students are actively encouraged to participate in this process.

READING
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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