Overview

By the end of this module, you will be able to define and distinguish between basic microeconomic and macroeconomic concepts. You will gain an understanding of different economic systems, basic economic problems, the concept of scarcity, economic resources, and other foundational economic concepts. The course will focus largely on how free markets work, demonstrating how economic decisions regarding resource allocation are based on market demand, supply, and prices. You will examine the role of government in safeguarding the interests of consumers and producers, as well as improving the economic efficiency of free market outcomes. The level of competition and efficiency of free market equilibrium under different market structures will also be investigated.

You will develop basic mathematical skills by solving simple market demand and supply equations to find market equilibrium and by applying simple calculus to estimate elasticity of demand and supply. Additionally, you will build math skills by solving aggregate demand and aggregate supply equations to determine macroeconomic equilibrium.

This course will help you develop teamwork, group, and verbal communication skills through group discussions, presentations, and other collaborative activities. You will sharpen analytical and decision-making abilities through case study assignments. Research skills will be honed by collecting, analyzing, and interpreting data for case analyses and written reports. Planning and writing skills will also be improved through essay exam questions and written reports.

During this module, participants will focus on two main areas, namely microeconomics and microeconomics.

Microeconomics: -investigating basic economic problems, scarcity, choice, opportunity costs, economic resources, and production possibility frontier. -what is demand, supply and market equilibrium. This covers demand for goods, determinants of demand, the demand curve, supply of goods, determinants of supply, the supply curve, price and output determination, market equilibrium, consumer surplus, producer surplus, and the interrelationship between markets such as joint demand, competitive demand, composite demand and joint supply. -Learn about price elasticity of demand and its determinants, cross price elasticity of demand, income elasticity of demand, supply elasticity and its determinants, and the relationship between price elasticity of demand and consumer expenditure. -identify the different types of goods including normal goods, inferior goods, luxury goods, necessary goods, Giffen goods, Veblen goods and quality goods. -learn about price control, indirect tax and subsidy such as minimum price, maximum price, indirect taxes and subsidies, relationship between tax, subsidy and elasticity. -appraise the role of the market and function of prices, economic efficiency: productive efficiency and allocative efficiency, market failure and reasons for market failure: externalities, public goods and merit goods, government intervention to correct market failure. -understand the theory of production including short run production, fixed factors and variable factors, diminishing marginal returns, long run production, returns to scale; constant, increasing and decreasing returns to scale. -focus on the cost of production, revenue and profits. This includes economic costs and opportunity costs, short run cost of production: fixed costs and variable costs, total cost, average cost and marginal cost, diminishing returns and short run average and marginal costs, long run cost of production: economies of scale and long run average cost, revenue: total revenue, average revenue and marginal revenue, profit maximization, normal profit and economic (super normal) profit. -become familiar with the market structure and the key characteristics of a market, including competition and market structure. -identify types of markets such as perfect competition, monopoly, imperfect competition: monopolistic competition, and oligopoly.

Macroeconomics: -get an overview of macroeconomics, including macroeconomic objectives, business cycles, circular flow of income and measures of national income. -learn about economic growth by looking at the measure of economic growth, output gap: potential and actual output, causes of economic growth, costs and benefits of growth and UK economic growth. -understand unemployment by investigating measures of unemployment, types of unemployment, costs of unemployment and UK unemployment. -focus on inflation by looking at the meaning of inflation, the measure of inflation, its causes, the costs of inflation, and UK inflation. -Define balance of payments, and investigate the components of balance of payments, current account deficit and surplus, factors affecting current account balance, policies to reduce a current account balance, and the UK current account. -understand aggregate demand by considering the meaning and components of aggregate demand, the aggregate demand curve, shifts in aggregate demand curve and multipliers -learn about aggregate supply and equilibrium national output. This involves the meaning of aggregate supply, short run and long run aggregate supply curves: Classical and Keynesian models, macroeconomic equilibrium, equilibrium national output in the short run and long run, shifts in aggregate demand and aggregate supply on equilibrium national output, economic growth, unemployment, inflation and current account balance. Investigate macroeconomic policy by focussing on fiscal policy, monetary policy and supply side policies. There will be consideration of government spending, taxation and borrowing, budget deficit, government borrowings and crowding out effect, fiscal policy, and monetary policy instruments.

Assessment Strategy

Threshold (40-49% / D- to D+): Student has made sufficient progress in the study of this module to achieve the lowest level of pass allowing for progression onto an undergraduate degree.

Satisfactory (50 – 59% / C- to C+): Student demonstrates reasonably comprehensive coverage of learning outcomes, indicating generally accurate understanding, based on lecture material and some core readings. Some gaps in knowledge and/or understanding evident.

Good (60-69% / B- to B+): Student has displayed a sound basic knowledge and understanding of much of the material studied in this module and achieved a high enough grade to indicate a clear ability to cope with the demands of an undergraduate level degree.

Excellent (70% + / A- to A*): Student has engaged consistently well with all aspects of the module and strong achievement in assessments indicates the ability to perform effectively at undergraduate degree level.

Learning Outcomes

• Analyse data and information to propose solutions to economic problems.

• Analyse the macroeconomic policy objectives and ways in which governments use macroeconomic policy instruments to accomplish macroeconomic policy objectives

• Demonstrate knowledge of macroeconomic and microeconomic theories and models and apply to practical situations

• Use economic concepts of opportunity costs, optimization, and cost and benefit analysis to make rational business and economic decisions