ECO4002 - Principles and Applications of Microeconomics

Objectives:

On successful completion of the module, students will be able to:
Explain how consumer choices, household demand, and firm behaviour determine how scarce resources are allocated in society.
Describe the nature of costs facing firms and the impact of varying factor inputs in the short and long run.
Illustrate the concepts of market demand, market supply, marginal revenue and marginal costs in a range of industrial contexts to determine profit maximisation.
Use these principles in an array of contexts so as to analyse economic problems (such as market failure), and evaluate solutions.

Content:

Students will study a range of introductory and intermediate microeconomic topics, including demand and supply and the nature of markets, factors of production and their efficient allocation in the short and long run by considering fixed and variable factors, and cost and benefit analysis through the interpretation of marginal and average costs. They will also be introduced to the theory of the firm through detailed analysis of perfect competition, monopoly and other market structures, and will learn to consider how imperfect markets fail, the impact of that market failure on welfare and in particular on public goods and free riders.

Learning and Teaching Information:

The module will be delivered via a series of weekly 3-hour teaching blocks, comprising whole-group interactive lecture and seminar covering fundamental theories and applications. Lectures and seminars will be supported by in-depth applied workshops.

The module will present students with selected scenarios for basic analysis in order to develop both analytical competence and the ability to identify and apply appropriate techniques in a range of typical situations. Students will be provided problems and quizzes in which they will be required explain and illustrate specific concepts related to demand, supply, and equilibrium in specific markets. Seminars and workshops will also focus on assessment planning, preparation, and research.

The module will also make use of current newsworthy case studies (e.g. market failures and government responses) and developing business and political trends, and so the nature of the topics and exercises will vary. Students will be provided with, and/or directed to, relevant reading and additional questions/ exercises to support their progress through the module material.

Lectures / seminars
Hours: 30
Intended Group Size: Cohort

Workshops / tutorials
Hours: 10
Intended Group Size: Cohort or variable-size groups

Guided independent study
Hours: 160

Further details relating to assessment
Short answer quiz: Student ability to represent market demand and market supply, and their interaction to determine price and output, as well as their understanding of marginal cost and revenue analysis will be tested through a set of five to ten problems requiring graphical or mathematical illustration.

Essay: The second assignment tests student's ability to explain how different degrees of competition in a market affect pricing and output, how the major characteristics of different market structures have implications for the behaviour of the firm, and how market failures impact economic welfare.

Directed activities: these consist of weekly tasks that must be completed and submitted for inspection at timetabled sessions each week. The assessment will be assessed on a pass/fail basis with a pass requiring at least 75% of all weekly tasks to be completed successfully. A pass will lead to the full award of 10% towards the final module mark. A fail in directed activities will contribute 0% to the final mark.

Formative assessment is provided throughout Level 4 modules in the BA Economics programme. Characterised as assessment for learning, formative assessment in early stages influences future learning by allowing students opportunity to act on feedback before receiving their final grade. Weekly lectures and tutorials are taught in an interactive manner, providing semi-formal discussion and debates, peer critique and feedback, as well as quizzes and individual or group presentations.

Assessment:

001 Directed activities; throughout semester 1 10%
002 Quiz; 30 minutes; mid-semester 1 20%
003 Essay; 2,800 words; end of semester 1 70%

Fact File

Module Coordinator - Carmen Dorobat
Level - 4
Credit Value - 20
Pre-Requisites - NONE
Semester(s) Offered - 4S1

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